Markets trade near low point in late afternoon session

Local equity markets have magnified their losses in late afternoon trade, hovering near the lowest point of the day on account of selling in frontline counters. Metal, Bankex and Basic Materials counters witnessed notable losses. Sentiments remained pessimistic after Fitch Ratings in its latest report said localized lockdowns during the second wave kept economic activity from stalling to levels similar to those during 2020, but disruption in several key business centers has slowed the recovery and dented its expectations of a rebound to pre-pandemic levels by FY22. Sector wise, auto sector traded lower even after Federation of Automobile Dealers Associations (FADA) in its latest report has showed that passenger vehicle (PV) retail sales rose to 1,84,134 units last month (June)  against 85,733 units in May this year as the COVID-19 situation improved across the country.

On the global front, Asian markets were trading mostly in red after the Federal Reserve talked about possibly reducing US economic stimulus and Japanese officials prepared to declare a coronavirus state of emergency during the Olympics due to a surge in infections. European markets were trading lower with cyclical stocks such as miners, automakers, and banks leading early declines, as global mood soured on economic recovery worries.

The BSE Sensex is currently trading at 52,485.56, down by 569.20 points or 1.07% after trading in a range of 52493.29 and 53103.03. There were 3 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.42%, while Small cap index was down by 0.33%.

The only gaining sectoral indices on the BSE were Utilities up by 0.46% and Power was up by 0.07%, while Metal down by 2.29%, Bankex down by 1.36%, Basic Materials down by 1.21%, PSU down by 1.18% and Auto was down by 1.11% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 0.97%, NTPC up by 0.38% and Titan Company up by 0.17%. On the flip side, Bajaj Auto down by 2.41%, Tata Steel down by 2.15%, Sun Pharma down by 1.97%, ICICI Bank down by 1.87% and Dr. Reddy's Lab down by 1.52% were the top losers.

Meanwhile, the Federation of Automobile Dealers Associations (FADA) in its latest report has showed that passenger vehicle (PV) retail sales rose to 1,84,134 units last month (June)  against 85,733 units in May this year as the COVID-19 situation improved across the country.

According to the report, two-wheeler sales rose to 9,30,324 units last month as compared to 4,10,757 units in May. Similarly, commercial vehicle sales increased to 35,700 units as against 17,534 in May.

FADA further noted that three-wheeler sales surged to 14,732 units in June from 5,215 units in May. Tractor sales too witnessed an increase in registrations at 52,261 units as compared to 16,616 units.

The CNX Nifty is currently trading at 15,699.20, down by 180.45 points or 1.14% after trading in a range of 15700.85 and 15885.75. There were 5 stocks advancing against 45 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 0.93%, Shree Cement up by 0.51%, NTPC up by 0.26%, Titan Company up by 0.14% and Eicher Motors up by 0.11%. On the flip side, Tata Motors down by 3.28%, JSW Steel down by 2.69%, Hindalco down by 2.58%, Bajaj Auto down by 2.49% and Tata Steel down by 2.21% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 807.49 points or 2.89% to 27,153.13, Nikkei 225 slipped 248.92 points or 0.88% to 28,118.03, KOSPI fell 32.66 points or 0.99% to 3,252.68, Straits Times trembled 31.69 points or 1.01% to 3,109.91, Shanghai Composite declined 28.22 points or 0.79% to 3,525.50 and Jakarta Composite was down by 4.14 points or 0.07% to 6,039.90. On the flip side, Taiwan Weighted was up by 15.40 points or 0.09% to 17,866.09.

European markets were trading lower, UK’s FTSE 100 decreased 100.58 points or 1.41% to 7,050.44, France’s CAC decreased 123.38 points or 1.89% to 6,404.34 and Germany’s DAX was down by 216.72 points or 1.38% to 15,475.99.