Post Session: Quick Review

Indian equity benchmarks ended in red on Wednesday’s trading session. After a negative start, markets remained volatile for the whole day, as India reported 267,174 fresh Covid-19 cases to take total infections past 26.7 million, according to Worldometer. The country also logged a record 4,525 deaths in the last 24 hours. In the first half of the trading session, losses were limited, amid report that Union Finance Ministry, on the recommendation of the Panchayati Raj Ministry, released Rs 8,923.8 crore to 25 states for providing grant to rural local bodies. The spread of COVID-19 pandemic in different parts of the country has recently assumed serious proportions. The vulnerabilities of the rural communities need to be especially addressed.

Negative cues from other Asian markets impacted domestic sentiments. Traders were cautious, as smaller non-banking finance companies (NBFCs) have written to the Reserve Bank requesting liquidity support as they continue to face challenges in raising funds. In a letter addressed to RBI Governor Shaktikanta Das, Finance Industry Development Council (FIDC), a representative body of NBFCs, said the announcements made on May 5 by the central bank have addressed liquidity needs of small microfinance institutions MFIs, but NBFCs have missed out. Key indices added more losses in the second half of the trading session, as sentiments remained negative with a private report that India’s second wave of virus cases will hit the economy by prompting consumers to save rather than spend, unlike last year’s contraction that was driven mainly by supply disruptions.

On the global front, European markets were trading lower, tracking weakness on Wall Street, as investors grew wary of rising inflationary pressures increasing the odds of an early tightening of monetary policy. Asian markets settled lower on Wednesday, after Japan's gross domestic product contracted an annualized 5.1 percent in the first quarter of 2021. The Cabinet Office said in Tuesday's preliminary report that missed expectations for a decline of 4.6 percent following the downwardly revised 11.6 percent increase in the previous three months (originally 11.7 percent). On a quarterly basis, GDP sank 1.3 percent - again missing expectations for a drop of 1.2 percent following the 2.8 percent increase in the three months prior.

The BSE Sensex ended at 49902.64, down by 290.69 points or 0.58% after trading in a range of 49831.40 and 50279.01. There were 10 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.53%, while Small cap index was up by 0.35%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 2.22%, Power up by 1.23%, Healthcare up by 1.22%, Utilities up by 0.60% and Energy up by 0.38%, while Telecom down by 1.16%, Metal down by 0.84%, Auto down by 0.76%, Bankex down by 0.71% and Basic Materials down by 0.53% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Sun Pharma up by 1.82%, Nestle up by 1.45%, Tech Mahindra up by 0.97%, Bajaj Auto up by 0.79% and Axis Bank up by 0.67%. On the flip side, Bajaj Finserv down by 1.68%, HDFC down by 1.68%, Mahindra & Mahindra down by 1.66%, Bharti Airtel down by 1.49% and Ultratech Cement down by 1.41% were the top losers. (Provisional)

Meanwhile, the United Nations Conference on Trade and Development (UNCTAD) in its latest ‘Global Trade Update’ report has said that India, China and South Africa have fared relatively better than other major economies in imports and exports in the first quarter of this year. The latest UN data also said that global trade recovery from the COVID-19 crisis hit a record high during in the same period.

As per the report, in Q1 2021, the value of global trade in goods and services grew by about 4 per cent quarter-over-quarter and by about 10 per cent year-over-year. In Q1 2021, the value of trade in goods was higher than pre-pandemic level, but trade in services remains substantially below averages. During the first quarter of 2021, global trade of COVID-19 related products remained strong.

The UNCTAD also noted that import and export trends for some of the world’s major trading economies further illustrate the recovery patterns of Q1 2021. With a few exceptions, trade in major economies recovered from the fall of 2020.

The CNX Nifty ended at 15030.15, down by 77.95 points or 0.52% after trading in a range of 15008.85 and 15133.40. There were 21 stocks advancing against 29 stocks declining on the index. (Provisional)

The top gainers on Nifty were Coal India up by 3.69%, Cipla up by 2.21%, Sun Pharma up by 1.82%, UPL up by 1.66% and Indian Oil Corp. up by 1.56%. On the flip side, Tata Motors down by 5.41%, HDFC down by 1.72%, Mahindra & Mahindra down by 1.62%, JSW Steel down by 1.62% and Bajaj Finserv down by 1.59% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 90.86 points or 1.29% to 6,943.38, France’s CAC decreased 77.06 points or 1.21% to 6,276.61 and Germany’s DAX was down by 227.89 points or 1.48% to 15,158.69.

Asian markets settled lower on Wednesday tracking Wall Street's weak finish overnight amid renewed inflation fears, while investors also awaited the Federal Reserve’s meeting minutes to figure out officials' view on US economy. Japanese shares declined as a top medical organization threw its weight behind calls to cancel this year’s Tokyo Olympics and saying that hospitals in Japan are already overwhelmed as the country battles a surge in Covid-19 infections less than three months from the start of the Games. Moreover, Chinese shares finished lower amid increased Sino-US tensions after a US warship again sailed through the sensitive waterway that separates Taiwan from China. Meanwhile, markets in South Korea and Hong Kong were closed for Buddha's birthday and National Day, respectively.