Daily market review India
The Indian stock market closed lower on Friday for the second consecutive day, with the key indices falling by over 0.5%. This was due to investors becoming cautious after the government increased the securities transaction tax (STT) on futures and options contracts, and concerns regarding the global banking sector's contagion. While the market started cautiously, it soon turned negative, with foreign fund outflows weighing it down. Provisional data showed that FIIs were net sellers in the cash markets on March 23. However, the indices recovered in the afternoon as traders took support from reports that India's exports to the UAE were expected to reach an all-time high, and the Chief Economic Advisor indicated that India's current account deficit would drop with the slide in crude oil prices. The recovery was short-lived, with the market witnessing intense selling pressure towards the end of the session, which was attributed to a bearish trend in Asian and European markets. Additionally, the announcement of amendments to the Finance Bill eliminating long-term tax benefits on debt mutual funds further impacted the market. On the global front, European markets were trading lower due to increased economic uncertainties, and Asian markets settled mostly lower due to concerns about the banking crisis. Finally, the BSE Sensex and the CNX Nifty closed lower by 0.69% and 0.77%, respectively.
The BSE Sensex experienced highs and lows of 58,066.40 and 57,422.98, respectively. The index saw 5 advancing stocks, 24 declining stocks, and 1 unchanged stock. The BSE Mid cap index decreased by 1.25%, while the Small cap index dropped by 1.37%. The BSE's top losing sectoral indices were Realty, Metal, Energy, PSU, and Industrials, with no gaining sectoral indices. The Sensex's top gainers were Kotak Mahindra Bank, Infosys, Power Grid Corporation, Tech Mahindra, and Asian Paints. Meanwhile, the top losers on the Sensex were Bajaj Finserv, Bajaj Finance, Tata Steel, Reliance Industries, and Larsen & Toubro. The ICRA reported that overall infrastructure credit showed annualized growth of 8% in 9M FY2023, and non-banking financial companies - infrastructure finance companies maintained their market share of around 54%. The CNX Nifty traded between 17,109.45 and 16,917.35, with 9 advancing stocks and 41 declining stocks. The top gainers on the Nifty were Cipla, Kotak Mahindra Bank, Apollo Hospital, Tech Mahindra, and Infosys. The top losers were Bajaj Finserv, Bajaj Finance, Tata Steel, Hindalco, and Adani Ports and SEZ. European markets, including UK's FTSE 100, France's CAC, and Germany's DAX, traded lower. Asian markets settled mostly lower due to concerns over the ongoing US banking crisis, heavily indebted Evergrande Group's debt restructuring deal, and a survey showing manufacturing activity in Japan contracted for the fifth consecutive month in March. Some losses were capped after Wall Street's overnight gains in anticipation of nearing the end of US interest rate hikes.