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Indian equity benchmarks ended lower for a fifth straight day on Tuesday, dragged by heavy selling pressure in IT, FMCG and TECK stocks. The domestic indices fluctuated between gains and losses throughout the day before plunging sharply in late deals. Markets made positive start but soon turned volatile, as traders turned cautious after an Reserve Bank of India (RBI) article has flagged risks of disruptive spillovers from geopolitical hostilities and said India faces these challenges from a position of strength built on broadened vaccine coverage, financial sector resilience and robust exports and remittances and fiscal reprioritisation to spur capital spending on infrastructure. Some concerns also came as the International Monetary Fund (IMF) warned that the debt piled on by the private sector during the coronavirus pandemic could lower growth for emerging markets by 1.3 percent over three years.

However, markets managed to trade in green in late morning deals, taking support from the commerce department’s preliminary data showing that India exported goods worth $18.79 billion during the first two weeks of April, up 37 per cent compared to the same period last year, as external demand continued to remain robust. Excluding petroleum products, the growth in this period was 23.64 per cent over the same period of 2021-22. Some support also came as working paper of the World Bank stated that extreme poverty in India declined by 12.3 percentage points between 2011 and 2019, with rural areas doing better than urban centres. But, a sudden sell-off during the fag-end of the session drove the markets down. Weaker quarterly corporate earnings, ongoing Russia-Ukraine spat, and high inflation worries also dented investor sentiment. 

On the global front, Asian markets ended mixed on Tuesday after the World Bank cut its forecast for global expansion this year by nearly a full percentage point. Separately, the IMF warned in a chapter of its World Economic Outlook report released on Monday that debt accumulated by businesses and individuals worldwide could slow economic recoveries from the pandemic crisis. European markets were trading lower, with rising bond yields, Russia's renewed campaign in eastern Ukraine, worries over economic slowdown and expectations of aggressive monetary tightening by the U.S. Federal Reserve keeping investors on edge.

Back home, the aviation industry stocks were in focus as Civil Aviation Minister Jyotiraditya Scindia expressed confidence about India's aviation industry getting back to the normal pre-pandemic level. The aviation industry of India touched over four lakh domestic passengers in a day on April 18, 2022. Sugar industry stocks too were in focus as the commerce ministry stating that India’s sugar exports increased to $4.6 billion (about Rs 35,000 crore) in 2021-22 from $1.17 billion (about Rs 9,000 crore) in 2013-14. India exported sugar to 121 countries across the globe.

Finally, the BSE Sensex fell 703.59 points or 1.23% to 56,463.15 and the CNX Nifty was down by 215.00 points or 1.25% to 16,958.65.        

The BSE Sensex touched high and low of 57,464.08 and 56,009.07, respectively. There were 4 stocks advancing against 26 stocks declining on the index.   

The broader indices ended in red; the BSE Mid cap index fell 1.20%, while Small cap index was down by 1.21%.

The few gaining sectoral indices on the BSE were Energy up by 1.20% and Oil & Gas up by 0.25%, while IT down by 2.64%, FMCG down by 2.57%, TECK down by 2.54%, Power down by 2.52%, Realty down by 2.46% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 3.71%, ICICI Bank up by 1.04%, SBI up by 0.44% and Bajaj Finance up by 0.25%. On the flip side, HDFC down by 5.50%, HDFC Bank down by 3.73%, Infosys down by 3.55%, ITC down by 3.33% and Tech Mahindra down by 3.17% were the top losers.

Meanwhile, an Reserve Bank of India (RBI) article on 'State of the Economy', published in the April 2022 RBI Bulletin, has flagged risks of disruptive spillovers from geopolitical hostilities and said India faces these challenges from a position of strength built on broadened vaccine coverage, financial sector resilience and robust exports and remittances and fiscal reprioritisation to spur capital spending on infrastructure. The article said India enters Samvat 2079 having crested the third wave of the pandemic with economic activity returning to speed in several sectors.

However, these gains are at risk from disruptive spillovers from geopolitical hostilities as increasingly evident in inflation prints, tightening financial conditions and a terms of trade shock accompanied by portfolio outflows. It pointed out that going forward, spurring private investment remains a key thrust area for sustaining growth on a durable basis. However, it said views expressed in the article are those of the authors and do not necessarily represent the opinion of the central bank.

It said the near-term global outlook appears grim, caught up in a vortex of geopolitical risks materialising rapidly, strained supply chains and the quickening pace of monetary policy normalisation. It added that the Indian economy is not immune to these negative externalities. The surge in commodity prices is already posing inflation risks, especially through the conduit of surging imports. Rapidly widening trade and current account deficits co-existing with portfolio capital outflows weigh on external sustainability, although the strength of underlying fundamentals and the stock of international reserves provide buffers

The CNX Nifty traded in a range of 17,275.65 and 16,824.70. There were 6 stocks advancing against 44 stocks declining on the index.      

The top gainers on Nifty were Apollo Hospital Enterprises up by 5.32%, Coal India up by 3.25%, Reliance Industries up by 3.23%, BPCL up by 0.61% and ICICI Bank up by 0.27%. On the flip side, HDFC down by 6.26%, HDFC Life Insurance down by 5.46%, SBI Life Insurance down by 4.47%, HDFC Bank down by 4.33% and Tata Consumer Products down by 4.17% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 36.67 points or 0.48% to 7,579.71, France’s CAC decreased 84.43 points or 1.28% to 6,504.92 and Germany’s DAX decreased 160.16 points or 1.13% to 14,003.69.

Asian markets ended mixed on Tuesday as market sentiments remained cautious about China's economic slowdown from lockdowns, despite the Chinese authorities pledged support for businesses hit by the worst Covid-19 outbreak in two years. Hong Kong shares declined, driven by technology shares after Chinese authorities announced a ban on the livestreaming of unapproved video games. Meanwhile, Japan shares ended higher on the back of a plummeting yen.

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