Local equities trim some losses in late afternoon session

Local equities trimmed some of their losses, but continued to trade lower in late afternoon session. A level of pressure was seen on frontline stocks, especially Bajaj Finance and Indusind Bank. Sentiments remained down-beat, as Reserve Bank of India (RBI) data showed that the country's foreign exchange reserves declined by $2.986 billion to reach $579.285 billion in the week ended March 26. In the previous week ended March 19, the forex kitty had increased by $233 million to $582.271 billion. It had touched a record high of $590.185 billion in the week ended January 29, 2021. The fall in reserves was on account of a decrease in foreign currency assets (FCA), a major component of the overall reserves. Downside remain capped, as finance ministry has said that Goods and Services Tax (GST) collections remained above the Rs 1-lakh-crore mark for the sixth month in a row in March 2021, rising 27 per cent annually to record Rs 1.23 lakh crore.

On the global front, Asian markets were trading mostly in green following a forecast-busting US jobs report and as investors kept tabs on the progress of Joe Biden’s latest economy-boosting spending package. European markets were closed due to Easter Monday.

The BSE Sensex is currently trading at 49157.88, down by 871.95 points or 1.74% after trading in a range of 48580.80 and 50028.67. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 1.42%, while Small cap index was down by 1.15%.

The few gaining sectoral indices on the BSE were IT up by 2.18%, TECK up by 1.76% and Metal was up by 0.12%, while Realty down by 3.77%, Bankex down by 3.52%, Auto down by 2.64%, PSU down by 2.46% and Consumer Durables was down by 2.38% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Tech up by 3.39%, TCS up by 2.16%, Infosys up by 2.10%, Tech Mahindra up by 1.06% and Bharti Airtel up by 0.42%. On the flip side, Bajaj Finance down by 5.81%, Indusind Bank down by 5.53%, SBI down by 4.41%, Axis Bank down by 4.21% and Bajaj Finserv down by 4.15% were the top losers.

Meanwhile, in a relief to the MSME sector, the government has amended the insolvency law to provide for a pre-packaged resolution process for micro, small and medium enterprises. The latest move comes less than two weeks after the suspension of certain IBC provisions ended. The suspension -- wherein fresh insolvency proceedings were not allowed for a year starting from March 25, 2020 -- was implemented amid the coronavirus pandemic disrupting economic activities.

As per the ordinance, it is considered necessary to urgently address the specific requirements of Micro, Small and Medium Enterprises (MSMEs) relating to the resolution of their insolvency, due to the unique nature of their businesses and simpler corporate structures.

Besides, according to the ordinance, it is considered expedient to provide an efficient alternative insolvency resolution process MSMEs to ensure a quicker, cost-effective and value maximising outcomes for all stakeholders, in a manner which is least disruptive to the continuity of their businesses and which preserves jobs.

The CNX Nifty is currently trading at 14646.95, down by 220.40 points or 1.48% after trading in a range of 14459.50 and 14849.85. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were HCL up by 3.68%, Britannia up by 2.64%, TCS up by 2.50%, Infosys up by 2.28% and Wipro up by 1.95%. On the flip side, Bajaj Finance down by 5.64%, Indusind Bank down by 5.38%, SBI down by 4.26%, Axis Bank down by 3.98% and Bajaj Finserv down by 3.82% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 235.25 points or 0.79% to 30,089.25, Straits Times advanced 25.98 points or 0.82% to 3,207.66 and KOSPI was up by 8.03 points or 0.26% to 3,120.83. On the flip side, Jakarta Composite was down by 41.17 points or 0.68% to 5,970.29.

European markets were closed on Monday.