Post Session: Quick Review

24 Mar 2023 Evaluate

It turned out to be another pathetic trading session for the Indian stock markets amid recession risk. 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. Metal stocks witnessed bulk of the damage during the session. Banking counters seen sharp fall in last leg of trade. The broader indices, the BSE Mid cap index and Small cap index were also showed heavy selling pressure. Traders took cautious move from the beginning of the session with mounting economic uncertainties. Investors’ confidence also weighed on lingering worries over US bank failures. Global markets prompted the Indian markets to extend their losses for the second consecutive day.

After making cautious start, markets struggled for direction despite the US markets ended higher on Thursday. Besides, provisional data from exchanges showed that FIIs were net sellers to the tune of Rs 995 crore in the cash markets on March 23. Indices turned volatile, as traders were concerned with interest rate hikes by several central banks. These interest rate hikes could slow down economic growth in future. Traders overlooked report stating that India’s exports to the UAE are expected to touch an all-time high of $32 billion by the end of this fiscal due to the benefits of free trade agreement between the countries. Meanwhile, Agriculture Minister Narendra Singh Tomar has launched a DigiClaim platform under the national crop insurance portal for speedy disbursal of claims to insured farmers. Selling which occurred in later part of trade mainly played spoil sports for the markets and dragged the key gauges near intraday lows, as traders continued to remain worried amid rate hikes globally.

On the global front, 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. Asian markets ended 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. Back home, 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.

The BSE Sensex ended at 57,527.10, down by 398.18 points or 0.69% after trading in a range of 57,422.98 and 58,066.40. There were 5 stocks advancing against 24 stocks declining on the index, while 1 stock remained unchanged. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 1.25%, while Small cap index was down by 1.37%. (Provisional)

The top losing sectoral indices on the BSE were Realty down by 2.28%, Metal down by 2.23%, Energy down by 1.51%, PSU down by 1.38% and Industrials was down by 1.35%, while there were no gaining sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Kotak Mahindra Bank up by 0.52%, Infosys up by 0.43%, Tech Mahindra up by 0.25%, Power Grid up by 0.09% and Asian Paints up by 0.06%. On the flip side, Bajaj Finserv down by 3.81%, Bajaj Finance down by 3.19%, Tata Steel down by 2.58%, Reliance Industries down by 1.96% and Larsen & Toubro down by 1.95% were the top losers. (Provisional)

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 ended at 16,945.05, down by 131.85 points or 0.77% after trading in a range of 16,917.35 and 17,109.45. There were 10 stocks advancing against 40 stocks declining on the index. (Provisional)

The top gainers on Nifty were Cipla up by 0.94%, Kotak Mahindra Bank up by 0.74%, Infosys up by 0.44%, Dr. Reddy's Lab up by 0.39% and Apollo Hospital up by 0.24%. On the flip side, Bajaj Finserv down by 3.83%, Bajaj Finance down by 3.15%, Adani Enterprises down by 2.97%, Tata Steel down by 2.67% and Hindalco down by 2.61% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 142.14 points or 1.93% to 7,357.46, France’s CAC fell 144.23 points or 2.06% to 6,995.02 and Germany’s DAX was down by 295.93 points or 1.98% to 14,914.46.

Asian markets settled mostly lower on Friday due to concerns over the ongoing US banking crisis, despite Janet Yellen’s reassurance on the safety of American deposits. Chinese shares dropped as heavily indebted Evergrande Group announced its long-awaited debt restructuring deal after 2021 collapse. Japanese shares fell after a survey showed manufacturing activity in Japan contracted for a fifth straight month in March as output and new orders remained under pressure. Moreover, Seoul shares declined amid fears that the central banks of UK, Switzerland and Norway increased interest rates to curb inflation. However, some losses were capped after Wall Street’s overnight gains in anticipation that US interest rate hikes might be nearing an end.

Asian Indices

Last Trade            

Change in Points

Change in %  

Shanghai Composite

3,265.65-21.00-0.64

Hang Seng

19,915.68-133.96-0.67

Jakarta Composite

6,762.2570.641.04

KLSE Composite

1,399.70

-11.28-0.80

Nikkei 225

27,385.25-34.36-0.13

Straits Times

3,212.64-6.36-0.20

KOSPI Composite

2,414.96

-9.52-0.39

Taiwan Weighted

15,914.7050.750.32


© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt.Ltd.