Post Session: Quick Review

Indian equity benchmarks ended on a flat note on Friday. After a cautious start, markets remained volatile for the whole trading session, amid worries over the economic impact of the second wave of COVID-19 and lockdowns and restrictions in various states. The Maharashtra government has extended the lockdown-like restrictions in the state till June 1 to break the chain of COVID-19. Domestic sentiments were negative, amid reports that the ongoing second COVID-19 wave is affecting private equity and venture capital investments in terms of the deal numbers witnessed in April.

Key indices altered between green and red terrain again and again during the trading day. Traders got worried, as Retailers Association of India (RAI) said workers and businesses in the retail industry are in need of urgent support as the restrictions to combat the second wave of the COVID-19 pandemic has hit them hard. With the days of the lockdown continuing to extend in various parts of the country, RAI said it is getting increasingly difficult for retailers to retain employees and to keep their businesses afloat, and there is a need to inject capital into the industry.

However, drop in Covid cases limited the downside in the markets. India reported a dip in fresh Covid cases to below 3.5 lakh mark at 3,43,122. This was lower than Wednesday's figure of 3,62,720 cases. Market participants react to the IIP and CPI numbers. India’s factory output climbed 22.4 per cent in March, benefiting from the base effect of the lockdown-marred month a year back as well as a turnaround in the manufacturing sector, while retail inflation slipped to a three-month low of 4.29 per cent in April. Investors are eyeing WPI inflation data for April slated to be declared later in the day.

On the global front, European markets were trading higher helped by the rebound on Wall Street as Federal Reserve officials managed to ease investor jitters over growing inflationary pressures. Asian markets ended mostly higher on Friday, after export prices in South Korea were up 10.6 percent on year in April, the Bank of Korea said on Friday - after rising 5.9 percent in the previous month. Import prices spiked an annual 15.0 percent in April after climbing 9.0 percent a month earlier. Individually, export prices for agricultural and marine products fell 4.2 percent on year and manufactured products jumped 10.7 percent.

The BSE Sensex ended at 48732.55, up by 41.75 points or 0.09% after trading in a range of 48473.43 and 48898.93. There were 10 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 1.14%, while Small cap index was down by 1.18%. (Provisional)

The only gaining sectoral indices on the BSE were FMCG up by 2.00%, Capital Goods up by 0.62% and Consumer Durables up by 0.21%, while Metal down by 3.61%, Realty down by 3.31%, PSU down by 2.20%, Utilities down by 2.14% and Auto down by 2.03% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Asian Paints up by 8.51%, ITC up by 4.45%, Nestle up by 2.78%, Larsen & Toubro up by 2.21% and Hindustan Unilever up by 2.01%. On the flip side, Indusind Bank down by 2.82%, Mahindra & Mahindra down by 2.45%, Dr. Reddy’s Lab down by 2.00%, SBI down by 2.00% and NTPC down by 1.81% were the top losers. (Provisional)

Meanwhile, in order to survive the second wave of COVID-19, the automotive dealers' body Federation of Automobile Dealers Associations (FADA) has sought fiscal support, including an extension of GST payment for the next three months.

The industry body has urged the RBI to provide guidelines to banks and NBFCs to give a moratorium equivalent to the number of days of lockdown each state has declared for the payment of instalments of term loans, short term loans, corporate loans, inventory funding, scrutinised loans, and cash credit lines, among others.

In its recommendations list, FADA also sought a moratorium extension on EMI payments for people who have bought vehicles. The body has also suggested the RBI to reduce interest rates on all loans by 400 basis points for 90 days.

The CNX Nifty ended at 14677.80, down by 18.70 points or 0.13% after trading in a range of 14591.90 and 14749.65. There were 16 stocks advancing against 34 stocks declining on the index. (Provisional)

The top gainers on Nifty were Asian Paints up by 8.54%, UPL up by 7.47%, ITC up by 4.43%, Nestle up by 3.03% and Larsen & Toubro up by 2.18%. On the flip side, Coal India down by 4.36%, Tata Motors down by 4.22%, Hindalco down by 4.01%, Tata Steel down by 3.99% and Grasim Industries down by 3.21% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 54.15 points or 0.78% to 7,017.48, France’s CAC increased 34.17 points or 0.54% to 6,322.50 and Germany’s DAX was up by 55.12 points or 0.36% to 15,254.80.

Asian markets ended mostly higher on Friday, tracking Wall Street gains overnight as comments from US Federal Reserve officials helped ease concerns over inflation and immediate policy tightening. US Federal Reserve Governor Christopher Waller said the Fed would not raise interest rates until it sees inflation above target for a long time, or excessively high inflation. Meanwhile, US data showed fewer Americans filed new claims for unemployment benefits last week and producer price index surged last month. Japanese shares rose on positive corporate earnings despite resurgence in Covid-19 cases in Japan. Chinese shares also gained even with focus on the development of Sino-US relations.