Sensex, Nifty50 choppy on negative global cues – BPCL, HUL among gainers; steel cos down

• Sensex and Nifty50 were having a volatile session swinging between losses and gains amid negative cues from global markets.
• At 12.11 pm, the Sensex was down by 62 points or 0.11% at 57,497 while the Nifty50 fell 24 points or 0.15% to 16,944.
• The Indian markets have been witnessing a heavy sell-off for six days due to the banking sector crisis in the US triggered by the collapse of Silicon Valley Bank and Signature Bank.

India’s benchmark indices swung between losses and gains on Thursday as a rout in European bank Credit Suisse’s stock price spooked investors already worried about the effects of the US banking crisis.

Shares of Credit Suisse tanked to an all-time low after a top investor Saudi National Bank said it doesn't want to provide any further liquidity to the embattled Swiss Bank, according to reports.

The Indian markets have been witnessing a heavy-sell off for six days due to the banking sector crisis in the US that was triggered by the collapse of Silicon Valley Bank and Signature Bank.

The Indian indices were having a choppy session on Thursday as they first fell in early trade, recovered and then fell back down again.

At 12.11 pm, the Sensex was down by 62 points or 0.11% at 57,497 while the Nifty50 fell 24 points or 0.15% to 16,944.

“After falling for six sessions with Sensex nearly losing 1,000 points, the rebound was due. Value buying also entered after huge sell off in the last couple of sessions,” said Shrikant Chouhan, head of equity research (retail), at Kotak Securities.

Refiner Bharat Petroleum Corporation Limited (BPCL), Tata group firm Titan and FMCG majors Nestle India and Hindustan Unilever (HUL), were amongst the top gainers supporting the indices on Thursday.

“FMCG stocks like HUL, Nestle are at the top of the indices because of the fall in crude oil prices, which is an important raw material on the distribution side. Besides, FMCG stocks are defensive where one can invest to stay for long term in such a scenario,” added Chouhan.
Source: NSE, March 16, 2023

On Wednesday, the Sensex and the Nifty50 ended on a negative note once again as fears rose of the turmoil in the US financial markets spilling over to the rest of the world. The Sensex closed 0.6% lower at 57,556 while the Nifty50 fell 0.4% to 16,972 points.

On the positive side, the US banking system crisis also led to a sharp fall in crude oil prices, with Brent crude oil falling below the $75 per barrel level for the first time in 15 months. India benefits from low crude oil prices as the country imports significant amounts of it.

US markets flat-to-lower, Asian markets in the red
US markets closed on a mixed note on Wednesday – the Dow Jones Industrial Average closed 0.87% lower and the S&P 500 closed down by 0.7%, while the tech-heavy Nasdaq closed 0.05% up.

Markets in Europe fell drastically on Wednesday due to the Credit Suisse crisis – the FTSE closed nearly 4% down, while DAX closed 3.3% lower.

Asian markets too were all in the red on Thursday morning, with Hang Seng down 2.1% and the Nikkei 225 down 0.8%. The Taiwan Weighted was lower by 1.08%, while the Shanghai Composite was down 1.1%. The KOSPI was trading 0.08% lower.
Source: NSE

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