Post Session: Quick Review
Markets fail to hold gains; end in red terrain on Tuesday
Indian equity benchmarks failed to hold their gains on Tuesday and ended trading session in red terrain. The start of the day was on a positive note, as domestic sentiments were up-beat with report that the government announced a liberalised and accelerated Covid-19 vaccination programme beginning May 1, where all above 18 years of age will be eligible to be vaccinated. Also, vaccine manufacturers have been empowered to release up to 50% of supplies directly to state governments and in the open market at pre-declared prices, a move that would boost availability of the prophylactics to the people.
Indices remained higher for the most part of the trading session, after Minister of Railways, Commerce & Industry, Consumer Affairs and Food & Public Distribution Piyush Goyal launched the Startup India Seed Fund Scheme (SISFS). The Fund aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialization. Traders took note of report that the Reserve Bank of India has formed a six-member panel headed by Sudarshan Sen, former Executive Director, to carry out comprehensive review of the working of Asset Reconstruction Companies (ARCs) in the financial sector ecosystem.
However, in the last hours of the trade, markets turned negative, as the retailers' body Retailers Association of India (RAI) has said closure of economic activity at this juncture will lead to permanent closure of businesses and millions of job losses, amid varied localized restrictions being imposed across states in the wake of the second wave of COVID-19 pandemic. Besides, the Reserve Bank of India (RBI) has said it has decided not to activate countercyclical capital buffer (CCyB) framework as the current situation does not warrant such an action. The RBI in February 2005 had put in place CCyB guidelines with the overall objective of strengthening the banking sector. It was envisaged that the CCyB would be activated as and when the circumstances warranted.
On the global front, European markets were trading lower with global markets all showing lackluster sentiment. Asian markets ended mixed on Tuesday, after China kept its benchmark lending rates unchanged, as widely expected. The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate was maintained at 4.65 percent. The one-year and five-year loan prime rates were last lowered in April 2020. The one-year loan prime rate was cut by 20 basis points and five-year rate by 10 basis points last April.
The BSE Sensex ended at 47705.80, down by 243.62 points or 0.51% after trading in a range of 47438.50 and 48478.34. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)
The broader indices ended in green; the BSE Mid cap index was up by 0.49%, while Small cap index was up by 0.49%. (Provisional)
The top gaining sectoral indices on the BSE were Healthcare up by 1.22%, Auto up by 0.90%, Capital Goods up by 0.89%, Telecom up by 0.80% and Consumer Disc up by 0.61%, while IT down by 1.05%, TECK down by 0.77%, Basic Materials down by 0.73%, FMCG down by 0.62% and Bankex down by 0.28% were the top losing indices on BSE. (Provisional)
The top gainers on the Sensex were Bajaj Finserv up by 3.70%, Dr. Reddy’s Lab up by 3.69%, Bajaj Finance up by 2.95%, Bajaj Auto up by 2.02% and Mahindra & Mahindra up by 1.97%. On the flip side, Ultratech Cement down by 4.70%, HCL Tech. down by 3.56%, HDFC down by 3.16%, Tech Mahindra down by 1.67% and HDFC Bank down by 1.50% were the top losers. (Provisional)
Meanwhile, raising concerns, the retailers' body Retailers Association of India (RAI) has said closure of economic activity at this juncture will lead to permanent closure of businesses and millions of job losses, amid varied localized restrictions being imposed across states in the wake of the second wave of COVID-19 pandemic.
Retailers Association of India further noted that the retail industry is beginning to see similar issues repeating in some form that were faced last year and underlined that non-essential or non-food retail and malls should be allowed to operate with strict surveillance.
As per RAI CEO Kumar Rajagopalan, shutting down non-essential or non-food retail and malls is not the solution. Considering the impact of last year on business, closure of economic activity at this stage will lead to permanent closure of businesses, thereby leading to millions of job losses. Instead, he added, there is an urgent need for stricter surveillance to ensure that all rules with regards to safety and hygiene and social distancing norms are being followed by one and all.
The CNX Nifty ended at 14296.40, down by 63.05 points or 0.44% after trading in a range of 14207.30 and 14526.95. There were 20 stocks advancing against 29 stocks declining, while 1 stock remained unchanged on the index. (Provisional)
The top gainers on Nifty were Dr. Reddy’s Lab up by 3.80%, Bajaj Finserv up by 3.69%, Bajaj Finance up by 2.99%, HDFC Life Insurance up by 2.89% and Bajaj Auto up by 2.43%. On the flip side, Ultratech Cement down by 4.75%, HCL Tech. down by 3.35%, HDFC down by 3.07%, Grasim Industries down by 2.48% and Shree Cement down by 2.45% were the top losers. (Provisional)
European markets were trading lower, UK’s FTSE 100 decreased 33.31 points or 0.48% to 6,966.77, France’s CAC decreased 45.35 points or 0.72% to 6,251.34 and Germany’s DAX was down by 27.69 points or 0.18% to 15,340.70.
Asian markets ended mixed on Tuesday tracking Wall Street's overnight losses as investors’ awaited direction from US corporate earnings, while concerns over surging corona-virus cases too dented the market sentiment. Japanese shares declined amid fears that possible reintroduction of Covid-19 lockdowns in the country, which could dampen the pace of economic recovery. Meanwhile, Chinese central bank (PBoC) kept its benchmark lending rates unchanged, as widely expected. The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate also was unchanged at 4.65 percent.
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