Benchmarks continue to trade in negative zone

Indian bourses continue to trade in red terrain as global sentiment dampened after the U.S. Federal Reserve hinted at an increasingly aggressive rate hike amid concerns about high inflation. Traders were also worried with report stated that investments in the Indian capital markets through participatory notes (P-notes) dropped to Rs 87,979 crore as of March-end, with experts believing that foreign investors will continue to adopt a cautious stance. Some anxiety also came amid concerns over minorities being targeted in India, former Reserve Bank governor Raghuram Rajan cautioned that an 'anti-minority' image for the country can lead to loss of market for Indian products and may also result in foreign governments perceiving the nation as an unreliable partner. On the global front, Asian markets were trading mostly lower on account of worries over global economic health due to surging inflation, still lingering Russia- Ukraine war.

Back home, traders were seen in selling position for Bankex, Metal and Realty stocks, while buying was witnessed in Telecom, Industrials and Capital Goods stocks. Currently, BSE Sensex is trading at 57596.68, down by 315.00 points or 0.54% after trading in a range of 57244.83 and 57689.86. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index lost 0.08%, while Small cap index was up by 0.40%.

The top gaining sectoral indices on the BSE were Telecom up by 0.60%, Industrials up by 0.45%, Capital Goods up by 0.30%, while Bankex down by 1.32%, Metal down by 0.99%, Realty down by 0.73%, PSU down by 0.72% and Healthcare was down by 0.66% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Tech up by 2.01%, Maruti Suzuki up by 1.52%, Bajaj Finance up by 0.51%, Bharti Airtel up by 0.38% and HDFC was up by 0.05%. On the flip side, SBI down by 2.08%, Axis Bank down by 2.04%, Dr. Reddy's Lab down by 1.71%, Bajaj Finserv down by 1.55% and Kotak Mahindra Bank was down by 1.32% were the top losers.

Meanwhile, amid a sharp rise in imports of refined palm oil, the Solvent Extractors Association (SEA) of India has demanded that the government should increase the difference between the import duty levied on crude palm oil and on its refined form. It has demanded the import duty gap should be raised to 15 per cent from the existing 7.5 per cent in order to provide a level-playing field to domestic refiners.

Edible oil industry body said the current lower import duty difference of 7.5 per cent between CPO (Crude Palm Oil) and RBD (Refined, Bleached and Deodorised) Palmolein is benefitting Indonesia. Once the duty difference is increased, it said RBD Palmolein selling prices by Indonesian refiners will come down and it will also result in huge foreign exchange saving for the country.

SEA further said that India's CPO imports are replacing refined palmolein in last several months. Refined palm oil imports account for over 30 per cent of the country's total palm oil imports, thereby reducing capacity utilisation of Indian refiners, apart from huge disparity in processing. It said ‘our palm refining industry would be reduced to being mere 'packers' seriously compromising heavy investments made in industry. We feel this situation needs to be corrected before investments turn sour and add to the NPAs (Non-Performing Assets) of lenders.’

The CNX Nifty is currently trading at 17295.40, down by 97.20 points or 0.56% after trading in a range of 17196.05 and 17315.30. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Adani Ports up by 3.73%, HCL Tech up by 1.97%, Maruti Suzuki up by 1.51%, Bajaj Finance up by 0.56% and Mahindra & Mahindra was up by 0.49%. On the flip side, Hindalco down by 3.84%, Cipla down by 2.21%, SBI down by 2.17%, HDFC Life Insurance down by 2.08% and Axis Bank was down by 1.96% were the top losers.

Asian markets were trading mostly lower; Nikkei 225 slipped 447.80 points or 1.63% to 27,105.26, KOSPI fell 23.50 points or 0.86% to 2,704.71, Jakarta Composite lost 70.65 points or 0.97% to 7,205.54, Taiwan Weighted dropped 102.86 points or 0.6% to 17,025.09 and Hang Seng was down by 74.01 points or 0.36% to 20,608.21.

On the flip side; Straits Times advanced 6.17 points or 0.18% to 3,354.63 and Shanghai Composite was up by 9.66 points or 0.31% to 3,089.47.