Volatility continues over Dalal Street

Volatility continued over the Dalal Street in early noon deals, with both Sensex and Nifty were trading in red, despite positive cues from other Asian markets. Heavy selling at Telecom, Oil & Gas and Utilities counters impacted trade in domestic markets. Traders were seen taking a note of report  that the finance ministry has asked public sector banks (PSBs) to do proper monitoring of top loans and make adequate provisions for pledged shares of big corporates in view of the current global financial scenario emanating from the failure of some international banks in the US and Europe. However, downside remained capped, as markets regulator Sebi simplified the procedural requirements for onboarding of Foreign Portfolio Investors (FPIs) in a bid to facilitate ease of doing business and to reduce the time taken for their registration.

On the global front, Asian markets were trading mostly in green, even after Hong Kong's foreign trade deficit increased markedly in February, as exports fell more rapidly than imports. The data from the Census and Statistics Department showed that the visible trade balance showed a deficit of HK$45.4 billion, up from HK$32.1 billion in the same month last year. Further, this was the biggest shortfall since June 2022. The deficit also rose considerably from HK$25.3 billion in January.

The BSE Sensex is currently trading at 57606.33, down by 47.53 points or 0.08% after trading in a range of 57524.07 and 57949.45. 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 by 0.74%, while Small cap index was down by 0.90%.

The only gaining sectoral index on the BSE was Metal up by 0.18%, while Telecom down by 1.47%, Oil & Gas down by 1.26%, Utilities down by 1.15%, Power down by 1.12% and Capital Goods down by 0.97% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 1.34%, ICICI Bank up by 0.90%, NTPC up by 0.64%, Power Grid Corporation of India up by 0.59% and HDFC Bank up by 0.48%. On the flip side, Tech Mahindra down by 2.58%, Bharti Airtel down by 1.61%, Tata Motors down by 1.53%, Larsen & Toubro down by 1.06% and Mahindra & Mahindra down by 0.79% were the top losers.

Meanwhile, domestic credit rating agency ICRA in its latest report has said that electric three-wheelers, including e-rickshaws are expected to gain traction going forward due to favourable operating economics and the government's focus on cleaner means of transportation, particularly for commercial applications. It said the electric segment is likely to account for 14-16% of new three-wheeler sales (excluding rickshaws) by FY2025, up from 8% currently. It also said penetration is estimated to rise to 35-40% by FY2030 as the product gains more acceptance, and financing-related challenges subside.

According to the report, until now, the unorganised e-rickshaw industry has dominated the expansion of the e3W market, accounting for 90% of all e3Ws sold in the country. This segment has thrived over the last five-seven years due to lower upfront expenses and operational savings, as well as minimal compliance requirements. However, e-autos, which have a larger load-bearing capacity and top speed than e-rickshaws, are also gaining popularity, with sales split evenly between the goods and passenger carrier segments. The latter has been fuelled in large part by favourable operating economics and a desire by numerous companies, notably e-commerce firms, to employ green vehicles for last-mile transportation needs.

On the other hand, it said the eauto passenger carrier segment has had relatively lower levels of EV adoption, although this trend is improving. Because e-rickshaws are also an option for passenger transportation, with lower upfront costs, more seating capacity, and fewer compliance requirements, the adoption of e-auto passenger carriers has been relatively slower.

The CNX Nifty is currently trading at 16947.50, down by 38.20 points or 0.22% after trading in a range of 16930.25 and 17061.75. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were UPL up by 1.73%, Indusind Bank up by 1.33%, Dr Reddy's Laboratories up by 1.21%, Coal India up by 1.06% and Hindalco up by 0.87%. On the flip side, Adani Enterprises down by 6.80%, Adani Ports and Special Economic Zone down by 5.89%, Tech Mahindra down by 2.69%, BPCL down by 2.28% and Hero MotoCorp down by 2.15% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 191.76 points or 0.98% to 19,759.45, Nikkei 225 surged 41.38 points or 0.15% to 27,518.25, Jakarta Composite gained 41.29 points or 0.62% to 6,750.22, KOSPI increased 25.72 points or 1.06% to 2,434.94 and Straits Times rose 16.46 points or 0.51% to 3,255.49, while Shanghai Composite weakened 7.89 points or 0.24% to 3,243.51 and Taiwan Weighted lost 128.83 points or 0.82% to 15,701.48.