Markets trade bearish ahead of CPI Inflation data; Sensex sheds 800 pts, Nifty 50 below 16k; Tata Motors, M-;M, Hero MotoCorp weigh down

12 May 2022 , 09:49 AM

Sensex and Nifty traded on a bearish note tracking weak global markets on Thursday. Banking, financial along with IT and pharma, metal stocks weighed the most on Indian markets during the opening bell. As investors’ concern were broadly shifted towards inflation risk, it continues to be a major headwind for Indian markets and global markets as well. The government will announce Consumer Price India (CPI) inflation data later today.

At around 9:45 AM, Sensex was trading at 53,290.65 surging down by 797.74 points or 1.47%. The index has touched an intraday low of 53,090.86.

Nifty 50 was performing at 15,937.95 lower by 229.25 points or 1.42%. The index has clocked the day’s low of 15,920.70.

Nifty gainers were – ONGC (+0.88%), Power Grid (+0.44%) and Bajaj Auto (+0.16%) however, index heavyweights dragged the benchmarks.

Underperformers on Nifty 50 were – Tata Motors diving by 3% followed by M&M down 2.6%. Bajaj Finance, Apollo Hospitals and Ultratech Cement dropped by 2.3% each.

Major stocks like Hero MotoCorp, Adani Ports, Hindalco, SBI Life, Tata Steel, Titan dived more than 2.5-3% each. Maruti, Cipla, TCS, Infosys also slipped nearly 1-2% each.

Companies that are set to announce their Q4 result today are – Larsen & Toubro, Tata Motors, RBL Bank, Siemens, Aditya Birla Capital, Anupam Rasayan India, Apollo Tyres, Coforge, Greaves Cotton, Gujarat State Petronet, Honeywell Automation India, Poonawalla Fincorp, Ujjivan Small Finance Bank, Windlas Biotech, Avanti Feeds, Brigade Enterprises, CreditAccess Grameen, Genus Power Infrastructures, HP Adhesives, ICRA, Jammu & Kashmir Bank, JMC Projects, Lumax Auto Technologies, Matrimony.com, Mindspace Business Parks REIT, South Indian Bank and Spencers Retail.

In terms of sectoral indices, Nifty PSU Bank tumbled massively by 3%. Nifty Bank and Nifty Financial Services fell nearly 2% each. Nifty FMCG and Nifty Metal also slipped over 1.5% each while Nifty IT and oil & gas dropped 1% each. .

The government will present CPI Inflation data for April 2022 later today.

Further, Morgan Stanley cut India’s GDP growth forecasts for FY23 and FY24 to 7.6%, citing higher crude prices and the ongoing slowdown in global growth.

On the global front, Asian stocks opened in the red led by the Japanese ‘Nikkei’ which traded lower by over 250 points in early trade.

Moreover, US markets see further weakness as much anticipated inflation data comes @ 8.3% versus expectations of 8.1%. Nasdaq loses another 3%. Bond yields close near 2.88% or 2 week lows while crude prices rise further as most European countries reduce dependency on Russian oil.