Post Session: Quick Review

Indian equity benchmarks ended in deep red on Wednesday’s trading session, as bears held their tight grip over the Dalal Street. Key indices started the trading day in red terrain, as rising coronavirus cases in the country dampened the sentiments in the markets. India recorded 47,264 new cases, taking to tally to 11,733,594, according to Worldometer. The death toll from the deadly infection jumped to 160,477. India has the 7th highest number of active cases globally. Maharashtra recorded 28,699 new Covid-19 cases and 132 deaths.

Weak trade continued over the Dalal Street during the whole trading session, after the IMF's managing director said that prospects for a recovery from the COVID-induced economic slowdown are uncertain and uneven, with some emerging economies and almost all low-income countries at risk of lower growth. Traders were seen taking a note of reports that Finance Minister Nirmala Sitharaman raised the limit for tax exemption on interest earned on provident fund contribution by employees to Rs 5 lakh per annum in specified cases as against Rs 2.5 lakh proposed in the Budget.

In the last hour of the trade, markets added more losses and finally ended near their intraday low points. Sentiments remained under pressure amid fears that authorities may tighten restrictions further as covid-19 cases continue to surge. According to reports, Maharashtra chief minister Uddhav Thackeray has called a cabinet meeting later today to discuss the covid-19 situation in the state. Traders overlooked Union Minister of State for Finance and Corporate Affairs Anurag Singh Thakur’s statement that steps taken by the government during the pandemic have helped the economy recover, and the country is expected to clock double-digit growth in the next fiscal.

On the global front, European markets were trading lower, as renewed lockdowns across the eurozone and a row over the supply of COVID-19 vaccines dented sentiment ahead of the release of business activity data. Asian markets ended mostly lower on Wednesday, after Malaysia's consumer prices increased in February. The data from the Department of Statistics showed that the consumer price index grew 0.1 percent year-on-year in February, following a 0.2 percent fall in January. The annual growth was largely driven by the rise in prices of miscellaneous goods and services by 1.6 percent.

The BSE Sensex ended at 49180.31, down by 871.13 points or 1.74% after trading in a range of 49120.34 and 49854.58. There were 2 stocks advancing against 28 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 1.69%, while Small cap index was down by 1.60%. (Provisional)

The top losing sectoral indices on the BSE were Realty down by 2.93%, Metal down by 2.75%, Auto down by 2.60%, Bankex down by 2.53% and Industrials down by 2.45%, while there were no gaining sectoral indices on the BSE. (Provisional)

The only gainers on the Sensex were Asian Paints up by 1.44% and Power Grid up by 0.98%. On the flip side, Mahindra & Mahindra down by 3.97%, SBI down by 3.38%, Axis Bank down by 3.33%, ICICI Bank down by 3.22% and Indusind Bank down by 3.07% were the top losers. (Provisional)

Meanwhile, in a relief, Finance Minister Nirmala Sitharaman has raised the limit for tax exemption on interest earned on provident fund contribution by employees to Rs 5 lakh per annum in specified cases as against Rs 2.5 lakh proposed in the Budget.

The minister further noted that the concession would be available to employees only in cases where his or her employer does not make any contribution to the retirement fund. She said ''I intend to raise this limit to Rs 5 lakh only in those cases, where there is no contribution by the employer in that fund.'

Besides, the Minister said that so, most often, it is employee contribution and employer's contribution, but there are contributions which are only employee and no employer contribution is made, in such cases that amount is raised to Rs 5 lakh.

The CNX Nifty ended at 14549.40, down by 265.35 points or 1.79% after trading in a range of 14535.00 and 14752.35. There were 3 stocks advancing against 47 stocks declining on the index. (Provisional)

The top gainers on Nifty were Cipla up by 2.17%, Asian Paints up by 1.38% and Power Grid up by 0.94%. On the flip side, Tata Steel down by 5.17%, Adani Ports & SEZ down by 4.29%, Hindalco down by 4.21%, Tata Motors down by 4.21% and Mahindra & Mahindra down by 3.94% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 17.67 points or 0.26% to 6,681.52, France’s CAC decreased 27.28 points or 0.46% to 5,918.02 and Germany’s DAX was down by 70.23 points or 0.48% to 14,591.79.

Asian markets ended mostly lower on Wednesday as sinking crude oil prices and concerns about the return of corona-virus lockdowns in Europe dented investor hopes of global economic recovery. Moreover, Europe’s sluggish vaccination campaign too pressurizing market sentiments. Chinese shares declined as policy tightening concerns persisted, while escalating tensions between China and major western nations too weighed on investor sentiments. Japanese shares ended lower following weak cues from Wall Street overnight. While members of the Bank of Japan's monetary policy board said that it would maintain stimulus in the face of the corona-virus crisis as long as necessary, minutes from the bank's meeting on January 20 and 21 revealed on Wednesday.