Post Session: Quick Review

Indian equity benchmarks managed to end in green terrain on Monday. After a cautious start, markets witnessed a sharp deep and remained lower in the first half of the trading session, as India's foreign exchange (forex) reserves dipped by $2.59 billion in the week ended March 18, recording a sharp drop for the second consecutive week as the Reserve Bank of India (RBI) heavily sold dollars to prevent slide in the value of rupee.

Traders remained concerned with the depositories data report 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.

Bears held a tight grip over the Dalal Street in the first half, as 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.

In the second half, key indices cut losses, taking support Niti Aayog Vice-Chairman Rajiv Kumar’s statement that India can double its economy in about 7-8 years if it grows at 8 per cent, which is feasible as the country has sustained a growth rate of 8.5 per cent earlier for a long time. Besides, Credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has maintained an improving outlook for the mid-corporate (MEC) sector for FY23.

On the global front, European markets were trading higher led by interest rate-sensitive banks and insurers as government bond yields continued to rise, while hopes of a peace deal in the Ukraine crisis further aided sentiment. Asian markets ended 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.

The BSE Sensex ended at 57593.49, up by 231.29 points or 0.40% after trading in a range of 56825.09 and 57638.34. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.40%, while Small cap index down by 0.53%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.07%, Bankex up by 1.01%, Energy up by 0.97%, Telecom up by 0.73% and Metal up by 0.70%, while Consumer Durables down by 0.61%, Healthcare down by 0.50%, Capital Goods down by 0.46%, IT down by 0.38% and Industrials down by 0.34% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 3.40%, Axis Bank up by 2.13%, ICICI Bank up by 1.59%, ITC up by 1.54% and SBI up by 1.44%. On the flip side, Nestle down by 1.83%, HDFC down by 1.58%, HCL Tech. down by 1.41%, Dr. Reddy's Lab down by 1.40% and Asian Paints down by 0.64% were the top losers. (Provisional)

Meanwhile, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has maintained an improving outlook for the mid-corporate (MEC) sector for FY23. In line with the agency’s expectations, operating margins have improved in FY22 across some key sectors; however, it has come at the cost of a working capital build-up. The Guaranteed Emergency Credit Line (GECL) has helped these entities to meet the liquidity gap.

According to the report, MECs in some of the key sectors such as steel and textiles have witnessed a V-shaped recovery in FY22 while hospitality and auto ancillary remain weak. Ind-Ra has provided a snapshot of the sector-wise performance of MECs, focusing on the key sectors where these entities are largely concentrated. The agency has specifically focused on how the liquidity and overall performance pre- and post-COVID-19 and the outlook for FY23.

The rating agency maintained a stable rating outlook for its MEC-rated portfolio for FY23, on account of the fair amount of liquidity support and also the major initiatives been taken by the finance ministry in rendering its support in the form of GECL and one-time loan recasting, leading to the frequency of negative rating actions likely to mellow down in FY23.

The CNX Nifty ended at 17222.00, up by 69.00 points or 0.40% after trading in a range of 17003.90 and 17235.10. There were 32 stocks advancing against 17 stocks declining, while 1 stock remained unchanged on the index. (Provisional)

The top gainers on Nifty were Bharti Airtel up by 3.34%, Coal India up by 2.77%, Axis Bank up by 2.05%, Eicher Motors up by 1.85% and ICICI Bank up by 1.59%. On the flip side, UPL down by 2.23%, Nestle down by 1.75%, Dr. Reddy's Lab down by 1.74%, HDFC down by 1.51% and SBI Life Insurance down by 1.43% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 23.94 points or 0.32% to 7,507.29, France’s CAC increased 72.63 points or 1.11% to 6,626.31 and Germany’s DAX was up by 194.81 points or 1.36% to 14,500.57.

Asian markets ended mixed on Monday ahead of speeches by several key Fed officials this week for clues on the pace of tightening. Further, concerns over surging Covid-19 cases in China and the Russian invasion of Ukraine also pressurizing market sentiments. Japanese shares declined on profit booking ahead of the fiscal year-end. The Bank of Japan said that it offered to buy unlimited amounts of 10-year Japanese government bonds at a fixed rate of 0.25 percent. However, Chinese shares gained, despite a lockdown in China’s Shanghai to curb Covid-19 outbreak.