Key indices edge lower; negative market breadth

The key equity benchmarks traded with significant losses in early trade, dragged down by selling in index pivotals. The Nifty traded below the 17,650 level. Barring oil & gas and select financials, shares across sectors declined with IT, consumer durables and healthcare stocks falling the most.

At 09:25 IST, the barometer index, the S&P BSE Sensex, was down 319.5 points or 0.53% to 59,904.96. The Nifty 50 index lost 90.55 points or 0.51% to 17,620.90.

Adani Enterprises (up 2.38%), Bajaj Auto (up 0.99%), Britannia (up 0.91%), Maruti Suzuki (up 0.76%) and Adani Ports (up 0.57%) were the top Nifty gainers.

Hindalco (down 2.56%), Infosys (down 1.49%), Tech Mahindra (down 1.43%), HCL Tech (down 1.41%) and Hero MotoCorp (down 1.27%) were the top Nifty losers.

In the broader market, the S&P BSE Mid-Cap index fell 0.33% while the S&P BSE Small-Cap index declined 0.39%.

The market breadth was negative. On the BSE, 1,066 shares rose and 1,496 shares fell. A total of 136 shares were unchanged.

Stocks in Spotlight:

Zydus Lifesciences slipped 0.29%. The drug maker has received final approval from the United States Food and Drug Administration (USFDA) for Lenalidomide capsules, 2.5 mg and 20 mg (USRLD: Revlimid capsules). The drug is used to treat various types of cancers.

GAIL India rose 1.28%. The state-run gas distributor said its board meeting is scheduled on 13 March 2023 to consider the recommendation for payment of interim dividend for FY23. It has fixed a record date as 21 March 2023 for payment of interim dividend, if any.

Wipro fell 1.03%. The IT major announced the opening of its Americas Headquarters in East Brunswick, New Jersey.

Ajanta Pharma added 1.95%. The drug maker's board will consider a share buyback on 10 March 2023.

Numbers to track:

The yield on India's 10-year benchmark federal paper rose to 7.463 from 7.418 in previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.1450, compared with its close of 81.9250 during the previous trading session.

MCX Gold futures for 5 April 2023 settlement fell 0.15% to Rs 54,939.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.19% to 105.82.

The United States 10-year bond yield advanced 0.85% to 4.009.

In the commodities market, Brent crude for May 2023 settlement added 20 cents or 0.24% to $83.49 a barrel.

Global markets:

Asian stock markets were trading lower on Wednesday, after Federal Reserve Chairman Jerome Powell on Tuesday cautioned that interest rates may need to be higher than expected.

Japan's seasonally adjusted current account balance rose to 216.3 billion yen ($1.57 billion) in January, government data showed on Wednesday. The surplus in balance saw a sharp drop from December's balance of 1.18 trillion yen and November's balance of 1.92 trillion yen.

China on Tuesday saw exports fall by 6.8% in February in U.S. dollar terms and imports also declined 10.2%.

Overnight in the US, major stock indexes declined following Fed Chair Powell cautioning lawmakers that the central bank's terminal rate will likely be higher than previously anticipated due to stubbornly high economic data in recent weeks. Powell was on Capitol Hill Tuesday for the first part of his two-day semiannual monetary policy testimony before Congress.

The Dow Jones closed nearly 575 points lower and turned negative for 2023. The S&P 500 slid 1.53% to close below the key 4,000 threshold, and the Nasdaq Composite lost 1.25%. The sharp decline for stocks was accompanied by a spike in bond yields, with the rate on the 2-year Treasury surpassing 5% and touching the highest level since 2007.

Crude oil prices tumbled on fears of rate hike, weak Chinese data and strengthening dollar. Brent crude futures shed $2.89, or 3.4%, to settle at $83.29 a barrel.

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