Post Session: Quick Review

Indian equity benchmarks ended with sharp losses on Tuesday, as bears held a grip over the Dalal Street. After a gap-down opening, indices remained lower for the whole day, amid concerns that the second wave of the coronavirus pandemic could bring down India's GDP growth. Domestic rating agency Crisil warned India's economic growth may slip to 8.2 per cent in FY22 if the second wave peaks in end of June, maintaining its baseline estimate of 11 per cent uptick in activity. Adding more pessimism, State Bank of India’s (SBI)’s economic research arm warned that a huge buildup of carry positions could negatively impact the exchange rate and lead to inflation.

In late morning deals, markets cut some of their losses, as India continues to witness decline in the number of daily Covid-19 cases. The country recorded 329,517 infections, taking its tally to almost 23 million, Wordometer showed. On a positive note, more than 19 million patients have recovered. Besides, Regulator Sebi came out with disclosure requirements under business responsibility and sustainability reporting, covering environmental, social and governance perspectives, which will be applicable on the top 1,000 listed entities by market capitalisation.

However, key indices again added losses in the second half of the trading session and finally ended in red terrain, after Fitch Ratings said that there are growing indications that India's latest wave of Covid-19 infections will add to risks among financial institutions (FIs) by sapping near-term momentum from the economic recovery. Meanwhile, measures announced by the Reserve Bank of India (RBI) on May 5 will provide some relief to FIs in the next 12 to 24 months, but largely at the expense of postponing the recognition and resolution of underlying asset-quality problems.

On the global front, European markets were trading lower, joining a global selloff on heightened inflation fears. Asian markets settled mostly lower on Tuesday, after China's consumer price inflation rose moderately at a slower-than-expected pace in April, while producer prices grew at the fastest pace in more than three years driven by higher commodity prices. Consumer price inflation rose to 0.9 percent in April from 0.4 percent in March, the National Bureau of Statistics reported. On a monthly basis, consumer prices dropped 0.3 percent versus an expected fall of 0.2 percent.

The BSE Sensex ended at 49161.81, down by 340.60 points or 0.69% after trading in a range of 48988.18 and 49304.47. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.60%, while Small cap index was up by 0.80%. (Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 2.74%, Oil & Gas up by 2.68%, PSU up by 2.44%, Power up by 1.97% and Energy up by 1.14%, while Metal down by 1.07%, Bankex down by 1.02%, IT down by 0.71%, TECK down by 0.67% and Telecom down by 0.52% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 4.60%, ONGC up by 3.69%, Power Grid up by 1.66%, Sun Pharma up by 1.39% and Ultratech Cement up by 1.27%. On the flip side, Kotak Mahindra Bank down by 3.00%, HDFC down by 2.68%, Tech Mahindra down by 1.53%, Bajaj Finance down by 1.28% and Titan Co down by 1.27% were the top losers. (Provisional)

Meanwhile, raising concerns over loss of jobs in the sector, the Federation of Associations in Indian Tourism and Hospitality (FAITH) has urged the Union finance ministry, RBI and the tourism ministry to urgently take up measures targeted at creating jobs in the sector.

FAITH noted that it has been repeatedly reaffirmed through all government data, whether that of GST, RBI or of income tax, that tourism, travel and hospitality continue to be the worst hit sector during the 13-months period since the time pandemic struck and is also likely to stay that way for much of the foreseeable period.

So, in its recommendations list, FAITH said that to address that on an immediate basis, the three measures proposed are waiver or compensation for Fixed Statutory Liabilities, Direct Benefit Transfer of Basic Pay and credit of SEIS dues for 2019-20.

The CNX Nifty ended at 14850.75, down by 91.60 points or 0.61% after trading in a range of 14771.40 and 14900.00. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were Coal India up by 5.88%, NTPC up by 4.64%, Indian Oil Corp. up by 4.59%, ONGC up by 3.69% and BPCL up by 1.88%. On the flip side, JSW Steel down by 3.22%, Hindalco down by 3.04%, Kotak Mahindra Bank down by 2.98%, HDFC down by 2.65% and Divis Lab down by 1.59% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 162.39 points or 2.28% to 6,961.29, France’s CAC decreased 124.33 points or 1.95% to 6,261.66 and Germany’s DAX was down by 320.45 points or 2.08% to 15,079.96.

Asian markets settled mostly lower on Tuesday following tech sell-off on Wall Street overnight with worries about accelerating US inflation. Japanese shares ended lower amid concerns surrounding the nation's worsening situation of the corona-virus pandemic, while domestic firms’ lacklustre corporate earnings also adding downward pressure on market sentiments. Hong Kong shares declined as factory-gate inflation in mainland China fuelled concerns about tightening monetary policy. Reports showed Chinese consumer prices in April jumped 0.9 percent from a year ago, slightly missing the 1 percent forecast. However, the producer price index surged 6.8 percent and well above forecast of 6.5 percent.