Bourses trim some losses in late afternoon session

Local equity benchmarks trimmed most of their losses, but continued to trade below the neutral lines. Traders were seen piling up positions in IT, TECK and Telecom sectors while selling was witnessed in Metal, Bankex and PSU sectors’ stocks. Sentiments remained pessimistic after PHD Chamber of Commerce and Industry President Sanjay Aggarwal said ‘Coronavirus 2.0 induced restrictions in the country have created a difficult time for the industry. The entire economic activity is severely impacted with the closure of offices and shops’. He added the supply chain disruptions are causing skyrocketing commodity prices, which have severely impacted the price cost margins of the businesses in the difficult pandemic time. Sector wise, power sector remained in focus, as power consumption in the country grew at 12.6 per cent in the first week of June to 25.36 billion units (BU), indicating a slow recovery in commercial and industrial electricity demand.

On the global front, all Asian markets were trading lower, as investors awaited U.S. inflation data later this week for more indications about the Fed's policy outlook. European markets were trading mostly in green, as investors look ahead to euro zone growth and employment data for the first quarter, and remain focused on concerns over rising inflation.

The BSE Sensex is currently trading at 52,296.40, down by 32.11 points or 0.06% after trading in a range of 52135.04 and 52432.43. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.31%, while Small cap index was up by 1.00%.

The top gaining sectoral indices on the BSE were IT up by 1.59%, TECK up by 1.46%, Telecom up by 1.33%, Power up by 0.83% and Utilities was up by 0.79%, while Metal down by 1.51%, Bankex down by 1.05%, PSU down by 0.55%, Energy down by 0.34%, Basic Materials down by 0.28% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.39%, HCL Tech up by 2.19%, Infosys up by 1.81%, Titan Company up by 1.12% and Bharti Airtel up by 1.12%. On the flip side, Power Grid down by 1.46%, ICICI Bank down by 1.43%, HDFC down by 1.28%, Ultratech Cement down by 1.16% and SBI down by 1.08% were the top losers.

Meanwhile, Fitch Solutions in its latest report has held an optimistic outlook for the Indian consumer over 2021 with real growth in household spending forecast at 9.1 per cent year-on-year. This marks the start of a recovery from the negative 9.3 per cent year-on-year contraction over 2020.

As per the report, the real value of total household spending will remain below pre-Covid-19 levels (2019) with real household spending forecast to reach a total of Rs 73.3 lakh crore in 2021 compared to Rs 74 lakh crore in 2019.

The report further noted that households' disposable income this year will grow to Rs 416,400 and surpass pre-Covid-19 levels of Rs 408,800 which will help support domestic demand. However, inflationary pressures may weigh down on spending which will average at 5 per cent in 2021, outpacing income growth.

The CNX Nifty is currently trading at 15,743.25, down by 8.40 points or 0.05% after trading in a range of 15680.00 and 15778.80. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.24%, HCL Tech up by 2.23%, Britannia up by 1.84%, Infosys up by 1.80% and Tata Consumer up by 1.49%. On the flip side, Hindalco down by 2.20%, Tata Steel down by 1.76%, Power Grid down by 1.44%, ICICI Bank down by 1.40% and JSW Steel down by 1.39% were the top losers.

All Asian markets were trading lower, Jakarta Composite lost 70.57 points or 1.16% to 5,999.37, Nikkei 225 slipped 55.68 points or 0.19% to 28,963.56, Shanghai Composite declined 19.43 points or 0.54% to 3,580.11, Taiwan Weighted dropped 7.70 points or 0.05% to 17,076.21, Straits Times trembled 6.16 points or 0.19% to 3,169.65, Hang Seng decreased 5.90 points or 0.02% to 28,781.38 and KOSPI was down by 4.29 points or 0.13% to 3,247.83.

European markets were trading mostly in green, UK’s FTSE 100 increased 3.70 points or 0.05% to 7,080.92 and France’s CAC was up by 1.69 points or 0.03% to 6,545.25. On the flip side, Germany’s DAX was down by 17.32 points or 0.11% to 15,659.83.