Markets trim some losses in late afternoon session

Local equity benchmarks trimmed some of their losses in late afternoon session, but continued to trade below the neutral lines. Sentiment on the street weakened, even as India’s merchandise exports rose by 69.35% in May 2021 as compared to same period of last year, on account of healthy growth in sectors such as engineering, petroleum products and gems and jewellery. Traders remain concerned after Global forecasting firm Oxford Economics has said retail inflation spike in May might cause the RBI to revisit its focus on growth risks, adding that a rate hike is still unlikely this year. It stated that the underlying dynamics of the May inflation print augur caution and the recovery remains on uncertain ground and with fiscal support in retreat, the RBI will likely be hesitant to remove policy accommodation anytime soon. On the global front, Asian markets were trading mostly in red following a tepid lead from Wall Street, where another forecast-busting inflation reading spooked investors just as the Federal Reserve kicked off its latest policy meeting. European markets were trading lower amid markets await the outcome of the U.S. Federal Reserve’s policy meeting.

The BSE Sensex is currently trading at 52640.05, down by 133.00 points or 0.25% after trading in a range of 52425.57 and 52816.31. There were 11 stocks advancing against 18 stocks declining on the index, while 1 stock remains unchanged.

The broader indices were trading in red; the BSE Mid cap index declined 0.52%, while Small cap index was down by 0.22%.

The few gaining sectoral indices on the BSE were IT up by 0.79%, FMCG up by 0.62%, TECK up by 0.56% and Oil & Gas was up by 0.20%, while Metal down by 1.96%, Power down by 1.54%, Utilities down by 1.26%, Capital Goods down by 0.96% and Basic Materials was down by 0.91% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 1.68%, Nestle up by 1.50%, Bajaj Finserv up by 1.15%, Infosys up by 0.89% and Hindustan Unilever up by 0.80%. On the flip side, Power Grid down by 2.18%, Indusind Bank down by 1.26%, Larsen & Toubro down by 1.16%, Reliance Industries down by 1.14% and HDFC down by 0.88% were the top losers.

Meanwhile, reviewing the policy frame work for procurement, distribution and disposal of coarse food grains, Union Minister for Consumer Affairs, Food & Public, Railways and Commerce & Industry, Piyush Goyal has said that time has come to revise norms to incentivise the farming and distribution of Coarse grains in India. He said that farming and procurement of coarse grains needs to be increased in a planned manner.

The Minister further said that revision of norms will result in encouraging procurement of coarse grain. Production of coarse grains being nutritious food results in sustainable agriculture development, and diversification of crops, their procurement needs to be encouraged.

Besides, the Minister noted that permission to procure will be given only after previous stocks have been disposed of to avoid possible recycling. He said that interstate movement as per requirement of consuming state.

The CNX Nifty is currently trading at 15814.30, down by 54.95 points or 0.35% after trading in a range of 15755.10 and 15880.85. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were ONGC up by 1.60%, Nestle up by 1.58%, Tata Consumer up by 1.45%, Bajaj Finserv up by 0.99% and Infosys up by 0.86%. On the flip side, Adani Ports down by 4.10%, Hindalco down by 2.46%, Power Grid down by 2.30%, Tata Steel down by 2.15% and JSW Steel down by 1.99% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 201.69 points or 0.7% to 28,436.84, Nikkei 225 slipped 150.29 points or 0.51% to 29,291.01, Taiwan Weighted dropped 63.43 points or 0.37% to 17,307.86, Shanghai Composite declined 38.23 points or 1.07% to 3,518.33, Straits Times trembled 31.95 points or 1.01% to 3,142.92 and Jakarta Composite was down by 10.47 points or 0.17% to 6,078.57. On the flip side, KOSPI was up by 20.05 points or 0.62% to 3,278.68.

European markets were trading lower, UK’s FTSE 100 decreased 2.11 points or 0.03% to 7,170.37, France’s CAC decreased 1.66 points or 0.03% to 6,637.86 and Germany’s DAX was down by 48.77 points or 0.31% to 15,680.75.