Benchmarks add more losses in late afternoon session

The Indian equity benchmarks added some more losses on the street in late afternoon session, despite positive cues from European markets. Selling was witnessed in Bankex, Auto, Realty and PSU sector stocks. Sentiments remained down-beat, as India’s merchandise exports shrank by 60.28% in April 2020 as compared to same period of last year, mainly due to the ongoing global slowdown, which got aggravated due to the current Covid-19 crisis. However, trade deficit, gap between imports and exports, narrowed to $6.76 billion in April 2020 from $15.33 billion a year ago. Some cautiousness also came, as Union home ministry extended the lockdown for another two weeks till May 31 to contain the spread of coronavirus. Traders took note of report that Finance Minister Nirmala Sitharaman said the government will frame a policy where private entities are allowed to participate in all sectors.

On the global front, European markets were trading higher buoyed by data showing the slowest rate of growth in new-virus cases since late February. The gains also came after Federal Reserve Chairman Jerome Powell sounded optimistic in an interview. Back home, sector wise, MSME sector remained in focus, as Union Minister Nitin Gadkari has said that the government’s stimulus package for different sectors and the new definition for MSMEs will give huge boost to industry. The minister also sought suggestions for effective implementation of the Fund of Funds announced as part of the package for MSMEs.

The BSE Sensex is currently trading at 30161.88, down by 935.85 points or 3.01% after trading in a range of 30027.20 and 31248.26. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 3.42%, while Small cap index was down by 2.65%.

The only gaining sectoral indices on the BSE were IT up by 1.26% and TECK was up by 0.64%, while Bankex down by 6.09%, Auto down by 5.15%, Realty down by 4.59%, PSU down by 4.49%, Consumer Discretionary down by 4.25% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.02%, TCS up by 1.50%, ITC up by 0.85% and HCL Tech up by 0.53%. On the flip side, Indusind Bank down by 9.17%, ICICI Bank down by 7.24%, Maruti Suzuki down by 7.07%, Bajaj Auto down by 6.90% and Bajaj Finance down by 6.46% were the top losers.

Meanwhile, expressing optimism, Union Minister Nitin Gadkari has said that the government’s stimulus package for different sectors and the new definition for MSMEs will give huge boost to industry. The minister also sought suggestions for effective implementation of the Fund of Funds announced as part of the package for MSMEs.

Gadkari further expressed need to explore agro and fishing MSME sector and added that all the stakeholders, including government, are facing challenges due to COVID-19. He urged the industry to maintain a positive attitude during these difficult times to tide over the present crisis as negativity is not in anybody's interest.

Recalling that Japan government has offered special packages to its industries for taking out Japanese investments from China and move elsewhere, the minister opined that it is a good opportunity for India, which should be grabbed.

The CNX Nifty is currently trading at 8861.85, down by 275.00 points or 3.01% after trading in a range of 8825.05 and 9158.30. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Cipla up by 3.38%, Bharti Infratel up by 2.32%, Infosys up by 2.08%, TCS up by 1.62% and ITC up by 0.79%. On the flip side, Indusind Bank down by 9.29%, Zee Entertainment down by 8.16%, ICICI Bank down by 7.25%, Maruti Suzuki down by 7.09% and Bajaj Auto down by 6.73% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 147.12 points or 2.54% to 5,946.89, France’s CAC increased 106.12 points or 2.48% to 4,383.75 and Germany’s DAX was up by 304.78 points or 2.91% to 10,769.95.