In intraday trade on Monday, shares of information technology (IT) companies fell up to 6% on the National Stock Exchange (NSE) after US Federal Reserve Chairman Jerome Powell stated that higher inflation is likely to hurt households and businesses.

At 09:23 a.m., the Nifty IT index was the biggest loser among sectoral indices, down 4.5 percent, compared to a 2% drop in the Nifty 50. Meanwhile, the index has fallen 10% in the last eight days, compared to a 4% drop in the Nifty 50 index.

In today’s intraday trade, shares of Tech Mahindra, Infosys, Tata Consultancy Services (TCS), Mindtree, Larsen & Toubro Infotech, Coforge, HCL Technologies, Wipro, and L&T Technology Services fell up to 6%.

The April-June quarter (Q1FY23) saw an increase in execution for IT firms because it is the first full quarter of execution (barring company-specific seasonality) following the full/partial impact of furlough in Q3 and Q4. Operating margins, on the other hand, were impacted by wage hikes implemented in the quarter for a few companies, while for others, supply side challenges, an increase in subcontractor expenses, and travel and visa-related expenses acted as major headwinds.

Despite minor pain in certain IT company verticals, analysts at ICICI Securities are confident that revenue growth guidance for FY23 will not be revised downward.

On the contrary, the Economic Times reported that a drop in the growth rate of three platforms – Amazon Web Services, Microsoft Azure, and Google Cloud – could reduce IT service providers’ revenue by up to 33%. The three platforms reported a 7% drop in incremental revenues in the first half of 2022.

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Indian currency Rupee has dropped 51 paise to an lowest level of Rs 77.41 against the US dollar on Monday.cour

At interbank foreign exchange, the Indian rupee was opened at 77.17 against the US dollar. After that, it then lost ground to quote at 77.42. Consequently, a direct fall of 52 paise from the last closing. The Indian rupee has dropped past the initial record low of 76.98 in March.

The dollar index, which measures the greenback’s strength was trading 0.35 per cent higher at 104.02. Consequently, tracking the rising US yields and fears about higher interest rates.

Initially, on Friday, the rupee value went down to 55 paise to a closing at 76.90 against the US dollar. The reason behind the drop in Rupee value could be the demand. Consequently, the demand for riskier assets. And also because the foreign investors continue to dump the domestic stocks. Foreign investors were net sellers in the capital market on Friday. They dumped the shares worth Rs 5,517.08 crore, as per stock exchange data.

Moreover, Asian and the emerging market started weak this Monday morning. Investors are also anxious about the Asian stocks. It can also decline further due to the tightening of COVID lockdown in Shanghai, that could hit global economic growth. The inflation may also trigger more aggressive rate hikes by the global central banks.

Rupee plummets 51 paise to all-time low of 77.41 against US dollar in early trade

— Press Trust of India (@PTI_News) May 9, 2022

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In the last month, shares of Zomato, Larsen & Toubro (L&T) Infotech, Solara Active Pharma Sciences, Indiabulls Real Estate, Tata Teleservices (Maharashtra) (TTML), and TV18 Broadcasting from the S&P BSE500 index have fallen more than 25%. Meanwhile, the S&P BSE Sensex has fallen 6.6% in the last month.

Zomato shares hit a new low of Rs 64.70, down 7% on the BSE in intra-day trade on Wednesday. The stock has fallen for the fifth day in a row and is down 19% for the year.

It has corrected 25% in the last month as a result of reports that the Competition Commission of India (CCI) has ordered a detailed probe into food delivery platforms Zomato and Swiggy for alleged unfair business practises in their dealings with restaurant partners.

Zomato’s stock price has more than halved this year, falling 53% from a high of Rs 137.75 on December 31, 2021.

Institutional investors, led by foreign portfolio investors (FPIs) and mutual funds (MFs), have collectively reduced their stake in the company by 2 percentage points.

Solara Active Pharma Sciences, too, hit a 52-week low of Rs 500 today in intraday trade.

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The benchmark Sensex in India fell 482 points on Monday, dragged down by heavy selling pressure in IT, energy, and banking and financial stocks.

The 30-stock S&P BSE Sensex fell 482.61 points, or 0.81 percent, to 58,964.57 points after closing at 59,447.18 points the previous session.

Earlier, the Sensex opened the day in the red at 59,333.18 points and fell to an intra-day low of 58,894.40 points.

On Friday, the Sensex rose 412.23 points, or 0.70 percent, after the Reserve Bank of India (RBI) kept key policy rates unchanged in its first monetary policy review of the fiscal year.

The broader Nifty 50 of the National Stock Exchange fell 109.40 points, or 0.62 percent, to 17,674.95 points after closing at 17,784.35 points the previous session. On Friday, the Nifty gained 144.80 points, or 0.82 percent.

IT stocks were under intense selling pressure. HCL Technologies’ share price fell 2.73 percent to Rs 1133.80. Infosys’ share price fell 2.67 percent to Rs 1766.65. Wipro’s share price fell 2.16 percent to Rs 571.20.

Banking and financial stocks were also heavily sold. HDFC’s share price fell 1.39 percent to Rs 2423.85. HDFC Bank’s share price fell 1.25 percent to Rs 1496.20. Axis Bank’s share price fell 1.20 percent to Rs 785.40. ICICI Bank, on the other hand, rose 0.71 percent to Rs 759.70.

Reliance Industries, the index’s heavyweight, closed 0.27 percent lower at Rs 2609.80. L&T’s share price fell 2.72 percent to Rs 1780.60.

Only seven of the 30 scrips that comprise the Sensex closed in the black. Among the major Sensex gainers were ICICI Bank, NTPC, Tata Consultancy Services, Ultra Tech Cement, and Nestle India.

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Russia and Ukraine crisis is taking its toll on the share market now. Sensex has fallen over 143 points just after the start. Sensex is currently trading at 52,698. While NIFTY is trading at a figure of 15,802.

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On Wednesday, the BSE benchmark Sensex fell 778 points to close below the 55,500-level, following a broad-based selloff in global markets as the Russia-Ukraine crisis escalated.

The 30-share BSE index fell 778.38 points, or 1.38 percent, to 55,468.90. Similarly, the NSE Nifty fell 187.95 points, or 1.12%, to 16,605.95.

Maruti Suzuki was the biggest loser in the Sensex pack, falling 6%, followed by Dr Reddy’s, Asian Paints, ICICI Bank, HDFC, and HDFC Bank. Tata Steel, Titan, Reliance, and Nestle India, on the other hand, were among the winners.

Other Asian markets saw losses in Hong Kong, Tokyo, and Shanghai, while Seoul closed in the black. In the afternoon, European stock exchanges were trading mixed. Brent crude futures rose 5.09 percent to USD 110.31 per barrel, tracking the Ukraine crisis.

US President Joe Biden announced that the US will close its airspace to Russian planes, claiming that this, along with other punitive measures, will weaken Moscow.

The United States and the European Union have imposed a variety of sanctions on Russia. These include restrictions on Russia’s largest banks as well as the exclusion of its financial institutions from the SWIFT global payments system.Foreign institutional investors sold shares worth Rs 3,948.47 crore in the Indian capital market on Monday, according to exchange data.

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In accordance with the worldwide market crisis, Indian stock markets closed the day in the negative on Thursday.

The BSE Sensex fell 2,702.15 points to 54,529.91, while the Nifty fell 815.30 points to 16,247.95, as the Russia-Ukraine situation worsened, denting market confidence.

On the Sensex chart, all 30 stocks were down significantly, with IndusInd Bank, M&M, and Bajaj Finance losing as much as 8%.

As Russia announces a military intervention in Ukraine, the rupee falls 109 paise to close at 75.70 (provisional). Gold and crude oil prices both rose, with the latter breaking through the USD 103 per barrel barrier.

On Thursday, Russian President Vladimir Putin announced a military campaign in Ukraine and warned other countries that interfering with the Russian operation would result in unimaginable consequences. He claimed that the attack was necessary to protect people in eastern Ukraine, a justification the US expected he would make to justify an invasion.

Foreign institutional investors continued their selling binge on Wednesday, offloading shares worth Rs 3,417.16 crore in the Indian capital markets, according to exchange data.

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Markets bear loss 4th day consecutively, globally.

Asian equity exchanges suffer deep losses on Monday. Mainly, it is because of persistent geopolitical tension in eastern Europe between Russia and Ukraine. For the fear prevails in West, Europe and US, that on some pretext Russia might try invading Ukraine.

Indian benchmark stock exchanges, BSE sensex and Nifty 50 suffer loss taking global cues.

Initially, domestic indices had started weak. Although, it could regained composure and managed to eliminate some loss. However, the indices could not continue with the momentum.

Why markets bear loss 4th day consecutively?

Due to globally prevailing indecisiveness in geopolitical context, markets were under constant fear. The foreign exchange (Forex) was persistently outflowing which kept the market from regaining vigour.

In India, benchmark bourses ended in red for the 4th day in a row after having a weak opening on Monday.

BSE Sensex drops 700 points before gaining composure due to apparent settlement between Russia and US. Although, the bearish sentiment remains dominant to pull down the index to settle 149.4 points down. 21 entities land in red including Sun Pharma, TCS, ITC, Tech Mahindra, UltraTech Cement, and Titan. While, Wipro, Infosys, PowerGrid, ICICI Bank, HDFC Bank, and Maruti witness a rise of about 1.5%.

Similarly, NSE Nifty dips 69.7 points to close at 17,206.7.

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The wild ride in equity markets continued on Thursday, exacerbated by the weekly F&O expiry, as investors kept an eye on geopolitical tensions in eastern Europe between Russia and Ukraine. During the day, the S&P BSE Sensex and the Nifty50 indices oscillated within a 700-point and 200-point zone, respectively, before ending the session in the red.

The Sensex index ended the day at 57,892, down 105 points, while the Nifty50 index ended the day at 17,305, down 17 points.

The biggest large-cap gainers today were HDFC (up 1.7 percent), Reliance Industries (1.2 percent), and Power Grid (0.56 percent). Following them were HDFC, L&T, TechM, ITC, and ITC.

The major drags on the downside were ICICI Bank (down 2.3%), Axis Bank and Ultratech Cement (both down 2%), and IndusInd Bank (down 1.3%). Other laggards included Neslte India, SBI, HDFC Bank, Kotak Bank, and Sun Pharma.

The BSE MidCap index declined 0.22 percent, while the BSE SmallCap index fell 0.67 percent in broader markets.

Individually, shares of FSN e-Commerce Ventures, the parent company of beauty e-tailer Nykaa, fell 9% on the BSE to a new low of Rs 1,371.35 in intra-day trade on Thursday.

Apart from that, Indigo Paints’ stock reached a fresh low of Rs 1,788.80 in intraday trade on Thursday, down 3%. They’ve dropped 8% in a week since the company released its December quarter (Q3FY22) earnings. The S&P BSE Sensex, on the other hand, was down 1% during the same time period.

On the plus side, shares of the Adani Group of firms soared up to 8% on the BSE on Thursday, in a market that was otherwise range-bound due to heavy volumes.

Individual companies such as Adani Green, Adani Transmission, Adani Power, Siemens, JSW Energy, and ABB Ltd rallied up to 6% today as the BSE Power Index climbed 2% on the bourses.

Banking equities, on the other hand, fell in trade, with the BSE Bankex index down 1%.

Markets throughout the world

In early trade, the Stoxx 600 index in Europe stayed around the flat line, with cars up 0.9 percent. The FTSE 100 in the United Kingdom fell 0.7%, the CAC 40 in France gained 0.26 percent, and the DAX in Germany remained unchanged.

Earlier in Asia, Japan’s Nikkei fell 0.8%, South Korea’s Kospi rose 0.5 percent, and Australia’s ASX rose 0.16 percent.

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RBI’s stance on interest rate will remain accommodative.

On Thursday, Shaktikanta Das, the RBI governor, makes announcement as decided by Monetary Policy Committee (MPC) that the RBI will retain the current rates. The MPC comes to conclude this through a majority of 5 to 1. They plan to mitigate the effects of COVID-19 pandemic on economy by prioritising growth prospects.

Thus, RBI retains it growth projection at 9.2% while inflation remains at 5.3% for the current fiscal year.

The RBI governor says that high frequency indicators such as purchasing managers’ indices for manufacturing and services are showcasing a loss of momentum in economic activity. Especially, due to the fast spreading and virulent strain of COVID-19, Omicron.

Moreover, he adds that though inflation seems to be pushing above yet it is under anticipation. Though, the inflation in 2022 might peak in Q4. Further, he highlights that despite an increase in inflation, the demand remains mute. It is precisely due to contact-intensive services too. He even says that the surge in international crude oil price will need close surveillance.

Henceforth, the Marginal standing facility (MSF) rate and the Bank rate remains at 4.25% and the reverse repo rate remains at 3.35%.

Lastly, the quarter wise real GDP growth projected for the fiscal year 2022-23 is: 17.2% growth in Q1, 7% in Q2, 4.3% in Q3, and 4.5% in Q4. While, the real GDP growth projection for the 2022-23 stands at 7.8%.

On lending, RBI deputy governor says that the RBI will come up with guidelines for digital lending.

How does market reacts to RBI’s stance on interest rate?

Equity benchmarks Sensex and Nifty relax as uncertainty settles. BSE Sensex rallies up by 460.06 points to close at 58,926.03. While, Nifty goes up by 142.05 points to close at 17,605.85. Tata Steel, Infy, HDFC bank were the major gainers in the queue of those managed to land in green. On the other hand, Titan, Reliance, Ultracemco, NestleInd, Maruti were the major laggards.

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