Benchmarks continue weak trade in morning session

Indian equity benchmarks continued their weak trade in morning session on account of selling in frontline blue chip counters. Traders remained concerned with Former finance minister Yashwant Sinha’s statement that huge expenditure on welfare schemes by the Modi government has severely impacted the public finances which are currently in a mess with fiscal deficit touching abnormally high levels. Some concern also came as retail inflation for farm workers and rural labourers rose to 5.59 per cent and 5.94 per cent respectively in February, mainly due to higher prices of certain food items. However, losses remain capped as some support came with CBDT Chairman J B Mohapatra’s statement that reforms undertaken by the government within the Income Tax department and the 'strengthening' of the Indian economy are among the major factors that led to the highest-ever direct tax collections in the country, which stand at over Rs 13.63 lakh crore. On the global front, Asian markets are trading mixed as a cautious undertone prevailed amid lingering concerns surrounding the Russia-Ukraine war and the Covid-19 situation in China. Ukraine has rejected Russian calls to surrender the port city of Mariupol amid Russia warning of 'terrible humanitarian catastrophe'.

The BSE Sensex is currently trading at 57654.07, down by 209.86 points or 0.36% after trading in a range of 57593.46 and 58127.95. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.09%, while Small cap index was up by 0.60%.

The top gaining sectoral indices on the BSE were Metal up by 2.56%, Basic Materials up by 1.13%, Healthcare up by 1.00%, IT up by 0.46% and Telecom up by 0.43%, while Utilities down by 1.20%, Power down by 1.07%, Bankex down by 0.93%, FMCG down by 0.49% and Oil & Gas down by 0.38% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.27%, Tata Steel up by 2.26%, Sun Pharma up by 1.58%, Wipro up by 1.36% and Tech Mahindra up by 0.95%. On the flip side, Kotak Mahindra Bank down by 2.06%, Hindustan Unilever down by 1.72%, Indusind Bank down by 1.66%, Asian Paints down by 1.60% and Mahindra & Mahindra down by 1.35% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said India's merchandise exports have reached almost $390 billion as of March 14 and will cross $400 billion in the current financial year (FY22).

Goyal also said the auto components industry has, for the first time, recorded a trade surplus of $600 million. He urged automakers to buy local products and substitute imports. He pointed out that India could no longer afford to be closed and protective but will have to open up domestic markets.

Further, he asked the auto industry to invest more in R&D (research and development), especially e-mobility, set higher benchmarks for performance and aspire to take five Indian companies in top-50 global automotive suppliers club.

The CNX Nifty is currently trading at 17241.00, down by 46.05 points or 0.27% after trading in a range of 17215.35 and 17353.35. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.85%, Maruti Suzuki up by 2.32%, Tata Steel up by 2.21%, ONGC up by 2.08% and JSW Steel up by 1.70%. On the flip side, Kotak Mahindra Bank down by 2.06%, Eicher Motors down by 1.90%, Adani Ports &SEZ down by 1.80%, Hindustan Unilever down by 1.78% and Britannia Industries down by 1.76% were the top losers.

Asian markets are trading mixed; Taiwan Weighted strengthened 114.93 points or 0.66% to 17,571.45, Straits Times advanced 5.93 points or 0.18% to 3,336.56 and Shanghai Composite gained 0.51 points or 0.02% to 3,251.58. On the flip side, KOSPI fell 14.48 points or 0.53% to 2,692.54, Jakarta Composite lost 14.64 points or 0.21% to 6,940.33 Hang Seng decreased 18.13 points or 0.08% to 21,394.27.