Sensex, Nifty trade in deep red in late morning deals

Adding more losses, Indian equity benchmarks were trading near their intraday low points during late morning session. Both the Sensex and the Nifty witnessed sharp fall to trade in deep red, as bears held their tight grip over the Dalal Street, on the back of negative cues from other Asian markets. Domestic sentiments remained negative, as the IMF's managing director said that prospects for a recovery from the COVID-induced economic slowdown are uncertain and uneven, with some emerging economies and almost all low-income countries at risk of lower growth. Traders were seen taking a note of reports that Finance Minister Nirmala Sitharaman raised the limit for tax exemption on interest earned on provident fund contribution by employees to Rs 5 lakh per annum in specified cases as against Rs 2.5 lakh proposed in the Budget.

On the global front, Asian markets were trading lower, after Malaysia's consumer prices increased in February. The data from the Department of Statistics showed that the consumer price index grew 0.1 percent year-on-year in February, following a 0.2 percent fall in January. The annual growth was largely driven by the rise in prices of miscellaneous goods and services by 1.6 percent.

The BSE Sensex is currently trading at 49266.15, down by 785.29 points or 1.57% after trading in a range of 49253.36 and 49854.58. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.11%, while Small cap index was down by 0.77%.

The only gaining sectoral indices on the BSE were Healthcare up by 0.25% and Utilities up by 0.05%, while Realty down by 2.36%, Bankex down by 2.33%, Metal down by 2.24%, Auto down by 1.84% and Capital Goods down by 1.78% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 1.78%, Power Grid up by 0.87%, Dr. Reddy’s Lab up by 0.34% and Sun Pharma up by 0.31%. On the flip side, ONGC down by 3.50%, ICICI Bank down by 3.00%, SBI down by 2.99%, Axis Bank down by 2.99% and Mahindra & Mahindra down by 2.93% were the top losers.

Meanwhile, Indian aviation regulator Directorate General of Civil Aviation (DGCA) has stated that the coronavirus-induced suspension of scheduled international passenger flights has been extended till April 30. However, it added that international scheduled flights may be allowed on selected routes by the competent authority on a case-to-case basis.

Scheduled international passenger services have been suspended in India since March 23, 2020, due to the COVID-19 pandemic. But special international flights have been operating under the Vande Bharat Mission since May and under bilateral ‘air bubble’ arrangements with selected countries since July.

India has formed air bubble pacts with 27 countries, including the US, the UK, the UAE, Kenya, Bhutan and France. Under an air bubble pact between two countries, special international flights can be operated by their airlines between their territories. The DGCA also said that the suspension does not affect the operation of international all-cargo operations and flights specifically approved by it.

The CNX Nifty is currently trading at 14584.90, down by 229.85 points or 1.55% after trading in a range of 14579.05 and 14752.35. There were 6 stocks advancing against 44 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 1.73%, Power Grid up by 0.96%, Cipla up by 0.88%, Sun Pharma up by 0.45% and Dr. Reddy’s Lab up by 0.26%. On the flip side, Tata Steel down by 4.00%, Hindalco down by 3.80%, ONGC down by 3.50%, Mahindra & Mahindra down by 3.16% and SBI down by 3.11% were the top losers.

Asian markets were trading lower; Hang Seng decreased 557.25 points or 1.96% to 27,940.13, Nikkei 225 slipped 599.58 points or 2.07% to 28,396.34, Shanghai Composite declined 43.67 points or 1.28% to 3,367.84, KOSPI fell 11.98 points or 0.4% to 2,992.76, Jakarta Composite lost 56.77 points or 0.91% to 6,195.94, Straits Times trembled 6.13 points or 0.2% to 3,125.61 and Taiwan Weighted dropped 163.89 points or 1.01% to 16,013.70.