Markets slip in red after positive opening

Indian equity benchmarks made slightly positive start on Thursday amid mixed cues from global peers as the US markets overnight ended higher, while Asian counterparts are trading mostly lower amid lingering concerns about the recent turmoil in the banking sector. Soon, domestic markets slipped below neutral lines and are struggling for direction. Concerns that interest rate hikes by several central banks around the globe could slow down economic growth is weighed on the markets. At this point of trade, indices are trading in red with cut of around 0.20% each, with Sensex and Nifty lingering below their crucial 57,900 and 17,050 levels, respectively. Traders are also concerned amid foreign fund outflows. Provisional data from exchanges showed that FIIs were net sellers to the tune of Rs 995 crore in the cash markets on March 23. Meanwhile, the rupee slipped by 4 paise to 82.24 against the US dollar in early trade on Friday amid a stronger dollar in the overseas markets and losses in domestic equities.

Though, downside remained capped taking support with a private report that India's current account deficit is likely to have improved in the final quarter of 2022 from a nine-year high in July-September as the goods trade gap moderated and net services exports rose. On the sectoral front, metal stocks are in focus with a private report that India's iron ore exports are set to fall 24% to a five-year low in the current fiscal year to March, as an export tax imposed last May stalled shipments. In stock specific development, Bajaj Hindusthan Sugar gained after it acquired stakes in two companies.

The BSE Sensex is currently trading at 57814.44, down by 110.84 points or 0.19% after trading in a range of 57677.05 and 58066.40. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.37%, while Small cap index was down by 0.25%.

The top gaining sectoral indices on the BSE were Utilities up by 0.86%, Power up by 0.73%, IT up by 0.63%, TECK up by 0.46%, Oil & Gas up by 0.05%, while Metal down by 0.96%, Consumer Durables down by 0.54%, Realty down by 0.54%, Auto down by 0.38%, Energy down by 0.24% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 0.80%, TCS up by 0.77%, Kotak Mahindra Bank up by 0.56%, Indusind Bank up by 0.35% and ITC up by 0.34%. On the flip side, Bajaj Finance down by 2.00%, Bajaj Finserv down by 1.83%, Tata Steel down by 1.19%, Mahindra & Mahindra down by 0.97% and Reliance Industries down by 0.79% were the top losers.

Meanwhile, Chief Economic Advisor V Anantha Nageswaran has said a host of global issues pertaining to inflation, energy security and climate change would be discussed in the G20 second Framework Working Group meeting scheduled to begin on March 24. He highlighted that India along with the United Kingdom would play a 'facilitator role' in discussing the issues with member countries during the two-day summit. He said it will deliberate on how international policy cooperation can be enhanced to achieve strong sustainable balance and inclusive growth across G20 nations.

Nageswaran said ‘Some of the goals that Indian G20 Presidency is pursuing includes international cooperation to address macro-economic impact of food, climate change and energy transition’. He said the schedule of the two-day meeting is spread across thematic sessions with one global outlook focused on inflation and macro economic consequences of food and climate change. This meeting will be chaired by myself, and United Kingdom Chief Economic Advisor to the Treasury Clare Lombardelli will be the co-chair.

There would be a distinguished panel of speakers from the G20 countries, and the delegates would be hosted for a conversation over dinner and they would get to experience the rich and cultural heritage of Tamil Nadu as well its diverse cuisine. Chief Economic Advisor said the deliberations of the two-day event would inform the second G20 Finance Ministers and Central Bank Governors' meeting scheduled to be held in Washington DC in April. To a query, he clarified that the discussions of the meeting do not necessarily mean that the countries participating should adhere to the recommendations made. He said ‘They are non-binding by nature’.

The CNX Nifty is currently trading at 17037.00, down by 39.90 points or 0.23% after trading in a range of 16994.90 and 17109.45. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 1.01%, Adani Enterprises up by 1.00%, Infosys up by 0.97%, TCS up by 0.88% and Wipro up by 0.53%. On the flip side, HDFC Life Insurance down by 2.12%, SBI Life Insurance down by 2.06%, Bajaj Finserv down by 2.02%, Bajaj Finance down by 1.95% and Hindalco down by 1.38% were the top losers.

Asian markets are trading mixed; Nikkei 225 slipped 103.32 points or 0.38% to 27,316.29, Hang Seng declined 32.21 points or 0.16% to 20,017.43, Shanghai Composite weakened 17.76 points or 0.54% to 3,268.89 and KOSPI dropped 16.88 points or 0.7% to 2,407.60. On the other hand, Jakarta Composite gained 73.9 points or 1.09% to 6,765.51, Taiwan Weighted added 32.76 points or 0.21% to 15,896.71 and Straits Times was up by 0.76 points or 0.02% to 3,219.76.