Benchmark indices continue to reel under selling pressure in late afternoon session

The key benchmark indices continued to reel under selling pressure in late afternoon session tracking weakness in global markets. The broader markets were seen trading with deeper cuts. The BSE MidCap and SmallCap indices were down in the range of 1.70-1.90%. Sentiments remained weak as India Ratings and Research in its latest report said that the surprise rate hike by the RBI signalling a reversal of the interest rate cycle will weigh down on the banking system's credit growth, which was showing signs of revival with an 11 per cent growth.  On the global front, Asian and European markets tumbled following a rout on Wall Street fuelled by worries that aggressive rate hikes by central banks to check inflation could hurt global growth.  Back home, on the BSE sectoral front, Metal index slumped 3.14 per cent.  Realty, Basic Materials, IT and Consumer Durables were down 2-2.8 per cent each.   

The BSE Sensex is currently trading at 54953.72, down by 748.51 points or 1.34% after trading in a range of 54586.75 and 55070.12. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.75%, while Small cap index down by 1.90%.

The losing sectoral indices on the BSE were Metal down by 3.14%, Realty down by 2.80%, Basic Materials down by 2.40%, IT down by 2.17%, Consumer Durables down by 2.02%, while there were no gainers.

The top gainers on the Sensex were Tech Mahindra up by 2.33%, ITC up by 1.55%, Power Grid Corp up by 1.39%, NTPC up by 0.98% and SBI up by 0.80%. On the flip side, Bajaj Finance down by 4.25%, Axis Bank down by 3.81%, Wipro down by 3.72%, Nestle down by 3.12% and Bajaj Finserv down by 3.12% were the top losers.

Meanwhile, assuring the industry of Government’s support, Union Minister of State for Commerce & Industry, Anupriya Patel has called upon the Small and Medium Enterprises (SMEs) to adopt technology towards raising productivity and promoting sustainability. The Minister urged them to take the ‘Industry 4.0’ to Tier-2 and Tier-3 cities.

Patel further said the Government is committed towards transforming India during the Amritkaal, the next 25 years. Patel also said that both Manufacturing and Exports will be India’s growth drivers during the Amritkaal. She listed out the Government’s initiatives towards facilitating Manufacturing including the PLI and EODB and promoting exports by pursuing various FTAs such as the India-UAE CEPA and India-Australia ECTA.

Underlining that the Government is committed to creating industry friendly and a conducive environment, the Minister said that in just over five years India has emerged as the world’s third largest Startup ecosystem after the US and China and last month the country achieved the distinction of having 100 Unicorns.

The CNX Nifty is currently trading at 16447.75, down by 234.90 points or 1.41% after trading in a range of 16340.90 and 16482.80. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 2.86%, Tech Mahindra up by 2.35%, ITC up by 1.62%, Power Grid Corp up by 1.45% and NTPC up by 0.85%. On the flip side, Divi's Lab down by 4.32%, Bajaj Finance down by 4.24%, UPL down by 4.21%, Tata Motors down by 3.89% and Axis Bank down by 3.80% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted dropped 287.92 points or 1.72% to 16,408.20, Shanghai Composite declined 66.20 points or 2.16% to 3,001.56, Hang Seng decreased 791.44 points or 3.81% to 20,001.96, Straits Times trembled 46.43 points or 1.39% to 3,297.14 and KOSPI was down by 33.06 points or 1.23% to 2,644.51. On the flip side, Nikkei 225 was up by 185.03 points or 0.69% to 27,003.56.

European markets were trading lower, UK’s FTSE 100 fell 48.19 points or 0.65% to 7,454.27, France’s CAC dropped 72.84 points or 1.14% to 6,291.72 and Germany’s DAX was down by 108.96 points or 0.76% to 13,796.11.