Post Session: Quick Review

Indian equity benchmarks ended last trading day of the financial year 2020-21 (FY21) on a lower note with sharp losses on Wednesday’s trading session. Key indices made a negative start of the day, amid rising coronavirus cases in the country. India has recorded 53,158 cases recorded in the last 24 hours. With the latest addition, the country's tally has soared to 12,148,487, Worldometer showed this morning. With active cases hitting 553,933, India is now the 6th-worst hit country. The death toll from the deadly infection jumped to 162,502.

Weak trade continued over the Dalal Street during the whole trading session, as a report by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) stated that India's economic output in 2021 is expected to remain below the 2019 level despite roll-out of the vaccine to deal with the menace of the coronavirus pandemic. Meanwhile, Union Finance Minister Nirmala Sitharaman said India's quick response in limiting the impact of the COVID-19 pandemic and undertaking massive vaccination drives are resulting in a V-shaped recovery.

Traders were cautious, as India’s economy has bounced back amazingly from the COVID-19 pandemic and nationwide lockdown over the last one year, but it is not out of the woods yet, according to the World Bank, which in its latest report has predicted that the country’s real GDP growth for fiscal year 21/22 could range from 7.5 to 12.5 per cent. The Washington-based global lender, in its latest South Asia Economic Focus report released ahead of the annual Spring meeting of the World Bank and the International Monetary Fund (IMF), said that the economy was already slowing when the COVID-19 pandemic unfolded.

In the last hour of the trading session, markets added more losses to end near their intraday low points. Domestic sentiments remained down-beat as Moody's Analytics stated that India's inflation is at uncomfortably high level, which is an exception among Asian economies. It said higher fuel prices will keep upward pressure on retail inflation and keep the RBI from offering further rate cuts. Retail inflation rose to 5 per cent in February, from 4.1 per cent in January.

On the global front, European markets were trading lower with bond yields back in focus as investors wait for President Joe Biden’s infrastructure plan. Germany’s suspension of the AstraZeneca vaccine was also in focus. Asian markets finished in red on Wednesday, even after the manufacturing sector in China continued to expand in March, and at a faster rate, the National Bureau of Statistics said on Wednesday with a manufacturing PMI score of 51.9. That beat expectations for 51.0 and was up from 50.6 in February, moving further above the boom-or-bust line of 50 that separates expansion from contraction.

The BSE Sensex ended at 49509.15, down by 627.43 points or 1.25% after trading in a range of 49442.50 and 50050.32. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.07%, while Small cap index was up by 0.52%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 1.89%, FMCG up by 1.06%, Consumer Durables up by 0.75%, Basic Materials up by 0.69% and Metal up by 0.41%, while Bankex down by 1.43%, Power down by 1.35%, Telecom down by 1.29%, Energy down by 0.86% and TECK down by 0.86% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finserv up by 1.82%, ITC up by 1.82%, Hindustan Unilever up by 1.36%, SBI up by 0.90% and TCS up by 0.53%. On the flip side, HDFC down by 4.06%, HDFC Bank down by 3.86%, Power Grid down by 2.68%, Tech Mahindra down by 2.50% and ICICI Bank down by 1.71% were the top losers. (Provisional)

Meanwhile, the Central Government has released GST Compensation of Rs. 30,000 crore to States as part compensation admissible for FY 2020-21. The total amount of compensation released so far for the year 2020-21 is Rs. 70,000 crore.

As per the decision of GST Council, back to back loan of Rs. 1,10,208 crore has also been released in lieu of shortfall in release of GST Compensation for FY 2020-21. In addition to above, Centre has also released Rs. 28,000 crore (Rs. 14,000 crore to States and Rs. 14,000 crore to Centre) by way of adhoc settlement of IGST on March 30, 2021.

Taking into account the release of GST Compensation, back to back loan and adhoc IGST settlement, balance of only Rs. 63,000 crore approximately GST Compensation is pending to States/UTs for FY 2020-21.

The CNX Nifty ended at 14690.70, down by 154.40 points or 1.04% after trading in a range of 14670.25 and 14813.75. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were UPL up by 2.21%, Grasim Industries up by 1.96%, ITC up by 1.84%, Bajaj Finserv up by 1.75% and Tata Motors up by 1.60%. On the flip side, HDFC down by 4.13%, HDFC Bank down by 3.86%, Power Grid down by 2.58%, Tech Mahindra down by 2.50% and Coal India down by 1.96% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 24.45 points or 0.36% to 6,747.67, France’s CAC decreased 6.37 points or 0.1% to 6,081.67 and Germany’s DAX was down by 14.87 points or 0.1% to 14,993.74.

Asian markets finished in red on Wednesday due to risk aversion in the market amid fears about impact of spiking covid cases over the global economic recovery and on caution ahead to US  President's big announcement on infrastructure and other measures to support the economic recovery. Upward trend of Bond yields, dollar and crude oil also triggered the downward trend. Shanghai slipped despite the positive manufacturing data of the country counting on rise of dollar with the impending corporate tax hikes by the US government after Biden's stimulus measures. China investors appear to have taken fright at another China tech IPO flopping in Hong Kong today, and as Ruili city in Yunnan province enters a Covid-19 lockdown.