Markets magnify losses in late morning deals

Indian equity markets magnified their losses and were trading deeply red in late morning deals, which dragged both the Sensex and Nifty below their psychological 61,300 and 18,150 levels respectively, as market participants indulged in reducing positions. Weak cues from global markets weighted on domestic sentiments. Sentiments were weak amid rising fears of contagion in the US banking system and sharp losses in HDFC twins after a private report said that MSCI's change in their weightage adjustment factor may trigger FPI outflows. On the BSE sectoral front, traders were seen pilling up position in Consumer Durables, Auto, Capital Goods, Industrials and FMCG, while selling was witnessed in Metal, TECK, Telecom, Utilities and Bankex. 

On the global front, Asian markets were trading mostly in red following weak cues from US markets overnight. Sentiments were also weak as China’s Caixin services purchasing managers index for April slipped to 56.4 from March’s reading of 57.8 but remained in expansion while the Caixin manufacturing PMI fell into contraction territory. Back home, in the stock specific development, United Breweries tumbled after commodity cost inflation weighed January-March quarter’s (Q4FY23) net profit, down 94.03 per cent year-on-year (YoY) to Rs 9.7 crore. 

The BSE Sensex is currently trading at 61248.72, down by 500.53 points or 0.81% after trading in a range of 61163.10 and 61585.50. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.28%, while Small cap index down by 0.35%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.02%, Auto up by 0.64%, Capital Goods up by 0.54%, Industrials up by 0.31% and FMCG up by 0.07%, while Metal down by 1.11%, TECK down by 0.75%, Telecom down by 0.74%, Utilities down by 0.74% and Bankex down by 0.66% were the top losing indices on BSE.

The top gainers on the Sensex were Titan up by 1.77%, Larsen & Toubro up by 1.46%, Axis Bank up by 1.18%, ICICI Bank up by 1.17% and Maruti Suzuki up by 1.02%. On the flip side, HDFC Bank down by 5.24%, HDFC down by 5.11%, Tata Steel down by 1.89%, NTPC down by 1.50% and HCL down by 1.09% were the top losers.

Meanwhile, with a view to boost outbound shipments, Federation of Indian Export Organisations (FIEO) has urged the government to support domestic exporters in undertaking overseas marketing initiatives. FIEO President A Sakthivel said that Indian exporters lack in marketing and small exporters hardly have resources to market aggressively overseas.

He stated ‘Government support and encouragement for aggressive marketing will push exports and will yield the desired results. We need to set up state-of-the-art exposition centers in important business centers abroad. Many countries have done it successfully.’

He also said that the country's exports are growing at a healthy pace and $2 trillion target by 2030 would be achieved before time. The country's goods and services exports have reached an all-time high of $773 billion in 2022-23.

The CNX Nifty is currently trading at 18127.40, down by 128.40 points or 0.70% after trading in a range of 18104.90 and 18216.95. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Titan up by 1.93%, Larsen & Toubro up by 1.36%, Axis Bank up by 1.24%, ICICI Bank up by 1.16% and Maruti Suzuki up by 1.13%. On the flip side, HDFC Bank down by 5.20%, HDFC down by 5.05%, Tata Steel down by 1.76%, NTPC down by 1.59% and Hindalco down by 1.14% were the top losers. 

Asian markets were trading mostly in red; Shanghai Composite weakened 15.05 points or 0.45% to 3,335.41, Jakarta Composite plunged 93.49 points or 1.38% to 6,750.54 and Straits Times fell 6.04 points or 0.18% to 3,263.14. However, Taiwan Weighted added 9.84 points or 0.06% to 15,618.87, Hang Seng advanced 159.14 points or 0.8% to 20,107.87.