Domestic indices erase losses in late morning deals

Domestic equity indices erased all of their losses and were trading higher in late morning deals as market participants opted to buy beaten down but fundamentally strong stocks. Gains in markets led by BPCL, Titan, Nestle and Hindustan Unilever stocks. Traders were getting some encouragement with IMF senior representative to India Luis Breuer stating that the RBI was doing the right thing on rate hikes, and added that there was need for more. Breuer also said the Budget’s focus on prudence and fiscal consolidation was a good step that will reduce and stabilise public debt, which is quite high in the country compared to other G20 countries. On the BSE sectoral front, traders were seen pilling up position in Consumer Durables, Oil & Gas, Utilities, FMCG and Power, while selling was witnessed in Metal, Industrials, Capital Goods and IT.

On the global front, Asian markets were trading lower following the negative cues from global markets overnight, following a fresh sell-off in the banking sector amid concerns about the debt woes of Swiss lender Credit Suisse, and the collapse of Silicon Valley Bank and Signature Bank in the US last week. Back home, in the stock specific developments, ICICI Prudential Life Insurance Company rallied after the appointment of Anup Bagchi as Managing Director & Chief Executive Officer (MD & CEO) of the company. However, Samvardhana Motherson International tumbled after nearly 5 per cent equity of company changed hands.

The BSE Sensex is currently trading at 57827.92, up by 272.02 points or 0.47% after trading in a range of 57158.69 and 57836.84. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.08%, while Small cap index down by 0.53%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.69%, Oil & Gas up by 1.19%, Utilities up by 0.93%, FMCG up by 0.84% and Power up by 0.76%, while Metal down by 2.50%, Industrials down by 0.79%, Capital Goods down by 0.76% and IT down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were Titan up by 3.47%, Nestle up by 2.57%, Hindustan Unilever up by 2.35%, Power Grid Corp up by 1.51% and Sun Pharma up by 1.49%. On the flip side, Tata Steel down by 3.22%, Indusind Bank down by 2.30%, Larsen & Toubro down by 0.91%, Infosys down by 0.38% and ICICI Bank down by 0.11% were the top losers.

Meanwhile, the commerce ministry in its latest data has showed that India's Merchandise exports dipped by 8.8 per cent to $33.88 billion in February 2023 as compared to $37.15 billion in the same month last year due to a slowdown in global demand while the trade deficit eased to a year's low of $17.43 billion in the month due to receding imports. Imports declined for a third month on the trot in February at $51.31 billion, down by 8.21 per cent compared to $55.9 billion a year ago.

As per the data, merchandise exports for the period April-February 2022-23 were $405.94 billion as against $377.43 billion during the period April-February 2021-22. Merchandise imports for the period April-February 2022-23 were $653.47 billion as against $549.96 billion during the period April-February 2021-22. The merchandise trade deficit for April-February 2022-23 was estimated at $247.52 billion as against $172.53 billion in April-February 2021-22.

The data further showed that non-petroleum and non-gems & jewellery exports in February 2023 were $25.36 billion, compared to $27.09 billion in February 2022. Non-petroleum and non-gems & jewellery exports during April-February 2022-23 were $284.52 billion, as compared to $284.45 billion in April-February 2021-22. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in February 2023 were $31.05 billion, compared to $31.68 billion in February 2022. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports were $395.37 billion in April-February 2022-23 as compared to $333.44 billion in April-February 2021-22.

The CNX Nifty is currently trading at 17023.30, up by 51.15 points or 0.30% after trading in a range of 16850.15 and 17046.70. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were BPCL up by 4.87%, Titan up by 3.30%, Nestle up by 2.65%, Hindustan Unilever up by 2.20% and Eicher Motors up by 1.57%. On the flip side, Hindalco down by 4.65%, Tata Steel down by 3.22%, Indusind Bank down by 2.53%, JSW Steel down by 2.32% and ONGC down by 1.02% were the top losers.

All Asian markets were trading lower; Taiwan Weighted lost 159.76 points or 1.05% to 15,227.83, Hang Seng declined 271.13 points or 1.39% to 19,268.74, Shanghai Composite weakened 18.34 points or 0.56% to 3,244.97, KOSPI dropped 2.61 points or 0.11% to 2,377.11, Jakarta Composite plunged 49.41 points or 0.75% to 6,578.73, Straits Times fell 25.54 points or 0.8% to 3,147.38 and Nikkei 225 slipped 239.39 points or 0.88% to 26,990.09.