Post Session: Quick Review

13 Apr 2021 Evaluate

Indian equity benchmarks ended near day’s high points on Tuesday. After a cautious start of the day, markets traded higher in early deals, amid private report said that Indians are among the most optimistic globally in terms of their expectations for a return to pre-COVID normal, with over 70 per cent expecting it to happen in less than a year. Importantly, the survey was conducted just before the COVID-19 pandemic was seen moving towards a new peak in India and some other countries. Traders took note of report that Reserve Bank of India (RBI) governor Shaktikanta Das notified bankers to remain watchful of the evolving pandemic situation and also ensure credit flow to different sectors, including to stressed sectors, small borrowers and retail.

Benchmarks cut their gains and traded volatile in late morning session, as the consumer price index (CPI) based retail inflation rose to a four-month high of 5.52 per cent in March over 5.03 per cent in February on account of rising food prices as well as costlier fuel, though it remained within the comfort zone of the Reserve Bank of India (RBI). The Reserve Bank, which mainly factors in the retail inflation while arriving at its monetary policy, has been asked to keep CPI inflation at 4 per cent with a margin of 2 per cent on either side. Besides, Industrial production declined for the second month in a row in February at a faster rate of 3.6 per cent than 0.9 per cent in the previous month.

However, in the second half of the trading session, key indices gained traction to end the day on a strong note. Traders got encouragement, as Reserve Bank of India (RBI) data showed that Bank credit grew 5.56 per cent to Rs 109.51 lakh crore, while deposits rose 11.4 per cent to Rs 151.13 lakh crore in the financial year ended March 31, 2021. Adding more relief among market participants, Ministry of Finance in its latest report has showed that provisional net indirect tax collections (GST & Non-GST) for the Financial Year 2020-21 (FY21) grew more than 12% compared to actual Revenue Receipts in FY 2019-20.

On the global front, European markets were trading mostly in green as investors monitor key economic data and the beginning of corporate earnings season. Asian markets ended mixed on Tuesday, even after Indonesia retail sales grew in March as demand continued to improve amid favorable weather. The results of a survey by Bank Indonesia showed that retail sales rose 2.9 percent month-on-month in March, after a 2.7 percent decline in February. In January, sales fell 4.3 percent. The latest growth was due to increasing public demand amid favorable weather. Sales of other goods, clothing sub-group and culture and recreational goods increased in March.

The BSE Sensex ended at 48544.06, up by 660.68 points or 1.38% after trading in a range of 47775.32 and 48627.43. There were 22 stocks advancing against 8 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.46%, while Small cap index was up by 1.21%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 4.30%, Metal up by 3.51%, Bankex up by 3.20%, PSU up by 3.19% and Realty up by 2.70%, while IT down by 2.63%, TECK down by 2.05% and Healthcare down by 0.67% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 8.02%, Bajaj Finserv up by 6.43%, Bajaj Finance up by 4.75%, Maruti Suzuki up by 4.60% and Indusind Bank up by 4.29%. On the flip side, TCS down by 4.21%, Dr. Reddy’s Lab down by 4.18%, Tech Mahindra down by 3.54%, HCL Tech. down by 2.70% and Infosys down by 1.91% were the top losers. (Provisional)

Meanwhile, in order to promote ease of doing business and provide quick access to information to importers/exporters, the Commerce & Industry Minister Piyush Goyal has launched DGFT ‘Trade Facilitation’ Mobile App. He said that the new Trade Facilitation App is a step in the right direction as it provides easy, omni-channel access to various trade related processes and enquiries at the touch of button.

Further, Goyal said that in the post-Covid world, tech-enabled governance will play a key role in determining India’s growth and competitiveness. He said that a Single-window approach has enabled tech transformation of service delivery in India. It has liberated last-mile beneficiary from location based constraints, and enhanced ease of doing business.   He also said that progress in technology helps develop the economy and strengthen Indian firms in the competitive global market.

The new Mobile App of DGFT provides the various features for ease of the exporters and importers such as real-time trade policy updates & event notifications, 24x7 virtual assistance for trade related queries, real-time alerts on status of applications and raise & track help requests in real-time.

The CNX Nifty ended at 14504.80, up by 194.00 points or 1.36% after trading in a range of 14274.90 and 14528.90. There were 37 stocks advancing against 13 stocks declining on the index. (Provisional)

The top gainers on Nifty were Mahindra & Mahindra up by 7.95%, Bajaj Finserv up by 7.02%, Tata Motors up by 5.69%, Bajaj Finance up by 4.83% and Maruti Suzuki up by 4.53%. On the flip side, Dr. Reddy’s Lab down by 4.40%, TCS down by 4.39%, Tech Mahindra down by 3.65%, Wipro down by 3.16% and HCL Tech. down by 2.58% were the top losers. (Provisional)

European markets were trading mostly in green, France’s CAC increased 20.45 points or 0.33% to 6,182.13 and Germany’s DAX was up by 38.36 points or 0.25% to 15,253.36. On the flip side, UK’s FTSE 100 was down by 3.21 points or 0.05% to 6,885.91.

Asian markets ended mixed on Tuesday amid rising hopes of faster economic recovery globally. Besides, optimism over corporate earnings too supported market sentiments. Japanese shares rose as investors cheered robust earnings from glass product companies and department store operators. Moreover, China’s imports and exports continued their strong rebound in March. Exports increased 30.6 percent year-on-year in March, slower than the forecast of 35.5 percent. Meanwhile, imports advanced 38.1 percent annually, much faster than the expected growth of 23.3 percent. Consequently, the trade surplus fell to $13.8 billion and well below expectations of $52.05 billion. Besides, Federal Reserve chairman Jerome Powell said it’s highly unlikely that they would raise rates this year in an interview with CBS. Powell also commented that vaccinations and federal stimulus have substantially brightened the economic outlook. Meanwhile, Chinese shares settled down because of worries about further liquidity tightening.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,396.47
-16.48
-0.48

Hang Seng

28,497.25
43.97
0.15

Jakarta Composite

5,927.44
-21.13
-0.36

KLSE Composite

1,597.71

-10.71

-0.67

Nikkei 225

29,751.61
212.88
0.72

Straits Times

3,187.90
13.97
0.44

KOSPI Composite

3,169.08
33.49
1.07

Taiwan Weighted

16,824.91
-34.79
-0.21


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