Sensex, Nifty trade sideways; Auto stocks decline

8 Mar 2022 , 02:22 PM

The benchmark indices turned volatile during mid-afternoon trade. Oil & Gas, metal and auto scrips dragged while pharma scrips supported the market. The Nifty hovered tad above 15,850 mark.

At 14:30 IST, the barometer index, the S&P BSE Sensex, rose 51.47 points or 0.10% at 52,894.22. The Nifty 50 index lost 12.80 points or 0.08% at 15,850.35.

In the broader market, the S&P BSE Mid-Cap index rose 0.46% while the S&P BSE Small-Cap index gained 0.51%.

The market breadth was positive. On the BSE, 1,924 shares rose and 1,312 shares fell. A total of 126 shares were unchanged.

As per exit polls conducted by the media, the Bharatiya Janata Party (BJP) is expected to sweep with a majority in Uttar Pradesh and Manipur, while the Aam Aadmi Party (AAP) will unseat the Congress in Punjab, as per the polls for the just-finished five assembly elections released on 7 March 2022. In Uttarakhand, the ruling BJP may emerge as the first party to retain power in the hill-state. The BJP is likely to retain power in Manipur. Goa is likely to witness a fractured mandate in the recently contested assembly elections.

The elections to the five states – Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur – were held in seven phases between 10 February 2022 and 7 March 2022. The results will be announced on 10 March 2022.

Economy:

A quantity of 725.93 LMT of Paddy has been procured in Kharif Marketing Season so far. The paddy procurement is progressing smoothly in procuring states including Chandigarh, Gujarat, Assam, Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Punjab, and Uttar Pradesh. Till now, about 102.29 lakh farmers have been benefitted with Minimum Support Price value of over Rs 1.42 lakh crore.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.899% as compared with 6.888% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 76.87, compared with its close of 76.9350 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement rose 0.44% to Rs 53,755.

The US Dollar index (DXY), which tracks the greenbacks value against a basket of currencies, fell 0.38% to 98.91.

In the commodities market, Brent crude for May 2022 settlement rose $1.31 at $124.52 a barrel. Soaring crude oil prices due to ongoing Russia-Ukraine crisis continued to spook investors. India imports majority of its crude oil requirements. A spike in crude oil prices has raised concerns over the impact on inflation, currency and input cost for companies across sectors. Higher crude oil prices could increase Indias expenditure and adversely affects the fiscal deficit.

Buzzing Index:

The Nifty Auto index slipped 1% to 9,385.70. The index lost 13.85% in six trading sessions.

Ashok Leyland (down 3.03%), Tube Investments of India (down 2.92%), Eicher Motors (down 2.70%), Maruti Suzuki Industries (down 1.69%) and Tata Motors (down 1.60%) were the top losers in the Auto segment.

Global Markets:

The Dow Jones futures were up 26 points, indicating a positive opening in the US stock market.

European markets advanced on Tuesday as the prospect of a Western ban on Russian oil imports fuels concerns about inflation and a growth slowdown. Peace talks between Russia and Ukraine in Belarus have made little progress in abating the escalating war, and investors remain skittish after the U.S. revealed active discussions with European governments about banning imports of Russian crude oil and natural gas.

Such a move could pose a risk of stagflation ? a period of slow economic growth and high unemployment coupled with high inflation ? for the global economy. Ukraines defense intelligence agency claimed on Monday night to have killed a second Russian general near Kharkiv, where intense fighting has unfolded in recent days.

Asian stocks declined, following heavy losses for the major indexes overnight stateside as the Russia-Ukraine war continues to keep investors on edge. Wall Streets main indices fell sharply on Monday as the prospect of a ban on oil imports from Russia sent crude prices soaring and fueled concerns about rising inflation.

A Western ban on Russian oil imports may more than double the price to $300 a barrel and prompt the closure of the main gas pipeline to Germany, Moscow reportedly warned on Monday, as talks on Ukraine hardly advanced amid efforts to agree on civilian safe passage. Brent, the international benchmark, briefly hit more than $139 a barrel, its highest level since 2008. A rejection of Russian oil would lead to catastrophic consequences for the global market, said Russian Deputy Prime Minister Alexander Novak.

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