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Bourses slip into negative territory in late afternoon session
May-24-2022

Indian equity markets failed to hold gains and slipped into negative territory in late afternoon session, with losses of above half a percent. The broader indices, the BSE Mid cap index and Small cap index were also trading with the cut of above half a percent. Traders paid no heed towards country's exports rose by 21.1 percent to $23.7 billion during May 1-21, on account of healthy growth in various sectors, such as petroleum products, engineering, and electronic goods. During the second week of this month (May 15-21), the exports grew by about 24 percent to $8.03 billion. In scrip specific, Delhivery has debuted at Rs 493.00 on the BSE, up by 6 points or 1.23% from its issue price of Rs 487.

On the global front, Asian markets were trading mostly in red as downbeat surveys on business confidence and weak overnight earnings from social media group Snap intensified nerves about the global growth outlook. European markets were trading lower as reminders of the risks to global growth from both China and the U.S. put a quick end to Monday's relief rally.

The BSE Sensex is currently trading at 53,983.79, down by 304.82 points or 0.56% after trading in a range of 54021.27 and 54524.37. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.65%, while Small cap index was down by 0.68%.

The only gaining sectoral indices on the BSE were Bankex was up by 0.24%, while IT down by 1.53%, TECK down by 1.42%, Healthcare down by 1.27%, FMCG down by 1.20% and Capital Goods was down by 1.06% were the top losing indices on BSE.

Meanwhile, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has maintained a neutral outlook for the overall infrastructure sector for FY23, amid likelihood of a stable operating performance for majority of the projects, long-term visibility of revenue under concession agreements and power purchase agreements, and expected improved cargo and traffic volumes.

The rating agency further noted that internal liquidity, adequacy of operations and maintenance, mitigation of cost overrun and strength of sponsors are critical monitorables. Ind-Ra also underlined headwinds for the sector such as a downward revision in the economic outlook, elevated commodity prices, rising interest rate, land acquisitions delays, construction stage risks and counterparty risks.

According to the report, there is a continued preference for infrastructure investment trusts and pooled financing structures. Refinancing is generally focused on establishing pooled structures to raise funds, elongating the tenor and/or releasing of some sponsor investments. The consequence of rising interest rates is also a key monitorable.

The top gainers on the Sensex were HDFC up by 1.79%, Nestle up by 1.59%, Power Grid up by 1.51%, Kotak Mahindra Bank up by 1.36% and Dr. Reddy's Lab up by 1.28%. On the flip side, Tech Mahindra down by 3.27%, Hindustan Unilever down by 2.67%, HCL Tech down by 2.64%, Asian Paints down by 2.27% and Larsen & Toubro down by 1.80% were the top losers.

The CNX Nifty is currently trading at 16,093.25, down by 121.45 points or 0.75% after trading in a range of 16117.10 and 16262.80. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 1.54%, HDFC up by 1.53%, Nestle up by 1.53%, Dr. Reddy's Lab up by 1.49% and Power Grid up by 1.49%. On the flip side, Divi's Lab down by 5.90%, Tech Mahindra down by 3.30%, Grasim Industries down by 3.26%, ONGC down by 2.87% and Hindustan Unilever down by 2.69% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 357.96 points or 1.75% to 20,112.10, Nikkei 225 slipped 253.38 points or 0.94% to 26,748.14, Taiwan Weighted dropped 192.78 points or 1.19% to 15,963.63, Shanghai Composite declined 75.93 points or 2.41% to 3,070.93, KOSPI fell 41.51 points or 1.57% to 2,605.87 and Straits Times was down by 10.38 points or 0.32% to 3,203.27. On the flip side, Jakarta Composite was up by 73.36 points or 1.07% to 6,914.14.

European markets were trading lower, UK’s FTSE 100 decreased 43.01 points or 0.57% to 7,470.43, France’s CAC decreased 79.68 points or 1.25% to 6,279.06 and Germany’s DAX was down by 133.16 points or 0.94% to 14,042.24.
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