Shares hit day`s low; Nifty below 15,800 level

The benchmark indices hit fresh intraday low in mid-afternoon trade, dragged by banks, autos and financial scrips. Metal shares bucked the weak market trend. Soaring crude oil prices amid ongoing Russia-Ukraine crisis continued to spook investors. The Nifty hovered below 15,800 mark.

At 14:30 IST, the barometer index, the S&P BSE Sensex, tumbled 1,749.45 points or 3.22% at 52,584.36. The Nifty 50 index lost 469.20 points or 2.89% at 15,776.15.

In the broader market, the S&P BSE Mid-Cap index shed 2.90% while the S&P BSE Small-Cap index slipped 2.85%.

The market breadth was weak. On the BSE, 720 shares rose and 2,696 shares fell. A total of 129 shares were unchanged.

Politics:

On the political front, the seventh and final phase of Uttar Pradesh elections 2022 began at 7 A.M. and will end at 6 P.M. today. This will conclude the fiercely contested polls held in five states. The results of exit polls for elections in Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur will be broadcast from 7 P.M. today, after the end of polling. Votes will be counted on 10 March 2022.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.884% as compared with 6.813% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 76.92, compared with its close of 76.17 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement rose 2.48% to Rs 53,865.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.29% to 98.93.

In the commodities market, Brent crude for May 2022 settlement rose $9.18 at $127.29 a barrel. It has jumped 66% so far in calendar year 2022. India imports majority of its crude oil requirements. A spike in crude oil prices has raised concerns over the impact on inflation, currency and input cost for companies across sectors. Higher crude oil prices could increase India`s expenditure and adversely affects the fiscal deficit.

Buzzing Index:

The Nifty FMCG index dropped 3.12% to 33,546.65. The index lost 5.54% in the last four trading sessions.

Godrej Consumer Products (down 8.41%), United Spirits (down 7.01%), Dabur India (down 6.61%), Britannia Industries (down 5.65%) and Emami (down 5.40%) were the top losers in the FMCG segment.

Global Markets:

The Dow Jones futures were down 462 points, indicating a weak opening in the US stock market.

Shares in Europe and Asia tumbled on Monday after news that the U.S. and European allies are considering a ban on Russian oil imports, posing a risk of global "stagflation."

Russia has continued to ramp up its assault on neighboring Ukraine in recent days, with forces attempting to advance and isolate the capital city of Kyiv and other major cities while being met with fierce Ukrainian resistance.

In Asia, China lowered its GDP target to 5.5% for this year from last year`s 6.1%. The new target for the second-largest economy was announced by Premier Li Keqiang in his work report presented to the National People`s Congress (NPC), the country`s parliament which opened its annual session in Beijing on March 5.

US stock market ended lower on Friday as the war in Ukraine overshadowed an acceleration in US jobs growth last month that pointed to strength in the economy.

The International Monetary Fund on Saturday said the War in Ukraine will have `severe impact` on global economy. "While the situation remains highly fluid and the outlook is subject to extraordinary uncertainty, the economic consequences are already very serious," the IMF said.

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