Key indices add losses in morning deals

Indian equity benchmarks added some losses in morning deals, on account of selling in frontline counters such as Bajaj Finance, Tata Steel and NTPC. The mood of the markets remained impacted as an analyst at Moody's Investors Service said that the Indian federal government’s aim to achieve a fiscal deficit target of 4.5% of gross domestic product (GDP) by 2025/26 could see some risks. The current pattern suggests that perhaps there could be some upward pressure on expenditure especially if they (government) continue with this focus on capex. Traders overlooked eminent economist Arvind Panagariya’s statement that India is on the cusp of returning to a high growth trajectory and voiced confidence that the country will become the world’s third-largest economy by 2027-28.

On the global front, Asian markets are trading mostly in green following the broadly positive cues from Wall Street, as traders reacted positively to the US Fed's decision not to raise its benchmark lending rate more than widely expected. The central bank raised its interest rates by another quarter point and signaled further rate hikes. Back home, Tyre industry’s stocks remained in focus as Automotive Tyre Manufacturers Association (ATMA) has expressed concern over the hike in basic customs duty on compounded rubber announced in the Union Budget, saying the increase will lead to a rise in the cost of production and affect price competitiveness. 

The BSE Sensex is currently trading at 59562.36, down by 145.72 points or 0.24% after trading in a range of 59215.62 and 59924.70. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.06%, while Small cap index was up by 0.74%.

The top gaining sectoral indices on the BSE were FMCG up by 1.77%, IT up by 0.98%, TECK up by 0.96%, Telecom up by 0.81% and Industrials up by 0.76%, while Utilities down by 3.50%, Power down by 3.28%, Oil & Gas down by 2.58%, Energy down by 2.12% and PSU down by 1.02% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 5.04%, Indusind Bank up by 1.90%, Maruti Suzuki up by 1.33%, Infosys up by 1.33% and Ultratech Cement up by 1.23%. On the flip side, Bajaj Finance down by 2.62%, Tata Steel down by 2.34%, NTPC down by 2.12%, HDFC down by 1.98% and HDFC Bank down by 1.66% were the top losers.

Meanwhile, Moody's Investors Service’s senior vice president, Christian de Guzman has said the Indian federal government's aim to achieve a fiscal deficit target of 4.5% of gross domestic product (GDP) by 2025/26 (FY26) could see some risks.

Guzman said the current pattern suggests that perhaps there could be some upward pressure on expenditure especially if they (government) continue with this focus on capex. The government's budget gap, which hit a high of 9.5% of GDP in 2020/21 as the spread of COVID-19 infections brought the economy to a halt, has narrowed since but remains well above the medium-term goal of 4.5% of GDP by 2025/26.

Meanwhile, Finance Minister Nirmala Sitharaman in her budget speech said India's federal government will target a budget deficit of 5.9% of GDP for 2023/24. Earlier, Moody's said the narrower fiscal deficit underscores the government's commitment to longer-term fiscal sustainability. It added that the high debt burden and weak debt affordability remain key constraints that offset India's fundamental strengths.

The CNX Nifty is currently trading at 17525.15, down by 91.15 points or 0.52% after trading in a range of 17445.95 and 17653.90. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were ITC up by 4.94%, Britannia Industries up by 3.79%, SBI Life Insurance up by 2.43%, Indusind Bank up by 1.78% and Maruti Suzuki up by 1.21%. On the flip side, Adani Enterprises down by 10.82%, Adani Ports &SEZ down by 7.43%, UPL down by 4.92%, HDFC Life Insurance down by 3.99% and Bajaj Finance down by 2.74% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted added 156.91 points or 1.02% to 15,577.04, Hang Seng advanced 90.28 points or 0.41% to 22,162.46, Shanghai Composite strengthened 9.59 points or 0.29% to 3,294.51, KOSPI increased 22.13 points or 0.9% to 2,471.93, Jakarta Composite gained 22.81 points or 0.33% to 6,885.07 and Nikkei 225 surged 86.31 points or 0.32% to 27,433.19.

On the flip side, Straits Times fell 14.32 points or 0.42% to 3,363.33.