Indian equity benchmarks remained under pressure in morning trade, tracking a sharp decline in global equities and a fresh spike in crude oil prices, amid simmering tensions in West Asia. Traders remained cautious as the Reserve Bank of India (RBI) Governor Sanjay Malhotra cautioned that the projected shortfall in south-west monsoon rainfall could weigh on rural demand and private consumption. He said a weaker monsoon could affect agricultural production and, in turn, influence spending patterns in rural areas. Some concern also came as exchange data showed Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,776.25 crore on Friday. Traders overlooked Commerce and Industry Minister Piyush Goyal’s statement that India and the US are moving towards closing all the open ends of the interim trade agreement, and both sides are likely to execute the very, very vibrant first phase of the pact by the middle of next month. On the global front, Asian markets were trading lower amid escalating Middle East conflict after reports that Iran launched missiles at Israel, raising doubts over the durability of the already fragile US-Iran ceasefire.
The BSE Sensex is currently trading at 73731.76, down by 511.58 points or 0.69% after trading in a range of 73318.94 and 73758.83. There were 9 stocks advancing against 21 stocks declining on the index.
The few gaining sectoral indices on the BSE were Healthcare up by 0.69% and Utilities up by 0.21%, while Telecom down by 1.42%, Metal down by 1.36%, Basic Materials down by 1.11%, Auto down by 1.10% and Industrials down by 1.08% were the top losing indices on BSE.
The top gainers on the Sensex were Power Grid Corporation up by 1.59%, Tech Mahindra up by 0.90%, SBI up by 0.40%, Bharti Airtel up by 0.40% and NTPC up by 0.33%. On the flip side, Interglobe Aviation down by 2.25%, Mahindra & Mahindra down by 2.12%, Bajaj Finance down by 1.90%, Eternal down by 1.70% and Larsen & Toubro down by 1.43% were the top losers.
Meanwhile, the Reserve Bank of India (RBI) Governor Sanjay Malhotra has cautioned that the projected shortfall in south-west monsoon rainfall could weigh on rural demand and private consumption. He said a weaker monsoon could affect agricultural production and, in turn, influence spending patterns in rural areas. While recognising the risks, he said various government initiatives are expected to cushion the effect.
RBI Governor said rural demand and private consumption have remained healthy so far but acknowledged that some moderation may be inevitable. However, he said programmes and initiatives for crop diversification, water harvesting and conservation, climate-resilient practices and short-duration crops, among others, are expected to mitigate the impact.
He also pointed to broader risks from rising input costs and supply disruptions, which could weigh on economic activity and consumption if pressures persist. He said going ahead, the rise in prices of energy and other inputs, coupled with supply disruptions, is likely to weigh on economic activity. He noted that the eventual impact would depend on how long the conflict continues and how quickly global supply chains return to normal.
The CNX Nifty is currently trading at 23207.95, down by 158.75 points or 0.68% after trading in a range of 23070.15 and 23216.00. There were 14 stocks advancing against 36 stocks declining on the index.
The top gainers on Nifty were Max Healthcare Inst up by 2.02%, Power Grid Corporation up by 1.30%, Apollo Hospital up by 1.24%, Dr. Reddy's Lab up by 0.95% and Tech Mahindra up by 0.84%. On the flip side, Wipro down by 5.42%, Interglobe Aviation down by 2.29%, Mahindra & Mahindra down by 2.14%, Bajaj Finance down by 2.00% and Tata Motors Passenger down by 1.96% were the top losers.
All Asian markets were trading lower; Nikkei 225 slipped 2668.12 points or 4.01% to 63,920.00, Taiwan Weighted lost 1543.55 points or 3.42% to 43,527.39, Jakarta Composite plunged 160.46 points or 2.87% to 5,434.31, Shanghai Composite weakened 52.99 points or 1.32% to 3,974.75, KOSPI dropped 541.83 points or 6.64% to 7,618.76, Hang Seng declined 344.95 points or 1.38% to 24,617.00 and Straits Times fell 75.81 points or 1.5% to 4,974.15.
