Sensex Closes Deep In The Red And Ends April Lower, Weighed by China Demand And Global Stagflation Fears
Indian equity benchmarks reversed the trend to end deep in the red with earlier session gains erased late on the last trading of April, dropping nearly 1 per cent and closing out the month lower.
Global stocks have gone through wild gyrations as traders grapple with the fallout from the escalating Russia-Ukraine crisis - now in its third month, demand impact of stringent lockdowns in China and stagflation risks worldwide.
The 30-share BSE Sensex index pared gains of over 300 points earlier in the session and closed the last trading of April in the red, down 460 points, or 0.8 per cent, at 57,060. For the month, the index closed over 2.6 per cent lower. The broader NSE Nifty fell 0.8 per cent to about 17,102 on Friday.
The losses were led by fag-end selling in Axis Bank, Reliance Industries and Infosys.
Shares of Axis Bank tumbled 6.57 per cent a day after the company reported a 49.77 per cent jump in its consolidated net profit for the March quarter.
In contrast, Kotak Mahindra Bank, HDFC Bank, Sun Pharma, Tata Steel and Dr Reddy's were among the gainers.
Volatility was reflected in this week's trade moves. Indeed, on Thursday, the BSE rose 700 points, and Nifty gained 1.2 per cent, after having fallen nearly 1 per cent in the previous session.
On Tuesday, the Sensex had jumped nearly 800 points, while the Nifty had risen almost 1.5 per cent, after both the indexes had declined over 1 per cent on Monday.
April bears sombre omens for what's to come, notably with Asian shares falling to their worst month since the COVID-19 March 2020 crash.
Despite the fireworks on Wall Street last night led by robust US company earnings reports offsetting gloomy economic data there.
But if the futures are anything to go by then, it's even worse for the Nasdaq, which is on course for its most significant losses in a month since the financial crisis of 2008.
Overall, the S&P 500 has had a terrible ride so far in 2022, losing roughly 10 per cent of its value, wiping off four trillion dollars in market capitalisation.
The dollar enjoyed its best month in a decade and hit its highest level in 20 years, which is puzzling considering data which showed the US economy unexpectedly contracted in the first quarter.
Clearly, the pandemic is not in the rearview mirror yet, with China grappling with surging cases and imposing stringent lockdowns.
That has weighed on global oil markets, but the escalation in the energy crisis in Europe after Russia turned off its gas pipes to Eastern Europe has limited the fall in crude prices.
