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Sensex, Nifty remain under pressure

15 May 2020 Evaluate

Indian equity benchmarks remained under pressure in afternoon deals, despite positive cues from other Asian markets. In line with the larger peers, the broader indices were too witnessing losses during noon deals, while Auto, Banking and IT sector stocks declined the most on the BSE. Traders remained worried, after Asian Development Bank (ADB) said that the global economy is expected to suffer USD 5.8-8.8 trillion in losses due to the coronavirus pandemic. Of this, the impact on south Asian gross domestic product (GDP) will be to the tune of USD 142-218 billion.

On the global front, Asian markets were trading in green, as China's industrial production rebounded and the decline in retail sales slowed in April, suggesting that the economy is recovering slowly as coronavirus, or Covid-19, subsides. Industrial production grew 3.9 percent in April from the last year, reversing a 1.1 percent fall in March. Retail sales fell 7.5 percent on a yearly basis, slower than the 15.8 percent increase seen in March. However, this was bigger than the expected drop of 7 percent.

The BSE Sensex is currently trading at 30828.83, down by 294.06 points or 0.94% after trading in a range of 30770.48 and 31296.28. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.37%, while Small cap index was down by 0.42%.

The top gaining sectoral indices on the BSE were Telecom up by 1.17%, Metal up by 0.83%, PSU up by 0.43%, Power up by 0.27% and Oil & Gas up by 0.13%, while Auto down by 1.62%, Bankex down by 1.61%, IT down by 1.03%, Consumer Disc down by 0.90% and TECK down by 0.66% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.90%, Bharti Airtel up by 1.81%, Tata Steel up by 1.51%, Nestle up by 0.55% and Asian Paints up by 0.49%. On the flip side, Mahindra & Mahindra down by 5.38%, Axis Bank down by 2.97%, ICICI Bank down by 2.14%, Bajaj Finance down by 2.14% and Indusind Bank down by 1.87% were the top losers.

Meanwhile, SBI’s research report Ecowrap has stated that with the government's cumulative package of Rs 20 lakh crore, which is nearly 10 percent of GDP, India’s fiscal deficit is likely to be more than double to 7.9 percent in the current financial year (FY21). It had earlier estimated the fiscal deficit to be 3.5 percent of GDP this fiscal.

The report said ‘after taking into account cash outflow of these measures as well as the previous and the recent excise duty hike and DA freeze (amounting to around 0.8 percent of GDP), we now revise our baseline fiscal deficit (excluding extra budgetary resources (EBR)) to 7.9 percent of the revised GDP in FY21 from 3.5 percent earlier, owing to lower revenues and higher expenditure against the backdrop of COVID-19 pandemic. It added that baseline fiscal deficit based on Central Statistics Office’s (CSO) earlier estimates of GDP is around 7.1 percent of GDP.

It further said ‘we estimate a 4.5 percent direct impact on fiscal deficit purely because of revenue shortfall / automatic fiscal stabilizer and a 0.9 percent indirect effect because of GDP change.’ It said the government Rs 20 lakh crore package includes Rs 1.7 lakh crore of fiscal stimulus announced in the first phase, Rs 5.6 lakh crore stimulus provided through various monetary policy measures and Rs 5.94 lakh crore through the second phase, implying Rs 6.70 lakh crore package is still to be announced.

The CNX Nifty is currently trading at 9067.85, down by 74.90 points or 0.82% after trading in a range of 9050.00 and 9182.40. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were BPCL up by 3.21%, NTPC up by 1.85%, Bharti Airtel up by 1.81%, Tata Steel up by 1.56% and Hindalco up by 1.07%. On the flip side, Mahindra & Mahindra down by 5.54%, Axis Bank down by 3.08%, Bajaj Finance down by 2.14%, ICICI Bank down by 2.11% and UPL down by 2.03% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 rose 87.30 points or 0.44% to 20,002.08, Straits Times inched up 1.31 points or 0.05% to 2,523.62, Hang Seng increased 67.52 points or 0.28% to 23,897.26, Taiwan Weighted advanced 43.39 points or 0.40% to 10,824.27, KOSPI improved 3.77 points or 0.20% to 1,928.73 and Shanghai Composite gained 5.11 points or 0.18% to 2,875.45, while Jakarta Composite was down by 10.15 points or 0.22% to 4,503.68.

SEBI Registered: Investment Adviser - INA000013323

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
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Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
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SEBI Registration Number:	INA000013323 Validity - May 16, 2019 - Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Warning: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Disclaimer: Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provides any assurance of returns to investors.

Compliance Officer:

Name: Shrikant Jagtap

Email: shrikant.jagtap@moneyworks4me.com

Mobile No: +91 97638 00745

Grievance Officer:

Name: Mukta Vaze

Email: mukta.vaze@moneyworks4me.com

Mobile No:+91 98609 19463

Principal Officer:

Name: Atharva Bhide

Email: atharva.bhide@moneyworks4me.com

Mobile No:+91 91758 99463

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Plot No. C 4-A , G Block, Near Bank of India, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra 400051

Address:

The Alchemists Ark Pvt. Ltd., B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045

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