Indices erase early gains to end lower on Wednesday

Indian benchmark indices erased their initial gains to end lower for the fifth straight session on Wednesday amid unabated selling pressure in select index heavyweights like Bharti Airtel, Indusind Bank and Reliance Industries. Earlier in the session, the indices made a gap-up start tracing positive global cues. Traders got some encouragement as Minister of State for Finance Pankaj Chaudhary said the government is taking steps to make India a $5 trillion economy earlier than the International Monetary Fund’s forecast year of 2026-27. Some support also came with Commerce and Industry Minister Piyush Goyal's statement that the country's goods and services exports are marching ahead to cross $750 billion in the current financial year (FY23) and talks for expanding rupee trade with certain countries are at an advanced stage. Sentiments remained positive in afternoon deals with Anurag Jain, the secretary in the Department for Promotion of Industry and Internal Trade (DPIIT), stating that inclusion and equity are important for India to transform into a developed nation, with technology aiding this growth. However, gains remain capped amid foreign fund outflows. 

However, markets reversed all of their initial gains in late afternoon session and ended near day's low points amid foreign fund outflows. Foreign institutional investors (FII) sold shares worth Rs 3,086.96 crore on March 14, the National Stock Exchange's provisional data showed. Traders also turned cautious amid a private report stating that venture capital (VC) funding for Indian startups has taken a sharp cut. It dropped to $25.7 billion in 2022 from $35.8 billion in 2021 as the global economy experienced turbulence. Some anxiety also came with another private report stating that hiring intentions will remain marginally lower during the second quarter (April-June) this year as employers continue to have difficulty in finding people with the right skills.

On the global front, European markets were trading lower as investors kept a close eye on the developments surrounding the SVB crisis. Asian markets settled mostly higher on Wednesday as U.S. bank contagion fears eased and China's economic data for January and February confirmed activity was recovering in the aftermath of COVID restrictions and outbreaks. Besides, data from the National Bureau of Statistics showed China's industrial production and retail sales expanded in the January to February period.

Finally, the BSE Sensex fell 344.29 points or 0.59% to 57,555.90 and the CNX Nifty was down by 71.15 points or 0.42% to 16,972.15.

The BSE Sensex touched high and low of 58,473.63 and 57,455.67, respectively. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices ended mixed; the BSE Mid cap index fell 0.02%, while Small cap index was up by 0.10%.

The top gaining sectoral indices on the BSE were Utilities up by 1.19%, Power up by 1.06%, Metal up by 1.01%, Consumer Durables up by 0.97% and Capital Goods up by 0.91%, while Telecom down by 1.20%, Bankex down by 0.86%, Financial Services down by 0.81%, Realty down by 0.69% and Energy down by 0.66% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 3.03%, Tata Steel up by 2.07%, Titan Company up by 1.76%, Larsen & Toubro up by 1.47% and Power Grid Corporation up by 1.44%. On the flip side, Bharti Airtel down by 2.00%, Indusind Bank down by 1.85%, Reliance Industries down by 1.74%, Hindustan Unilever down by 1.56% and HDFC Bank down by 1.54% were the top losers.

Meanwhile, Automotive Tyre Manufacturers' Association (ATMA) -- Chairman Satish Sharma has said export of tyres from India is expected to rise by 15 per cent in the ongoing fiscal (FY23). He said fast integration with global supply chains helped by the globally aligned regulatory environment in the country has led to an increase in the addressable market for Indian manufactured tyres.

He asserted despite the challenges to the global economy due to recessionary conditions, rising interest rates and political turmoil, which has led to slowing of external demand, Indian tyre exports have held on their own.

Further, he said auto OEMs (Original Equipment Manufacturers) are expecting tyres makers to contribute in a very significant way to meet regulatory demands over noise front and rolling resistance among others and it is imperative for the tyre industry's supply chain partners to enable the industry to meet these requirements. He added Tyre Industry in India that has completed an investment of over Rs 35,000 crore in new capacity creation and debottlenecking in the last three years is poised to meet the demands of a growing economy.

The CNX Nifty traded in a range of 17,211.35 and 16,938.90. There were 21 stocks advancing against 28 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Adani Enterprises up by 5.74%, Adani Ports & SEZ up by 4.19%, Asian Paints up by 3.11%, Tata Steel up by 2.16% and Titan Company up by 1.88%. On the flip side, Bharti Airtel down by 1.92%, Indusind Bank down by 1.90%, Reliance Industries down by 1.69%, Hindustan Unilever down by 1.45% and SBI down by 1.45% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 166.03 points or 2.17% to 7,471.08, France’s CAC fell 215.18 points or 3.01% to 6,926.39 and Germany’s DAX lost 361.37 points or 2.37% to 14,871.46.

Asian markets settled mostly higher on Wednesday tracking rally in Wall Street overnight after data showed US inflation eased slightly last month, while easing concerns over contagion effect in the banking sector also supported market sentiments. Chinese shares gained after data showed China's industrial production and retail sales expanded in the January to February period. Japanese shares ended unchanged as the Bank of Japan’s January meeting minutes showed that board members reiterating the need to maintain its ultra-dovish stance. Although, investors are cautiously awaiting next week's FOMC meeting.