Mr. Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD
Indian indices opened lower today with the Nifty around 17600 amid weak global cues. At the time of closing, the Sensex was down 1,020.80 points or 1.73% at 58,098.92, and the Nifty was down 302.50 points or 1.72% at 17,327.30.
During the day, Benchmark indices ended in the red for the third straight session. Micro-lenders' gross loan portfolio (GLP) rose by 23.5% to Rs. 293,154 cr. in the Q1FY23 compared to the year-ago period. The GLP grew 2.7% during the Q1 compared to Rs.2.85 lakh cr. at the end of the preceding quarter. Banks continue to hold the largest share in the GLP but the same has slipped to 38.4% in June from 40% in March. The small finance banks have a 16.9% share in the GLP, while other NBFCs have an 8.8% share. There was a wide consensus that the RBI will raise rates at the Sept. 30 meeting, although there were differences over how far it would go with inflation accelerating to 7% and with the rupee weakening.
The US current account deficit narrowed sharply in Q2 amid a surge in goods exports. The Commerce Department said that the current account deficit, which measures the flow of goods, services, and investments into and out of the country, contracted 11.1% to $251.1 billion last quarter. The current account gap represented 4.0% of GDP, down from 4.6% in Q4FY22. The Bank of England raised its key interest rate to 2.25% from 1.75%. The European Union is looking at an oil price cap, tighter curbs on high-tech exports to Russia, and more sanctions against individuals, and diplomats. Euro Zone S&P Global September flash manufacturing PMI at 48.5 versus 49.6 in August and Flash Services PMI was at 48.9 versus 49.8 in August.
The Indian rupee opened at a fresh record low at 81.06 per dollar. The dollar rose 0.4% against a basket of six other currencies to hit a fresh 20-year high. The pound lost 0.6% against the greenback to a new 37-year low of $1.119, while the euro slipped 0.4% to remain below parity with the US currency at $0.979. The sectoral indices ended in the red with capital goods, power, realty, banks down 2-3% each.
Nifty 50 top gainers are Divis Lab, Sun Pharma, Cipla, Tata Steel, and ITC while, Power Grid, Hindalco, Apollo Hospital, Adani Ports, and NTPC were among the top losers.