Bourses trade in deep sea of red in late afternoon session

Indian Equity markets were trading in deep sea of red in late afternoon session amid a huge selloff in the global market. There were no gainers on sectoral indices on the BSE. The broader indices, the BSE Mid cap index and Small cap index were also trading in red. The overall market breadth was largely negative as 2850 shares were declining and 586 were advancing, while 124 shares were unchanged on the BSE. Cautiousness remained in the markets as participants were keenly watching out for official data on consumer inflation in India due later in the day. Traders failed to take support with Central Board of Direct Taxes (CBDT) Chairman Sangeeta Singh stating that the number of income tax returns has increased in FY22 over the previous fiscal. She noted that the number of income tax returns was 7.14 crore in FY22 as against 6.9 crore in the preceding financial year, showing a clear growth. She also said there is an increase in the base of taxpayers and the filing of revised returns.

On the global front, all Asian markets were trading lower as soaring prices in America triggered fears the Federal Reserve will take tougher action to rein in inflation. European markets were trading lower as a higher-than-expected U.S. inflation print and troubling COVID-related updates from China triggered a bout of risk aversion.

The BSE Sensex is currently trading at 52582.36, down by 1721.08 points or 3.17% after trading in a range of 52527.08 and 53207.54. There were 1 stocks advancing against 29 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 2.92%, while Small cap index down by 3.16%.

The top losing sectoral indices on the BSE were IT down by 4.22%, TECK down by 3.88%, Metal down by 3.71%, PSU down by 3.58% and Bankex was down by 3.53%, while there were no gainers on sectoral indices on the BSE.

The only gainer on the Sensex was Nestle up by 0.30%. On the flip side, Bajaj Finserv down by 6.69%, Bajaj Finance down by 5.52%, Indusind Bank down by 5.42%, Tech Mahindra down by 5.25% and ICICI Bank down by 4.90% were the top losers.

Meanwhile, Anupriya Patel, MoS for Commerce and Industry has stressed upon making the digital revolution inclusive by creating an environment where nobody is left behind, adding that during COVID-19 pandemic, digitalization has emerged as the key driver for global economic growth. The minister recognized that Digital Economy is central to the promotion of innovation, pursuing entrepreneurial ventures, creation of jobs, efficiency in services and importantly a marketplace for high value technology based products and solutions and the fact that almost half the world’s population does not have access to high-speed broadband and is hence deprived of the access to virtual platforms, tele-medicine, distance education and e-payments.

On supply chains, MoS mentioned that the supply chain disruptions,  as a result of  lockdowns, limited economic activities and economic slowdown has forced manufacturers everywhere to reassess their supply chains. The main point of supply chain resilience is minimizing negative impacts on people's lives and the economy even in the event of supply chain disruptions caused by pandemics, natural disasters, or regional conflicts. In this context, the MOS highlighted the statement made by Prime Minister Shri Narendra Modi that Transparent, Trusted Sources and Timeframe is critical for improving global supply chain resilience which is imperative for trade revival.

While acknowledging that trade should become the engine for reviving global growth, the MoS stated that there is no alternative to the rules based multilateral trading system and that strong commitment to the WTO rules is the only way forward. The WTO reforms must strengthen the fundamental principles of the WTO including consensus-based decision making, inclusivity, equitable, non-discrimination, special and differential treatment.

The CNX Nifty is currently trading at 15693.65, down by 508.15 points or 3.14% after trading in a range of 15684.00 and 15886.15. There were 2 stocks advancing against 48 stocks declining on the index.

The only gainers on Nifty were Nestle up by 0.25% and Britannia up by 0.09%. On the flip side, Bajaj Finserv down by 6.71%, Hindalco down by 6.20%, Bajaj Finance down by 5.60%, Indusind Bank down by 5.55% and Tech Mahindra down by 5.27% were the top losers.

All Asian markets were trading lower, Nikkei 225 slipped 836.85 points or 3.01% to 26,987.44, Hang Seng decreased 738.60 points or 3.39% to 21,067.58, Taiwan Weighted dropped 389.14 points or 2.36% to 16,070.98, KOSPI fell 91.36 points or 3.52% to 2,504.51, Jakarta Composite lost 91.21 points or 1.29% to 6,995.44, Straits Times trembled 40.78 points or 1.28% to 3,140.95 and Shanghai Composite was down by 29.28 points or 0.89% to 3,255.55.

European markets were trading lower, UK’s FTSE 100 decreased 107.76 points or 1.47% to 7,209.76, France’s CAC decreased 138.40 points or 2.24% to 6,048.83 and Germany’s DAX was down by 261.09 points or 1.9% to 13,500.74.