Sensex under pressure, Nifty below 10,500 on fiscal deficit

The benchmark indices were trading lower on Wednesday afternoon post the release of fiscal deficit data.

In economic data released today, growth in India’s factory activity slowed to a four-month low in February as new orders eased and weighed on output after manufacturers raised prices at the fastest pace in a year, a business survey showed on Wednesday.

The Nikkei Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, fell to 52.1 in February from January’s 52.4 and was below the 52.8 expected in a Reuters poll.

The market participants will now be looking forward to Fiscal Deficit and Gross Domestic Product (GDP) to be released later in the day.

In the global markets, Asian shares faltered on Wednesday and bonds were sold off as risk appetite soured after comments from new Federal Reserve Chair revived fears about faster rate rises in the US.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.2 per cent, on track for a second straight day of losses.

Japan’s Nikkei eased 0.2 per cent while South Korea’s KOSPI index ticked higher. Australian shares slipped 0.4 per cent.

New Federal Reserve Chair Jerome Powell noted in his semi-annual testimony on Tuesday that the US economy was strong, inflation was ticking higher and that the global backdrop was better than in December.

On Wall Street, the markets turned south on Tuesday with the Dow, the S&P 500 and the Nasdaq falling more than 1 per cent each.business-standard