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Bloodbath continues on Dalal Street in noon deals

Indian equity benchmarks continued to witness bloodbath early afternoon session pressurised by the hefty selloff amid concerns over the pace of national economic recovery after the daily coronavirus infections surpassed 100,000 for the first time and as new restrictions imposed in different parts of the country. Sentiments also got undermined after India's manufacturing sector activities lost further growth momentum and fell to a seven-month low in March as demand was constrained by the escalation of the COVID-19 pandemic. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) fell from 57.5 in February to a seven-month low of 55.4 in March. Weak broader indices along with heavy sell off at realty, banking and PSU counters dragged the markets lower.

On the global front; Asian stock markets were mostly higher after Wall Street hit a record high on optimism the spread of coronavirus vaccines might allow global business to return to normal. Back home, the market breadth remained pessimistic, as there were 1969 shares on the losing side against 796 shares on the gaining side, while 194 shares remained unchanged.

The BSE Sensex is currently trading at 48866.86, down by 1162.97 points or 2.32% after trading in a range of 48580.80 and 50028.67. There were 3 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 1.84%, while Small cap index was down by 1.67%.

The only gaining sectoral indices on the BSE were IT up by 1.06% and TECK was up by 0.66%, while Realty down by 4.13%, Bankex down by 3.62%, PSU down by 2.88%, Consumer Durables down by 2.84% and Auto was down by 2.83% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Tech up by 2.13%, Infosys up by 1.05% and TCS was up by 0.99%. On the flip side, Indusind Bank down by 6.19%, Bajaj Finance down by 5.83%, Bajaj Finserv down by 5.35%, SBI down by 4.60% and ICICI Bank was down by 4.12% were the top losers.

Meanwhile, Indian manufacturing activity eased in the month of March but it remains above the boom-or-bust line of 50 that separates expansion from contraction, as firms scaled up production and input buying in line with another upturn in sales. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - stood at 55.4 in March as against 57.5 in February.

Besides, goods producers indicated that strengthening demand and the receipt of orders in bulk underpinned a further rise in overall sales. Similarly, factory production expanded at a sharp, albeit slower, pace. Those companies that signalled growth mentioned higher new work intakes. The upturn was reportedly restricted by the COVID-19 pandemic. New export orders increased further in March, stretching the current sequence of growth to seven months.

On the price front, the rate of input cost inflation was among the strongest seen over the past three years. However, selling prices increased only moderately as companies limited their adjustments to retain a competitive edge and boost sales. Further, business confidence waned in March. While some firms foresee output growth in the coming 12 months, the vast majority predicted no change from present levels.

The CNX Nifty is currently trading at 14547.45, down by 319.90 points or 2.15% after trading in a range of 14459.50 and 14849.85. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were HCL Tech up by 2.38%, Britannia Industries up by 2.11%, Wipro up by 1.68%, Infosys up by 1.21% and TCS was up by 1.07%. On the flip side, Indusind Bank down by 5.92%, Bajaj Finance down by 5.75%, Bajaj Finserv down by 5.32%, SBI down by 4.49% and HDFC was down by 4.08% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 235.25 points or 0.79% to 30,089.25, Straits Times advanced 28.52 points or 0.90% to 3,210.20 and KOSPI rose 7.99 points or 0.26% to 3,120.79. On the flip side, Jakarta Composite was down by 25.04 points or 0.42% to 5,986.42.

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