Equity markets continue weak trade in late afternoon session

The local equity markets continued their weak trade in late afternoon session, though the broader markets are trading in green but the gains remain marginal. Traders were cautious as Petrol and diesel prices were hiked by 80 paise a litre each, taking the total increase in rates in the last 10 days to Rs 6.40 per litre. Rates have been increased across the country and vary from state to state depending upon the incidence of local taxation. This is the ninth increase in prices since the ending of a four-and-half-month long hiatus in rate revision on March 22. Sector wise, steel industry remained in focused, as domestic steel demand is expected to take a hit in the coming quarters due to 'very high steel prices' and continuously rising fuel prices. Steel prices in India are trading at an all-time high. On the global front, Asian markets were trading mostly in red after Chinese manufacturing weakened and Russian shelling around Ukraine's capital shook hopes for progress in peace talks. European markets were trading lower on the last trading day of March, a month marked by global geopolitical and economic uncertainty after Russia’s invasion of Ukraine.

The BSE Sensex is currently trading at 58576.33, down by 107.66 points or 0.18% after trading in a range of 58528.17 and 58890.92. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.13%, while Small cap index was up by 0.38%.

The top gaining sectoral indices on the BSE were Telecom up by 1.61%, FMCG up by 1.10%, Oil & Gas up by 0.37%, Utilities up by 0.33% and Auto was up by 0.27%, while Healthcare down by 0.94%, Metal down by 0.54%, Realty down by 0.43%, IT down by 0.28% and TECK was down by 0.27% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.71%, ITC up by 1.49%, Hindustan Unilever up by 1.27%, Axis Bank up by 1.11% and Asian Paints up by 0.79%. On the flip side, Reliance Industries down by 1.40%, Wipro down by 1.13%, Dr. Reddy's Lab down by 0.85%, Infosys down by 0.71% and Sun Pharma down by 0.71% were the top losers.

Meanwhile, in order to support MSMEs engaged in travel, tourism and hospitality sectors to overcome the impact of the COVID-19 pandemic impact, the Finance Ministry has expanded the scope of the Rs 5 lakh-crore Emergency Credit Line Guarantee Scheme (ECLGS).

The coverage, scope and extent of benefits under ECLGS 3.0 pertaining to hospitality, travel, tourism and civil aviation sectors have been expanded. As per the latest modification, new borrowers, in the sectors covered under ECLGS 3.0, who have borrowed between March 31, 2021, and January 31, 2022, will now be eligible to avail the emergency credit facilities.

The ministry also noted that the credit limit for eligible borrowers has been increased to 50 per cent of their fund-based credit outstanding from 40 per cent earlier. Individuals and proprietary concerns in the sectors covered under ECLGS 3.0 can also now avail of emergency credit facilities.

The CNX Nifty is currently trading at 17459.90, down by 38.35 points or 0.22% after trading in a range of 17448.80 and 17559.80. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 1.80%, Mahindra & Mahindra up by 1.67%, ITC up by 1.46%, Hero MotoCorp up by 1.34% and Tata Consumer up by 1.33%. On the flip side, Hindalco down by 4.93%, Divi's Lab down by 2.33%, Apollo Hospital down by 1.90%, Reliance Industries down by 1.46% and Cipla down by 1.45% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 235.18 points or 1.06% to 21,996.85, Nikkei 225 slipped 205.82 points or 0.73% to 27,821.43, Taiwan Weighted dropped 47.09 points or 0.27% to 17,693.47, Straits Times trembled 20.34 points or 0.59% to 3,422.27 and Shanghai Composite was down by 14.40 points or 0.44% to 3,252.20. On the flip side, KOSPI rose 10.91 points or 0.4% to 2,757.65 and Jakarta Composite was up by 18.25 points or 0.26% to 7,071.44.

European markets were trading lower, UK’s FTSE 100 decreased 5.19 points or 0.07% to 7,573.56, France’s CAC decreased 16.24 points or 0.24% to 6,725.35 and Germany’s DAX was down by 21.94 points or 0.15% to 14,584.11.