Post Session: Quick Review

Indian benchmarks continued to create dull performance on Monday. Bears took control over the markets for seven consecutive day. Indices did not make any attempts to break out in green and remained negative throughout the session. Hefty selling pressure in IT and Metals counters forced the markets to spend day in below neutral lines. Markets remained back foot on Monday tracing weak US markets after report from the Commerce Department showing an unexpected acceleration in the annual rate of growth by core consumer prices in the month of January. Cautiousness remained in the markets as participants were keenly watching out for GDP data and core sector data are scheduled tomorrow. Besides, the fear of sanctions against Russia and its degree of implication on the economy, especially food and oil exports, is adding to the anxiety.

Earlier, markets made negative start and added more losses, as trades were concerned after latest central bank data showed that the Reserve Bank of India’s (RBI’s) foreign exchange reserves declined by $5.7 billion to an 11-week low of $561.27 billion in the week ended February 17. Besides, continued sell-off by foreign investors dampened sentiments in domestic markets. Foreign investors have turned cautious and pulled out Rs 2,313 crore from Indian equities so far this month. Sentiments remained downbeat in afternoon session with RBI Monetary Policy Committee (MPC) member Jayanth R Varma’s statement that India's Gross domestic product (GDP) growth appears to be 'very fragile' and it may fall short of what the country needs to meet the aspirations of its growing workforce. However, taking positive cues from European markets, indices cut some of their losses but remained in red, amid movement of crude and rupee remained on markets participants’ radar.

On the global front, European markets were trading higher after having suffered their worst weekly performance this year last week on concerns the Federal Reserve will keep raising rates to tame inflation. All Asian markets ended lower, as hot inflation data from the United States stoked concerns the Federal Reserve may prolong its rate tightening cycle. An unexpected acceleration in January of the personal consumption expenditures price index, the Fed's favored inflation gauge, boosted Treasury yields and sent investors fleeing riskier assets. Back home, credit rating agency ICRA in its latest report has said that the aftermarket segment constitutes around a fifth of the overall demand and remains a vital cog in the Indian auto component industry. It projects the replacement demand growth at 6-8% in FY2024, supported by underlying demand drivers, including the increase in mobility, improving economic activity, and healthy freight movement.

The BSE Sensex ended at 59,288.35, down by 175.58 points or 0.30% after trading in a range of 58,937.64 and 59,441.13. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.69%, while Small cap index was down by 1.28%. (Provisional)

The few gaining sectoral indices on the BSE were Realty up by 2.18%, Bankex up by 1.07% and PSU was up by 0.43%, while TECK down by 2.00%, IT down by 1.96%, Telecom down by 1.56%, Auto down by 1.51% and Metal down by 1.39% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were ICICI Bank up by 2.23%, Power Grid up by 2.21%, Kotak Mahindra Bank up by 1.82%, SBI up by 1.25% and HDFC up by 0.83%. On the flip side, Tata Steel down by 2.96%, Infosys down by 2.62%, Tata Motors down by 1.99%, TCS down by 1.97% and Mahindra & Mahindra down by 1.22% were the top losers. (Provisional)

Meanwhile, expressing his hopes over India’s economic growth, Union minister Piyush Goyal has said that the country would become the third largest economy in the world (from fifth position at present) in the next five years and by 2047 could be at the level the United States of America is at present. He added the 1.4 billion people of India are going to make the economy a $30-40 trillion one.

Regarding India not joining the Regional Comprehensive Economic Partnership (RCEP) trade deal, he said ‘It was disaster in the making as we were entering a free trade agreement without a court of appeal, no democracy or rule of law. Except a handful of people, I don't remember anyone saying we should join RCEP’.
On Free Trade Agreements (FTAs), he said ‘we did the fastest ever FTA in the history of the world, the India UAE Agreement having been completed in 88 days. We also completed a fast FTA with Australia. That is the enthusiasm the world is demonstrating towards working with India. We have negotiations going on with Israel, Canada, EU, UK and GCC. Russia and its partner countries of EAU too want to fast-track negotiations with India.’

The CNX Nifty ended at 17,392.70, down by 73.10 points or 0.42% after trading in a range of 17,299.00 and 17,451.60. There were 16 stocks advancing against 34 stocks declining on the index. (Provisional)

The top gainers on Nifty were ICICI Bank up by 1.99%, Power Grid Corp up by 1.93%, Kotak Mahindra Bank up by 1.69%, SBI up by 1.28% and HDFC Life Insurance up by 1.21%. On the flip side, Adani Enterprises down by 9.28%, Bajaj Auto down by 5.46%, UPL down by 4.06%, Tata Steel down by 3.33% and Infosys down by 2.67% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 64.24 points or 0.81% to 7,942.90, France’s CAC rose 104.96 points or 1.44% to 7,292.23 and Germany’s DAX was up by 209.81 points or 1.36% to 15,419.55.

Asian markets settled down on Monday as hotter-than-expected US inflation data stoked concerns that the US Federal Reserve might raise interest rates further to curb inflation. Moreover, Wall Street's sell-off influenced Asian markets. Japanese shares declined as the Japanese Yen strengthened against the US dollar. Meanwhile, Incoming BoJ Governor Kazuo Ueda said he had ideas on how the central bank could exit its massive stimulus.