Bourses add losses in late afternoon session amid recession risk

During volatile session, Indian markets added losses in late afternoon session led by selling in IT and Metal counters. The broader indices, the BSE Mid cap index and Small cap index traded with hefty losses. Investors were worried after Fed rate hike, The Bank of England also hiked its key interest rate. BoE hiked rates for the eleventh consecutive session despite banking sector turmoil. Traders overlooked Union Minister of State for Consumer Affairs, Food and Public Distribution, Ashwini Kumar Choubey’s statement that retail food inflation, measured by the Consumer Food Price Index (CFPI) brought out by the Ministry of Statistics and Programme Implementation (MoSPI), has declined from 8.60 percent in September 2022 to 5.95 per cent in February 2023.

On the global front, Asian markets were trading mostly in red as concerns about the banking crisis persisted despite comments from regulators that they would take additional steps as needed to support the financial system.  European markets were trading lower as concerns about the banking crisis persisted and a survey showed manufacturing activity in the country continued to worsen in March.

The BSE Sensex is currently trading at 57715.21, down by 210.07 points or 0.36% after trading in a range of 57677.05 and 58066.40. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.93%, while Small cap index was down by 1.06%.

The only gaining sectoral indices on the BSE were IT up by 0.28% and TECK was up by 0.17%, while Metal down by 1.97%, Realty down by 1.60%, Energy down by 1.04%, Consumer Durables down by 1.03% and PSU was down by 1.03% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 1.14%, Infosys up by 0.76%, Tech Mahindra up by 0.71%, TCS up by 0.37% and HDFC Bank up by 0.33%. On the flip side, Bajaj Finserv down by 3.36%, Bajaj Finance down by 2.61%, Tata Steel down by 2.15%, Titan Company down by 1.53% and Reliance Industries down by 1.36% were the top losers.

Meanwhile, Union Minister of State for Consumer Affairs, Food and Public Distribution, Ashwini Kumar Choubey has said that retail food inflation, measured by the Consumer Food Price Index (CFPI) brought out by the Ministry of Statistics and Programme Implementation (MoSPI), has declined from 8.60 percent in September 2022 to 5.95 per cent in February 2023.

Union Minister also noted that the rate of inflation for pulses in February 2023 was 4.09% which is lower than CFPI. The Department of Consumer Affairs monitors the retail and wholesale prices of essential food commodities reported on daily basis by State Food and Civil Supply Departments from 482 price reporting centres across the country.

Minister also said that prices of food commodities are affected by diverse factors such as production, seasonality in crop arrivals, supply chain logistics, adverse weather conditions etc. The daily report of prices and indicative price trends are duly analysed for appropriate intervention for release of stocks from the buffer, export-import policy etc.

The CNX Nifty is currently trading at 16999.85, down by 77.05 points or 0.45% after trading in a range of 16994.90 and 17109.45. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 1.11%, Apollo Hospital up by 0.93%, Tech Mahindra up by 0.75%, Cipla up by 0.71% and Infosys up by 0.69%. On the flip side, Bajaj Finserv down by 3.41%, Adani Enterprises down by 3.10%, Hindalco down by 2.83%, Bajaj Finance down by 2.59% and Tata Steel down by 2.14% were the top losers.

Asian markets were trading mostly in red, Hang Seng declined 133.96 points or 0.67% to 19,915.68, Nikkei 225 slipped 34.36 points or 0.13% to 27,385.25, Shanghai Composite weakened 21 points or 0.64% to 3,265.65, KOSPI dropped 9.52 points or 0.39% to 2,414.96 and Straits Times was down by 5.68 points or 0.18% to 3,213.32. On the flip side, Taiwan Weighted added 50.75 points or 0.32% to 15,914.70 and Jakarta Composite was up by 70.64 points or 1.04% to 6,762.25.

European markets were trading lower, UK’s FTSE 100 decreased 107.59 points or 1.43% to 7,392.01, France’s CAC fell 104.21 points or 1.46% to 7,035.04 and Germany’s DAX was down by 226.91 points or 1.49% to 14,983.48.