Post Session: Quick Review

Indian equity benchmarks ended in deep red on Wednesday. After a negative start, markets remained under a grip of bears, 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.

In the afternoon deals, key indices added more losses, as traders remained cautious with data showing that investments in the Indian capital market through Participatory notes (P-notes) dropped to Rs 87,989 crore at the end of January and experts believe that foreign investors will continue with their negative stance amid the Ukraine crisis. Sentiments also remained cautious, amid a private report stating that the initial or short term impact of Russia's invasion of Ukraine for India will be experienced through inflationary pressures as the country is dependent on imported oil.

Besides, the data from the National Payments Corporation of India (NPCI) showed that India's cashless retail transactions on UPI platform were worth Rs 8.27 lakh crore in February, slightly lower than the amount recorded in the previous month. However, in the last leg of the trade, key indices staged some recovery, after the Indian manufacturing sector continued to expand in February, with the sector's manufacturing Purchasing Managers' Index (PMI) rising to 54.9 from 54 in January. A reading above 50 indicates expansion in activity, while a sub-50 print is a sign of contraction. According to IHS Markit, February saw 'strong increases' in new work orders.

On the global front, European markets were trading mostly in red as nervous investors shifted money into bonds amid renewed concerns about Russia's escalating war on Ukraine. It is feared that the Ukraine tensions may push up the commodity prices and peg the global economic recovery. Asian markets ended mostly lower, even after the manufacturing sector in South Korea continued to expand in February, and at a faster pace, the latest survey from Markit Economics showed on Wednesday with a manufacturing PMI score of 53.8. That's up from 52.8 in January, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

The BSE Sensex ended at 55468.90, down by 778.38 points or 1.38% after trading in a range of 55020.10 and 55755.09. 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 0.17%, while Small cap index down by 0.12%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 4.58%, Energy up by 1.73%, Utilities up by 1.52%, Power up by 1.38% and Basic Materials up by 1.07%, while Auto down by 2.87%, Bankex down by 2.25%, Consumer Disc down by 1.73%, Telecom down by 1.62% and Healthcare down by 1.23% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 5.54%, Titan Co up by 1.88%, Reliance Industries up by 1.67%, Nestle up by 1.06% and Axis Bank up by 1.03%. On the flip side, Maruti Suzuki down by 6.00%, Dr. Reddy's Lab down by 5.14%, Asian Paints down by 4.53%, ICICI Bank down by 3.74% and HDFC down by 3.70% were the top losers. (Provisional)

Meanwhile, Indian manufacturing activity improved in the month of February, as firms responded to strong increases in new work intakes by lifting production, input buying and stocks of purchases. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - surged to 54.9 in February from 54.0 in January.

The report further noted that central to the expansion was a faster uplift in new business inflows. Similarly, demand from international clients rose moderately and at the quickest pace for three months. Sustained sales growth supported a further upturn in manufacturing sector output in February. The rise in production was the eighth in successive months and quickened from that seen in January.

However, there were some signs of capacity pressures at Indian manufacturers, with backlogs rising marginally. Despite this, and a pick-up in demand, employment decreased. With pandemic restrictions and supply issues persisting, delivery times lengthened again. The extent of the deterioration in supplier performance was, however, only mild.

On the price front, February's survey showed a further increase in average input costs faced by Indian manufacturers. Purchase price inflation was sharp, but softened to a six-month low. Part of this additional cost burden was passed on in the form of higher selling charges, though the rate of increase was modest.

The CNX Nifty ended at 16605.95, down by 187.95 points or 1.12% after trading in a range of 16478.65 and 16678.50. There were 15 stocks advancing against 35 stocks declining on the index. (Provisional)

The top gainers on Nifty were Coal India up by 8.99%, HDFC Life Insurance up by 7.19%, SBI Life Insurance up by 5.75%, Tata Steel up by 5.62% and Hindalco up by 4.59%. On the flip side, Maruti Suzuki down by 6.01%, Dr. Reddy's Lab down by 5.17%, Asian Paints down by 4.59%, Bajaj Auto down by 4.48% and Hero MotoCorp down by 4.30% were the top losers. (Provisional)

European markets were trading mostly in red, France’s CAC decreased 9.98 points or 0.16% to 6,386.51 and Germany’s DAX was down by 19.29 points or 0.14% to 13,885.56. On the flip side, UK’s FTSE 100 was up by 57.80 points or 0.79% to 7,388.00.

Asian markets ended mostly lower on Wednesday as nervous investors shifted money into bonds amid renewed concerns about Russia's escalating war on Ukraine. It is feared that the Ukraine tensions may push up the commodity prices and peg the global economic recovery. Meanwhile, in his first State of the Union address, U.S. president Joe Biden said that Russian president Vladimir Putin badly miscalculated with his invasion of Ukraine. Japanese shares ended lower, with electrical machinery and transport stocks leading losses amid increasing risks of a global recession.