Markets widen losses in late afternoon session

Indian equity benchmarks widened their losses in late afternoon session tracking weak global markets. HDFC twins, Titan, Wipro and PowerGrid were the top Sensex losers. Sector wise, healthcare industry remained in focused, as credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has maintained a neutral outlook for the corporate healthcare for FY23 and the same neutral outlook has been kept for the hospital sub-sector, on the account of robust demand drivers, a strong improvement in profitability, and calibrated capacity enhancement capex which together support a comfortable liquidity position and aid in sustaining the credit profile improvement. On the global front, Asian markets were trading mostly in red after minutes from the Fed's March meeting revealed discussions on reducing the size of the central bank's balance sheet over time in a predictable manner. European markets were trading mostly in green as healthcare stocks surged to a record high even though risks from a hawkish Federal Reserve and Washington's new sanctions on Russia kept investors on edge.

The BSE Sensex is currently trading at 59007.43, down by 602.98 points or 1.01% after trading in a range of 58992.90 and 59504.92. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was declined 0.68%, while Small cap index was down by 0.97%.

The only gaining sectoral indices on the BSE were Realty up by 0.22% and Healthcare was up by 0.22%, while Oil & Gas down by 2.37%, Energy down by 2.04%, Consumer Durables down by 2.02%, Metal down by 1.58% and Utilities was down by 1.42% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 1.54%, ICICI Bank up by 1.26%, Hindustan Unilever up by 1.04%, Dr. Reddy's Lab up by 0.70% and Sun Pharma up by 0.30%. On the flip side, Titan Company down by 3.05%, HDFC down by 2.72%, Wipro down by 2.46%, Power Grid down by 2.26% and HDFC Bank down by 2.22% were the top losers.

Meanwhile, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has maintained a neutral outlook for the corporate healthcare for FY23 and the same neutral outlook has been kept for the hospital sub-sector, on the account of robust demand drivers, a strong improvement in profitability, and calibrated capacity enhancement capex which together support a comfortable liquidity position and aid in sustaining the credit profile improvement.

As per the report ‘FY23 Corporate Healthcare Outlook’, normalisation of international travel restrictions can lead to a recovery in international patient revenue. Given that the operating procedures have been standardised across hospitals during the past two years of COVID-19, any intermittent local lockdowns owing to the resurgence of infections are unlikely to impact the hospitals significantly. With most of the sector players having expansion plans, the sector is likely to remain exposed to competition, leading to a longer gestation period in ramping-up operations at greenfield facilities.

Ind-Ra further noted that the outlook for the diagnostic companies’ sub-sector is also neutral for FY23, supported by a recovery in non-COVID-19 related revenue and a moderate demand for COVID-19 tests, robust cash generation and strong credit profiles. While increasing competition and acquisition-led expansion could compress margin, the headroom available to absorb shocks remains comfortable.

The CNX Nifty is currently trading at 17635.05, down by 172.60 points or 0.97% after trading in a range of 17625.95 and 17787.50. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 1.67%, ICICI Bank up by 1.31%, Hindustan Unilever up by 1.06%, Divi's Lab up by 0.97% and Cipla up by 0.88%. On the flip side, Adani Ports down by 3.34%, Titan Company down by 2.96%, HDFC down by 2.92%, Wipro down by 2.57% and HDFC Bank down by 2.29% were the top losers.

Asian markets were trading mostly in red, Nikkei 225 slipped 461.73 points or 1.69% to 26,888.57, Taiwan Weighted dropped 343.87 points or 1.96% to 17,178.63, Hang Seng decreased 271.54 points or 1.23% to 21,808.98, Shanghai Composite declined 46.73 points or 1.42% to 3,236.70, KOSPI fell 39.17 points or 1.43% to 2,695.86 and Straits Times was down by 15.36 points or 0.45% to 3,407.59. On the flip side, Jakarta Composite was up by 23.15 points or 0.33% to 7,127.37.

European markets were trading mostly in green, France’s CAC increased 11.23 points or 0.17% to 6,510.06 and Germany’s DAX was up by 10.80 points or 0.08% to 14,162.49. On the flip side, UK’s FTSE 100 was down by 27.84 points or 0.37% to 7,559.86.