Domestic markets extend opening losses in early deals; Nifty slips 142 points

Indian equity benchmarks extended their previous session’s losses with negative start on Friday amid growing fears of an economic slowdown globally. Markets extended their losses and are trading lower with cut of around a percent each in early deals as traders were concerned with the latest public debt management report showing that the government’s total liabilities rose 3.74 per cent to Rs 133.22 lakh crore in the March quarter from Rs 128.41 lakh crore in the three months ended December 2021. Some cautiousness also came in as the Reserve Bank said India's external debt increased by $47.1 billion to $620.7 billion in the financial year ended March 2022. Market participants overlooked the government data showing that the growth of eight core infrastructure sectors expanded by 18.1 per cent in May against 16.4 per cent in the year-ago period and 9.3 per cent in April 2022.

Global cues remained unsupportive with Asian markets trading lower following the broadly negative cues overnight from global markets, dragged by materials and energy stocks amid tumbling commodity prices. Traders also remain concerned about the global economic outlook and the possibility of a recession. Meanwhile, the unemployment rate in Japan came in at a seasonally adjusted 2.6 percent in May, the Ministry of Internal Affairs and Communications said on Friday. That was higher than forecasts for 2.5 percent, which would have been unchanged from the April reading. Hong Kong is closed in observance of SAR Establishment Day.

Back home, coffee industry stocks were buzzing as Coffee Board said coffee shipments from India, Asia’s third-largest producer and exporter, rose 19 per cent to 2,24,293 tonne in the first half of the current calendar year. The country had exported 1,88,736 tonnes in the year-ago period. India ships both robusta and Arabica varieties, besides instant coffee. Auto stocks were in focus reacting to their sales figures. In stock specific movement, Asian Paints rose as crude slipped after OPEC+ assured raising output from August.

The BSE Sensex is currently trading at 52554.01, down by 464.93 points or 0.88% after trading in a range of 52515.41 and 52863.34. 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 0.37%, while Small cap index was down by 0.37%.

The top gaining sectoral indices on the BSE were Power up by 0.53%, Utilities up by 0.43%, Realty up by 0.13%, FMCG up by 0.02%, while Consumer Durables down by 1.36%, Energy down by 0.92%, Bankex down by 0.86%, Auto down by 0.85%, IT down by 0.69% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 0.62%, Bajaj Finserv up by 0.40%, Indusind Bank up by 0.35%, Asian Paints up by 0.28% and TCS up by 0.08%. On the flip side, Titan Company down by 2.99%, Dr. Reddy's Lab down by 2.12%, Reliance Industries down by 1.94%, Mahindra & Mahindra down by 1.17% and ICICI Bank down by 1.16% were the top losers.

Meanwhile, with higher expenditure, the Controller General of Accounts (CGA) in its latest data has showed that the central government's fiscal deficit at the end of May stood at 12.3 per cent of the annual budget target for 2022-23. Fiscal deficit is the difference between total expenditure and revenue of the government. It is an indication of the total borrowings that are needed by the government. The fiscal deficit was at 8.2 per cent of the Budget Estimate (RE) of 2021-22 during the corresponding period.

As per the data, in actual terms, the deficit was at Rs 2,03,921 crore at the end of May. The country's fiscal deficit is projected at 6.4 per cent of the GDP for this fiscal ending March 2023 as against 6.71 per cent for the previous year. The data showed that the total receipts of the government at the end of May was at Rs 3.81 lakh crore or 16.7 per cent of the BE for 2022-23. The collection was about 18 per cent of the BE of 2021-22 in the corresponding period last fiscal.

In May, the tax (net) revenue was at 15.9 per cent of the BE of 2022-23. It was 15.1 per cent of the BE 2021-22 in the year-ago period. In actual terms, the net tax revenue stood at Rs 3,07,589 crore during April-May 2022-23. As per the data, the central government's total expenditure at the end of May stood at Rs 5.85 lakh crore or 14.8 per cent of this year's BE. It was 13.7 per cent of the BE in the corresponding period. For 2022-23, the fiscal deficit of the government is estimated to be Rs 16,61,196 crore.

The CNX Nifty is currently trading at 15637.75, down by 142.50 points or 0.90% after trading in a range of 15628.65 and 15719.95. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Shree Cement up by 1.03%, Cipla up by 0.81%, UPL up by 0.74%, HDFC Life Insurance up by 0.61% and Bajaj Finserv up by 0.60%. On the flip side, Titan Company down by 2.99%, Reliance Industries down by 2.63%, Dr. Reddy's Lab down by 1.96%, ONGC down by 1.72% and Tata Motors down by 1.60% were the top losers.

Asian markets are trading in red; Nikkei 225 slipped 450.71 points or 1.71% to 25,942.33, Straits Times fell 1.19 points or 0.04% to 3,101.02, Taiwan Weighted plunged 344.43 points or 2.32% to 14,481.30, KOSPI declined 23.93 points or 1.03% to 2,308.71, Jakarta Composite lost 71.60 points or 1.04% to 6,839.98 and Shanghai Composite was down by 6.26 points or 0.18% to 3,392.36.