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Saturday, May 21, 2022
Stocks & Shares

Indian equity benchmarks begin on a negative note

Indian equity

The Sensex opened 618 points or 1.1 percent lower at 55,629.3, and the Nifty50 started the day at 16,593.1, down 200.8 points or 1.2 percent from its previous close

Indian equity benchmarks began Wednesday’s session on a negative note as investors returned to trade after a day’s holiday. Weakness across global markets as investors assessed the Russia-Ukraine crisis dented sentiment on Dalal Street.

The Sensex opened 618 points or 1.1 percent lower at 55,629.3, and the Nifty50 started the day at 16,593.1, down 200.8 points or 1.2 percent from its previous close.

At 9:30 am, the 30-scrip index was down 598.7 points at 55,648.6 and the broader benchmark at 16,667.1, down 126.9 points from its previous close.

Lower than expected GDP growth during Q3FY22 also weighed on the investors’ sentiment.

Q3 GDP growth at 5.4 per cent came lower than expected. This slowdown is likely to be extended, going forward. As things stand now, India’s GDP growth for FY 23 will be lower and inflation higher than estimates. This is negative for the stock market, said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Bajaj Auto, ICICI Bank, Asian Paints, Maruti Suzuki and HDFC Bank, trading between 2.8 percent and 5.2 percent lower, were the worst hit among the 32 laggards in the Nifty50 pack.

On the other hand, Coal India, Hindalco, ONGC, Tata Steel and UPL — up between two percent and 5.5 percent — were the top gainers.

The stock markets are expected to remain volatile throughout March due to the Russia-Ukraine war, as per experts. Several Western nations, including the United States (US) and the United Kingdom (UK), have imposed sanctions on Russia for its invasion which, experts say, have left investors worried and uncertain about the future.

At this point, participants are keeping a close watch on updates related to Russia and Ukraine. Any fruitful negotiation outcome will boost sentiments, however on the flip side any dissatisfaction to either country, may once again impact markets worldwide. We would remain cautious and wait for some meaningful sign of de-escalation, said Ajit Mishra, Vice President (Research) at Religare Broking, on Monday, as reported by news agency PTI.

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