Indian equity benchmarks remained under pressure in late morning session, with both Sensex and Nifty trading in deep red, as bears held a tight grip over the Dalal Street. Negative cues from other Asian markets impacted domestic sentiments. Traders were worried, as domestic rating agency Care Ratings revised its GDP growth forecast for the current fiscal to 9.2 per cent from 10.2 per cent it had estimated earlier. This is the fourth revision by the rating agency in its GDP growth forecast for FY2021-22 since March this year. On March 24 this year, it had projected GDP growth for FY22 at 11-11.2 per cent but revised downwards forecast to 10.7 per cent on April 5 and further to 10.2 per cent on April 21.
On the global front, Asian markets were trading in red, even after Malaysia's economy contracted at a slower pace in the first quarter underpinned by the improvement in domestic demand and exports. Gross domestic product declined 0.5 percent annually in the first quarter, but slower than the 3.4 percent decrease seen in the fourth quarter, Bank Negara Malaysia reported. The economic activity gradually picked up as the restrictions related to the COVID-19 were relaxed in February and March.
The BSE Sensex is currently trading at 48737.88, down by 423.93 points or 0.86% after trading in a range of 48629.38 and 49171.28. There were 5 stocks advancing against 25 stocks declining on the index.
The broader indices were trading in red; the BSE Mid cap index was down by 0.33%, while Small cap index was down by 0.11%.
The top gaining sectoral indices on the BSE were Power up by 1.45%, Utilities up by 1.42%, Capital Goods up by 1.23%, PSU up by 0.99% and Industrials up by 0.67%, while Bankex down by 1.19%, IT down by 1.08%, TECK down by 0.98%, Consumer Durables down by 0.73% and Energy down by 0.64% were the top losing indices on BSE.
The top gainers on the Sensex were Power Grid up by 3.16%, NTPC up by 2.62%, Larsen & Toubro up by 2.41%, Asian Paints up by 0.81% and SBI up by 0.43%. On the flip side, Mahindra & Mahindra down by 2.39%, Hindustan Unilever down by 2.30%, Tech Mahindra down by 2.20%, Indusind Bank down by 2.15% and Kotak Mahindra Bank down by 2.02% were the top losers.
Meanwhile, expressing optimism over exports growth, Commerce and Industry Minister Piyush Goyal has said that a sharp rise in exports in April is giving a hope that the ambitious target of $400 billion merchandise shipments can be achieved this year. He also said that the Department of Commerce has taken up several issues of exporters with the Ministry of Finance for their early resolution, like RoDTEP (remission of duties and taxes on export products), MEIS (merchandise export from India scheme), and inverted duty structure.
The minister added that there is a large potential for enhancing exports in several sectors like pharmaceuticals, engineering, auto-component, fisheries and agro-products. India's merchandise exports in April jumped by 197 per cent to $30.21 billion as against $10.17 billion in April 2020 and $26.04 billion in April 2019. Regarding certain issues being raised by exporters, Goyal said that they should approach the Covid helpdesk of the department for resolving the problems emanating due to Covid-related measures.
Rates for RoDTEP have not yet been announced by the finance ministry even as the scheme would have to be implemented from January. Exporting community has time and again urged the government regarding the rates as it would help them in factoring in those rates while negotiating prices of goods with international buyers. The reimbursement of taxes such as duty on power charges, VAT on fuel in transportation, farm sector, captive power generation, mandi tax, stamp duty and central excise duty on fuel used in transportation would make Indian products competitive in the global markets.
The CNX Nifty is currently trading at 14727.80, down by 122.95 points or 0.83% after trading in a range of 14695.10 and 14824.05. There were 12 stocks advancing against 38 stocks declining on the index.
The top gainers on Nifty were Power Grid up by 3.18%, Tata Motors up by 2.76%, NTPC up by 2.53%, Larsen & Toubro up by 2.41% and Indian Oil Corp up by 1.06%. On the flip side, Mahindra & Mahindra down by 2.49%, SBI Life Insurance down by 2.40%, Tech Mahindra down by 2.29%, Hindustan Unilever down by 2.28% and Indusind Bank down by 2.17% were the top losers.
Asian markets were trading in red; Nikkei 225 plunged 393.91 points or 1.38% to 28,214.68, Straits Times fell 20.45 points or 0.65% to 3,123.82, Hang Seng declined 110.28 points or 0.39% to 27,903.53, Taiwan Weighted slipped 948.08 points or 5.72% to 15,635.05, KOSPI dropped 66.89 points or 2.08% to 3,142.54 and Shanghai Composite was down by 0.43 points or 0.01% to 3,441.42.