Post Session: Quick Review

Indian markets failed to hold on to their early gains and ended Wednesday’s trade in red terrain for the sixth straight day. Markets started the day on an optimistic note as traders opted to buy beaten down but fundamentally strong stocks after five days of drubbing. Traders also took some support with the commerce ministry data showing that the country’s merchandise exports rose by 26.4 per cent to $25.33 billion this month till February 21 on account of healthy performance by sectors including gems and jewellery, engineering, textiles and chemicals. The exports during February 1-21 last year stood at $20.04 billion.

However, gains were limited throughout the day as traders remained on edge on lingering concern over geopolitical tension between Russia and Ukraine. Selloff which emerged in dying hour of the trade mainly dragged the markets lower for the day. Sentiments also remained anxious as Finance Minister Nirmala Sitharaman said the Russia-Ukraine crisis and the ensuing jump in global crude prices are a challenge to financial stability in India. Sentiments also got exhausted as forecasting a lower-than-previously projected 10 per cent GDP growth for the fiscal year 2022 due to the third wave of the pandemic, a private report said the Indian economy is likely to have expanded by 6.6 per cent in the December quarter. It said the economy had a relatively stable Q3 with several sectors returning to pre-pandemic level of activity, with services playing a bigger role in activity and added that with the mild Omicron wave in January, there is clear downside risks to the earlier growth forecast of 10 per cent in FY22.

On the global front, European markets were trading higher and Asian markets ended mostly in green, as investors went for bargain hunting after regular drubbing. Back home, textile stocks remained in focus with report that India's annual textiles exports can rise to $100 billion in the next five years from the current $40 billion. Textiles Secretary Upendra Prasad Singh said the country's apparel industry must focus on vertical integration to increase its scale and size and to benefit from the production-linked incentive (PLI) scheme. Microfinance sector stocks remained in watch as India Ratings revised upwards its outlook on the microfinance sector to neutral from negative next fiscal, on the back of a revival in growth that could clip at 30 per cent. The agency expects the sector to grow 20-30 per cent in both FY22 and FY23 in comparison to the below 10 per cent AUM (assets under management) growth in the previous two years.

The BSE Sensex ended at 57232.06, down by 68.62 points or 0.12% after trading in a range of 57109.24 and 57733.37. There were 12 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.60%, while Small cap index was up by 0.93%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 3.20%, Consumer Durables up by 1.38%, Utilities up by 1.03%, Power up by 0.71% and Consumer Discretionary Goods & Services up by 0.69%, while Energy down by 0.54%, Capital Goods down by 0.25%, Auto down by 0.25% and Oil & Gas down by 0.16% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Kotak Mahindra Bank up by 2.22%, Titan Co up by 1.81%, Indusind Bank up by 1.04%, Maruti Suzuki up by 0.80% and Bajaj Finance up by 0.53%. On the flip side, NTPC down by 1.40%, Larsen & Toubro down by 1.29%, Bajaj Finserv down by 1.03%, Nestle down by 0.93% and ICICI Bank down by 0.92% were the top losers. (Provisional)

Meanwhile, expressing concern over state of economy, Finance Minister Nirmala Sitharaman has said the Russia-Ukraine crisis and the ensuing jump in global crude prices are a challenge to financial stability in India. Sitharaman said ‘It is difficult to say how it (crude prices) will go. Even today, in the FSDC, when we were looking at the challenges which are posed for the financial stability, crude was one of the things. International worrisome situations where we actually voiced that we want a diplomatic solution for the situation that is developing in Ukraine… all these are headwinds’.

She said the Brent has touched over $96 per barrel on February 22, 2022 and added that the country is keeping a watch on the same. She said the oil marketing companies will take a call on the retail prices. She said trade has not been impacted because of the geopolitical tensions but the government is keeping a close watch on the same, and added that ‘we are careful that the exporters should not suffer’.

On the exact timeline for the LIC IPO, she said there is a buzz and interest in the market after the life insurance behemoth filed its papers with SEBI for the over Rs 60,000 crore issue, and the government will be going ahead with it. She also said that the government is looking into the lapses that happened at the NSE.

The CNX Nifty ended at 17063.25, down by 28.95 points or 0.17% after trading in a range of 17027.85 and 17220.70. There were 24 stocks advancing against 26 stocks declining on the index. (Provisional)

The top gainers on Nifty were Kotak Mahindra Bank up by 2.41%, Titan Co up by 1.86%, Indusind Bank up by 1.24%, Tata Consumer Product up by 1.13% and Maruti Suzuki up by 0.88%. On the flip side, ONGC down by 2.55%, Hero MotoCorp down by 2.21%, NTPC down by 1.44%, Larsen & Toubro down by 1.31% and JSW Steel down by 1.17% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 36.80 points or 0.49% to 7,531.01, France’s CAC increased 98.71 points or 1.45% to 6,886.31 and Germany’s DAX was up by 173.04 points or 1.18% to 14,866.04.

Most of the Asian markets ended higher on Wednesday in cautious trade amid Russia faced mounting pressure and economic sanctions over the Ukraine crisis. Western nations punished Russia with new sanctions for ordering troops into separatist regions of eastern Ukraine and threatened to go further if Moscow launched an all-out invasion of its neighbor. Chinese shares rose sharply after private report stated that regulators asked China Huarong Asset Management Co. and its peers to buy property assets from troubled developers and formulate plans for taking over or restructuring smaller lenders. Japanese market was closed for a public holiday.