Bears hold tight grip over Dalal Street

Bears were holding a tight grip over the Dalal Street in late morning session, with both Sensex and Nifty trading in deep red. Mixed cues from other Asian markets impacted domestic sentiments. Traders got worried, after the head of the International Monetary Fund is warning that the global economic strain caused by Russia's war in Ukraine could stoke civil unrest in the Middle East and beyond. Besides, a private report stated that Indian consumers are showing cautious optimism and balancing non-discretionary spending as they are saving more for the future.

Traders remained concerned with depositories data showing that overseas investors have pulled out a net Rs 1,14,855.97 crore from the Indian markets in the current year so far, amid heightened geopolitical tensions and inflation concerns. Foreign portfolio investors have sold domestic equities worth Rs 48,261.65 crore so far this month, taking the year-to-date tally this year to a massive Rs 1,14,855.97 crore.

On the global front, Asian markets were trading mixed, even after Malaysia's consumer prices inflation eased in February, defying expectations for further acceleration. The data from the Department of Statistics showed that consumer prices rose 2.2 percent yearly in February, after a 2.3 percent growth in the January. Transport cost rose 3.9 percent annually in February, after a 6.0 percent growth in the preceding month.

The BSE Sensex is currently trading at 56920.44, down by 441.76 points or 0.77% after trading in a range of 56825.09 and 57494.36. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.04%, while Small cap index was down by 0.88%.

The only gaining sectoral indices on the BSE were Oil & Gas up by 0.29%, Metal up by 0.05% and Energy up by 0.04%, while Consumer Durables down by 1.56%, Industrials down by 1.04%, Realty down by 1.00%, Capital Goods down by 0.94% and IT down by 0.91% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 0.75%, ITC up by 0.65%, ICICI Bank up by 0.39%, Maruti Suzuki up by 0.33% and Reliance Industries up by 0.07%. On the flip side, HDFC down by 2.96%, Dr. Reddy's Lab down by 2.62%, Nestle down by 2.18%, HDFC Bank down by 1.73% and HCL Tech. down by 1.65% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that the free trade agreement between India and the UAE is likely to come into effect from May 1, 2022, under which domestic exporters of as many as 6,090 goods from sectors like textiles, agriculture, dry fruits, gem and jewellery would get duty-free access to the UAE market.

Goyal said the Comprehensive Economic Partnership Agreement (CEPA) was signed by India and the United Arab Emirates (UAE) in February which aims to boost bilateral trade to $100 billion in the next five years from current $60 billion. He noted that overall, the UAE is offering duty elimination on over 97 per cent of its products which account for 99 per cent of Indian exports here in value terms.

The minister said ‘currently, we are exporting about $26 billion worth of goods to the UAE, almost 90 per cent of them will get total tariff (or customs duty) elimination on Day 1 itself. Going forward in the next 5-7 or ten years, the rest of the 9.5 per cent (about 1,270 goods) will also get zero duty.’ He said the UAE also opened doors for the rest of the Middle East, some parts of Africa and Europe. This opens up huge opportunities for Indian businesses. The pact also opens doors to several service sectors which will expand job opportunities for Indian young boys and girls. 

The CNX Nifty is currently trading at 17028.25, down by 124.75 points or 0.73% after trading in a range of 17003.90 and 17196.60. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 1.23%, ITC up by 0.63%, Hindalco up by 0.61%, JSW Steel up by 0.58% and Eicher Motors up by 0.56%. On the flip side, SBI Life Insurance down by 3.15%, HDFC down by 2.91%, Dr. Reddy's Lab down by 2.58%, HDFC Life Insurance down by 2.36% and UPL down by 2.32% were the top losers.

Asian markets were trading mixed; Hang Seng increased 278.47 points or 1.3% to 21,683.35, Jakarta Composite soared 26.55 points or 0.38% to 7,029.08, Straits Times advanced 12.17 points or 0.36% to 3,425.86 and KOSPI rose 1.62 points or 0.06% to 2,731.60. On the flip side, Shanghai Composite declined 4.12 points or 0.13% to 3,208.12, Nikkei 225 slipped 133.19 points or 0.47% to 28,016.65 and Taiwan Weighted dropped 165.10 points or 0.93% to 17,511.85.