Post Session: Quick Review

04 May 2021 Evaluate

Indian equity benchmarks ended lower on Tuesday. After a positive start, markets turned negative, as traders were concerned with the data compiled by the Centre for Monitoring Indian Economy (CMIE) showing that the second wave of the coronavirus pandemic and the resultant curbs have pushed India’s unemployment rate to a four-month high of 7.97%. But soon, indices came back in green and remained higher in the first half of the trading session, amid report that Indian exporters are expecting continuous growth in the country's outbound shipments despite increase in COVID-19 cases as their order books are encouraging and there is a pick-up in demand in rich markets. Federation of Indian Export Organisations (FIEO) President S K Saraf said that in most of the states, manufacturing and exports related services have been exempted from the restrictions and inter-state movement of cargo is permitted by the central government.

In the second half of the trading session, key indices witnessed fall and finally ended the day in deep red terrain. Adding pessimism among market participants, the domestic rating agency India Ratings and Research expects the overall recovery path to be pushed back for most of the service-oriented sectors to FY22, owing to a major supply-side disruption from the second wave of COVID-19 infections. Besides, with the second wave of the pandemic disrupting supply chains for most industries, India Ratings has projected an overall 6 per cent median revenue growth for corporates this fiscal over FY20. Meanwhile, industry body CII has urged the government to take strongest national steps including curtailing economic activity to contain the spike in COVID-19 cases in the country.

On the global front, European markets were trading mostly in green as investors monitor global recovery prospects and a fresh round of corporate earnings. Asian markets settled mixed on Tuesday, after consumer prices in South Korea were up 2.3 percent on year in April. The Statistics Korea said that surpassed forecasts for 2.15 percent and was up from 1.5 percent in March. It was the highest annual reading since August 2017, which saw an inflation rate of 2.5 percent. On a monthly basis, inflation rose 0.2 percent - again beating expectations for 0.1 percent, which would have been unchanged from the previous month.

The BSE Sensex ended at 48253.51, down by 465.01 points or 0.95% after trading in a range of 48149.45 and 48996.53. There were 9 stocks advancing against 21 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.50%, while Small cap index was down by 0.57%. (Provisional)

The top gaining sectoral indices on the BSE were PSU up by 0.79%, Oil & Gas up by 0.72%, Utilities up by 0.19% and Capital Goods up by 0.06%, while Healthcare down by 1.50%, Energy down by 1.36%, Telecom down by 1.33%, Consumer Durables down by 1.11% and Auto down by 1.01% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were ONGC up by 1.86%, Bajaj Finance up by 1.12%, TCS up by 0.39%, Kotak Mahindra Bank up by 0.33% and SBI up by 0.33%. On the flip side, Dr. Reddy’s Lab down by 2.26%, Reliance Industries down by 2.18%, Sun Pharma down by 1.99%, HDFC Bank down by 1.74% and HDFC down by 1.73% were the top losers. (Provisional)

Meanwhile, in view of the COVID-19 pandemic, the government has waived Integrated GST (IGST) till June 30 on import of COVID-relief material received as a donation, a move that will speed up customs clearances for such imports, including those by charitable organisations.

The Central Government had received a number of representations from charitable organizations, corporate entities, and other Associations/ entities outside India seeking exemption from IGST on the import of Covid-19 relief material (already exempted from customs duty), donated/received free of cost from outside India for free distribution.

This exemption, shall thus enable import of the Covid relief supply imported free of cost for free distribution without payment of IGST (upto the June 30, 2021). As customs duty is already exempt , these imports will not attract any customs duty or IGST.

The CNX Nifty ended at 14496.50, down by 137.65 points or 0.94% after trading in a range of 14461.50 and 14723.40. There were 13 stocks advancing against 37 stocks declining on the index. (Provisional)

The top gainers on Nifty were SBI Life Insurance up by 2.53%, ONGC up by 1.81%, BPCL up by 1.31%, Bajaj Finance up by 1.16% and Adani Ports & SEZ up by 0.97%. On the flip side, Tata Consumer Products down by 4.70%, Cipla down by 3.49%, Dr. Reddy’s Lab down by 2.29%, Divis Lab down by 2.18% and Reliance Industries down by 2.17% were the top losers. (Provisional)

European markets were trading mostly in green, UK’s FTSE 100 increased 37.99 points or 0.55% to 7,007.80 and France’s CAC was up by 13.60 points or 0.22% to 6,321.50. On the flip side,  Germany’s DAX was down by 79.10 points or 0.52% to 15,157.37.

Asian markets settled mixed on Tuesday due to lingering concerns about surging Corona-virus cases in the region, while major markets such as China and Japan were closed for Labor Day and Greenery Day, respectively. Hong Kong ended higher, tracked by rising oil prices as easing corona-virus curbs in the United States and Europe raised demand growth expectations, while reports showing that Hong Kong's economy surged by 7.8 percent year on year in the first three months of 2021 too supported market sentiment. South Korean shares ended up after regaining early losses over stock short-selling resumption worries.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

-

-

-

Hang Seng

28,557.14
199.60
0.70

Jakarta Composite

5,963.82
11.22
0.19

KLSE Composite

1,588.25

-2.48

-0.16

Nikkei 225

-

-

-

Straits Times

3,179.13
-5.63
-0.18

KOSPI Composite

3,147.37
20.17
0.64

Taiwan Weighted

16,933.78
-288.57
-1.68
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