Benchmarks remain under selling pressure

Local equity benchmarks continued weak trade in late afternoon session. Most of the sectoral indices were trading in red with Bankex and Energy as the top losing indices. Sentiments remained down-beat, as foreign portfolio investors (FPIs) were net sellers to the tune of Rs 7,013 crore so far this month in the Indian markets on profit-booking as jitters in global bond markets spooked investors. FPIs pulled out Rs 531 crore from equities and Rs 6,482 crore from the debt segment between March 1-13. Traders failed to took some support, as Reserve Bank of India (RBI) in its latest data has showed that bank credit grew 6.36 per cent to Rs 106.41 trillion, while deposits increased by 11.41 per cent to Rs 146.25 trillion in the fortnight ended January 15. In the fortnight ended January 17, 2020, bank credit was at Rs 100.04 trillion and deposits stood at Rs 131.27 trillion. On the global front, Asian markets were trading mixed, ahead of a meeting by the U.S. Federal Reserve later in the week. European markets were trading higher, as traders remain optimistic for a rapid economic recovery thanks to the rollout of the COVID-19 vaccine.

The BSE Sensex is currently trading at 49989.99, down by 802.09 points or 1.58% after trading in a range of 49799.07 and 50834.78. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 1.24%, while Small cap index was down by 0.86%.

The only gaining sectoral indices on the BSE were Metal up by 0.75%, while Bankex down by 2.22%, Energy down by 1.87%, Capital Goods down by 1.59%, Healthcare down by 1.57% and Industrials was down by 1.42% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 1.91%, Tech Mahindra up by 1.55%, HCL Tech up by 1.02%, Nestle up by 0.08% and NTPC up by 0.05%. On the flip side, Axis Bank down by 3.49%, Bajaj Finance down by 3.00%, Bajaj Finserv down by 2.80%, ICICI Bank down by 2.80% and Dr. Reddys Lab down by 2.78% were the top losers.

Meanwhile, India’s inflation based on wholesale price index (WPI) rose to 4.17% (provisional) for the month of February 2021 as compared to 2.26% during the corresponding month of the previous year.

Component wise, primary articles index having weight of 22.62%, increased by (1.04%) to 145.4 (provisional) in February 2021 from 143.9 (provisional) for the month of January 2021. Prices of Minerals, Crude Petroleum & Natural Gas and Food Articles increased in February 2021 as compared to January 2021, while prices of Non-food Articles declined in February 2021 as compared to January 2021.

Fuel & Power index, having weight of 13.15%, increased by (4.51%) to 104.2 (provisional) in February 2021 from 99.7 (provisional) for the month of January 2021. Prices of Mineral Oils increased in February 2021 as compared to January 2021, while Prices of Electricity declined in February 2021 as compared to January 2021. Prices of coal remain unchanged.

Manufactured Products constituting the major portion of the index with weight of 64.23%, increased by (0.64%) to 125.7 (provisional) in February 2021 from 124.9 (provisional) for the month of January 2021. Meanwhile, for the month of December 2020, the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 125.4 and 1.95% respectively.

The CNX Nifty is currently trading at 14824.50, down by 206.45 points or 1.37% after trading in a range of 14745.85 and 15048.40. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 1.86%, JSW Steel up by 1.80%, Tech Mahindra up by 1.65%, Tata Steel up by 1.26% and HCL Tech up by 1.04%. On the flip side, Axis Bank down by 3.48%, Divis Lab down by 3.42%, Bajaj Finance down by 3.20%, Coal India down by 2.96% and Hero MotoCorp down by 2.89% were the top losers.

Asian markets were trading mixed; Jakarta Composite lost 33.95 points or 0.53% to 6,324.26, Shanghai Composite declined 33.13 points or 0.96% to 3,419.95, KOSPI fell 8.68 points or 0.28% to 3,045.71 and Taiwan Weighted was up by 5.85 points or 0.04% to 16,249.33. On the flip side, Straits Times advanced 9.71 points or 0.31% to 3,104.93, Nikkei 225 surged 49.14 points or 0.17% to 29,766.97 and Hang Seng was up by 94.04 points or 0.33% to 28,833.76.

European markets were trading higher; UK’s FTSE 100 increased 28.69 points or 0.42% to 6,790.16, France’s CAC increased 29.02 points or 0.48% to 6,075.57 and Germany’s DAX was up by 14.73 points or 0.1% to 14,517.12.