Domestic equity markets continued to trade weak in the afternoon session on Tuesday after it opened negative for the fifth session as rating agency Credit Suisse tactically downgraded India from Overweight to Underweight.  

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

"Downgrade is largely based on Oil Still like India’s +ve EPS revisions & positioning in credit & property cycles. But India is most vulnerable to higher oil prices, along with Philippines," it underlined.  

Benchmarks Nifty50 and the Sensex corrected more than half per cent as the US and allies plan to impose ban on Russian oil imports.  

See Zee Business Live TV Streaming Below:

At 11.45, Nifty declined more than 100 points and Sensex dropped over 400 points to trade near 15, 737 and 52,400 respectively dragged by banking and auto stocks.  

In the broader market, mid cap index was trading flat with negative bias, while the small cap gained nearly 050% around the same time.  

The 12-share Nifty Bank declined by nearly 600 points to trade near 32,300.  

Tech Mahindra, TCS, NTPC, Infosys, Cipla, HCL Tech, Sun Pharma, Powergrid and Wipro were among top gainers.  

Axis Bank, ONGC, Maruti, Hindalco, Tata Steel, HDFC Ltd, State Bank of India, Bajaj Finance, Bajaj Finserv and IndusInd Bank declined the most.   

"The war between Russia and Ukraine has intensified and that affected the global investors sentiment. The fear of World war 2 or nuclear war keep the global market on edge. Further, the western countries pounding strict sanctions on Russia making the situation worse. The soaring commodity prices are likely to erode the margins of corporate in coming quarters and that will affect corporate earnings growth and that pose a big risk to Indian equity market," said Arijit Malakar- Equity research analyst at Ashika stock broking. 

Further, supply disruptions and trade shocks emanating from the Russia Ukraine conflict, fiscal pressure due to increase in crude oil prices and widened CAD will weigh on India's growth in FY23, he said. 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)