Nifty breaches 22,000 level, broader mkt fall continues

The headline equity indices traded with major losses in mid-afternoon trade. The Nifty traded below 22,000 level. PSU bank shares extended losses for the third consecutive trading session.

At 14:29 IST, the barometer index, the S&P BSE Sensex tanked 993.76 points or 1.35% to 72,674.20. The Nifty 50 index dropped 364.55 points or 1.63% to 21,971.15.

The broader market underperformed the headline indices. S&P BSE Mid-Cap index fell 4.06% and the S&P BSE Small-Cap index tumbled 4.84%.

The market breadth was firmly in favour of declines. On the BSE, 346 shares rose and 3,534 shares fell. A total of 63 shares were unchanged.

Economy:

India`s consumer price inflation softened marginally in February, data from the Ministry of Statistics and Programme Implementation showed Tuesday. The consumer price index posted an annual growth of 5.09% in February.

This was slightly slower than January`s 5.1% increase and economists` forecast of 5.02% rise. In the same period last year, inflation was 6.44%.

Meanwhile, India`s industrial production growth moderated in January after accelerating in the previous month, data from the Ministry of Statistics and Programme Implementation revealed on Tuesday.

Industrial output expanded 3.8% year-over-year in January, slower than the 4.2% in December.

Among the major three sectors, mining output grew the most, up by 5.9%. This was followed by a 5.6% rise in manufacturing output and a 3.2% increase in electricity production.

During April to January, industrial production grew 5.9% from the same period last year, data showed.

Buzzing Index:

The Nifty PSU Bank index tumbled 4.33% to 6,734.05. The index dropped 8.27% in three trading sessions.

Punjab & Sind Bank (down 7.09%), Bank of India (down 7.03%), Central Bank of India (down 6.88%), Indian Overseas Bank (down 6.56%), Union Bank of India (down 6.45%), Bank of Maharashtra (down 5.96%), Punjab National Bank (down 5.36%), UCO Bank (down 4.84%), Canara Bank (down 4.3%) and Bank of Baroda (down 3.85%) slipped.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.18% to 7.039 as compared with previous close 7.037.

In the foreign exchange market, the rupee is edged lower against the dollar. The partially convertible rupee was hovering at 82.8675, compared with its close of 82.8000 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement rose 0.08% to Rs 65,531.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was shed 0.04% to 102.92.

The United States 10-year bond yield fell 0.24% to 4.146.

In the commodities market, Brent crude for May 2024 settlement rose 32 cents or 0.39% to $ 82.24 a barrel.

Stocks in Spotlight:

Shakti Pumps (India) slipped 4.46%. The company announced that it has received work order worth Rs 73.32 crore from Haryana Renewable Energy Department (HAREDA) for supply of 2,130 pumps under KUSUM 3 scheme.

Lumax Industries fell 1.76%. The company said that its board has approved a proposal to set up new manufacturing facility at Sanand (Plant-3), Gujarat, and also the expansion of Chakan Plant (Phase-II) at Pune, Maharashtra.

SRF declined 1.59%. The company announced that it has incorporated a wholly owned subsidiary, SRF Middle East with an authorized capital of AED 365,000.

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