Daily market review India
On Tuesday, Indian equity benchmarks closed slightly lower due to caution ahead of the F&O expiry on Wednesday. The market began positively with traders taking support from SBI Research's latest Ecowrap report stating that the Reserve Bank of India (RBI) is expected to pause its interest rate hike and maintain the current 6.5% repo rate as the terminal rate for now. Commerce Secretary Sunil Barthwal also stated that India will push the rupee trade agenda in the G-20 meetings it is organising as part of its ongoing presidency of the forum, which would be of help, particularly for those countries whose currencies are under pressure.
However, key gauges soon erased gains and traded volatile due to foreign fund outflows denting domestic sentiments. FPIs sold shares worth Rs 890 crore on March 27. Traders also took note of reports that the finance ministry has asked public sector banks (PSBs) to do proper monitoring of top loans and make adequate provisions for pledged shares of big corporates in view of the current global financial scenario emanating from the failure of some international banks in the US and Europe.
On the global front, European markets were trading higher as investors shrugged off the statistical office Insee's survey results showing a slight worsening of French manufacturers' confidence in March. In contrast, Asian markets settled mostly higher due to eased concerns over the banking crisis and China's top leaders pledging to keep embracing foreign capital despite economic and geopolitical headwinds.
The BSE Sensex and CNX Nifty indices fell by 0.07% and 0.20%, respectively, with 11 stocks advancing and 19 declining on the Sensex. The BSE Mid cap and Small cap indices also ended in the red, down by 0.42% and 0.79%, respectively. The Bankex, Financial Services, and Metal sectors were the top gainers, while Telecom, Realty, Utilities, Power, and Oil & Gas sectors were the top losers on the BSE. Indusind Bank, Power Grid Corporation, and HDFC Bank were the top gainers on the Sensex, while Tech Mahindra, Tata Motors, and Bharti Airtel were the top losers. Commerce Secretary Sunil Barthwal announced that India will be pushing the rupee trade agenda in the G-20 meetings as part of its ongoing presidency, with the issue of rupee trade not directly linked to the G-20 forum. The CNX Nifty traded between 17,061.75 and 16,913.75, with 17 stocks advancing and 32 declining. UPL, Indusind Bank, and Dr. Reddy's Lab were the top gainers on the Nifty, while Adani Enterprises, Adani Ports & SEZ, and Tech Mahindra were the top losers. European markets were trading higher, while Asian markets settled mostly higher, with Chinese shares declining due to government probes into state-owned firms to weed out corruption.