Markets continue to show sluggish trend in late afternoon session

Indian equity benchmarks continued to show a sluggish trend in late afternoon session, with losses of over half a percent each, despite strong European markets. The markets remained under pressure, as 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. Traders overlooked Former Union Minister Suresh Prabhu statement that focusing on district level growth in post-COVID period will help creating huge employment opportunities, contain migration from villages and push India's gross domestic product (GDP). Sector wise, footwear sector remained in focus, as domestic rating agency ICRA in its latest report has said that India’s footwear sector is likely to witness a 10-15 percent decline in revenues in the current financial year (FY21), on the back of closure of retail outlets coupled with weak consumer sentiment due to ongoing Covid-19 nationwide lockdown.

On the global front, European markets were trading higher as a surprise rise in China's exports overshadowed another set of grim results and a warning from Air France-KLM that demand could take 'several years' to recover.

The BSE Sensex is currently trading at 31487.18, down by 198.57 points or 0.63% after trading in a range of 31362.96 and 31705.25. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.04%, while Small cap index was up by 0.14%.

The top gaining sectoral indices on the BSE were Energy up by 1.16%, IT up by 0.47%, Healthcare up by 0.38%, Auto up by 0.37% and Realty was up by 0.18%, while Power down by 1.79%, Telecom down by 1.74%, Utilities down by 1.58%, Consumer Durables down by 1.52% and PSU was down by 1.39% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 5.32%, Mahindra & Mahindra up by 3.99%, Tech Mahindra up by 3.30%, Reliance Industries up by 1.99% and Axis Bank up by 1.43%. On the flip side, ONGC down by 3.47%, NTPC down by 3.38%, Kotak Mahindra Bank down by 3.35%, Asian Paints down by 3.33% and Bharti Airtel down by 2.85% were the top losers.

Meanwhile, amid virus outbreak, Former Union Minister Suresh Prabhu has expressed optimism that focusing on district level growth in post-COVID period will help creating huge employment opportunities, contain migration from villages and push India's gross domestic product (GDP).

Prabhu further noted that increasing district level growth by additional 3 per cent will help increase the national GDP. He further mentioned that the government, under the leadership of Prime Minister Narendra Modi, is focusing on districts as part of a bottoms-up approach for boosting growth.

Former Union Minister also said that as workers and labourers are returning to villages, they would utilise and consume local resources, which would help in generating economic activities and it will also help in increasing their incomes and added that demand in agri, industry and services sectors too would increase.

The CNX Nifty is currently trading at 9216.80, down by 54.10 points or 0.58% after trading in a range of 9175.90 and 9277.85. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 6.12%, Indusind Bank up by 5.99%, Adani Ports &Special up by 4.52%, Mahindra & Mahindra up by 3.84% and Tech Mahindra up by 3.14%. On the flip side, BPCL down by 4.07%, ONGC down by 3.72%, Asian Paints down by 3.46%, Kotak Mahindra Bank down by 3.39% and NTPC down by 3.27% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 18.70 points or 0.32% to 5,872.46, France’s CAC increased 18.53 points or 0.42% to 4,451.91 and Germany’s DAX was up by 66.64 points or 0.63% to 10,672.84.