Post Session: Quick Review

Extending losing streak for fifth straight session, Indian equity benchmarks ended the Tuesday’s trade in red terrain as rising geopolitical tensions between Russia and Ukraine triggered a sell-off in global equities. Markets made a gloomy start following weak global cues as Russian President Vladimir Putin recognized the independence of two Russian-backed breakaway republics in the east of Ukraine. 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. Markets traded in red throughout the day. Report that foreign institutional investors sold shares worth Rs 2,261.9 crore in the Indian capital market on Monday, too dented sentiments.

However, markets made some recovery in later part of the day as traders went for bargain hunting in fundamentally strong stocks. Traders also got some support with NITI Aayog CEO Amitabh Kant’s statement 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. Though, the recovery was not enough to bring the key gauges into green as traders remained cautious on lingering worries over Russia- Ukraine geopolitical concern which sent oil prices to seven-year high.  Meanwhile, the United States and its European allies are poised to announce harsh new sanctions against Russia after Putin formally recognised the breakaway regions in eastern Ukraine, escalating a security crisis on the continent.

Weak opening in European markets and lower ending in Asian markets too dampened sentiments. Back home, India Ratings and Research in its latest report has said that facing intense competition from banks, gold loan Non-Banking Financial Companies (NBFCs) are likely to adopt aggressive strategies to maintain and expand their gold loan franchise. It mentioned many banks, both private and public, have become fairly active in the gold loan space, enticed by high yield and liquid security. Meanwhile, 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.

The BSE Sensex ended at 57300.68, down by 382.91 points or 0.66% after trading in a range of 56394.85 and 57505.85. There were 10 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index shed 0.70%, while Small cap index was down by 1.62%. (Provisional)

The only gaining sectoral index on the BSE was Power up by 0.32% and Utilities up by 0.09%, while Realty down by 3.01%, Telecom down by 1.47%, Industrials down by 1.44%, PSU down by 1.35% and Metal down by 1.29% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 1.78%, Bajaj Finserv up by 1.43%, Sun Pharm up by 0.60%, Kotak Mahindra Bank up by 0.59% and HDFC up by 0.44%. On the flip side, Tata Steel down by 4.02%, TCS down by 3.45%, SBI down by 2.69%, Dr. Reddy's Lab down by 2.08% and Bharti Airtel down by 1.69% were the top losers. (Provisional)

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 ended at 17092.20, down by 114.45 points or 0.67% after trading in a range of 16843.80 and 17148.55. There were 18 stocks advancing against 32 stocks declining on the index. (Provisional)

The top gainers on Nifty were Mahindra & Mahindra up by 1.44%, Bajaj Finserv up by 1.11%, Eicher Motors up by 0.98%, ONGC up by 0.95% and Hindalco up by 0.82%. On the flip side, BPCL down by 3.65%, Tata Steel down by 3.65%, TCS down by 3.58%, Tata Motors down by 3.28% and SBI Life Insurance down by 2.98% were the top losers.

European markets were trading lower, UK’s FTSE 100 decreased 25.90 points or 0.35% to 7,458.43, France’s CAC fell 52.70 points or 0.78% to 6,735.64 and Germany’s DAX was down by 161.05 points or 1.09% to 14,570.07.

All the Asian markets ended lower on Tuesday after Russia recognized two Ukrainian separatist regions - Donetsk and Luhansk - as sovereign states and ordered troops into the territory as peacekeepers, accelerating a crisis the West fears could unleash a major war. Meanwhile, U.S. and allies condemned the deployment of troops in Ukraine as a calculated act by President Putin to create a pretext for invasion. China's Shanghai Composite index and Hong Kong's Hang Seng index ended lower amid fresh worries over Beijing's regulatory plans for the tech sector. Japanese shares fell for a fourth day due to an escalation in tensions around Ukraine.