Benchmarks extend losses in late afternoon session

The Indian equity benchmarks extended their losses in late afternoon session, with Sensex and Nifty falling above 300 and 100 points, respectively. Sentiments remained pessimistic after Moody’s Investors Service slashed India’s growth forecast for the current financial year to 9.3 per cent saying that the second wave of coronavirus infections hampers economic recovery and increases risk of longer-term scarring. Also, it has pointed out that India’s credit profile is increasingly constrained by obstacles to economic growth. On sectoral front, auto industry remained in focus, as auto industry body, the Society of Indian Automobile Manufacturers (SIAM) in its latest report has showed that passenger vehicle wholesales in India declined by 10 per cent to 2,61,633 units last month as compared to 2,90,939 units in March 2021, as COVID-19-led restrictions across various states impacted demand. On the global front, Asian markets were trading mostly in red as investors looked ahead to U.S. data they worry will show inflation is picking up. European markets were trading mostly in green after their worst selloff this year as strong earnings reports and signs of a speedy economic recovery offset concerns about a rapid rise in prices.

The BSE Sensex is currently trading at 48805.65, down by 356.16 points or 0.72% after trading in a range of 48629.38 and 49171.28. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.14%, while Small cap index was up by 0.18%.

The top gaining sectoral indices on the BSE were PSU up by 1.42%, Utilities up by 1.21%, Power up by 1.10%, Auto up by 0.72% and Industrials was up by 0.65%, while Bankex down by 0.85%, Energy down by 0.74%, IT down by 0.72%, TECK down by 0.52% and Healthcare was down by 0.14% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.04%, Power Grid up by 2.01%, SBI up by 1.74%, Titan Company up by 1.12% and Dr. Reddys Lab up by 0.85%. On the flip side, Hindustan Unilever down by 3.08%, Indusind Bank down by 2.00%, ICICI Bank down by 1.99%, Mahindra & Mahindra down by 1.80% and Kotak Mahindra Bank down by 1.76% were the top losers.

Meanwhile, auto industry body, the Society of Indian Automobile Manufacturers (SIAM) in its latest report has showed that passenger vehicle wholesales in India declined by 10 per cent to 2,61,633 units last month as compared to 2,90,939 units in March 2021, as COVID-19-led restrictions across various states impacted demand.

As per the report, two-wheeler dispatches to dealers declined by 33 per cent to 9,95,097 units last month, as compared to 14,96,806 units in March, while motorcycle sales saw a dip of 33 per cent to 6,67,841 units, as against 9,93,996 in March this year. Similarly, scooter sales fell 34 per cent to 3,00,462 units, from 4,57,677 units in March.

SIAM further noted that three-wheeler sales also declined by 57 per cent to 13,728 units, as compared to 31,930 units in March this year, while vehicle sales across categories declined by 30 per cent to 12,70,458 units last month, as against 18,19,682 units in March.

The CNX Nifty is currently trading at 14745.05, down by 105.70 points or 0.71% after trading in a range of 14695.10 and 14824.05. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 5.34%, Power Grid up by 2.15%, NTPC up by 2.04%, UPL up by 1.78% and SBI up by 1.66%. On the flip side, Hindustan Unilever down by 3.08%, SBI Life down by 2.46%, Shree Cement down by 2.32%, ICICI Bank down by 2.00% and Indusind Bank down by 1.99% were the top losers.

Asian markets were trading mostly in red, Straits Times trembled 25.15 points or 0.8% to 3,119.12, KOSPI fell 47.77 points or 1.49% to 3,161.66 and Nikkei 225 slipped 461.08 points or 1.61% to 28,147.51 and Taiwan Weighted was down by 680.76 points or 4.11% to 15,902.37. On the flip side, Hang Seng increased 217.23 points or 0.78% to 28,231.04 and Shanghai Composite was up by 20.90 points or 0.61% to 3,462.75.

European markets were trading mostly in green, UK’s FTSE 100 increased 37.11 points or 0.53% to 6,985.10 and Germany’s DAX increased 15.42 points or 0.1% to 15,135.17. On the flip side, France’s CAC was down by 2.12 points or 0.03% to 6,265.27.