Post Session: Quick Review

Indian equity benchmarks remained under a grip of bears on Wednesday, with both Sensex and Nifty ending with notable losses. The start of the trading day was on a negative note, as continuous rise in petrol and diesel prices weighed down on the market sentiments. Oil companies increased the price of petrol and diesel in Delhi by 80 paise each, marking the 14th such hike in two weeks. Petrol costs Rs 105.41 and diesel Rs 96.67 per litre after the hike.

Key indices remained lower for the entire trading session, as domestic sentiments remained down-beat with a private report stating that the Reserve Bank of India will delay its first interest rate rise by at least four months to August at the earliest, as the central bank must now start worrying about inflation. Traders were also cautious, after the Reserve Bank said it has decided not to activate the countercyclical capital buffer at this point in time as it is not required.

Besides, automobile dealers' body FADA said that domestic passenger vehicle retail sales in March declined by 4.87 per cent to 2,71,358 units, as compared to the same month last year. Traders failed to get any sense of relief with a private survey showed India's services sector expanded at its fastest pace so far this year in March as an easing of COVID-19 restrictions boosted demand, but elevated inflationary pressures clouded business confidence. The S&P Global India Services Purchasing Managers' Index rose to 53.6 in March from 51.8 in February.

On the global front, European markets were trading in red. Asian markets settled mostly lower, after China's service sector contracted notably in March as the recent rise in COVID-19 cases and restrictions to limit the spread of the virus led to a marked drop in activity. The survey results from S&P Global showed that the Caixin services Purchasing Managers' Index fell to 42.0 in March from 50.2 in February. This was the steepest fall since the initial onset of the pandemic in February 2020.

The BSE Sensex ended at 59610.41, down by 566.09 points or 0.94% after trading in a range of 59509.84 and 59941.57. There were 10 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.41%, while Small cap index up by 0.38%.(Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 1.91%, Power up by 1.84%, Telecom up by 1.65%, Metal up by 1.54% and PSU up by 1.51%, while IT down by 1.40%, TECK down by 1.22%, Bankex down by 1.04%, Healthcare down by 0.44% and Auto down by 0.33% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 2.61%, Tata Steel up by 1.94%, Power Grid Corp up by 1.52%, Bharti Airtel up by 1.17% and Nestle up by 1.10%. On the flip side, HDFC Bank down by 3.51%, HDFC down by 3.26%, HCL Tech. down by 2.07%, Tech Mahindra down by 1.97% and Infosys down by 1.75% were the top losers. (Provisional)

Meanwhile, India’s service sector activity improved in the month of March, on the back of the fastest expansions in sales and activity. The upturn also stemmed from new business wins, strengthening demand conditions and greater consumer footfall due to the relaxation of COVID-19 restrictions. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index surged to 53.6 in March from 51.8 in February. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- also improved to 54.3 in March from 53.5 in February.

The report further noted that new work intakes continued to expand in March amid reports of increased client visits, successful marketing and supportive demand conditions. The upturn was solid, above trend and the quickest in 2022 so far. Underlying data report indicated that the domestic market was the key source of sales growth, as new business from abroad fell further. Moreover, the contraction in new export orders was sharp and the fastest since last September.

On the price front, service providers witnessed a further increase in their operating expenses. Furthermore, the overall rate of cost inflation was sharp and the strongest since March 2011, on the back of higher chemical, fuel, raw material, retail, transportation and vegetable prices. Some companies opted to pass part of their additional cost burden on to consumers by lifting output prices. The overall rate of charge inflation was moderate and broadly in line with its long-run average.

The CNX Nifty ended at 17807.65, down by 149.75 points or 0.83% after trading in a range of 17779.85 and 17901.00. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were Coal India up by 3.17%, NTPC up by 2.62%, Tata Steel up by 1.92%, Power Grid Corp up by 1.54% and BPCL up by 1.53%. On the flip side, HDFC Bank down by 3.57%, HDFC down by 3.34%, HDFC Life Insurance down by 2.42%, HCL Tech. down by 2.09% and Tech Mahindra down by 1.99% were the top losers. (Provisional)

European markets were trading in red, UK’s FTSE 100 decreased 36.43 points or 0.48% to 7,577.29, France’s CAC decreased 87.05 points or 1.31% to 6,558.46 and Germany’s DAX was down by 201.87 points or 1.40% to 14,222.49.

Asian markets settled mostly lower on Wednesday following hawkish comments by the US Federal Reserve. Further, threat of new sanctions on Russia and a worsening Covid situation in China also dented investors' sentiment. Furthermore, strength of US dollar and surging bond yields with expectations of rate hikes by the Fed to cool inflationary pressures also influencing market sentiments. Japanese shares declined ahead of the announcement of fresh sanctions against Russia later today. Investors caution over domestic corporate outlook also weighed on Japanese trade. However, Chinese shares gained marginally despite an extended lockdown in Shanghai and weak data showing activity in China's services sector contracted at the steepest pace in two years in March.