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Benchmark indices continue lackluster trade

Indian equity benchmarks continued their lackluster trade in afternoon session, amid negative signals from other Asian markets. Selling pressure in the metal and power stocks influenced the markets. Traders were worried with ICRA Ratings’ report that an unabated increase in the COVID cases is likely to bring about fears of harsher lockdowns, which could impact the asset quality of retail loans especially for unsecured loans such as in the microfinance sector. It said this, in turn, would impact the fund-raising ability of the NBFCs and HFCs through securitisation of their assets. Meanwhile, direct tax collections for FY21 came in at Rs 9.45 lakh crore, higher than revised estimates of Rs 9.05 lakh crore.

On the global front, shares fell in most Asian markets after China reported a stronger than expected rise in prices that could prompt authorities to act to cool inflation. Back home, on the sectoral front, PSU stocks were in limelight with private report that Niti Aayog, Reserve Bank of India (RBI), and the finance ministry’s financial services and economic affairs departments are set to meet on April 14 to discuss the potential candidates for privatisation.

The BSE Sensex is currently trading at 49639.19, down by 107.02 points or 0.22% after trading in a range of 49499.99 and 49906.91. There were 15 stocks advancing against 14 stocks declining, while 1 stock remains unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.15%, while Small cap index was up by 0.69%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.75%, Consumer Durables up by 0.92%, FMCG up by 0.78%, PSU up by 0.21% and Industrials was up by 0.19%, while Metal down by 1.08%, Power down by 0.69%, Telecom down by 0.66%, Basic Materials down by 0.49% and Energy was down by 0.43% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 3.54%, Hindustan Unilever up by 2.38%, Titan Company up by 1.59%, Dr. Reddys Lab up by 1.48% and Tech Mahindra was up by 1.06%. On the flip side, Bajaj Finance down by 2.10%, Ultratech Cement down by 1.85%, NTPC down by 1.67%, Asian Paints down by 1.16% and Larsen & Toubro was down by 1.04% were the top losers.

Meanwhile, amid second wave of COVID-19 infections, Finance Minister Nirmala Sitharaman has said that ensuring universal availability of COVID-19 vaccines and ending the pandemic should be the key priority for the global community.

Sitharaman has stated that suggestion of Global Policy Agenda (GPA) to hasten the transition to a low-carbon economy for promoting growth that benefits all needs to be viewed in the context of its implications for the emerging and low-income economies. She also said the burden of economic transformation to a low carbon economy would disproportionately be higher for these countries, and positive benefits may not accrue in the short run.

The minister has stated that the focus needs to remain on the agreed principles of equity and differentiated responsibility of climate action. She highlighted that India has supplied 65 million made-in-India COVID-19 vaccine doses to 80 countries, including 10 million vaccine doses as grant.

The CNX Nifty is currently trading at 14864.20, down by 9.60 points or 0.06% after trading in a range of 14806.35 and 14918.45. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Sun Pharma Inds up by 4.25%, Cipla up by 2.95%, Tata Motors up by 2.88%, Hindustan Unilever up by 2.53% and Titan Company was up by 1.77%. On the flip side, UPL down by 2.04%, Bajaj Finance down by 1.99%, Tata Steel down by 1.79%, Ultratech Cement down by 1.57% and NTPC was down by 1.38% were the top losers.

Asian markets were trading mostly lower; Taiwan Weighted dropped 72.34 points or 0.43% to 16,854.10, KOSPI fell 11.38 points or 0.36% to 3,131.88, Hang Seng decreased 301.82 points or 1.04% to 28,706.25, Shanghai Composite declined 30.56 points or 0.88% to 3,451.99 and Straits Times was down by 6.06 points or 0.19% to 3,180.34.

On the other side, Jakarta Composite soared 4.46 points or 0.07% to 6,076.18 and Nikkei 225 was up by 59.08 points or 0.2% to 29,768.06.

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