Domestic indices trade under pressure on Ukraine crisis

Indian equity benchmarks extended their previous session’s losses with gap-down opening on Tuesday as investors turned cautious amid the Russia-Ukraine standoff. Markets are trading under pressure with cut of around 2% each in early deals after Russian President Vladimir Putin recognized the independence of two Russian-backed breakaway republics in the east of Ukraine. Moreover, as per a private report, some Ukrainian civilians have been killed in frontline shelling over the night. Meanwhile, voicing ‘deep concern’ over the escalation of tension along the Russia-Ukraine border, India has told the UN Security Council that the immediate priority is de-escalation of tensions, taking into account the ‘legitimate’ security interests of all countries. Besides, weakness prevailed in the markets, as per provisional data available on the NSE, foreign institutional investors (FIIs) have net sold Rs 2,261.90 crore worth of shares.

Global cues remained lackluster with all the Asian markets trading lower, despite a lack of cues from Wall Street overnight due to a holiday, as rising geopolitical tensions between Russia and Ukraine triggered a sell-off in global equities. Back home, aviation industry stocks were in focus with a private report that the government is likely to propose a formula to bring aviation turbine fuel (ATF) under the ambit of Goods and Services Tax (GST). The likely government proposal will be to allow 18 percent GST in addition to VAT or excise rate.  In scrip specific development, Krsnaa Diagnostics zoomed as it won tender to providing Diagnostic / Laboratory Services in Himachal Pradesh Govt. Health Institutions in entire State.

The BSE Sensex is currently trading at 56570.22, down by 1113.37 points or 1.93% after trading in a range of 56394.85 and 56883.57. All 30 stocks were declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 2.10%, while Small cap index was down by 2.71%.

The top losing sectoral indices on the BSE were Industrials down by 2.77%, Capital Goods down by 2.67%, Telecom down by 2.57%, Metal down by 2.45%, Basic Materials down by 2.37%, while there was no gainer.

The top losers on the Sensex were TCS down by 3.18%, Larsen & Toubro down by 3.05%, Indusind Bank down by 2.98%, Power Grid down by 2.85% and Asian Paints down by 2.68%.

Meanwhile, expressing optimism over India’s economic growth, NITI Aayog CEO Amitabh Kant has said that Indian economy growing at 9.2%, among fastest-growing large economies. He added the Indian economy is expected to grow at similar rates in the coming years. While referring to the government’s production linked incentive (PLI) scheme for sunrise sectors, he said it will add $520 billion to India’s output in the next five years and make India a part of the global supply chain.

He said ‘Today India is witnessing unprecedented levels of economic development and technological disruptions. The economy is growing at 9.2 per cent and is expected to grow at similar rates in the coming years, making us one of the fastest-growing large economies in the world’. He noted the country has taken several measures to maximise efficiency and several reforms have been taken by the government in that direction such as GST, Insolvency & Bankruptcy Code, lowering of corporate taxes, etc. This will help make India a global manufacturing champion and manufacturing hub.

The government has rolled out robust infrastructure schemes such as the National infra asset monetisation pipeline and PM Gati Shakti. Kant said ‘the combined affect would ensure the development of a world-class infrastructure with the participation of both - the government and the private sector’. He stressed that embracing technology would be the key to future success and relevance.

India has already succeeded in creating an ecosystem of technology with 814 million internet users and 85 unicorns. Calling the COVID-19 pandemic as a ‘black swan’ event, he said it threw new problems and challenges, which required new strategies to address. He added ‘this also helped to identify new opportunities which contribute to the strengthening of the position’.

The CNX Nifty is currently trading at 16874.50, down by 332.15 points or 1.93% after trading in a range of 16843.80 and 16977.40. There were 1 stock advancing against 49 stocks declining on the index.

The sole gainer on Nifty was ONGC up by 0.18%, while UPL down by 3.56%, Coal India down by 3.32%, Tata Motors down by 3.27%, Adani Ports & SEZ down by 3.19% and Larsen & Toubro down by 3.18% were the top losers.

All the Asian markets are trading in red; Nikkei 225 slipped 565.06 points or 2.10% to 26,345.81, Straits Times fell 27.96 points or 0.81% to 3,408.40, Hang Seng plunged 717.91 points or 2.97% to 23,452.16, Taiwan Weighted tumbled 316.45 points or 1.74% to 17,905.04, KOSPI lost 47.90 points or 1.75% to 2,695.90, Jakarta Composite declined 67.02 points or 0.97% to 6,835.95 and Shanghai Composite was down by 47.46 points or 1.36% to 3,443.15.