Indian benchmarks trim losses in late afternoon session

Indian benchmarks trimmed some of their losses in late afternoon session, but remained in red despite strong European markets. Bankex, Auto, Realty and Consumer Discretionary counters were on the priority list of the sellers. Traders took some support as government unveils the 2nd Tranche of measures to ameliorate the hardships faced specifically by migrant labours, street vendors, migrant urban poor, small traders, self-employed people, small farmers and housing. Union Finance & Corporate Affairs Minister Nirmala Sitharaman detailed the short term and long-term measures for supporting the poor. However, markets continued to trade in red, as SBI research report stated that with government's Rs 20 lakh crore stimulus package, the country's fiscal deficit is likely to be more than double to 7.9% in the current financial year. Sector wise, restaurants industry related stocks remained in focus with Crisil Research’s report that the COVID-19 pandemic is likely to cut 40-50% revenue of the country’s organised dine-in restaurants this financial year. There will be lots of earnings reaction based on the performance of the companies.

On the global front, European markets were trading higher with investors taking comfort in China’s first rise in factory output this year after it eased a coronavirus-induced lockdown, but lingering Sion-U.S. tension kept stocks on course for weekly declines.

The BSE Sensex is currently trading at 30946.65, down by 176.24 points or 0.57% after trading in a range of 30770.48 and 31296.28. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.06%, while Small cap index was down by 0.28%.

The top gaining sectoral indices on the BSE were Metal up by 2.04%, Telecom up by 1.37%, PSU up by 0.87%, Power up by 0.58% and Oil & Gas was up by 0.55%, while Bankex down by 1.30%, Auto down by 1.23%, Realty down by 0.74%, Consumer Discretionary down by 0.72% and Capital Goods was down by 0.57% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.92%, Bharti Airtel up by 2.21%, NTPC up by 1.79%, Hindustan Unilever up by 0.83% and Nestle up by 0.63%. On the flip side, Mahindra & Mahindra down by 4.12%, Axis Bank down by 3.25%, Indusind Bank down by 2.14%, ICICI Bank down by 2.00% and Hero MotoCorp down by 1.64% were the top losers.

Meanwhile, in the wake of COVID-19 pandemic, the government has unveiled the 2nd Tranche of measures to ameliorate the hardships faced specifically by migrant labours, street vendors, migrant urban poor, small traders, self-employed people, small farmers and housing. Union Finance & Corporate Affairs Minister Nirmala Sitharaman detailed the short term and long-term measures for supporting the poor.

Sitharaman further said that the Government is attentive to the needs to all the segments of economy and society. She also mentioned that small business set ups, especially those run by street vendors, support dignified livelihoods through Shishu MUDRA loans and they also need patronage by way of business as well as caring attention in the form of social security and enhanced credit.

Meanwhile, short term and long-term measures announcement includes free food grains supply to migrants for 2 months, technology system to be used enabling Migrants to access PDS (Ration) from any Fair Price Shops in India by March 2021-One Nation one Ration Card, Scheme for Affordable Rental Housing Complexes for Migrant Workers and Urban Poor to be launched, 2% Interest Subvention for 12 months for Shishu MUDRA loanees- Relief of Rs. 1,500 crore, Rs 5,000 crore Credit facility for Street Vendors.

Besides, the government also announced Rs 70,000 crore boost to housing sector and middle income group through extension of Credit Linked Subsidy Scheme for MIG under PMAY(Urban), Rs 6,000 crore for Creating employment using CAMPA funds, Rs 30,000 crore Additional Emergency Working Capital for farmers through NABARD and Rs 2 lakh crore credit boost to 2.5 crore farmers  under Kisan Credit Card Scheme.

The CNX Nifty is currently trading at 9095.40, down by 47.35 points or 0.52% after trading in a range of 9050.00 and 9182.40. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were BPCL up by 4.29%, Tata Steel up by 2.74%, Hindalco up by 2.39%, Bharti Airtel up by 2.17% and NTPC up by 1.79%. On the flip side, Mahindra & Mahindra down by 4.35%, Axis Bank down by 3.27%, Bharti Infratel down by 2.84%, Indusind Bank down by 2.22% and ICICI Bank down by 2.15% were the top losers.

European markets were trading higher, UK’s FTSE 100 increased 86.42 points or 1.51% to 5,827.96, France’s CAC increased 50.36 points or 1.18% to 4,323.49 and Germany’s DAX was up by 157.04 points or 1.52% to 10,494.06.