Post Session: Quick Review

After two-day positive session, Indian markets dipped their head into the water ahead of weekly F&O expiry. Investors opted for risk aversion in line with weakness in the US markets, which declined sharply overnight as the US Federal Reserve went ahead with its further monetary policy tightening to bring down inflation to its target even as volatility in the banking system continued due to recent collapse of some banks. Traders avoided to take long position on Thursday’s trade, as Fed's aggressive battle against inflation could tip the economy into recession, and recent turmoil in the banking sector, sparked by failures of SVB Financial Group and Signature Bank, have exacerbated those fears. Globally investors were worried about the health of the banking industry after US Treasury Secretary Janet Yellen commented that the regulators are not looking to provide any ‘blanket’ deposit insurance to stabilise the US banking system, without working with law makers. Hefty selling in banking stocks during last leg of trade pressurized the markets to touch day’s low points.

Initially, markets struggled for direction following US Fed's interest rate decision. Besides, the central bank's latest projections suggest the Fed plans to raise rates just one more time this year to a range of 5.0 to 5.25 percent. Further, markets trimmed their losses and turned volatile, amid some cautiousness came in as Fitch Ratings said India has some room to cut capital expenditure in FY24 as there may be pressure on revenue as the buoyancy assumptions in the Union budget may be inflated. However, in afternoon session, markets showed sustain buying activity but failed to hold till end as traders remained concern after fed rate hike decisions came despite recent stress in the banking industry. Besides, investors were awaiting interest rate decisions by Bank of England as well as Norway Central Bank.

On the global front, European markets were trading lower amid investors digested the latest interest rate hike by the U.S. Federal Reserve and comments from Fed Chair Jerome Powell and Treasury Secretary Janet Yellen. Asian markets ended mostly in green amid U.S. Federal Reserve raised rates by 25 basis points and signaled another hike to fight inflation. Back home, sector wise, steel stocks remained in focus as Icra in its latest report has said that it revised its outlook for domestic steel demand to 7-8 per cent for the next fiscal. Earlier, it had estimated the demand to grow in the range of 6-7 per cent.

 The BSE Sensex ended at 57,925.28, down by 289.31 points or 0.50% after trading in a range of 57,838.85 and 58,396.17. 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 0.45%, while Small cap index was down by 0.15%. (Provisional)

The top gaining sectoral indices on the BSE were Power up by 0.67%, Utilities up by 0.50%, Telecom up by 0.36%, FMCG up by 0.28% and Metal was up by 0.24%, while Realty down by 1.01%, Bankex down by 0.92%, PSU down by 0.90%, IT down by 0.81% and TECK down by 0.52% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Nestle up by 1.25%, Maruti Suzuki up by 1.18%, Bharti Airtel up by 0.93%, Tata Motors up by 0.78% and ITC up by 0.54%. On the flip side, SBI down by 1.77%, Asian Paints down by 1.45%, Kotak Mahindra Bank down by 1.44%, HCL Tech down by 1.41% and Reliance Industries down by 1.30% were the top losers. (Provisional)

Meanwhile, a Commerce Ministry-led inter-ministerial delegation took part in the second Indo-Pacific economic framework for prosperity (IPEF) negotiations in Indonesia, where it reiterated that the framework will deepen the economic engagement and promote inclusive development through enhancement in trade and investment in the region.

On the sidelines of the negotiating round (which were held between March 13 and March 19), India's chief negotiator and other representatives also held bilateral meetings with IPEF countries and other stakeholders concerned. Discussions were held on all the four pillars of the IPEF namely trade, supply chains, clean economy and fair economy (taxation and anti-corruption).

IPEF partners have committed to an aggressive negotiating schedule throughout 2023 with the objective of realising concrete benefits to enhance a shared vision for economic competitiveness and prosperity in their respective economies. Negotiators from 13 other countries, including the US, Australia, Indonesia, Japan, South Korea, and Malaysia among others also participated in the Bali negotiating round.

The CNX Nifty ended at 17,076.90, down by 75.00 points or 0.44% after trading in a range of 17,045.30 and 17,205.40. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindalco up by 1.54%, Maruti Suzuki up by 1.22%, Nestle up by 1.19%, Bharti Airtel up by 0.91% and JSW Steel up by 0.84%. On the flip side, SBI down by 1.69%, Bajaj Auto down by 1.55%, Kotak Mahindra Bank down by 1.49%, Asian Paints down by 1.48% and HCL Tech down by 1.44% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 61.38 points or 0.82% to 7,505.46, France’s CAC fell 25.09 points or 0.35% to 7,106.03 and Germany’s DAX was down by 72.57 points or 0.48% to 15,143.62.

Asian markets settled mostly higher on Thursday, despite an overnight slump in Wall Street shares after the US Federal Reserve raised rates by 25 basis points and signalled another hike this year to fight against inflation. Following the US Fed's move, the Hong Kong central bank also lifted its benchmark rate by 25 bps to 5.25%. However, Japanese shares fell marginally after Janet Yellen's comments that the Fed’s regulators are not considering a blanket insurance for bank deposits in the United States. Meanwhile, Indonesian market was closed on account of Hindu Saka New Year holiday.