Daily market review India

Indian equity benchmarks experienced losses for the third consecutive day on Monday due to weak global cues caused by the Silicon Valley Bank crisis. All sectors ended in the red, with banking and telecom being hit the hardest, both down over 2%. Initially, the markets opened positively due to India's industrial production growth perking up slightly to 5.2% in January, as well as net direct tax collection growing 17% to reach Rs 13.73 lakh crore, and India's foreign exchange reserves rising by $1.46 billion to $562.4 billion as of March 3. However, the indices soon gave up the initial gains in the afternoon due to a private report suggesting that India's retail inflation may have breached the central bank's target for the second straight month in February, leading to possible borrowing cost hikes to the highest level in seven years. In addition, foreign institutional investors (FII) net sold shares worth Rs 2,061.47 crore on March 10. Anxiety also arose from a private report stating that the central government has placed strict conditions on states to avail themselves of long-term loans for their capital expenditure needs in the approaching fiscal year. European markets were trading lower due to the SVB collapse, and Asian markets were mostly higher despite the global sell-off. Finally, the BSE Sensex fell 897.28 points or 1.52% to 58,237.85 and the CNX Nifty was down by 258.60 points or 1.49% to 17,154.30.

The BSE Sensex experienced highs and lows of 59,510.92 and 58,094.55, with 1 stock increasing and 29 stocks decreasing. The BSE Mid cap index and Small cap index both dropped, with falls of 1.82% and 2.08%, respectively. The BSE's top losing sectoral indices were Bankex, Telecom, Auto, Realty, and Financial Services, all falling between 1.93% and 2.24%, with no gaining sectoral indices. Tech Mahindra was the only gainer on the Sensex, rising 6.83%, while the top losers included Indusind Bank, SBI, Tata Motors, Mahindra & Mahindra, and Bajaj Finserv.

Meanwhile, the Central Board of Direct Taxes (CBDT) reported that net direct tax collection during this fiscal year grew by 17% to reach Rs 13.73 lakh crore, with PIT collections driving the growth. Refunds worth Rs 2.95 lakh crore were issued between April 1, 2022 and March 10, 2023, which is 59.44% higher than the preceding year, while net direct tax collection, after refunds, stands at Rs 13.73 lakh crore, 16.78% higher than the corresponding period last year. The CNX Nifty traded within the range of 17,529.90 and 17,113.45, with 4 advancing stocks, 45 declining stocks, and 1 stock remaining unchanged.

In Europe, UK's FTSE 100 fell 2.08%, France's CAC declined 2.47%, and Germany's DAX lost 2.59%. In Asia, most markets rose, with Chinese shares surging after the Beijing government surprisingly kept the head of the central bank and finance minister in their posts on Sunday, and optimism surrounding the US Federal Reserve potentially moderating its rate hikes. However, Japanese shares fell in response to the weakness in Wall Street shares last Friday due to concerns over financial contagion from the collapse of Silicon Valley Bank.