Indian bourses enlarge losses; Banking, IT drag

Key benchmark indices enlarged losses to continue weak trade in the morning session, tracking negative cues from Asian markets and amid concerns over rising Covid cases in the country, with the Centre warning that Covid-19 situation in the country is turning from bad to worse. The sentiments remained down-beat as Moody's Analytics stated that India's inflation is at uncomfortably high level, which is an exception among Asian economies. It said higher fuel prices will keep upward pressure on retail inflation and keep the RBI from offering further rate cuts. Retail inflation rose to 5 per cent in February, from 4.1 per cent in January. Market participants overlooked a private report stated that the gig economy can serve up to 90 million jobs in the non-farm sectors in India with a potential to add 1.25 percent to the GDP over the long term. It also said the gig economy, where workers get hired typically for short durations, can lead to transactions of over $250 billion over the long term. Meanwhile, the Finance Ministry said the Centre has released Rs 30,000 crore to the states as GST compensation on March 27, and about Rs 63,000 crore is pending for the current fiscal.

On the global front, Asian markets were trading lower following negative cues overnight from Wall Street on bond yield concerns and sliding oil prices. However, investors are optimistic on a global economic recovery as data from China showed that the country's manufacturing activity expanded at the fastest pace in March. They also await U.S. President Joe Biden's infrastructure plan to be announced on Wednesday, which is seen valued at around $3 trillion to $4 trillion. Back home, on the sectoral front, stocks related to healthcare sector remained in focus with a report by Niti Aayog stating that healthcare has become one of the largest sectors of the Indian economy and is expected to reach $372 billion in 2022. The report outlined a range of investment opportunities in the country's healthcare sector across hospitals, pharmaceuticals and medical devices.

The BSE Sensex is currently trading at 49670.32, down by 466.26 points or 0.93% after trading in a range of 49619.41 and 50050.32. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.22%, while Small cap index was up by 0.29%.

The top gaining sectoral indices on the BSE were Metal up by 1.55%, Basic Materials up by 0.92%, Realty up by 0.60%, Industrials up by 0.51% and Auto up by 0.46%, while Bankex down by 1.18%, IT down by 0.77%, TECK down by 0.70%, Power down by 0.53% and Capital Goods down by 0.20% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 1.00%, ITC up by 0.77%, Bharti Airtel up by 0.40%, Mahindra & Mahindra up by 0.40% and Sun Pharma up by 0.39%. On the flip side, HDFC Bank down by 3.19%, HDFC down by 3.02%, Power Grid down by 2.26%, Tech Mahindra down by 1.60% and ICICI Bank down by 1.50% were the top losers.

Meanwhile, the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) in its latest report has said that India's economic output in 2021 is expected to remain below the 2019 level despite roll-out of the vaccine to deal with the menace of the coronavirus pandemic. It also noted that the country is estimated to record an economic growth of 7 percent in 2021-22, over a contraction of 7.7 percent witnessed in the previous fiscal on account of the pandemic's impact on normal business activity.

Observing that India entered the pandemic with subdued GDP growth and investment, the report said, following one of the most stringent lockdowns in the world, the economic disruptions that the country experienced mounted in the second quarter of 2020. It also said that a subsequent change in lockdown policies and success in reducing infection rates supported an impressive economic turnaround in the third quarter. However, it said the pace of recovery moderated in the fourth quarter with estimated year-on-year growth still close to zero.

For a more robust and inclusive recovery, the report calls for a more synchronised COVID-19 vaccination programme across countries and highlights opportunities to leverage regional cooperation. At the same time, it recommends that fiscal and monetary support should be sustained, as premature tightening could increase long-term scars.

The CNX Nifty is currently trading at 14734.90, down by 110.20 points or 0.74% after trading in a range of 14717.20 and 14813.75. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 2.79%, UPL up by 2.73%, Tata Steel up by 2.62%, Hindalco up by 2.38% and JSW Steel up by 1.27%. On the flip side, HDFC Bank down by 3.14%, HDFC down by 3.02%, Power Grid down by 2.17%, Tech Mahindra down by 1.62% and ICICI Bank down by 1.50% were the top losers.

Asian markets were trading lower; Nikkei 225 slipped 251.69 points or 0.86% to 29,181.01, Taiwan Weighted dropped 117.66 points or 0.71% to 16,437.24, Straits Times trembled 2.02 points or 0.06% to 3,188.87, Hang Seng decreased 88.69 points or 0.31% to 28,488.81, KOSPI fell 2.03 points or 0.07% to 3,067.97, Shanghai Composite declined 21.22 points or 0.61% to 3,435.46 and Jakarta Composite lost 107.98 points or 1.78% to 5,963.46.