Markets trim opening losses; trade slightly lower in early deals

05 Mar 2021 Evaluate

Indian equity benchmarks made gap-down opening for the second straight session on Friday amid feeble global cues as rising US Treasury yields again rattled equity investors. Markets managed to trim most of their losses and are trading lower with marginal cut of 0.23% each in early deals due to selling in Bankex, Capital Goods and Metal stocks. Sentiments were dampened as India’s tally of coronavirus cases has risen to 11,173,572, with a daily increase of 16,824 in total cases. Death toll has reached 157,584, with 113 fatalities in a day. India's count of active cases has jumped to 177,967. The country continues to be second-most-affected globally, and ranks 13th among worst-hit nations by active cases. Maharashtra, the most affected state overall, has reported 9,000 new cases. The state has added nearly 80,000 cases in the past 10 days. Though, losses got trim as traders took some relief with the government data showing that foreign direct investment (FDI) in India grew 40 percent to $51.47 billion during April-December 2020-21. India has attracted 22 percent higher FDI inflow (including re-invested earnings) of $67.54 billion during the first nine months of the current fiscal as against $55.14 billion in the same period of 2019-20.

On the global front, most of the Asian markets were trading lower following the negative cues overnight from Wall Street as treasury yields spiked in reaction to the highly anticipated Federal Reserve Chair Jerome Powell's remarks, which failed to calm concerns about higher interest rates and inflation. Surging crude oil prices is also weighing on the markets. Back home, NBFCs, HFCs stocks were in focus with India Ratings’ report that after a growth moderation in FY21, Non-Bank Finance Companies (NBFCs) are estimated to witness a 9.5 per cent jump in their assets under management in FY22. Housing Finance Companies (HFCs) will post a higher growth at 10 per cent as home sales go up, and maintained its stable outlook on both NBFCs and HFCs for FY22. In scrip specific development, NFL and RCF both surged as the government started work on privatization of the fertilizer companies.

The BSE Sensex is currently trading at 50731.17, down by 114.91 points or 0.23% after trading in a range of 50311.47 and 50746.37. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index lost 0.24%, while Small cap index was up by 0.30%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.60%, Utilities up by 0.72%, Energy up by 0.58%, IT up by 0.37%, Basic Materials up by 0.27%, while Bankex down by 1.02%, Capital Goods down by 0.67%, Metal down by 0.66%, Healthcare down by 0.57%, Telecom down by 0.54% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 4.44%, Ultratech Cement up by 1.97%, Tech Mahindra up by 1.31%, HCL Technologies up by 1.18% and Mahindra & Mahindra up by 0.99%. On the flip side, Indusind Bank down by 2.86%, ICICI Bank down by 1.56%, SBI down by 1.35%, Dr. Reddy’s Lab down by 1.14% and HDFC Bank down by 1.05% were the top losers.

Meanwhile, the commerce and industry ministry in its latest data has said that Foreign direct investment (FDI) in India grew 40 percent to $51.47 billion during April-December 2020-21 as against $36.77 billion in the same period of 2019-20.  Besides, it said the country has attracted 22 percent higher FDI (including re-invested earnings) of $67.54 billion during the first nine months of the current fiscal as against $55.14 billion in the year ago period.

As per to the data, the inflows increased by 37 percent in the third quarter (October-December 2020) of 2020-21 to $26.16 billion. In December, FDI surged 24 percent to USD 9.22 billion. The ministry has stated that the measures taken by the government on the fronts of FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country.

It further said the foreign inflows are a major driver of economic growth and an important source of non-debt finance for the economic development of India. It noted that the steps taken in this direction during the last six and a half years have borne fruit, as is evident from the ever-increasing volumes of FDI inflows being received into the country. Continuing on the path of FDI liberalization and simplification, government has carried out FDI reforms across various sectors.

The CNX Nifty is currently trading at 15046.40, down by 34.35 points or 0.23% after trading in a range of 14929.25 and 15054.15. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were ONGC up by 4.35%, GAIL India up by 3.29%, Ultratech Cement up by 1.74%, BPCL up by 1.52% and Grasim Industries up by 1.41%. On the flip side, Indusind Bank down by 2.72%, Wipro down by 1.70%, Hindalco down by 1.57%, ICICI Bank down by 1.51% and SBI down by 1.40% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 186.58 points or 0.64% to 28,743.53, Straits Times lost 2.10 points or 0.07% to 3,012.68, Hang Seng declined 161.34 points or 0.55% to 29,075.45, KOSPI fell 14.79 points or 0.49% to 3,028.70, Jakarta Composite plunged 10.37 points or 0.16% to 6,280.43, and Shanghai Composite was down by 11.80 points or 0.34% to 3,491.69, while Taiwan Weighted gained 15.55 points or 0.10% to 15,921.96.

© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt.Ltd.