Indices extend opening losses in early deals; Nifty slips below 16,600 mark

Indian equity benchmarks snapped their 2-day gains and made gap-down opening on Wednesday a day after holiday amid worsening sentiments on the Russia-Ukraine crisis. Markets extended their opening losses and are trading lower in early deals with cut of over a percent each amid disappointing macro-economic data. India’s economic growth slowed to 5.4% in the third quarter of 2021-22. GST collections for February declined to Rs 1.33 lakh crore, down 5.6% from the first month of 2022. The core sector output grew 3.7% in January, lower than 4.1% in the previous month, pulled down by natural gas, refinery, fertiliser and electricity. Adding more pessimism, India Ratings said the ongoing geopolitical risks arising from the Russia-Ukraine war would push India's import bills higher for items such as mineral oils and gas, gems and jewellery, edible oils and fertilisers. Investors are eyeing the manufacturing PMI data to be out later in the day.

Most of the Asian markets are trading lower following the broadly negative cues overnight from Wall Street, amid concerns about the economic impact of the escalating Russia-Ukraine war and the stringent sanctions imposed on Russia by the U.S. and several Western countries. The conflict has led to a jump in energy prices, leading to worries about a further acceleration in the pace of inflation. Back home, aviation industry stocks were in focus as Jet fuel prices were increased by 3.3 per cent to all-time high levels across the country, in step with international oil prices surging to over seven-year-high. Also, auto industry stocks are in limelight reacting to their mixed sales data. In scrip specific development, Dilip Buildcon traded higher after it secured a bid project of Rs 1,255 crore for a new HAM project on the development of NH-130-CD road under Raipur-Vishakhapatnam Economics Corridor in Chhattisgarh.

The BSE Sensex is currently trading at 55420.99, down by 826.29 points or 1.47% after trading in a range of 55401.11 and 55755.09. There were 4 stocks advancing against 25 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.10%, while Small cap index was up by 0.29%.

The top gaining sectoral indices on the BSE were Metal up by 3.75%, Oil & Gas up by 1.73%, Utilities up by 1.69%, Power up by 1.46%, Basic Materials up by 1.13%, while Bankex down by 2.56%, Auto down by 1.27%, Telecom down by 1.24%, Realty down by 0.91%, Consumer discretionary down by 0.88% were the top losing indices on BSE.

The few gainers on the Sensex were Tata Steel up by 4.20%, Mahindra & Mahindra up by 1.56%, Power Grid up by 0.55% and Reliance Industries up by 0.18%. On the flip side, ICICI Bank down by 3.56%, Asian Paints down by 3.55%, Kotak Mahindra Bank down by 3.28%, HDFC Bank down by 3.26% and HDFC down by 3.12% were the top losers.

Meanwhile, India’s economic growth slowed to 5.4 percent in the third quarter of 2021-22 from Gross Domestic Product (GDP) growth of 8.5 percent in the previous quarter (July-September) and 20.3 per cent in April-June quarter. But, the growth is higher than China’s GDP expansion of 4 per cent during the same period and the country retained its position as the world’s fastest growing major economy. The National Statistical Office (NSO) in its second advance estimates of national accounts pegged the country’s growth for 2021-22 at 8.9 percent, a tad lower than 9.2 percent estimated in its first advance estimates released in January.

Data released by the NSO showed that GDP at Constant (2011-12) Prices in Q3 of 2021-22 is estimated at Rs 38.22 lakh crore, as against Rs 36.26 lakh crore in Q3 of 2020-21, showing a growth of 5.4 per cent. Nominal GDP or GDP at Current Prices in the year 2021-22 is estimated to attain a level of Rs 236.44 lakh crore, as against Rs 198.01 lakh crore in 2020-21, showing a growth rate of 19.4 percent.

Gross Value Added (GVA) growth in the manufacturing sector growth remained almost flat at 0.2 per cent in the third quarter of 2021-22, compared to a growth 8.4 per cent a year ago. Farm sector GVA growth was slow at 2.6 per cent in the third quarter compared to 4.1 per cent growth a year ago. Construction sector GVA declined by 2.8 per cent as against a growth of 6.6 per cent a year ago. Mining sector grew by 8.8 per cent, as against a contraction of 5.3 per cent.

Electricity, gas, water supply and other utility services segment posted a growth of 3.7 per cent in the third quarter of this fiscal against 1.5 per cent expansion a year ago. Similarly, trade, hotel, transport, communication and services related to broadcasting grew by 6.1 per cent compared to 10.1 per cent contraction a year ago. Financial, real estate and professional services growth stood at 4.6 per cent in Q3 FY22 compared to a growth of 10.3 per cent a year ago. Public administration, defence and other services grew at 16.8 per cent during the quarter under review compared to 2.9 per cent contraction a year earlier.

The CNX Nifty is currently trading at 16592.60, down by 201.30 points or 1.20% after trading in a range of 16547.40 and 16678.50. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Coal India up by 4.98%, Hindalco up by 4.27%, Tata Steel up by 3.99%, ONGC up by 3.80% and JSW Steel up by 2.61%. On the flip side, Bajaj Auto down by 3.99%, Asian Paints down by 3.62%, ICICI Bank down by 3.59%, HDFC Bank down by 3.24% and Kotak Mahindra Bank down by 3.23% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 492.07 points or 1.83% to 26,352.65, Straits Times fell 18.29 points or 0.56% to 3,260.34, Hang Seng plunged 282.36 points or 1.24% to 22,479.35, Taiwan Weighted declined 78.30 points or 0.44% to 17,819.95, Jakarta Composite lost 14.22 points or 0.21% to 6,907.22 and Shanghai Composite weakened 14.38 points or 0.41% to 3,474.45. On the other hand, KOSPI was up by 2.73 points or 0.10% to 2,701.91.