Post Session: Quick Review

Indian equity benchmarks ended in red on Wednesday. After a positive start, markets cut gains and remained volatile for the whole trading session. Cautiousness prevailed in the markets as a day after reporting less than 50,000 fresh cases, India has now recorded 54,393 in the last 24 hours, taking the country's total coronavirus caseload past 30-million mark. India also recorded a spike in new deaths with 1,129 fatalities being reported yesterday. The death toll now stands at 390,691. Additionally, India’s gene-sequencing consortia has classified the new Delta-plus mutation of coronavirus as a variant of concern, following 22 cases being reported across three states - Maharashtra, Kerala, and Madhya Pradesh.

Domestic sentiments remained weak during the trading session, amid reports that the aftermath of the COVID-19 pandemic's second wave has left young Indian professionals and working women increasingly vulnerable to the economic uncertainty. Besides, Care Ratings in its latest report has said that notwithstanding the Rs 10,000-crore liquidity infusion through the G-Sap route by the RBI last week and fewer states tapping the bond markets, their cost of borrowing has been heading north, as the coupon hit the highest level since mid-March at 7 percent. At 7 percent, the weighted average yield of state debt has risen by a whopping 44 bps since the first auction of the fiscal on April 8.

In the last hour of the trade, key indices added more losses to end the trading day on a lower note. Traders got worried, as Moody's Investors Service slashed India's growth projection to 9.6 per cent for 2021 calendar year, from its earlier estimate of 13.9 per cent, and said faster vaccination progress will be paramount in restricting economic losses to June quarter. Earlier this month, Moody's had projected India to clock a 9.3 per cent growth in the current fiscal ending March 2022, but severe second COVID wave has increased risks to India's credit profile and rated entities.

On the global front, European markets were trading mostly in red with fresh data showing eurozone business activity growing at the fastest rate in 15 years, while U.S. equity futures inched up. Shares of Pernod Ricard rose after an upbeat forecast. Asian markets ended mostly higher on Wednesday, after the manufacturing sector in Japan continued to expand in June, albeit at a slower pace, the latest survey from Jibun Bank revealed on Wednesday with a manufacturing PMI score of 51.5. That's down from 53.0 in May, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

The BSE Sensex ended at 52306.08, down by 282.63 points or 0.54% after trading in a range of 52264.12 and 52912.35. There were 7 stocks advancing against 23 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.26%, while Small cap index was down by 0.43%. (Provisional)

The only gaining sectoral indices on the BSE were Consumer Durables up by 0.83%, Auto up by 0.49% and Consumer Disc up by 0.16%, while Oil & Gas down by 1.21%, Utilities down by 1.18%, Metal down by 1.05%, Energy down by 0.97% and TECK down by 0.86% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 2.33%, Titan Co up by 1.49%, Bajaj Finserv up by 1.04%, Mahindra & Mahindra up by 0.84% and Ultratech Cement up by 0.44%. On the flip side, Kotak Mahindra Bank down by 1.32%, Larsen & Toubro down by 1.29%, Tata Steel down by 1.23%, HDFC down by 0.98% and Axis Bank down by 0.97% were the top losers. (Provisional)

Meanwhile, credit rating agency, Moody's Investors Service in its latest report has slashed India's growth projection to 9.6 per cent for 2021 calendar year, from its earlier estimate of 13.9 per cent, and said faster vaccination progress will be paramount in restricting economic losses to June quarter.
 
Moody's further said that high-frequency economic indicators show that the second wave of COVID-19 infections hit India's economy in April and May. With states now easing restrictions, economic activity in May is likely to signify the trough.

Earlier this month, Moody's had projected India to clock a 9.3 per cent growth in the current fiscal ending March 2022, but a severe second COVID wave has increased risks to India's credit profile and rated entities.

The CNX Nifty ended at 15686.95, down by 85.80 points or 0.54% after trading in a range of 15673.95 and 15862.95. There were 17 stocks advancing against 33 stocks declining on the index. (Provisional)

The top gainers on Nifty were Maruti Suzuki up by 2.30%, Titan Co up by 1.45%, Bajaj Finserv up by 1.24%, ONGC up by 1.07% and Mahindra & Mahindra up by 0.87%. On the flip side, Adani Ports & SEZ down by 3.26%, Wipro down by 2.95%, Divi's Lab down by 1.50%, JSW Steel down by 1.44% and Larsen & Toubro down by 1.33% were the top losers. (Provisional)

European markets were trading mostly in red, France’s CAC decreased 22.98 points or 0.35% to 6,588.52 and Germany’s DAX was down by 58.64 points or 0.38% to 15,577.69. On the flip side, UK’s FTSE 100 was up by 8.68 points or 0.12% to 7,098.69.

Asian markets ended mostly higher on Wednesday tracking overnight gains in Wall Street after US Fed Chair Jerome Powell reiterated that inflation pressures will be temporary and stressed that the US Fed will do everything to support the economy for as long as it takes to complete the recovery. Chinese shares ended higher with healthcare companies after China's National Medical Products Administration (NMPA) said it has approved the first CAR-T cell therapy in the Country. Japanese shares finished higher despite a survey showed the manufacturing sector in the country expanded at a slower pace in June, while services continued to shrink amid measures to contain the coronavirus.