Post Session: Quick Review

Indian equity benchmarks witnessed bloodbath on Friday, with both Sensex and Nifty settling cut of around three percent. After a negative start, markets remained lower during the trading session. Traders were concerned as WHO flags new Covid-19 strain. World Health Organization officials met on Thursday to discuss a new coronavirus variant circulating in South Africa and Botswana. The new variant, called B.1.1529, carries an unusually large number of mutations, Francois Balloux, director of the UCL Genetics Institute.

Foreign fund outflow also dented sentiments in the markets. Foreign portfolio investors (FPIs) remained net sellers for Rs 2300.65 crore in the Indian markets, provisional data showed on the NSE.  Adding more pessimism among traders, a report by ICRA said the RBI’s revision of bad loan recognition and upgradation norms could bring a sharp spike in the non-performing assets of non-banking finance companies (NBFCs) in the country.

In the second half of the trading session, key indices added more losses to end near intraday low points, as bears held a tight grip over the Dalal Street. Traders remained cautious, after the CBDT said that the Income Tax Department has detected huge unaccounted income after it raided some Indian companies and their associates, being controlled by a neighbouring country, in Delhi, Maharashtra and Gujarat. Stocks suffered their sharpest drop after the detection of a new and possibly vaccine-resistant coronavirus variant.

On the global front, European markets were trading lower, as report of a newly identified and possibly vaccine-resistant coronavirus variant stoked fears of a fresh hit to global economy and drove investors out of riskier assets. Asian markets settled lower on Friday, even after Hong Kong's merchandise exports increased in October. The data from the Census and Statistics Department showed that exports rose 21.4 percent year-on-year in October, after a 16.5 percent increase in September. Imports gained 17.7 percent annually in October, after a 23.5 percent increase in the previous month.

The BSE Sensex ended at 57107.15, down by 1687.94 points or 2.87% after trading in a range of 56993.89 and 58254.79. There were 2 stocks advancing against 28 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 3.23%, while Small cap index down by 2.61%. (Provisional)

The only gaining sectoral index on the BSE was Healthcare up by 1.18%, while Realty down by 6.42%, Metal down by 5.36%, Auto down by 4.28%, Basic Materials down by 4.03% and PSU down by 3.98% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Dr. Reddy's Lab up by 3.35% and Nestle up by 0.35%. On the flip side, Indusind Bank down by 6.21%, Maruti Suzuki down by 5.48%, Tata Steel down by 5.23%, Bajaj Finance down by 4.60% and NTPC down by 4.59% were the top losers. (Provisional)

Meanwhile,credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that the Indian pharmaceutical market (IPM) delivered slower growth of 5.0% in October 2021 than 12.4% in September 2021.

As per the report, the acute therapy segment (up 8.1% yoy) performed relatively better than chronic segment (up 2.3% yoy). The acute therapy segment demonstrated robust performance since March 2021 (average growth at 30% yoy) owing to lower base last year.

Credit rating agency further noted that post normalisation of the high growth months of April 2021 (up 51.5% yoy) and May 2021 (up 47.8%) led by the Covid-19-led lockdown related lower base last year and higher volume growth, the average IPM growth from June to October 2021 has been healthy (up 12.6% yoy).

The CNX Nifty ended at 17026.45, down by 509.80 points or 2.91% after trading in a range of 16985.70 and 17355.40. There were 5 stocks advancing against 45 stocks declining on the index. (Provisional)

The top gainers on Nifty were Cipla up by 7.42%, Dr. Reddy's Lab up by 3.47%, Divi's Lab up by 2.88%, Nestle up by 0.23% and TCS up by 0.03%. On the flip side, JSW Steel down by 7.67%, Hindalco down by 6.72%, Tata Motors down by 6.61%, Indusind Bank down by 5.99% and Adani Ports & SEZ down by 5.94% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 241.13 points or 3.3% to 7,069.24, France’s CAC decreased 307.59 points or 4.35% to 6,768.28 and Germany’s DAX was down by 567.29 points or 3.56% to 15,350.69.

Asian markets settled lower on Friday on fears about the global economic outlook following identification of a new and possibly vaccine-resistant corona-virus variant in South Africa, and has also been detected in Hong Kong. World Health Organization (WHO) officials said they are monitoring a new variant with a large number of mutations. A special meeting is scheduled today to discuss its implications for vaccines and treatments. Japanese shares hit one-month low as the safe-haven yen rallied against the US dollar. Further, Chinese shares declined as a handful of corona-virus cases in eastern parts of China prompted Shanghai to limit tourism activities and a nearby city to cut public transportation services.