Benchmarks trim some losses in late afternoon session

Indian benchmarks trimmed some of their losses in late afternoon session, but continued to trade below the neutral lines, on the back of sustained selling activities by market-participants amid weak global cues. Sentiments remained down-beat, after Reserve Bank of India (RBI) official has said that the country’s GDP is likely to contract by 8.6 percent for second quarter of current financial year (Q2FY21), which means India will enter into a recession for the first time in history in the first half of this fiscal with two successive quarters of negative growth due to the COVID-19 pandemic. However, losses remain capped, as the Reserve Bank of India said the Indian economy could break out of contraction and return to positive growth by the third quarter of the current financial year if the growth momentum sustains. On the global front, Asian markets are trading mostly in red as a week-long rally sputtered, with sentiment split between vaccine hopes and Joe Biden's election win on one side and fears of a coronavirus surge that threatens any economic recovery on the other. European markets were trading lower. Back home, Bankex, PSU and Utilities were the prime losers among heavy-weights.

The BSE Sensex is currently trading at 43330.86, down by 262.81 points or 0.60% after trading in a range of 43127.55 and 43543.96. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.49%, while Small cap index was up by 1.16%.

The top gaining sectoral indices on the BSE were Realty up by 1.52%, Capital Goods up by 1.15%, Industrials up by 0.95%, Healthcare up by 0.75% and FMCG was up by 0.65%, while Bankex down by 2.11%, PSU down by 0.98%, Utilities down by 0.74%, Energy down by 0.36% and Metal was down by 0.27% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 1.54%, Sun Pharma up by 1.50%, ITC up by 1.03%, Bajaj Finserv up by 1.01% and Larsen & Toubro up by 1.01%. On the flip side, Kotak Mahindra Bank down by 2.71%, SBI down by 2.48%, ICICI Bank down by 2.46%, NTPC down by 2.15% and Indusind Bank down by 2.07% were the top losers.

Meanwhile, with an aim to make the capital goods sector globally competitive and to become the manufacturing hub for the world, the government has set up a 22-member inter-ministerial committee in strengthening the Capital Goods (CG) Sector through interventions that help the CG Sector in contributing more actively in the national goal of achieving a $5 trillion economy and a $1 trillion manufacturing sector.

The Committee will look into on all such issues pertaining to the Capital Goods Sector including technology development, mother technology development, global value chains, testing, skill training, global standards, reciprocity issues, custom duties to make this sector globally competitive and to become the manufacturing hub for the world. Any other relevant issue pertaining to the Capital Goods sector may also be brought before the Committee with the prior approval of the Chairman.

The Inter-Ministerial Committee (IMC) under the chairmanship of Secretary, DHI with representation at sufficiently senior level officers from the concerned Ministries/Departments is proposed to meet quarterly. Any other Department or expert as required may be invited by the chair.

The CNX Nifty is currently trading at 12686.45, down by 62.70 points or 0.49% after trading in a range of 12624.85 and 12741.15. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Shree Cement up by 2.85%, Grasim Industries up by 2.19%, Hindalco up by 1.81%, Hindustan Unilever up by 1.61% and Sun Pharma up by 1.37%. On the flip side, Kotak Mahindra Bank down by 2.73%, ICICI Bank down by 2.52%, SBI down by 2.39%, Indusind Bank down by 2.30% and UPL down by 2.26% were the top losers.

Asian markets are trading mostly in red, Hang Seng decreased 57.60 points or 0.22% to 26,169.38, Jakarta Composite lost 50.91 points or 0.92% to 5,458.60, Taiwan Weighted dropped 40.41 points or 0.3% to 13,221.78, KOSPI fell 10.25 points or 0.41% to 2,475.62, Straits Times trembled 6.42 points or 0.24% to 2,706.86 and Shanghai Composite was down by 3.52 points or 0.11% to 3,338.68. On the flip side, Nikkei 225 was up by 171.28 points or 0.68% to 25,520.88.

European markets were trading lower; UK’s FTSE 100 decreased 47.41 points or 0.74% to 6,334.69, France’s CAC decreased 39.07 points or 0.72% to 5,406.14 and Germany’s DAX was down by 99.05 points or 0.75% to 13,117.13.