Post Session: Quick Review

18 Feb 2021 Evaluate

Indian equity benchmarks ended in red terrain on Thursday’s trading session. After a cautious start of the trading day, key indices traded near their neutral lines, as Global forecasting firm Oxford Economics revised India's economic growth projection for 2021 to 10.2 per cent from the earlier 8.8 per cent, citing receding COVID-19 risks and the shift in the monetary policy outlook. It further said the Budget 2021-22 will create positive externalities for the private sector, and forecast slower fiscal consolidation in FY22 than the government projections.

Markets remained higher in morning deals, taking support with S&P Global Ratings’ report stated that India will be one of the fastest growing emerging market economies with a 10 percent growth in FY22, and future sovereign rating action would hinge on lowering fiscal deficit and sustaining debt burden. It noted that the forecast for India in 2021 is on stronger side and shows that a lot of economic activity, which was frozen last year, is coming back on line to normalisation thereby brightening the growth prospects, as well as structural strengths of Indian economy coming back to the fore.

In late morning deals, markets turned negative as the government issued new guidelines for international arrivals amid the spread of mutant variants of coronavirus in many countries. The new Standard Operating Procedures (SOPs) will come into effect from 23.59 hours on February 22 till further orders. Traders overlooked reports that continuing efforts to improve the ease of doing business in the securities market, Sebi approved a slew of proposals, including relaxing minimum public offer requirements and amending norms for portfolio managers. Besides, the watchdog cleared repealing of Sebi (Underwriters) Regulations, 1993 and amendments to the Sebi (Merchant Bankers) Regulations, 1992 and the SEBI (Stock Brokers) Regulations, 1992.

On the global front, European markets were trading mostly in green as traders pored over pandemic-affected earnings updates from various sectors. Asian markets ended mostly lower on Thursday, even after South Korea's money supply growth rose in December. The figures from Bank of Korea showed that M2, a broad measure of money supply, increased 9.8 percent year-on-year in December, following a 9.7 percent increase in November. On a monthly basis, M2 money supply rose 0.4 percent in December, slower than 0.9 percent increase in the previous month. The annual growth in liquidity indicator L fell to 8.3 percent in December from 8.4 percent in the preceding month.

The BSE Sensex ended at 51324.69, down by 379.14 points or 0.73% after trading in a range of 51186.68 and 51903.96. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.69%, while Small cap index was up by 0.67%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 4.22%, Utilities up by 3.87%, PSU up by 3.64%, Power up by 2.79% and Metal up by 1.27%, while Auto down by 1.35%, Bankex down by 1.17%, Healthcare down by 0.76%, Telecom down by 0.69% and Realty down by 0.65% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were ONGC up by 8.32%, NTPC up by 4.08%, Asian Paints up by 3.39%, Tech Mahindra up by 2.97% and Power Grid up by 2.85%. On the flip side, Bajaj Finance down by 2.43%, Kotak Mahindra Bank down by 2.20%, Mahindra & Mahindra down by 2.19%, Nestle down by 2.18% and HDFC down by 2.13% were the top losers. (Provisional)

Meanwhile, appreciating the measures taken by SEBI, especially to deal with the COVID situation, Finance Minister Nirmala Sitharaman has expressed the need for timely implementation of announcements related to the capital market made in the Union Budget 2021-22.

The minister addressed the board of SEBI in the national capital for the first time after the presentation of the Budget on February 1. After the presentation of the Budget every year, it is customary for the finance minister to address the boards of SEBI and RBI.

Meanwhile, in Union budget, Sitharaman proposed to consolidate the provisions of Sebi Act, Depositories Act, Securities Contracts (Regulation) Act and Government Securities Act into a rationalised single securities markets code. Among other announcements related to the capital markets, the minister had also proposed to introduce an investor charter as a right for all investors in all financial products.

The CNX Nifty ended at 15118.95, down by 89.95 points or 0.59% after trading in a range of 15078.05 and 15250.75. There were 23 stocks advancing against 27 stocks declining on the index. (Provisional)

The top gainers on Nifty were ONGC up by 8.26%, GAIL India up by 6.47%, BPCL up by 4.98%, Indian Oil Corp. up by 4.21% and NTPC up by 4.08%. On the flip side, Bajaj Finance down by 2.49%, Shree Cement down by 2.28%, Nestle down by 2.25%, Mahindra & Mahindra down by 2.24% and Kotak Mahindra Bank down by 2.21% were the top losers. (Provisional)

European markets were trading mostly in green, France’s CAC increased 3.11 points or 0.05% to 5,768.95 and Germany’s DAX was up by 27.80 points or 0.2% to 13,937.07. On the flip side, UK’s FTSE 100 was down by 1.58 points or 0.02% to 6,709.32.

Asian markets ended mostly lower on Thursday on profit-taking following concerns about inflation and surging US bond yields. Further, Japanese shares ended lower as doubts on the sustainability of a recent rally above the 30,000 level. Although, US president Joe Biden said the US economy would come roaring back if Congress approved his $1.9 trillion fiscal stimulus plan, as he pledged to deliver widespread corona virus vaccinations and a stronger recovery in the second half of the year. Chinese shares closed higher after traders returned to their desks following the Lunar New Year holidays, with renewed optimism for an acceleration in global growth.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,675.3620.270.55

Hang Seng

30,595.27-489.67-1.58

Jakarta Composite

6,200.31-27.42-0.44

KLSE Composite

1,575.84-19.45-1.22

Nikkei 225

30,236.09-56.10-0.19

Straits Times

2,909.57-10.86-0.37

KOSPI Composite

3,086.66-47.07-1.50

Taiwan Weighted

16,424.5162.220.38


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