Barometers trade with deep cuts; realty stocks decline

The key equity barometers continued to trade with steep losses in mid-afternoon trade. The Nifty was trading below the 17,400 mark. Realty shares fell across the board.

At 14:22 IST, the barometer index, the S&P BSE Sensex, was down 739.86 points or 1.26% to 58,186.17. The Nifty 50 index fell 220.35 points or 1.25% to 17,385.50.

In the broader market, the S&P BSE Mid-Cap index shed 1.51% while the S&P BSE Small-Cap index lost 1.47%.

The market breadth was weak. On the BSE, 976 shares rose and 2295 shares fell. A total of 105 shares were unchanged.

Weak global cues spoiled investor sentiment as the higher-than-expected US inflation data raised fears of aggressive rate hikes by the US Federal Reserve.

Yield on the 10-year US Treasury note ended above 2% for the first time since August 2019 after US inflation came in higher than expected. US consumer prices rose at an annual rate of 7.5% in January, which was the highest print since February 1982.

Investors are fully pricing in a rate hike of at least 25 basis points from the Fed at its Mar 15-16 policy meeting, and forecasting a significant chance of a 50 basis points hike.

Buzzing Index:

The Nifty Realty index fell 1.86% to 462.45. The index had advanced 1.50% in the past two sessions.

DLF (down 2.85%), Oberoi Realty (down 2.51%), Brigade Enterprises (down 2.30%), Indiabulls Real Estate (down 2.25%), Sobha Developers (down 1.76%), Macrotech Developers (down 1.10%), The Phoenix Mills (down 1.17%) and The Phoenix Mills (down 0.96%) declined.

Stocks in Spotlight:

Gujarat State Petronet shed 0.17% to Rs 298.65. The company's consolidated net profit tanked 46.02% to Rs 350.95 crore on a 67.29% surge in revenue from operations to Rs 5,587.16 crore in Q3 FY22 over Q3 FY21.

Motherson Sumi Systems fell 2.63% to Rs 175.65 after the company reported 69% fall in consolidated net profit to Rs 245.08 crore in Q3 FY22 from Rs 798.38 crore in Q3 FY21. Total revenue from operations declined 6% YoY to Rs 16,117.51 crore during the quarter.

Global Markets:

Shares in Europe and Asia declined across the board on Friday, tracking losses seen overnight on Wall Street.

Wall Street ended sharply lower on Thursday after US consumer prices data came in hotter than expected and subsequent comments from a Federal Reserve official raised fears the US central bank will hike rates aggressively to fight inflation.

The consumer price index rose 0.6% from December, the Labor Department said, while in the 12 months through January, CPI jumped 7.5%, the biggest year-on-year gain since February 1982.

St. Louis Federal Reserve Bank President James Bullard said the data had made him "dramatically" more hawkish. Bullard, a voting member of the Fed's rate-setting committee this year, reportedly said he now wanted a full percentage point of interest rate hikes by July 1.

Numbers to Track:

The yield on 10-year benchmark federal paper was currently trading at 6.711% as compared with its previous closing of 6.725%.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 75.2950, compared with its close of 75.1500during the previous trading session.

MCX Gold futures for 4 March 2022 settlement shed 0.41% to Rs 48,666.

In the commodities market, Brent crude for April 2022 settlement added 4 cents or 0.04% to $91.45 a barrel.

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