IGI Logo

Indian markets slipped from record-high levels to end flat on Tuesday as gain in auto, IT stocks were capped by losses in banking, financials and FMCG counterparts. Today, the markets are likely to open in green following firm global cues. Some support will come as Prime Minister Narendra Modi said that the Centre and the states had come together to roll out public-friendly reforms in a short span of time amid the COVID-19 pandemic, in what he said was a new model of reforms by stealth and compulsion. Traders may take note of economists from SBI stating that Indian companies' market capitalisation has grown at the fastest pace last year among major economies despite contraction in GDP. Meanwhile, Minister for Power and New & Renewable Energy R K Singh said purchase of green hydrogen will be made mandatory for certain sectors similar to renewable purchase obligation. Though, the volatility may witness in the recent sessions, especially ahead of the monthly expiry of futures and options (F&O) contracts tomorrow. There may be some cautiousness as a day after reporting less than 50,000 fresh cases, India has now recorded 54,393 in the last 24 hours, taking the country's total coronavirus caseload past 30-million mark. India also recorded a spike in new deaths with 1,129 fatalities being reported yesterday. The death toll now stands at 390,691. also, India’s gene-sequencing consortia has classified the new Delta-plus mutation of coronavirus as a variant of concern, following 22 cases being reported across three states - Maharashtra, Kerala, and Madhya Pradesh. Healthcare industry stocks will be in focus as ratings agency Crisil said higher occupancy due to surge in COVID-19 cases would help private hospitals post 15-17 per cent revenue growth this fiscal year, a shade higher than what they attained in 2020-21. There will be some reaction in oil & gas sector stocks with the government data showing that India's crude oil output fell 6.3 per cent in May after state-owned ONGC produced nearly a tenth less due to cyclone Tauktae. India Pesticides' Rs 800 crore IPO will open for subscription today. The priced in the range of Rs 290-296 per share. The company said it has raised Rs 240 crore from anchor investors.

The US markets ended higher on Tuesday after Powell reiterated his views that inflation pressures will be transitory even after a notable increase in recent months. Asian markets are trading in green on Wednesday tracking a solid finish for the US market.

Back home, Indian equity benchmarks ended flat with positive bias on Tuesday, as investors booked profits in realty and banking shares. Markets opened on strong note, tracking positive global cues. Sentiments got a boost with report that India reported 39,000 Covid cases, the lowest since March 18. The pace of vaccination also picked up, boosting expectations of a faster economic recovery. On Monday, India administered a record 8.1 million doses as the central government-led free for all vaccination drive kicked off. Some support also came in as the survey conducted by Ficci showed that with states easing lockdown curbs due to declining number of COVID-19 cases, there are immediate indications of improvement in economic activity as companies are hopeful of better performance in the next 6 to 12 months.  Traders also took a note of PHDCCI President Sanjay Aggarwal’s statement that calibrated measures are needed to support the country's economic recovery and to diminish the daunting impact caused by the second wave of the COVID-19 pandemic on trade and industry. He also pitched for doing away with the customs duties on the imports of primary raw materials for industrial use for at least the current fiscal year and imposing export duties on various primary commodities, which are showing huge price increases - rising 50 per cent over the last fiscal. Domestic sentiments remained positive in late afternoon session amid reports that in a move that will be beneficial for the government during the proposed initial public offer of LIC, the Department of Economic Affairs under the finance ministry has amended the Securities Contracts (Regulation) Rules. With the latest amendment in rules, companies that have a market capitalisation of more than Rs 1 lakh crore at the time of listing can now sell just five per cent of their shares. Adding more optimism among traders, RBI data showed that bank credit grew by 5.74 per cent to Rs 108.43 lakh crore and deposits rose by 9.73 per cent to Rs 153.13 lakh crore in the fortnight ended June 4, 2021. However, markets failed to hold on to the momentum and ended flat, as traders were concerned with report stating that Indian companies' market capitalization has grown at the fastest pace last year among major economies despite contraction in GDP, flagging the risks to financial stability it poses.  Finally, the BSE Sensex rose 14.25 points or 0.03% to 52,588.71, while the CNX Nifty was up by 26.25 points or 0.17% to 15,772.75.

Above views are of the author and not of the website kindly read disclaimer