Nifty below 16,500; bank shares fall for third day

The domestic equity barometers traded with modest losses in mid-afternoon trade. The Nifty was trading below the 16,500 mark. Banks stocks declined for the third day in a row.

At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 354.61 points or 0.64% to 55,114.29. The Nifty 50 index shed 109.50 points or 0.66% to 16,496.45.

In the broader market, the S&P BSE Mid-Cap index fell 0.47% while the S&P BSE Small-Cap index gained 0.41%.

The market breadth was strong. On the BSE, 2,040 shares rose and 1,212 shares fell. A total of 133 shares were unchanged.

Buzzing Index:

The Nifty Bank index fell 1.13% to 34,974.40. The index has lost 4% in three sessions.

AU Small Finance Bank (down 3.76%), Bandhan Bank (down 2.22%), Axis Bank (down 1.97%), ICICI Bank (down 1.71%), SBI (down 1.70%), RBL Bank (down 1.58%) and Kotak Mahindra Bank (down 1.01%) declined.

Global Markets:

Most shares in Europe and Asia advanced on Thursday. Meanwhile, tensions remained high over the Russia-Ukraine crisis, with oil and material prices continuing to spike.

Ukraine`s second biggest city, Kharkiv, suffered heavy bombardment on Wednesday, while Kherson`s mayor said Russian forces have seized control of the key port city in southern Ukraine. If confirmed, it marks a military victory for Russia.

Investors continued monitoring movements in the oil market, with crude prices spiking to their highest level in years on Wednesday, amid Russia`s escalating war on Ukraine. Meanwhile, the OPEC and its allies decided Wednesday to hold production steady despite the recent dramatic spike in oil prices.

U.S. equities advanced on Wednesday, as gains in the basic materials, financials and oil & gas sectors propelled shares higher.

Federal Reserve Chair Jerome Powell backed a quarter-point interest-rate hike this month to commence a series of increases and didn`t rule out a larger move at some stage, despite uncertainty caused by Russia`s invasion of Ukraine.

Numbers to Track:

In the commodities market, Brent crude for May 2022 settlement rose $5.35 or 4.74% to currently trade at $118.23 a barrel. Higher crude oil prices could increase India`s fiscal deficit, current account deficit and stoke fuel price inflation.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.20% to 97.58.

The yield on the India`s 10-year benchmark federal paper was currently at 6.841% as compared with its previous close of 6.814%.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 75.8025, compared with its close of 75.8000 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement added 1.02% to Rs 51,816.

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