Domestic indices extend opening losses in early deals; Sensex falls around 450 points

Indian equity benchmarks made negative start of holiday shortened week amid weak global cues and the on-going Russia-Ukraine conflict. Soon, markets extend their losses and are trading lower with cut of over half a percent in early deals due to selling in IT and TECK stocks. Investors awaited the onset of the corporate earnings season with Tata Consultancy Services (TCS) due to report its financial results for the March quarter after market hours today. Also, traders were concerned as the Reserve Bank data showed that in the steepest weekly fall ever, India's forex reserves slid by $11.173 billion to $606.475 billion as the currency came under pressure due to geopolitical developments. Adding more pessimism, Revenue Secretary Tarun Bajaj warned that FY23 was unlikely to see a rate of growth in tax collections similar to that in FY22. Market participants failed to take any sense of relief as preliminary data of the commerce ministry showed that India’s exports grew by 37.57 per cent to $9.32 billion during April 1-7.

Most of the Asian markets are trading lower following the mixed cues from Wall Street on Friday, amid lingering concerns about inflation and the prospect of aggressive rate hikes by central banks around the world. Traders also remained worried about the likely economic impact of the ongoing war in Ukraine and the extended lockdown in Shanghai due to the worsening coronavirus outbreak. Back home, media and entertainment industry stocks were in focus as a report by the CII showed that the media and entertainment industry in South India is growing at a compound annual growth rate (CAGR) of 15% making a post-crisis comeback. In scrip specific development, Ruchi Soya rose after its board approved evaluating modes to enhance synergies with Patanjali Ayurved's food portfolio on an arm’s length basis.

The BSE Sensex is currently trading at 58997.40, down by 449.78 points or 0.76% after trading in a range of 58945.08 and 59333.18. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.33%, while Small cap index was up by 0.52%.

The top gaining sectoral indices on the BSE were Utilities up by 2.77%, Power up by 2.76%, Oil & Gas up by 0.95%, PSU up by 0.73%, Telecom up by 0.51%, while IT down by 1.25%, TECK down by 1.12%, FMCG down by 0.44%, Consumer Durables down by 0.39%, Auto down by 0.26% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 0.82%, NTPC up by 0.76%, Indusind Bank up by 0.61%, Power Grid up by 0.49% and Tata Steel up by 0.25%. On the flip side, Infosys down by 2.12%, HCL Technologies down by 1.72%, Wipro down by 1.36%, Hindustan Unilever down by 1.31% and HDFC Bank down by 1.09% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its latest survey report has stated that the household inflation expectation and consumer confidence rose in March. The survey was conducted during March 2 to 11, 2022 in 19 major cities. As per the survey report, households’ median inflation perception for the current period remained unchanged at 9.7 per cent in the latest survey round, while the expectations for both three months and one-year ahead rose by 10 basis points each to 10.7 per cent and 10.8 per cent, respectively, compared to January 2022 round.

The RBI said ‘for a majority of population and age groups, uncertainty in inflation expectations increased for both three-month and one-year horizons, as compared to the previous survey round’. Three months ahead of expectations for overall prices and inflation were generally aligned to those for food and non-food products, while one-year ahead expectations were more aligned to those for non-food products and services.

The report also stated that consumer confidence for the current period continued on its recovery path. The current situation index (CSI) improved further in March 2022 on the back of improved sentiments on general economic situation, employment and household income. Households’ opinion about current and future spending remained in positive territory and was bolstered by a rise in both essential and discretionary spending.

The CNX Nifty is currently trading at 17671.15, down by 113.20 points or 0.64% after trading in a range of 17653.55 and 17761.10. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 1.74%, Apollo Hospital up by 0.96%, BPCL up by 0.79%, SBI up by 0.78% and Indusind Bank up by 0.70%. On the flip side, Infosys down by 1.89%, SBI Life Insurance down by 1.88%, HCL Technologies down by 1.79%, Hindustan Unilever down by 1.40% and Wipro down by 1.34% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 211.52 points or 0.78% to 26,774.28, Straits Times declined 21.79 points or 0.64% to 3,361.49, Hang Seng plunged 530.83 points or 2.43% to 21,341.18, Taiwan Weighted lost 193.85 points or 1.12% to 17,090.69, KOSPI fell 8.86 points or 0.33% to 2,691.53 and Shanghai Composite was down by 56.78 points or 1.75% to 3,195.07, while Jakarta Composite rose 70.13 points or 0.97% to 7,280.97.