Bears hold tight grip on Indian markets

Bears were holding tight grip over Indian equity markets in late morning deals, tracking weak other Asian markets. In line with the larger peers, the broader indices were too lingering under pressure, while almost all sectoral indices except healthcare were trading in red terrain. Domestic sentiments remained pessimistic, as per April data pointed to an unprecedented contraction in Indian manufacturing Purchasing Managers' Index (PMI) to 27.4, as the national lockdown to stem the spread coronavirus disease hit businesses hard. The latest reading is the lowest that the index has ever touched. It points to the sharpest deterioration in business conditions across the sector since data collection for the series began over 15 years ago.

On the global front, Asian markets were trading in red, after Malaysia's exports and imports decreased in March. The data from the Department of Statistics showed that Exports fell 4.7 percent year-on-year to MYR 80.1 billion in March. Imports declined 2.7 percent annually to MYR 67.8 billion in March. Economists had forecast an annual fall of 5.4 percent.

The BSE Sensex is currently trading at 31978.90, down by 1738.72 points or 5.16% after trading in a range of 31931.28 and 32748.14. There were 2 stocks advancing against 28 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 4.07%, while Small cap index was down by 3.10%.

The only gaining sectoral index on the BSE was Healthcare up by 0.36%, while Metal down by 7.83%, Bankex down by 7.28%, Consumer Durables down by 6.53%, Auto down by 6.38% and Realty down by 6.38% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 0.97% and Bharti Airtel up by 0.79%. On the flip side, ICICI Bank down by 9.19%, Bajaj Finance down by 9.04%, Indusind Bank down by 8.94%, HDFC down by 8.71% and Tata Steel down by 8.46% were the top losers.

Meanwhile, the growth of eight core infrastructure industries have contracted by 6.5 percent in March 2020, as compared to same period of last year, due to fall in production of crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity amid the coronavirus lockdown. The eight core sectors had expanded by 5.8 percent in March 2019. According to data released by the ministry of Commerce and Industry, the combined Index of eight core industries stood at 137 in March, 2020, which declined by 6.5 percent compared to the index of March, 2019. Its cumulative growth during April to March, 2019-20 was 0.6 percent. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity - comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).

Among eight core sectors, Coal production having 10.33 percent weight increased by 4 percent in March, 2020 over March, 2019, while its cumulative index decreased by 0.5 percent during April to March, 2019-20 over corresponding period of the previous year. Petroleum Refinery production having 28.04 percent weight fell 0.5 percent in March, 2020 over March, 2019, while its cumulative index rose by 0.2 percent during April to March, 2019-20 over the corresponding period of previous year.

Electricity generation having 19.85 percent weight dropped 7.2 percent in March, 2020 over March, 2019, while its cumulative index increased by 1.0 percent during April to March, 2019-20 over the corresponding period of previous year. Cement production having 5.37 percent weight decreased by 24.7 percent in March, 2019 over March, 2018 and its cumulative index fell by 0.8 percent during April to March, 2019-20 over the corresponding period of previous year. Fertilizer production having 2.63 percent weight declined by 11.9 percent in March, 2020 over March, 2019, and its cumulative index was up by 2.7 percent during April to March, 2019-20 over the corresponding period of previous year.

Steel production having 17.92 percent weight declined by 13.0 percent in March, 2020 over March, 2019, while its cumulative index surged by 4.2 percent during April to March, 2019-20 over the corresponding period of previous year. Crude Oil production having 8.98 percent weight fell by 5.5 percent in March, 2020 over March, 2019 and its cumulative index dropped by 5.9 percent during April to March, 2019-20 over the corresponding period of previous year. The Natural Gas production having 6.88 percent weight declined by 15.2 percent in March, 2020 over March, 2019, and its cumulative index was down by 5.7 percent during April to March, 2019-20 over the corresponding period of previous year.

The CNX Nifty is currently trading at 9362.90, down by 497.00 points or 5.04% after trading in a range of 9345.15 and 9533.50. There were 4 stocks advancing against 46 stocks declining on the index.

The top gainers on Nifty were Cipla up by 4.01%, Sun Pharma up by 1.16%, Dr. Reddy’s Lab up by 0.96% and Bharti Airtel up by 0.74%. On the flip side, Hindalco down by 10.06%, Tata Motors down by 9.87%, Vedanta down by 9.66%, Bajaj Finance down by 9.18% and ICICI Bank down by 9.10% were the top losers.

All Asian markets were trading in red; Straits Times slipped 59.17 points or 2.25% to 2,565.06, Hang Seng declined 947.41 points or 3.84% to 23,696.18, Taiwan weighted plunged 242.51 points or 2.21% to 10,749.63, KOSPI weakened 31.57 points or 1.62% to 1,916.63 and Jakarta Composite was down by 107.36 points or 2.28% to 4,609.04.