Benchmark indices ended lower in the volatile session on Wednesday. At close, the Sensex was down 304.48 points or 0.53 per cent at 57,684.82, and the Nifty was down 69.80 points or 0.40 per cent at 17,245.70. About 1424 shares have advanced, 1891 shares declined, and 118 shares are unchanged.
HDFC, Kotak Bank, Bharti Airtel, Cipla, Britannia, Sun Pharma, Maruti, and Bajaj Auto were the major drags today, falling between 1.5 per cent and 2.5 per cent. On the contrary, Divis Labs, Hindalco, Dr Reddy’s Labs, and Tata Steel rose over 2 per cent each.
In the broader markets, the BSE MidCap index closed 0.4 per cent higher while the BSE SmallCap index slipped 0.2 per cent.
Among individual shares, One97 Communications, the parent company of digital payments major Paytm, hit a new low of Rs 520, down over 4 per cent on the BSE in Wednesday’s intra-day trade. The stock fell despite the company’s clarifications to exchanges that its business fundamentals remain robust.
On the flip side, shares of Indian Hotels Company rose 6 per cent to Rs 221 on the BSE in Wednesday’s intra-day trade after the Tata Group company announced that its qualified institutional placement (QIP) committee has approved the QIP issue on March 22, 2022.
Meanwhile, shares of steel companies surged after reports emerged that India’s top steelmakers have hiked prices of rebar and HRC (Hot Rolled Coil) by Rs 1,500-Rs 2,000 a tonne due to inflated raw material cost. Shares of Steel Authority of India (SAIL) gained 4 per cent, while Jindal Steel and Power (JSPL) hit a 52-week high.
Among sectors, the Nifty Metal index gained the most today, up 1.2 per cent. The Nifty Auto index, on the other hand, slipped 1 per cent.
Vinod Nair, Head of Research at Geojit Financial Services, said: “After the recent rally, market is getting cautious. Volatility is back due to inflationary pressures triggered by supply constraints. While consistently rising input cost & fall in demand due to surge in covid cases in parts of the world, war & high commodity prices are impacting earnings growth which can lead to downgrade in outlook. An end to the war & rise in supply can help India to sustain it resilience or else it will be a challenge in the short-term.”
Paytm Shares Rise
Share price of One 97 Communications, the parent firm of Paytm, rose over 3 per cent in the early trade on March 23 after the company clarifies on the BSE query. The BSE on March 22 sought a clarification from One 97 Communications, over the sharp fall in its share prices. “Exchange has sought clarification from One 97 Communications on March 22, 2022 with reference to significant movement in price in order to ensure that investors have latest relevant information about the company and to inform the market so that the interest of the investors is safeguarded,” the BSE said.
Rupee Opens 19 Paise Higher
The Indian rupee opened 19 paise higher at 75.99 per dollar on Wednesday against the previous close of 76.18. The rupee is expected to appreciate today amid a soft dollar and rise in risk appetite in the global markets. Meanwhile, investors will remain vigilant ahead of US Federal Reserve Chairman Jerome Powell’s speech, said ICICI Direct. Additionally, capital outflows due to sustained selling by FPI’s will hurt the rupee. Market participants fear that support for the European ban on Russian oil is growing inside the bloc, raising the possibility of volatility in crude oil prices, it added.
Gold Prices Fall
Gold prices fell on Wednesday as U.S. Treasury yields gained after Federal Reserve officials insisted on sharper interest-rate hikes to combat inflation, although concerns over the Ukraine crisis slowed bullion’s decline. Spot gold was down 0.2 per cent at $1,918.29 per ounce by 0130 GMT. U.S. gold futures also slipped 0.2 per cent to $1,918.40.
Global Cues
US stocks ended higher on Tuesday, led by a 2 per cent gain in the Nasdaq, as shares of technology and other big growth names rebounded from recent losses and Nike rose after it reported upbeat results. The Dow Jones Industrial Average rose 254.47 points, or 0.74 per cent, to 34,807.46, the S&P 500 gained 50.43 points, or 1.13 per cent, to 4,511.61 and the Nasdaq Composite added 270.36 points, or 1.95 per cent, to 14,108.82.
Tokyo stocks opened higher on Wednesday, tracking gains on Wall Street as investors monitor developments in Ukraine. The benchmark Nikkei 225 index was up 1.49 per cent or 405.02 points at 27,629.13 in early trade, while the broader Topix index advanced 1.22 per cent or 23.60 points to 1,957.34. The war in Ukraine remains a key market-moving factor, and the country’s leader Volodymyr Zelensky will give an online address to Japan’s parliament on Wednesday evening.
Hong Kong stocks began Wednesday with more gains following a strong performance on Wall Street, with tech firms leading the advances. The Hang Seng Index added 0.91 per cent, or 199.51 points, to 22,088.79. The Shanghai Composite Index gained 0.15 per cent, or 4.93 points, to 3,264.79, while the Shenzhen Composite Index on China’s second exchange rose 0.28 per cent, or 6.11 points, to 2,157.79.
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