Heavy selling dragged Indian equity benchmarks lower on Thursday, with both Sensex and Nifty closing near their intraday low points, as concerns of a prolonged high-interest rate regime weighed on sentiment. After a slightly positive start, markets soon turned negative, as traders got concerned after India Ratings in a report projected just 4 per cent Gross Domestic Product (GDP) growth for India for the fourth quarter and said the final growth numbers for the full year (FY23) will be lower than the second advance estimate of 7 per cent. Weak trade persisted over the Dalal Street during the entire day, amid negative cues from global markets as Federal Reserve Chair Jerome Powell during a second day of congressional testimony said that policymakers hadn't yet made up their minds on the size of the interest-rate increase later this month. Sentiments were downbeat, amid a private report stating that the growth in the loans to the industry has stagnated with the banking sector clocking an 8.7% growth in January. The moderation is on account of the slower pace of growth in MSME credit, which was the main driver of the growth in loans since April. During the second half of the trading session, indices extended their losses to end lower. The street took a note of another private report stating that India faces a high risk of nighttime power cuts this summer and in coming years, as delays in adding new coal-fired and hydropower capacity could limit the country's ability to address surging electricity demand when solar energy is not available. On the sectoral front, stocks related to infra sector remained in focus, as credit rating agency, India Ratings and Research (Ind-Ra) maintained a stable rating outlook for the overall infrastructure sector for FY24. Finally, the BSE Sensex fell 541.81 points or 0.90% to 59,806.28 and the CNX Nifty was down by 164.80 points or 0.93% to 17,589.60.

The US markets ended deeply in red on Thursday, with bank stocks creating the biggest drag. Investors grew increasingly concerned that higher interest rates would result in banks facing losses on loans due to borrower defaults. Further, traders looked ahead to the release of the Labor Department's more closely watched monthly jobs report on Friday. Street currently expect employment to jump by 203,000 jobs in February after surging by 517,000 jobs in January, while the unemployment rate is expected to hold at 3.4 percent. On the sectoral front, banking stocks moved sharply lower over the course of the session, dragging the KBW Bank Index down by 7.7 percent to its lowest closing level in almost five months. Substantial weakness also emerged among oil service stocks, as reflected by the 4.2 percent nosedive by the Philadelphia Oil Service Index. Brokerage stocks also showed a significant move to the downside on the day, resulting in a 4.1 percent plunge by the NYSE Arca Broker/Dealer Index. The index ended the session at its lowest closing level in well over a month. On the economic data front, the Labor Department released a report showing first-time claims for U.S. unemployment benefits rose by more than expected in the week ended March 4th. The report said initial jobless claims climbed to 211,000, an increase of 21,000 from the previous week's unrevised level of 190,000. Street had expected jobless claims to inch up to 195,000. With the bigger than expected increase, jobless claims reached their highest level since hitting 223,000 in the week ended December 24th.

Crude oil futures ended lower with cut of over one percent on Thursday on concerns that aggressive policy tightening by the Federal Reserve could slow global economic growth and result in a drop in energy demand. Growth worries weighed on prices after Fed Chair Jerome Powell once again signaled bigger interest-rate hikes, saying the U.S. central bank was wrong in initially thinking inflation was only the result of transitory factors. Meanwhile, weaker-than-expected data from China also pointed to a sluggish economic recovery in the country. Benchmark crude oil futures for April delivery fell $0.94 or 1.2 percent to $75.72 a barrel on the New York Mercantile Exchange. Brent crude for May delivery dropped $1.07 or 1.3 percent to $81.59 a barrel on London's Intercontinental Exchange.

Indian rupee tumbled against dollar on Thursday tracking a muted trend in domestic equities. Traders were worried after India Ratings in a report projected just 4 per cent Gross Domestic Product (GDP) growth for India for the fourth quarter and said the final growth numbers for the full year (FY23) will be lower than the second advance estimate of 7 per cent. On the global front, dollar held near a three-month high on Thursday, underpinned by Federal Reserve Chair Jerome Powell's message that interest rates would have to go higher and possibly faster. Finally, the rupee ended at 82.02 (Provisional), weaker by 7 paise from its previous close of 81.95 on Wednesday.

The FIIs as per Thursday's data were net buyers in equity segment, while net sellers in debt segment. In equity segment, the gross buying was of Rs 11520.52 crore against gross selling of Rs 7569.56 crore, while in the debt segment, the gross purchase was of Rs 423.54 crore against gross selling of Rs 1672.27 crore. Besides, in the hybrid segment, the gross buying was of Rs 8.89 crore against gross selling of Rs 45.18 crore.

The US markets ended sharply lower on Thursday dragged by bank stocks and jitters ahead of Friday's employment report. Asian markets are trading in red on Friday as investors await the closely watched February non-farm payrolls report from the US that could further determine the direction on the Federal Reserve's rate hikes ahead. Indian markets snapped three-day winning run and ended lower on Thursday owing to weak global cues and selling in Adani Group stocks. Today, the start of the session is likely to be gap-down following a crash overnight on Wall Street coupled with sell-off in other Asian counterparts. Fears of recession resurfaced among investors globally amid persistent concerns about higher-for-longer interest rates. On the domestic front, investors will be eyeing the industrial growth or Index of Industrial Production (IIP) data to be out later in the day for more cues. Foreign fund outflows likely to dent domestic sentiments. The National Stock Exchange's provisional data showed foreign institutional investors (FII) sold shares worth Rs 561.78 crore on March 9. There will be some cautiousness with a private report that retail inflation in India likely eased a bit last month but stayed above the Reserve Bank of India's upper threshold for a second straight month, keeping the central bank on course for further policy tightening. However, some respite may come later in the day as Union Minister for State for Commerce and Industry Anupriya Patel said India's merchandise and services exports combined in the current financial year ending March will be close to $760-770 billion. The country's merchandise and services exports stood at $672 billion in the last fiscal. Meanwhile, Finance Minister Nirmala Sitharaman met US Commerce Secretary Gina Raimondo to discuss India's G20 priorities and bilateral cooperation to further boost investment and trade. Gem and Jewellery industry stocks will be Gem and Jewellery Export Promotion Council (GJEPC) said India's gem and jewellery exports grew 24 per cent to Rs 28,832.86 crore in February following a recovery in the Chinese and Middle East markets. The overall gems and jewellery exports during February 2022 stood at Rs 23,326.80 crore. There will be some reaction in metal stocks with a private report that India exported 52% less finished steel from April to February than it did a year earlier, as slowing global demand hit shipments.

                               Support and Resistance: NSE (Nifty) and BSE (Sensex)

Nifty Top volumes

• SBI has raised Rs 3,717 crore through its third Basel III compliant Additional Tier 1 bond issuance in the current financial year on March 08, 2023 at coupon rate of 8.25%. 
• JSW Steel's subsidiary -- JSW Steel USA has collaborated with TrueNorth Collective, a consultancy founded with the vision of accelerating sustainability as serious business. 
• Infosys has collaborated with mobility specialist ZF to revamp its multi-echelon supply chain with SAP Integrated Business Planning (SAP IBP) and Infosys Cobalt.
• Tech Mahindra has entered into a partnership with StarHub, a leading homegrown company from Singapore that delivers world-class communications, entertainment, and digital services.