Post Session: Quick Review

19 Feb 2021 Evaluate

Indian equity benchmarks ended with notable losses on Friday. Markets made a negative start of the trading day, amid report that India registered 12,643 fresh Covid-19 cases. Active cases in India stand at 137,866, while the caseload tally has risen to 10,962,189. The country continues to be second-most-affected globally, and ranks 17th among worst-hit nations by active cases. Some concern came with report that PE/VC investments in January 2021 reported a 35 per cent drop to $1.6 billion from $2.5 billion, a year ago. The number of deals reported also remained flat at 80.

In the morning deals, key indices traded in green terrain for a little period, taking support with report that foreign portfolio investors (FPIs) have pumped in a whopping $33.8 billion into domestic equities and debt till February 15 this fiscal year -- the highest since FY15 when it was nearly $46 billion --taking their net outstanding investments to a record $592.5 billion. Traders took a note of Finance Minister Nirmala Sitharaman’s statement that India’s inflation target band of 2-6 per cent is up for review as the five-year term for the Monetary Policy Committee’s (MPC’s) inflation-targeting framework draws to a close.

However, for the most part of the trading session, Indian markets remained lower and added more losses in the last hours of the trade, as domestic sentiments remained negative, amid reports that while the National Pension System (NPS) has a robust architecture, there are demand supply loopholes in the system and it also lacks flexibility, an essential component for the sector, as per findings of a discussion session held by NCAER. The National Council of Applied Economic Research (NCAER) held a workshop on investor education and protection with financial regulators, focussed on the NPS.

On the global front, European markets were trading higher despite rising bond yields. Asian markets ended mostly higher on Friday, even after Hong Kong's unemployment rate rose in January. The labor force statistics from the Census and Statistics Department showed that the unemployment rate rose to a seasonally adjusted 7.0 percent in three months to January from 6.6 percent in three months to December. The underemployment rate increased to 3.8 percent from 3.4 percent in the preceding period. The number of unemployed persons increased by around 7,500 to 253,300 in November to January. Over the same period, the number of underemployed persons also increased by around 14,400 to 148,200.

The BSE Sensex ended at 50889.76, down by 434.93 points or 0.85% after trading in a range of 50624.33 and 51432.99. There were 9 stocks advancing against 21 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 1.67%, while Small cap index was down by 0.76%. (Provisional)

The only gaining sectoral index on the BSE was Energy up by 0.26%, while Auto down by 2.59%, Metal down by 2.09%, Bankex down by 2.06%, PSU down by 1.98% and Healthcare down by 1.54% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Indusind Bank up by 1.97%, Hindustan Unilever up by 1.56%, Dr. Reddys Lab up by 1.46%, NTPC up by 0.87% and Reliance Industries up by 0.73%. On the flip side, ONGC down by 5.06%, SBI down by 3.77%, Axis Bank down by 3.59%, ICICI Bank down by 3.20% and Bajaj Auto down by 2.72% were the top losers. (Provisional)

Meanwhile, few days after the announcement of the Union Budget, Union Minister of Consumer Affairs, Food & Public Distribution, Railways and Commerce & Industry, Piyush Goyal has said that the Government is committed for the welfare of the farmers, migrant workers and consumers. This budget has special provision for the poor, the farmers and the migrant workers, the ones who provided the nation support during difficult times.

The Minister said that these measures reiterate higher commitment of the present Government towards farmers and their produce. He said the budget of 2021-22 under the leadership of Prime Minister Narendra Modi expresses the confidence of India and all set to spread a new wave of “AtmaNirbharta” across the globe.

Besides, Piyush Goyal said that Union Budget 2021 touches the life of common man. He further noted that the budget takes care of the poor people who are at bottom of the pyramid and added that this budget instills a new hope for new India.

The CNX Nifty ended at 14981.75, down by 137.20 points or 0.91% after trading in a range of 14898.20 and 15144.05. There were 11 stocks advancing against 39 stocks declining on the index. (Provisional)

The top gainers on Nifty were UPL up by 2.17%, Indusind Bank up by 1.90%, GAIL India up by 1.61%, Hindustan Unilever up by 1.60% and Dr. Reddys Lab up by 1.40%. On the flip side, ONGC down by 5.06%, Tata Steel down by 3.88%, Hero MotoCorp down by 3.78%, SBI down by 3.77% and Tata Motors down by 3.71% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 1.99 points or 0.03% to 6,619.14, France’s CAC increased 19.12 points or 0.33% to 5,747.45 and Germany’s DAX was up by 29.55 points or 0.21% to 13,916.48.

Asian markets ended mostly higher on Friday, even as renewed concerns about rising inflation dented hopes of a swift global recovery from the pandemic. However, weak close in Wall Street overnight after unexpected rise in weekly jobless claims added pressure on market sentiments. Japanese shares ended lower as firmer yen and rising bond yields weighing on investors' sentiment. Japan's consumer prices declined at a slower pace in January reflecting the end of the 'Go To' travel scheme of the government, the Ministry of Internal Affairs and Communications said. Consumer prices were down 0.6 percent, but slower than the 1.2 percent drop in December and -0.9 percent in November.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,696.17
20.81
0.57

Hang Seng

30,644.73
49.46
0.16

Jakarta Composite

6,231.93
31.62
0.51

KLSE Composite

1,584.93
9.09
0.58

Nikkei 225

30,017.92
-218.17
-0.72

Straits Times

2,880.64
-28.21
-0.97

KOSPI Composite

3,107.62
20.96
0.68

Taiwan Weighted

16,341.38
-83.13
-0.51


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