Benchmarks add losses in morning deals

Indian equity benchmarks added losses and were trading under pressure in morning deals, amid weakness in Oil & Gas, Telecom and Consumer Durables stocks despite strong global cues. Sentiments remained down-beat with credit rating agency ICRA’s statement that India's Gross Domestic Product (GDP) growth is projected to moderate sequentially to 6 per cent year-on-year (YoY) in the third quarter of FY24 as against 7.6 per cent in Q2. Traders overlooked private survey showing that Indian business activity expanded at its fastest pace in seven months in February as demand remained strong for both manufacturing and services. HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 61.5 this month from January's final reading of 61.2, staying above the 50-mark that separates expansion from contraction for a 31st straight month. On the global front, Asian markets are trading mostly in green as weak U.S. retail sales data sent Treasury yields down and added to bets that the Federal Reserve will cut interest rates in coming months. 

The BSE Sensex is currently trading at 72121.16, down by 501.93 points or 0.69% after trading in a range of 72121.16 and 72724.53. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.31%, while Small cap index was down by 0.27%.

The few gaining sectoral indices on the BSE were Metal up by 0.38% and IT up by 0.20%, while Oil & Gas down by 1.36%, Telecom down by 1.07%, Consumer Durables down by 0.98%, Utilities down by 0.96% and PSU down by 0.94% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 1.43%, HCL Technologies up by 1.37%, Tata Steel up by 0.76%, Tech Mahindra up by 0.74% and Wipro up by 0.70%. On the flip side, Bharti Airtel down by 3.26%, Titan Company down by 1.79%, Power Grid Corporation down by 1.70%, Asian Paints down by 1.61% and Kotak Mahindra Bank down by 1.54% were the top losers.

Meanwhile, CRISIL Market Intelligence and Analytics in its latest research report has said that financial conditions have tightened the economy with liquidity going into a deeper deficit putting upward pressure on short-term rates. It also said that foreign portfolio investors turned net sellers further aggravating the tight liquidity conditions.

It stated with tightening of the liquidity, the transmission of interest rates improved across lending and deposit rates in January. However, the cumulative rise in most deposit and lending rates remained lower than the 250 basis points of repo rate increase by the Reserve Bank of India (RBI) since May 2022.

This incomplete transmission of monetary policy prompted the Reserve Bank of India to keep the interest rates unchanged. According to the report, the deficit in domestic systemic liquidity almost doubled in January compared with December. This has led to a net infusion of Rs 2.07 lakh crore into the system, which is one per cent of net demand and time liabilities (NDTL) by the RBI. It said that liquidity has been in deficit in the economy since September 2023. Besides, it said due to a crunch in liquidity, money market rates are under pressure with the call money rate hovering above 6.75 per cent.

The CNX Nifty is currently trading at 21902.80, down by 152.25 points or 0.69% after trading in a range of 21886.40 and 22094.30. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 1.63%, Axis Bank up by 1.33%, HCL Technologies up by 1.21%, Hindalco up by 1.19% and Tata Steel up by 0.76%. On the flip side, Bharti Airtel down by 3.40%, BPCL down by 2.81%, Power Grid Corporation down by 1.87%, Titan Company down by 1.71% and Asian Paints down by 1.63% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 620.36 points or 1.62% to 38,882.52, Taiwan Weighted added 164.78 points or 0.88% to 18,841.09, Hang Seng advanced 24.91 points or 0.15% to 16,528.01, KOSPI increased 10.59 points or 0.4% to 2,663.90, Jakarta Composite gained 5.27 points or 0.07% to 7,354.29 and Shanghai Composite strengthened 14.52 points or 0.49% to 2,965.48.

On the flip side, Straits Times fell 16.45 points or 0.51% to 3,200.66.