Indian Equity Markets Weaken Amid Global Cues, RBI Worries on Debt

Strategic Insights -

The Indian equity markets, as indicated by the BSE Sensex, were trading in red on the back of negative cues from other Asian markets. The Reserve Bank of India (RBI) warned that financial risks associated with the profile of government debt can hamper the functioning of fixed-income markets. The RBI also reported that India's external debt increased by USD 47.1 billion to USD 620.7 billion in the financial year ended March 2022. Meanwhile, the growth of eight core infrastructure industries grew to a 13-month high of 18.1 per cent in May 2022, led by healthy growth in coal, crude oil, fertilisers, cement, and electricity production.

Key Takeaways:

  • The BSE Sensex is currently trading at 52,502.22, down by 516.72 points or 0.97% after trading in a range of 52,094.25 and 52,863.34.
  • The broader indices were trading in red, with the BSE Mid cap index down by 0.24% and Small cap index down by 0.55%.
  • The top gainers on the Sensex were Bajaj Finserv up by 2.48%, Asian Paints up by 1.99%, ITC up by 1.50%, Bajaj Finance up by 1.34%, and Indusind Bank up by 0.99%.
  • The top losers on the Sensex were Reliance Industries down by 5.78%, Titan Co down by 2.66%, Bharti Airtel down by 1.54%, Power Grid down by 1.35%, and ICICI Bank down by 1.20%.
  • The growth of eight core infrastructure industries grew to a 13-month high of 18.1 per cent in May 2022.
  • The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity - comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).

Statistics:

  • The BSE Sensex is currently trading at 52,502.22, down by 516.72 points or 0.97%.
  • The BSE Mid cap index is down by 0.24%.
  • The BSE Small cap index is down by 0.55%.
  • The growth of eight core infrastructure industries grew to a 13-month high of 18.1 per cent in May 2022.
  • Coal production increased by 25.1 per cent in May 2022 over May 2021.
  • Crude Oil production increased by 4.6 per cent in May 2022 over May 2021.
  • Natural Gas production increased by 7.0 per cent in May 2022 over May 2021.
  • Petroleum Refinery production increased by 16.7 per cent in May 2022 over May 2021.
  • Fertilizers production increased by 22.8 per cent in May 2022 over May 2021.
  • Steel production increased by 15.0 per cent in May 2022 over May 2021.
  • Cement production increased by 26.3 per cent in May 2022 over May 2021.
  • Electricity generation increased by 22.0 per cent in May 2022 over May 2021.

Sources:

  • Accord Fintech Pvt. Ltd.
  • Contify.com
  • S&P Global