Benchmarks slips into negative territory

Indian equity benchmarks erased all gains to turn negative in late afternoon session, tracking weak European markets cues. A level of pressure was seen on frontline stocks, especially Sun Pharma, HDFC Bank and Indusind Bank. Sentiments on the street weakened after India Ratings and Research (Ind-Ra) in its latest report has said that the gross state domestic product (GSDP) of all states in India is likely to contract in the range of 1.4 to 14.3 percent in the current financial year (FY21) due to the impact of Covid-19-induced lockdown on economic activities. It also said the states that will witness a double-digit contraction in GSDP growth in FY21 are Assam, Goa, Gujarat and Sikkim. Sector wise, auto sector trading up even after Engineering Exports Promotion Council (EEPC) India in its latest report has said that the auto exports plunged 73% in May 2020 to $230.3 million (about Rs 1,736 crore) as compared to the year-ago period with shipments to key markets like the US and Mexico registering a sharp decline owing to supply-chain issues due to lockdown. On the global front, European markets were trading lower after resurgence in virus infections slowed down the pace of business re-opening.

The BSE Sensex is currently trading at 34917.64, down by 43.88 points or 0.13% after trading in a range of 34910.31 and 35233.91. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.23%, while Small cap index was down by 0.53%.

The top gaining sectoral indices on the BSE were Auto up by 0.81%, Realty up by 0.61%, Basic Materials up by 0.28%, Metal up by 0.22% and Consumer Discretionary was up by 0.18%, while Oil & Gas down by 1.27%, Healthcare down by 1.08%, Energy down by 0.83%, PSU down by 0.77% and Telecom was down by 0.59% were the top losing indices on BSE.

The top gainers on the Sensex were Nestle up by 2.64%, Maruti Suzuki up by 2.58%, ICICI Bank up by 2.07%, Tata Steel up by 1.77% and NTPC up by 1.69%. On the flip side, Sun Pharma down by 2.00%, HDFC Bank down by 1.77%, Power Grid down by 1.26%, Indusind Bank down by 1.14% and SBI down by 0.92% were the top losers.

Meanwhile, NITI Aayog and Rocky Mountain Institute (RMI) have released a new report titled ‘Towards a Clean Energy Economy: Post-Covid-19 Opportunities for India’s Energy and Mobility Sectors’, which advocates for stimulus and recovery efforts that work towards building a clean, resilient, and least-cost energy future for India. These efforts include electric vehicle, energy storage, and renewable energy programs.

The latest report identifies how COVID-19 is beginning to influence the clean energy transition in India, specifically for the transport and power sectors, and recommends principles and strategic opportunities for the country’s leaders to drive economic recovery and maintain momentum towards a clean energy economy. It said that COVID-19 has presented significant demand and supply-side challenges for India’s transport and power sectors, from liquidity constraints and supply shortages to shifts in consumer demand and preferences.

The report also lays out four principles as a framework for policymakers and other key decision-makers considering programmes to support India’s clean energy future such as invest in least-cost-energy solutions, support resilient and secure energy systems, prioritize efficiency and competitiveness, and promote social and environmental equity.

The CNX Nifty is currently trading at 10311.65, down by 0.75 points or 0.01% after trading in a range of 10298.10 and 10401.05. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Shree Cement up by 3.39%, Nestle up by 2.71%, Maruti Suzuki up by 2.59%, Tata Steel up by 2.23% and ICICI Bank up by 2.14%. On the flip side, BPCL down by 2.19%, Sun Pharma down by 2.00%, Vedanta down by 1.71%, Tata Motors down by 1.61% and Indian Oil down by 1.55% were the top losers.

European markets were trading lower, UK’s FTSE 100 decreased 55.37 points or 0.89% to 6,170.40, France’s CAC decreased 22.07 points or 0.45% to 4,923.39and Germany’s DAX was down by 26.86 points or 0.22% to 12,205.26.