Benchmarks continue to trade under pressure in morning deals

Indian equity benchmarks continued to trade under pressure in morning deals, taking cues from the global markets. Sentiments remained down-beat as the World Bank cut its economic growth forecast for India and the whole South Asian region, citing worsening supply bottlenecks and rising inflation risks caused by the Ukraine crisis. The international lender lowered its growth estimate for India, the region's largest economy, to 8% from 8.7% for the current fiscal year to March, 2023. Further, market participants awaited the wholesale-price index (WPI) inflation figure, scheduled to be released later in the day. Traders overlooked the finance ministry’s statement that the focus on capex in the recently announced Budget for the current fiscal year will boost manufacturing and tax revenue collections, thereby keeping India on track to becoming a $5 trillion economy. Meanwhile, with most states on board to raise revenue so that they do not have to depend on Centre for compensation, the GST Council at its meeting next month is likely to consider a proposal to do away with the 5 per cent slab by moving some goods of mass consumption to 3 per cent and the remaining to 8 per cent categories.

On the global front, Asian markets are trading mostly in red in cautious trade, as the ongoing Russia-Ukraine crisis, and rising inflation dented investor sentiment. A surge in crude oil prices also kept investors on edge. Besides, China posted higher-than-expected economic growth but officials still warned of significant challenges ahead. First quarter GDP rose by 4.8%, topping expectations of a 4.4% increase from a year ago. Back home, Aviation industry stocks remained in focus as Jet fuel prices were hiked by a marginal 0.2 per cent - the eighth straight increase this year - to an all-time high, reflecting a surge in global energy prices. The price of ATF was hiked by Rs 277.5 per kiloliter to Rs 1,13,202.33 per kl (Rs 113.2 per litre) in the national capital.

The BSE Sensex is currently trading at 57087.86, down by 1251.07 points or 2.14% after trading in a range of 57048.25 and 57420.80. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.45%, while Small cap index was down by 1.18%.

The lone gaining sectoral index on the BSE was Metal up by 0.31%, while TECK down by 4.37%, IT down by 4.37%, Bankex down by 1.94%, Telecom down by 1.90% and Realty down by 1.69% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 5.46%, Tata Steel up by 2.08%, Mahindra & Mahindra up by 0.47% and Power Grid Corporation up by 0.11%. On the flip side, Infosys down by 7.03%, Tech Mahindra down by 5.07%, HDFC down by 3.68%, HDFC Bank down by 3.41% and Wipro down by 3.09% were the top losers.

Meanwhile, the finance ministry has said that the focus on capex in the recently announced Budget for the current fiscal year will boost manufacturing and tax revenue collections, thereby keeping India on track to becoming a $5 trillion economy. Tax revenues in last fiscal year grew by a record 34 per cent to Rs 27.07 lakh crore, which the ministry said is a remarkable testimony to the rapid recovery of the economy following successive waves of COVID-19.

It stated the central government's focus on making India a global economic powerhouse and the host of measures adopted towards this commitment has directly reflected in India's GDP growth in recent years. This has translated into increased revenue collection for the exchequer while keeping India well on the track towards achieving a USD 5 trillion economy.

Further it said apart from a brief setback owing to COVID-19, the government has maintained the nominal GDP growth above 10 per cent in recent years. GST, a simplified way of collecting indirect taxes, has been a revolutionary step propelling India's GDP. It also said with a big push to capex in the Union Budget of 2022-23, the coming years are going to see a surge in domestic manufacturing as well as growth in employment. These in turn will directly boost tax contribution to the exchequer.

Besides, the gross corporate taxes during 2021-22 was Rs 8.6 lakh crore against Rs 6.5 lakh crore in the previous year. It stated this shows that the new simplified tax regime with low rates and no exemptions has lived up to its promise, enhancing Ease of Doing Business for the corporate sector, stimulating India's economy and increasing tax revenues for the government.

The CNX Nifty is currently trading at 17136.55, down by 339.10 points or 1.94% after trading in a range of 17129.55 and 17237.75. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were NTPC up by 5.46%, Tata Steel up by 2.03%, SBI Life Insurance up by 1.60%, Coal India up by 1.21% and ONGC up by 1.18%. On the flip side, Infosys down by 7.03%, Tech Mahindra down by 5.10%, HDFC down by 3.76%, HDFC Bank down by 3.46% and Wipro down by 3.10% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 330.32 points or 1.22% to 26,762.87, Taiwan Weighted dropped 70.27 points or 0.41% to 16,933.91, Shanghai Composite declined 24.89 points or 0.78% to 3,186.35 and Straits Times trembled 23.16 points or 0.69% to 3,312.69.

On the flip side, KOSPI rose 4.48 points or 0.17% to 2,700.54 and Jakarta Composite soared 28.43 points or 0.39% to 7,263.96.