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Snapping two day sharp rally, Indian equity markets ended the Monday’s trade in red terrain with a percent cut as continued conflict in Ukraine pushed oil prices higher. Crude prices past $110 a barrel mark, blowing fears of higher inflation. Markets made slightly positive opening as some support came in as India's collection from tax on personal and corporate income jumped over 48 per cent in the current fiscal after a 41 per cent surge in advance tax payments, mirroring sustained economic recovery in a year that witnessed two waves of coronavirus infections. Soon, markets pared gains to enter into red terrain as traders turned cautious as according to the latest data from the RBI, the country’s foreign exchange reserves declined $9.646 billion to $622.275 billion in the week ended March 11. Traders paid no heed towards European and International Affairs Alexander Schallenberg’s statement that 'huge business opportunities exist for India and Austria to enhance bilateral trade and investments. The bilateral trade between the two countries has crossed $ one billion and it shows what kind of potential we have'.

Key gauges extended losses in second half of the day to end near intraday lows as sentiments dampened after retail inflation for farm workers and rural labourers rose to 5.59 per cent and 5.94 per cent respectively in February, mainly due to higher prices of certain food items. Traders also remained on sidelines with Former finance minister Yashwant Sinha’s statement that huge expenditure on welfare schemes by the Modi government has severely impacted the public finances which are currently in a mess with fiscal deficit touching abnormally high levels. Traders shrugged off the latest payroll data report stating that retirement fund body EPFO added 15.29 lakh subscribers on a net basis in January 2022, an increase of over 21 per cent compared to 12.60 lakh in December 2021.

On the global front, European markets made a positive start helped by gains in energy stocks. Asian markets ended mostly in green even after Japan's tertiary activity dropped for the first time in five months in January. The data from the Ministry of Economy, Trade and Industry showed that the tertiary activity index declined 0.7 percent month-on-month in January, after a 0.1 percent increase in December. Back home, FMCG stocks edged lower amid reports that consumers may have to pay more for their daily essential items with FMCG companies mulling another round of price hike to offset the impact of an unprecedented level of inflation in commodity prices such as wheat, palm oil and packaging materials. Meanwhile, sugar industry stocks remained in focus as industry body ISMA said sugar exports have jumped over 2.5 fold between October 2021 and February this year to 47 lakh tonnes on higher production and better demand of the Indian sweetener in the global market.

Finally, the BSE Sensex fell 571.44 points or 0.99% to 57,292.49 and the CNX Nifty was down by 169.45 points or 0.98% to 17,117.60.   

The BSE Sensex touched high and low of 58,127.95 and 57,229.08, respectively. There were 5 stocks advancing against 25 stocks declining on the index. 

The broader indices ended mixed; the BSE Mid cap index fell 0.68%, while Small cap index was up by 0.38%.

The few gaining sectoral indices on the BSE were Metal up by 1.70%, Basic Materials up by 0.23% and Healthcare was up by 0.04%, while Utilities down by 1.89%, Power down by 1.81%, FMCG down by 1.46%, Bankex down by 1.30%, Capital Goods down by 1.12% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 0.41%, HDFC Bank up by 0.39%, Maruti Suzuki up by 0.15%, Titan Company up by 0.09% and NTPC up by 0.04%. On the flip side, Power Grid Corporation down by 2.93%, Asian Paints down by 2.85%, Ultratech Cement down by 2.81%, Nestle down by 2.49% and Kotak Mahindra Bank down by 2.42% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said India's merchandise exports have reached almost $390 billion as of March 14 and will cross $400 billion in the current financial year (FY22).

Goyal also said the auto components industry has, for the first time, recorded a trade surplus of $600 million. He urged automakers to buy local products and substitute imports. He pointed out that India could no longer afford to be closed and protective but will have to open up domestic markets.

Further, he asked the auto industry to invest more in R&D (research and development), especially e-mobility, set higher benchmarks for performance and aspire to take five Indian companies in top-50 global automotive suppliers club.

The CNX Nifty traded in a range of 17,096.40 and 17,353.35. There were 9 stocks advancing against 40 stocks declining, while 1 stock remain unchanged on the index. 

The top gainers on Nifty were Coal India up by 3.26%, Hindalco up by 2.28%, UPL up by 1.88%, ONGC up by 1.32% and HDFC Bank up by 0.44%. On the flip side, Britannia down by 3.53%, Tata Consumer Product down by 3.17%, Power Grid Corporation down by 3.14%, Grasim Industries down by 3.11% and Shree Cement down by 2.91% were the top losers.

European markets were trading higher; UK’s FTSE 100 gained 42.62 points or 0.58% to 7,447.35, France’s CAC rose 7.83 points or 0.12% to 6,628.07 and Germany’s DAX was up by 8.27 points or 0.06% to 14,421.36.

Asian markets ended mostly higher on Monday despite the war in Ukraine raged on and a high-ranking Fed official made hawkish remarks on borrowing costs, saying that it is necessary to raise the interest rate by 50 basis points at least once this year. Chinese shares ended flat with a positive bias as the People's Bank of China kept its benchmark interest rate unchanged, raising concerns whether there would be adequate policy support to spur growth. Japanese shares were closed for a holiday.

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