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In line with Asian peers, Indian equity benchmarks continued their weak trade in noon deals on account of selling in frontline blue chip counters. Prospects of aggressive rate hikes by the U.S. Federal Reserve weighed on investor sentiment. Federal Reserve Governor Lael Brainard stated that the central bank can raise interest rates more aggressively to dampen the high rate of inflation felt by Americans. FOMC minutes from the March meeting will be released today. Also, oil marketing companies in India continued to increase pump prices on the back of higher global crude prices, sparking worries of an acceleration in inflation also dented traders’ sentiment. Meanwhile, Commerce and Industry Minister Piyush Goyal stated that India and Australia should look at boosting the bilateral trade to $100 billion by 2030 from the current level of around $27.5 billion.

On the global front, all Asian markets were under selling pressure as investors focus on new Western sanctions against Russia over its invasion of Ukraine. Also, Chinese authorities extended a lockdown in Shanghai to cover all of the financial centre's 26 million people, despite growing anger over quarantine rules in the city. Back on street, stocks from Utilities, Power and Telecom counters were supporting the markets’ uptrend, while those from IT, TECK and Bankex counters were adding to the underlying cautious undertone.

The BSE Sensex is currently trading at 59770.70, down by 405.80 points or 0.67% after trading in a range of 59509.84 and 59941.57. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.43%, while Small cap index was up by 0.72%.

The top gaining sectoral indices on the BSE were Utilities up by 2.16%, Power up by 2.04%, Telecom up by 1.92%, Metal up by 1.24% and PSU was up by 1.13%, while IT down by 1.10%, TECK down by 0.94%, Bankex down by 0.82%, Realty down by 0.52% and Auto was down by 0.26% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.32%, Tata Steel up by 1.87%, Bharti Airtel up by 1.08%, Larsen & Toubro up by 1.07% and Power Grid was up by 0.94%. On the flip side, HDFC Bank down by 2.31%, HDFC down by 2.16%, Tech Mahindra down by 1.99%, HCL Tech down by 1.73% and TCS was down by 1.50% were the top losers.

Meanwhile, government has extended the timeline for disbursement of loan for ethanol projects under different schemes till September 30, 2022, as part of its efforts to boost domestic production and achieve ethanol blending of 20 per cent by 2025. It has decided to extend the timeline for disbursement of loans till September 30, 2022 in respect of all the schemes notified during 2018-2021. The move is aimed at facilitating entities to complete their projects and avail benefits of interest subvention.

The Centre has notified different interest subvention schemes for sugar mills and distilleries during 2018-2021, with a view to increasing production of ethanol and its supply under Ethanol Blended with Petrol (EBP) Programme, especially in the surplus season. This will also improve the liquidity position of the sugar mills enabling them to clear cane price arrears of farmers. The government is extending financial assistance in the form of interest subvention at 6 per cent per annum or 50 per cent of rate of interest charged by banks, whichever is lower, on the loans to be extended by banks for five years, including one-year moratorium.

Under the schemes, the timeline for disbursement of loan for ethanol projects is up to March/April, 2022. However, due to unavoidable and unfortunate situation caused by COVID-19, project proponents were unable to adhere to the time limit for disbursement of loan from banks/financial institutions and unable to complete their projects in a given time frame. Therefore, there is a need to extend the time line for disbursement of loans under interest subvention schemes announced earlier during 2018-2021.

The CNX Nifty is currently trading at 17873.50, down by 83.90 points or 0.47% after trading in a range of 17779.85 and 17901.00. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Coal India up by 3.51%, NTPC up by 3.42%, Tata Steel up by 1.83%, UPL up by 1.31% and JSW Steel was up by 1.21%. On the flip side, HDFC Bank down by 2.27%, HDFC down by 2.22%, Tech Mahindra down by 2.18%, HDFC Life Insurance down by 2.02% and HCL Tech was down by 1.71% were the top losers.

All Asian markets were trading lower; Hang Seng decreased 303.56 points or 1.35% to 22,198.75, Shanghai Composite declined 9.53 points or 0.29% to 3,273.19, Nikkei 225 slipped 437.68 points or 1.58% to 27,350.30, KOSPI fell 24.41 points or 0.88% to 2,734.79, Straits Times trembled 15.38 points or 0.45% to 3,429.63, Jakarta Composite lost 50.98 points or 0.71% to 7,097.32 and Taiwan Weighted was down by 103.09 points or 0.58% to 17,522.50.

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