Post Session: Quick Review

Indian equity benchmarks witnessed fall on Wednesday, with both Sensex and Nifty ending in deep red. Markets made a negative start of the trading day, as rating agency Moody’s has cut India’s gross domestic product (GDP) forecast for FY22 to 9.3 per cent from the earlier projection of 13.7 per cent and has ruled out a sovereign rating upgrade - at least for now. Traders took note of the United Nations’ statement that India is forecast to grow at 10.1 per cent in 2022, becoming the fastest-growing major economy in the world, but cautioned that the growth outlook of 2021 was highly fragile as the country was the new hotbed of the pandemic.

Key indices remained under pressure for the whole trading session, as bears held a tight grip over the Dalal Street. Negative cues from other Asian markets impacted domestic sentiments. Traders were worried, as domestic rating agency Care Ratings revised its GDP growth forecast for the current fiscal to 9.2 per cent from 10.2 per cent it had estimated earlier. This is the fourth revision by the rating agency in its GDP growth forecast for FY2021-22 since March this year. On March 24 this year, it had projected GDP growth for FY22 at 11-11.2 per cent but revised downwards forecast to 10.7 per cent on April 5 and further to 10.2 per cent on April 21.

On the global front, European markets were trading mostly in green after their worst selloff this year as strong earnings reports and signs of a speedy economic recovery offset concerns about a rapid rise in prices. Asian markets settled mostly lower on Wednesday, even after Malaysia's economy contracted at a slower pace in the first quarter underpinned by the improvement in domestic demand and exports. Gross domestic product declined 0.5 percent annually in the first quarter, but slower than the 3.4 percent decrease seen in the fourth quarter, Bank Negara Malaysia reported. The economic activity gradually picked up as the restrictions related to the COVID-19 were relaxed in February and March.

The BSE Sensex ended at 48690.80, down by 471.01 points or 0.96% after trading in a range of 48550.72 and 49171.28. There were 7 stocks advancing against 23 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.90%, while Small cap index was down by 0.62%. (Provisional)

The only gaining sectoral index on the BSE was Auto up by 0.26%, while Metal down by 3.22%, Basic Materials down by 1.62%, Bankex down by 1.44%, Oil & Gas down by 1.22% and Energy down by 1.15% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Titan Co up by 1.31%, Maruti Suzuki up by 1.21%, Power Grid up by 1.05%, SBI up by 0.93% and NTPC up by 0.53%. On the flip side, Indusind Bank down by 3.35%, Hindustan Unilever down by 3.07%, ONGC down by 2.54%, ICICI Bank down by 2.43% and Axis Bank down by 2.23% were the top losers. (Provisional)

Meanwhile, auto industry body, the Society of Indian Automobile Manufacturers (SIAM) in its latest report has showed that passenger vehicle wholesales in India declined by 10 per cent to 2,61,633 units last month as compared to 2,90,939 units in March 2021, as COVID-19-led restrictions across various states impacted demand.

As per the report, two-wheeler dispatches to dealers declined by 33 per cent to 9,95,097 units last month, as compared to 14,96,806 units in March, while motorcycle sales saw a dip of 33 per cent to 6,67,841 units, as against 9,93,996 in March this year. Similarly, scooter sales fell 34 per cent to 3,00,462 units, from 4,57,677 units in March.

SIAM further noted that three-wheeler sales also declined by 57 per cent to 13,728 units, as compared to 31,930 units in March this year, while vehicle sales across categories declined by 30 per cent to 12,70,458 units last month, as against 18,19,682 units in March.

The CNX Nifty ended at 14696.50, down by 154.25 points or 1.04% after trading in a range of 14649.70 and 14824.05. There were 12 stocks advancing against 38 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Motors up by 3.31%, Titan Co up by 1.37%, Maruti Suzuki up by 1.20%, Power Grid up by 1.14% and UPL up by 1.07%. On the flip side, Tata Steel down by 4.44%, JSW Steel down by 3.59%, Hindalco down by 3.39%, Indusind Bank down by 3.39% and Hindustan Unilever down by 3.05% were the top losers. (Provisional)

European markets were trading mostly in green, UK’s FTSE 100 increased 37.11 points or 0.53% to 6,985.10 and Germany’s DAX increased 15.42 points or 0.1% to 15,135.17. On the flip side, France’s CAC was down by 2.12 points or 0.03% to 6,265.27.

Asian markets settled mostly lower on Wednesday ahead of the much-awaited US consumer inflation data due out later in the day. Further, dip in Wall Street overnight with worries about accelerating US inflation and possibly earlier rate hikes too adding pressure on market sentiments. Positive data on US job openings also added to concerns about inflation. Seoul shares declined even as data showing that unemployment in South Korea dropped to an eight-month low in April and the number of people employed rose at the sharpest pace in nearly seven years as the economic recovery continues. Japanese shares fell sharply on concerns over accelerating daily corona-virus infection rates in the Japanese country. Although, Chinese shares ended higher after a quarterly report by China’s central bank downplayed inflationary concerns, while at the same time the United States government has agreed to remove Xiaomi from a Trump administration blacklist that would have barred Americans from investing in the Chinese smartphone maker also supporting Chinese stock markets.