Indian Stocks Dip Amid Crude Oil Surge & Growth Slowdown

Indian equity benchmarks traded deep in the red during late-afternoon deals, driven by a surge in global crude oil prices. Brent crude oil traded around the $90 a barrel mark, sparking caution among investors.

Market Performance Overview

The BSE Sensex and CNX Nifty both traded half a percent lower. Weakness among large-cap banking and infrastructure-related stocks contributed significantly to the downturn.

• BSE Sensex: Currently at 78122.71, down by 419.73 points or 0.53%.
• Trading Range: Between 78048.26 (low) and 78509.77 (high).
• Nifty: Trading half a percent lower.

Economic Headwinds and Global Cues

Risk appetite remained subdued following a projection from BMI, a Fitch Group company. BMI forecasted India’s growth to slow to 6.6% in the current fiscal year.

This deceleration is attributed to the waning boost from last year’s GST reforms and elevated inflation eroding household incomes. Globally, European equity markets also traded lower due to high crude oil prices impacting investor sentiments, while Asian markets showed mixed trends.

Sectoral and Stock Movers

Despite the overall market weakness, buying interest in IT and Jewellery stocks helped to cap some losses. However, most sectors on the BSE recorded declines.

• Top Gaining Sectors (BSE):
• IT: up by 0.37%
• Healthcare: up by 0.19%
• Energy: up by 0.18%
• Oil & Gas: up by 0.10%

• Top Losing Sectors (BSE):
• Realty: down by 1.07%
• Utilities: down by 0.87%
• Power: down by 0.84%
• FMCG: down by 0.80%
• Basic Materials: down by 0.80%

Individual stocks on the Sensex also reflected this divergence, with a few notable gainers amidst broader losses.

• Top Sensex Gainers:
• Eternal: up by 1.16%
• Titan Company: up by 1.02%
• Infosys: up by 0.47%
• Tech Mahindra: up by 0.38%
• HCL Technologies: up by 0.37%

• Top Sensex Losers:
• Ultratech Cement: down by 2.86%
• Axis Bank: down by 1.44%
• Bharti Airtel: down by 1.38%
• Power Grid Corporation: down by 1.37%
• Mahindra & Mahindra: down by 1.31%

Government e-Marketplace Achievements

In parallel developments, Commerce and Industry Minister Piyush Goyal announced significant milestones for the Government e-Marketplace (GeM). Procurement orders placed by the Military Affairs Department through GeM have surpassed Rs 1.35 lakh crore.

Defence procurement accounts for nearly 15% of the platform’s total. The annual procurement of goods and services by central and state government departments through GeM has now exceeded Rs 5 lakh crore.

Over the past decade, goods and services worth more than Rs 20 lakh crore have been procured via GeM. This platform has also generated estimated savings of Rs 86,571 crore over the last three years, with IT major TCS currently executing a revamp project.