Indian equity benchmarks made negative start on Thursday following early weakness in global markets. Markets are trading lower with losses of over one third of a percent in early deals as rising coronavirus cases dampened the market sentiments. The data from the Union Health Ministry said the death toll due to COVID-19 neared 1700 on May 06 with the number of infected cases nearing 50,000 in the country. As per the latest update, the number of active COVID-19 cases in India stands at 33,514 while 14,182 people have been cured and discharged, and one patient migrated. Some cautiousness also came in with report that Chief economic adviser KV Subramanian said India’s gross domestic product (GDP) will contract in the first quarter, but is likely to grow 2% for the full financial year. Though, downside remained capped as Niti Aayog CEO Amitabh Kant said that the government is working on a package of structural reforms across sunrise sectors to convert India into a global manufacturing and exporting hub.
On the global front, Asian markets pared early losses and are trading mostly in green as investors digested a surprise rise in China’s exports amid mixed global economic data. Data showing that US private sector employment nosedived last month and China's service sector also continued to contract in April dampened investor sentiment.
Back home, CRISIL Research said that the 57-day nationwide lockdown due to COVID-19 will result in a sharp 13 per cent fall in toll collections and remittances. In scrip specific developments, Hindustan Unilever tumbled after U.K.-based GSK said it would offload shares worth Rs 26,000 crore in the FMGC major. On the other hand, Maruti Suzuki India advanced as it would start manufacturing operations in its Manesar based plant from May 12. RBL Bank rose ahead of is March quarter earnings release.
The BSE Sensex is currently trading at 31545.15, down by 140.60 points or 0.44% after trading in a range of 31362.96 and 31677.69. There were 14 stocks advancing against 16 stocks declining on the index.
The broader indices were trading in green; the BSE Mid cap index gained 0.75%, while Small cap index was up by 0.51%.
The top gaining sectoral indices on the BSE were Realty up by 1.13%, Healthcare up by 1.02%, Auto up by 0.58%, Basic Materials up by 0.53%, Metal up by 0.41%, while Telecom down by 1.39%, FMCG down by 1.33%, Energy down by 0.63%, Bankex down by 0.62%, Consumer Durables down by 0.59% were the top losing indices on BSE.
The top gainers on the Sensex were HCL Tech. up by 2.11%, Axis Bank up by 1.97%, Sun Pharma up by 1.86%, Bajaj Finance up by 1.74% and Indusind Bank up by 1.73%. On the flip side, Hindustan Unilever down by 3.20%, ONGC down by 2.97%, Kotak Mahindra Bank down by 2.75%, Bharti Airtel down by 1.74% and Power Grid down by 1.66% were the top losers.
Meanwhile, with an aim to convert India into a global manufacturing and exporting hub, Niti Aayog CEO Amitabh Kant has said the government is working on a package of structural reforms across sunrise sectors. He listed healthcare, education, mobility, genomics, AI, 5G network, fintech and manufacturing as high priority areas for rapid and radical structural reforms.
He further said that manufacturing would be a key focus area for the government in the post-COVID-19 period, as India wants to take advantage of the supply chain disruptions in China. He said the government has contacted about 1,450 companies across the world for manufacturing in India, and adding that facilities need to be created for global manufacturers to invest quickly and move forward.
He pointed out that the plan includes creating 2-3 autonomous zones without regular labour and land laws and stressed that India also needs to make its ports more efficient. Besides, to promote manufacturing, he suggested that the states should fix electricity and land rates which would not escalate for the next 25 years. He also suggested that for the next three years, every single tender of the government must be given only to Indian companies.
The CNX Nifty is currently trading at 9235.40, down by 35.50 points or 0.38% after trading in a range of 9175.90 and 9259.10. There were 29 stocks advancing against 21 stocks declining on the index.
The top gainers on Nifty were Adani Ports & SEZ up by 3.18%, HCL Tech. up by 2.49%, Sun Pharma up by 2.04%, Mahindra & Mahindra up by 2.03% and Axis Bank up by 1.86%. On the flip side, ONGC down by 3.15%, Kotak Mahindra Bank down by 2.92%, Hindustan Unilever down by 2.62%, Britannia Industries down by 2.07% and BPCL down by 2.02% were the top losers.
Asian markets are trading mostly higher; Nikkei 225 rose 45.43 points or 0.23% to 19,664.78, Taiwan Weighted surged 96.84 points or 0.90% to 10,871.82, KOSPI increased 7.09 points or 0.37% to 1,935.85 and Shanghai Composite inched up by 0.29 points or 0.01% to 2,878.43, while Hang Seng was down by 134.40 points or 0.56% to 24,003.08.
