Indian equity bourses were under pressure in afternoon deals, tracking other negative Asian markets. Heavy selling at Banking and Metal counters kept the key indices below their neutral lines, while the broader indices were also lingering under pressure in noon deals. Domestic sentiments were negative, even after the Reserve Bank of India (RBI) unveiled a series of measures to minimise the impact of coronavirus (COVID-19) pandemic and subsequent countrywide lockdown which is likely to contract GDP growth rate in the first half of current financial year (H1 FY21). The central bank cut repo rate by 40 basis points to 4 per cent.
On the global front, Asian markets were trading in red, after the Chinese government dropped setting economic growth target for the first time amid uncertainties posed by the coronavirus, or Covid-19, pandemic. At the annual session of National People's Congress in Beijing, Premier Li Keqiang said the country will face some factors that are difficult to predict in its development due to the great uncertainty regarding the Covid-19 pandemic and the world economic and trade environment.
The BSE Sensex is currently trading at 30594.34, down by 338.56 points or 1.09% after trading in a range of 30474.88 and 31107.91. There were 5 stocks advancing against 25 stocks declining on the index.
The broader indices were trading in red; the BSE Mid cap index lost 0.75%, while Small cap index was down by 0.32%.
The only gaining sectoral indices on the BSE were IT up by 1.17% and TECK up by 0.91%, while Bankex down by 2.83%, Metal down by 2.41%, Power down by 1.77%, Utilities down by 1.61% and Auto down by 1.24% were the top losing indices on BSE.
The top gainers on the Sensex were Infosys up by 2.68%, Asian Paints up by 2.32%, Tech Mahindra up by 0.72%, Hindustan Unilever up by 0.56% and TCS up by 0.33%. On the flip side, Axis Bank down by 4.86%, Bajaj Finance down by 4.80%, ICICI Bank down by 4.35%, HDFC down by 4.06% and Power Grid down by 2.86% were the top losers.
Meanwhile, Minister of MSME and Road Transport and Highways Nitin Gadkari has said that the government is set to introduce the much-awaited vehicle scrappage policy to boost India’s auto manufacturing. He also said under the policy, recycling clusters may be established near ports. He expressed confidence that India will emerge as the world's leading automobile manufacturing hub in five years.
The minister said ‘now, we are going to start the new scrapping policy, by which old cars, trucks and buses will be scrapped.’ He also has stated that the government has decided to increase the depth of the country's ports by 18 metres, and automobile clusters comprising recycling plants can be set up near the ports.
Gadkari further stated that the material recycled will be useful for the automobile industry as it will reduce cost of manufacturing cars, buses, and trucks, increasing India's competitiveness in international markets. He added that within five years, India will be the number one manufacturing hub of all cars, buses and trucks, with all fuel, ethanol, methanol, bio-CNG, LNG, electric as well as hydrogen fuel cells.
The CNX Nifty is currently trading at 9002.80, down by 103.45 points or 1.14% after trading in a range of 8968.55 and 9149.60. There were 11 stocks advancing against 39 stocks declining on the index.
The top gainers on Nifty were Zee Entertainment up by 3.61%, Asian Paints up by 2.59%, Infosys up by 2.54%, Bharti Infratel up by 2.16% and BPCL up by 1.20%. On the flip side, Axis Bank down by 4.98%, Bajaj Finance down by 4.85%, ICICI Bank down by 4.35%, HDFC down by 4.33% and Hindalco down by 4.17% were the top losers.
All Asian markets were trading lower; Nikkei 225 declined 156.33 points or 0.76% to 20,395.98, Straits Times fell 51.64 points or 2.02% to 2,503.70, Hang Seng slipped 1,114.70 points or 4.59% to 23,165.33, Taiwan Weighted plunged 162.11 points or 1.47% to 10,846.20, KOSPI dropped 30.68 points or 1.54% to 1,967.63 and Shanghai Composite was down by 37.47 points or 1.31% to 2,830.45.
For More LKP Securities Ltd Disclaimer http://www.lkpsec.com/
Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer