Equity markets extend losses in late afternoon deals

Local equity markets have magnified their losses in late afternoon deals, hovering near the lowest point of the day on account of selling in frontline counters. Telecom, metal and Bankex counters were on the priority list of the sellers. Traders failed to take any sense of relief, as Union Finance Ministry, on the recommendation of the Panchayati Raj Ministry, has released Rs 8,923.8 crore to 25 states for providing grant to rural local bodies. The spread of COVID-19 pandemic in different parts of the country has recently assumed serious proportions. Sector wise, cement sector remained in focus, as Fitch Ratings in its latest report has said that the recent price increases by India’s cement companies will counter higher energy costs while the impact on profitability from a resurgence of coronavirus is likely to be limited.

On the global front, Asian markets were trading in red, tracking a decline on Wall Street that was led by big technology stocks. The price of bitcoin plunged again after the China Banking Association warned of risks associated with digital currencies. European markets were trading lower, tracking weakness on Wall Street, as investors grew wary of rising inflationary pressures increasing the odds of an early tightening of monetary policy.

The BSE Sensex is currently trading at 49947.59, down by 245.74 points or 0.49% after trading in a range of 49902.78 and 50279.01. There were 11 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.27%, while Small cap index was up by 0.33%.

The top gaining sectoral indices on the BSE were Realty up by 1.72%, Healthcare up by 0.80%, Utilities up by 0.50%, Energy up by 0.46% and Power was up by 0.39%, while Metal down by 1.34%, Telecom down by 1.16%, Bankex down by 0.79%, Auto down by 0.71% and Basic Materials was down by 0.60% were the top losing indices on BSE.

The top gainers on the Sensex were Nestle up by 1.53%, Sun Pharma up by 0.92%, Tech Mahindra up by 0.89%, Reliance Industries up by 0.85% and Axis Bank up by 0.44%. On the flip side, Mahindra & Mahindra down by 1.82%, ONGC down by 1.68%, Bajaj Finserv down by 1.65%, Bharti Airtel down by 1.41% and HDFC Bank down by 1.38% were the top losers.

Meanwhile, the United Nations Conference on Trade and Development (UNCTAD) in its latest ‘Global Trade Update’ report has said that India, China and South Africa have fared relatively better than other major economies in imports and exports in the first quarter of this year. The latest UN data also said that global trade recovery from the COVID-19 crisis hit a record high during in the same period.

As per the report, in Q1 2021, the value of global trade in goods and services grew by about 4 per cent quarter-over-quarter and by about 10 per cent year-over-year. In Q1 2021, the value of trade in goods was higher than pre-pandemic level, but trade in services remains substantially below averages. During the first quarter of 2021, global trade of COVID-19 related products remained strong.

The UNCTAD also noted that import and export trends for some of the world’s major trading economies further illustrate the recovery patterns of Q1 2021. With a few exceptions, trade in major economies recovered from the fall of 2020.

The CNX Nifty is currently trading at 15036.95, down by 71.15 points or 0.47% after trading in a range of 15021.80 and 15133.40. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were UPL up by 2.07%, Coal India up by 1.71%, Nestle up by 1.54%, Cipla up by 1.37% and Eicher Motors up by 1.23%. On the flip side, Tata Motors down by 4.72%, Mahindra & Mahindra down by 1.82%, ONGC down by 1.72%, JSW Steel down by 1.61% and Bajaj Finserv down by 1.57% were the top losers.

Asian markets were trading in red, Nikkei 225 slipped 362.39 points or 1.28% to 28,044.45, Jakarta Composite lost 73.81 points or 1.27% to 5,760.58, Straits Times trembled 33.76 points or 1.07% to 3,108.87, Shanghai Composite declined 18.05 points or 0.51% to 3,510.96 and Taiwan Weighted was down by 13.32 points or 0.08% to 16,132.66.

European markets were trading lower, UK’s FTSE 100 decreased 90.86 points or 1.29% to 6,943.38, France’s CAC decreased 77.06 points or 1.21% to 6,276.61 and Germany’s DAX was down by 227.89 points or 1.48% to 15,158.69.