Defying the early signals of a positive opening, domestic equity markets opened flat on Thursday, before turning negative for another session. Weakness in the global market spread across Dalal Street as bears continued to tighten their grip.The looming concerns over Credit Suisse dented the sentiments across the globe, after the collapse of Silicon Valley Bank. However, the Zurich-based lender is likely to borrow up to $54 bn from Swiss National Bank to strengthen liquidity, suggest some media reports. At 9.20 am, the 30-share pack BSE Sensex was trading flat, up 16.53 points, or 0.03 per cent, at 57,572.43. However, NSE's Nifty 50 was down 16.30 points, or 0.10 per cent, at 16,955.85. Broader markets underperformed the headline peers as BSE midcap and smallcap indices dropped a per cent, each. Fear gauge India VIX spiked more than 3 per cent to 16.72-level.
Technically, the bulls failed to capitalize on the heads-up move and the lack of buying emergence led the market to slip to lower levels, signifying a strong sense of tentativeness among participants. The decisive breach of the 17000 mark undoubtedly dented the sentiments, said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One."We remain hopeful till the market withholds the range. On the higher end, 17200-17250 is expected to act as an immediate hurdle, followed by the sturdy wall of 200 SMA, placed around 17400-17450 in a comparable period," he said. "Considering the price action, our market looks bleak but at the same time a bit oversold too." On a sectoral front, Nifty Pharma and FMCG indices were among the only gainers during the early trade. Nifty Metal index topped among the laggards, whereas Nifty IT index was trading a per cent lower. Banking, realty and auto stocks were among the other laggards. Majority of the Adani Group stocks open lower on Thursday. Barring the Adani Green Energy, which rose about 4 per cent, all other Adani Group stocks were seen in red. Adani Enterprises, Adani Ports, Adani Power, Adani Total Gas, Adani Wilmar, Adani Transmission and NDTV shed up to 4 per cent. Hindalco topped the losers in the Nifty50 pack, falling up to 5 per cent, whereas Tata Steel and JSW Steel plunged 3 per cent, each. IndusInd Bank and ONGC dropped 2 per cent, each, whereas Infosys and Bharti Airtel declined more than a per cent, each. Among the gainers, Bharat Petroleum Corporation rose about 5 per cent, whereas Titan Company was shed 2 per cent each. Britannia Industries, Power Grid, Nestle India and Divis Labs gained about a per cent, each in the early trade. Bad news has shifted from the US to Europe. The refusal of Credit Suisse’s largest shareholder Saudi National Bank to infuse more equity sent the stock plummeting by 30 per cent thereby impacting the European Bank Index which sharply corrected by 8.4 per cent, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "Since all banks are interconnected, fears of banking contagion are impacting markets. It is important to understand a few facts. One, Credit Suisse has been going through problems for more than a year now. Other European large banks are strong. Two, the crisis in a few US regional banks is unlikely to impact the large US banks and the US financial system," he said. In the broader markets, Samvardhana Motherson International plunged 10 per cent amid the block deal buzz by its Japanese promoter company Sumitomo Wiring Systems, who was looking to offload a 3.4 per cent stake in the company. Patanjali Foods dropped 5 per cent as stock exchanges have put a freeze on 292.58 million shares of promoter group entities of the FMCG player for not meeting the minimum public shareholding norm within the stipulated deadline. Among other laggards, Vijaya Diagnostic was down 5 per cent, whereas Varun Beverages declined 4 per cent. On the contrary Hikal, Hindustan Petroleum and Aurobindo Pharma added 3-5 per cent, each.
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