Equity barometers trade near flat line; European markets open higher

The key equity indices continued to trade in a volatile manner, as they fluctuated between gains and losses in afternoon trade. The Nifty traded above the 16,950 mark after hitting the day's low at 16,850.15 in morning trade. European markets advanced while their Asian peers edged lower on Thursday.

At 13:28 IST, the barometer index, the S&P BSE Sensex, was down 19.33 points or 0.03% to 57,536.57. The Nifty 50 index lost 3.55 points or 0.02% to 16,968.60.

Hindalco (down 4.99%), Tata Steel (down 3.41%), JSW Steel (down 2.52%), IndusInd Bank (down 2.49%) and Infosys (down 1.03%) were the top Nifty losers.

BPCL (up 5.89%), Nestle India (up 2.22%), Asian Paints (up 2.17%), Titan Company (up 2.14%) and Eicher Motors (up 1.93%) were the top Nifty gainers.

In the broader market, the S&P BSE Mid-Cap index fell 0.08% while the S&P BSE Small-Cap index slipped 0.61%.

The market breadth was weak. On the BSE, 1157 shares rose and 2258 shares fell. A total of 124 shares were unchanged.

Investors sentiment was dented amidst risks of contagion in the global financial sector, after fresh turbulence at Credit Suisse. Credit Suisse announced that it will borrow up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank in what it called "decisive action" to boost its liquidity.

The decision came shortly after shares of the lender fell sharply on Wednesday after its largest investor, Saudi National Bank said it could not provide more financial assistance because of regulatory constraints.

The difficulties in the global banking sector has put the spotlight on the European Central Bank's meeting later in the session. The ECB had previously signaled the likelihood of another interest rate increase of 50 basis points as underlying Eurozone remained elevated, but the banking turmoil moving closer to home could prompt the policy makers to opt for a more cautious stance.

Stocks in Spotlight:

Samvardhana Motherson International tumbled 10.31%, amid large volumes. On the BSE, over 2.58 crore shares of the company had changed hands at the counter as against an average trading volume of 4.81 lakh shares in the past two weeks.

On the NSE, over 40.37 crore shares of the company were traded in the counter as against an average trading volume of 1.30 crore shares in the past three months.

In an exchange filing made today, Samvardhana Motherson said that Sumitomo Wiring Systems, Japan (SWS), a promoter of Samvardhana Motherson International (SAMIL) has intimated selling of 3.4% shares held in SAMIL through 礎ulk deal' at stock exchange in India, as part of global deleveraging strategy to fund partial debt prepayment of SWS group in the rising interest environment.

ICICI Prudential Life Insurance Company jumped 8.41%. The life insurer announced that Anup Bagchi will replace N. S. Kannan as managing director (MD) and chief executive officer (CEO) effective from 19 June 2023. N. S. Kannan, MD & CEO will superannuate from the services of the company on the completion of tenure of his appointment on 18 June 2023.

DLF gained 3.87%. The company announced that its latest luxury high-rise residence 'The Arbour' had witnessed pre-formal launch sales worth more than Rs 8,000 crore, in three days.

NACL Industries rose 2.54%. The company's subsidiary received environment clearance for establishing manufacturing facility in Andhra Pradesh.

Global Markets:

European stock markets opened in the green on Thursday as embattled lender Credit Suisse moved to shore up its liquidity position ahead of a European Central Bank policy-setting meeting.

However, Asian markets witnessed across the board selling in today's session.

Credit Suisse announced it will be borrowing up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank under a covered loan facility and a short-term liquidity facility.

The decision comes shortly after shares of the lender fell sharply Wednesday, hitting an all-time low for a second consecutive day after its top investor Saudi National Bank said it won't be able to provide further assistance.

It also followed the recent collapse of three U.S. regional banks, most notably Silicon Valley Bank.

US stocks pared losses late on Wednesday but the Dow and S&P 500 still closed lower, as problems at Credit Suisse revived fears of a banking crisis, eclipsing bets on a smaller US rate hike this month.

US retail sales and wholesale prices slipped in February. Retail sales contracted in February by 0.4% to $698 billion, down from a revised $701 billion a month earlier, the Commerce Department said on Wednesday.

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