Markets trade lower amid weak global cues; Nifty below 17,600 dragged by metal, realty, auto

12 Apr 2022 , 09:41 AM

Indian markets were in a sharp bearish tone during Tuesday’s opening session led by a broad-based selloff. Both Sensex and Nifty witnessed massive profit booking where all the indices were trading in the red amid weak global cues as heightened recession fears, hawkish Federal Reserve and a prolonged Russia-Ukraine conflict remain major concerns for investors. Although earnings season will likely steal away traders attention soon enough to track the nerve of market sentiments.

In terms of sectoral indices, all the sectors were trading in the red territory where Banking, realty and metal stocks were the worst hit.

Also, globally, brent crude falls below $100 a barrel as China lockdowns spark demand fears. The spread of Covid in China becomes the major concern for its economy and hence affecting the oil markets. 

At around 09:45 AM, Sensex was trading at 58,640.50 down by 324.07 points or 0.55%. Nifty 50 performs at 17,574.40 lower by 100.55 points or 0.57%.

Nifty gainers were – Maruti Suzuki surging 1.3% followed by HCL Tech, Divis Lab, TCS and Cipla added marginal gains.

Meanwhile, Nifty underperformers were – Hindalco slipping by 3.4% followed by Coal India and Tata Motors diving 2.2% each while Tata Steel and Wipro shed 1.4% and 1.3% respectively.

Companies that will be in focus are – TCS, Delta Corp, GM Breweries, UltraTech, JSW Steel, Nestle India, WEP Solutions, Gufic Biosciences and the companies which are set to announce their results today are Anand Rathi Wealth, GM Breweries, Hathway Cable & Datacom, Tinplate Company of India, Evexia Lifecare, and Gayatri Bioorganics.

Notably, TCS recorded a profit of Rs9,926 crore for the quarter ended March 2022, a 7.4 per cent growth over the year-ago period, while revenue increased 15.8 per cent to Rs50,591 crore.

Asian indices opened weak against the backdrop of US stocks selloff with the Japanese ‘Nikkei’ trading lower by over 300 points. Central Bank of China on the other hand to induct more money into the bond markets to increase liquidity which belies the US Federal Reserve’s move for Asian markets & which could see Chinese stocks react positively.