Post Session: Quick Review

10 Feb 2021 Evaluate

Indian equity benchmarks ended in red terrain on Wednesday. After a cautious start, indices traded in red terrain during morning deals, amid report that India recorded 10,510 fresh Covid-19 cases of the coronavirus disease (Covid-19). The country reported a net reduction of 4,984 in active coronavirus cases to bring its count down at 143,416, which is 85.89 per cent lower than the September 18 peak of 1,017,754. India’s share of global active coronavirus cases has declined to 0.56 per cent (one in 179). The caseload tally stands at 10,858,300. The country continues to be second-most-affected globally, and ranks 17th among worst-hit nations by active cases.

Markets cut most of their losses in early afternoon deals, as the finance ministry's monthly report said growth and inflation outlook for 2021-22 portends more than full recovery, and that the country has become the COVID-19 vaccine hub of the world. Some support also came with Agriculture Minister Narendra Singh Tomar’s statement that the government has been pursuing the target of doubling farmers' income by 2022 and several interventions taken are showing a ‘positive impact’. He also said the government has adopted several developmental programmes, schemes, reforms and policies that focus on higher incomes for the farmers.

In the second half of the trading session, key indices again added losses but staged recovery during the last hour of the trade, after credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that the gross domestic product (GDP) growth is likely to bounce back to 10.4% year on year (yoy) in FY22, primarily driven by the base effect. The street took a note of Minister of State for Finance Anurag Singh Thakur’s statement that gross non-performing assets (NPAs) of public sector banks (PSBs) declined from Rs 8.96 lakh crore in March 2018 to Rs 6.09 lakh crore in September 2020 due to various measures taken by the government.

On the global front, European markets were trading mostly in red as investors absorbed a mixed bag of earnings from Societe Generale, A.P. Moeller-Maersk and other corporate. Asian markets ended mostly higher on Wednesday, after consumer prices in China were up 1.0 percent on month in January, the National Bureau of Statistics said on Wednesday - in line with expectations following the 0.7 percent increase in December. On a yearly basis, consumer prices fell 0.3 percent - shy of expectations for a flat reading following the 0.2 percent gain in the previous month. The bureau also said that producer prices rose 0.3 percent on year in January - missing forecasts for an increase of 0.4 percent after sinking 0.4 percent a month earlier.

The BSE Sensex ended at 51309.39, down by 19.69 points or 0.04% after trading in a range of 50846.22 and 51512.86. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.71%, while Small cap index was up by 0.42%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 1.72%, Consumer Durables up by 1.27%, Consumer Disc up by 0.99%, Auto up by 0.95% and Energy up by 0.57%, while Telecom down by 1.46%, Bankex down by 0.65%, Capital Goods down by 0.49%, PSU down by 0.26% and Power down by 0.14% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finserv up by 2.96%, Mahindra & Mahindra up by 2.21%, Bajaj Finance up by 1.47%, TCS up by 1.11% and Reliance Industries up by 0.99%. On the flip side, HDFC Bank down by 1.77%, Bharti Airtel down by 1.45%, Axis Bank down by 1.06%, ONGC down by 1.04% and Nestle down by 0.91% were the top losers. (Provisional)

Meanwhile, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that the gross domestic product (GDP) growth is likely to bounce back to 10.4% year on year (yoy) in FY22, primarily driven by the base effect.

As per the report, after recording negative growth during 9MFY21, GDP growth will finally turn positive at 0.3% yoy in 4QFY21. Although the recovery in FY22 on a yoy basis will be V-shaped, the size of the GDP will barely surpass the level attained in FY20 and will be 10.6% lower than the trend value.

The rating agency further noted that the impact of COVID-19 pandemic and lockdown on the economy, although subsiding, will continue to delay the normalisation of economic activities in the contact-intensive sectors till the mass vaccination/herd immunity becomes a reality.

The CNX Nifty ended at 15106.50, down by 2.80 points or 0.02% after trading in a range of 14977.20 and 15168.25. There were 23 stocks advancing against 27 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bajaj Finserv up by 2.88%, Cipla up by 2.57%, SBI Life Insurance up by 2.55%, Mahindra & Mahindra up by 2.14% and HDFC Life Insurance up by 2.01%. On the flip side, HDFC Bank down by 1.87%, Eicher Motors down by 1.57%, Bharti Airtel down by 1.46%, Tata Steel down by 1.28% and Britannia Inds down by 1.08% were the top losers. (Provisional)

European markets were trading mostly in red, France’s CAC decreased 4.71 points or 0.08% to 5,686.83 and Germany’s DAX was down by 36.71 points or 0.26% to 13,975.09. On the flip side, France’s CAC rose 4.71 points or 0.08% to 5,686.83.

Asian markets ended mostly higher on Wednesday, despite overnight lackluster close on Wall Street. Global investors kept an eye on stimulus negotiations and impeachment proceedings. Optimism over more US fiscal stimulus and declining Covid-19 infections rates too supported market sentiments. Meanwhile, cautious investors are stayed away from making big bets ahead of the Lunar New Year holidays in China, which begins on Thursday. The latest Chinese inflation and bank lending data underscored a recovery in the world's second-largest economy. Japanese shares closed higher amid robust corporate earnings.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,655.09
51.60
1.43

Hang Seng

30,038.72
562.53
1.91

Jakarta Composite

6,201.83
20.16
0.33

KLSE Composite

1,596.85

10.72

0.68

Nikkei 225

29,562.93
57.00
0.19

Straits Times

2,925.84
-9.43
-0.32

KOSPI Composite

3,100.58
15.91
0.52

Taiwan Weighted

-
-
-


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