Indian equity benchmarks continued to trade marginally in red in morning deals, dragged mainly by metals and banks. Traders remained cautious as PHD Chamber of Commerce and Industry (PHDCCI) in its latest survey pointed out that businesses are struggling with rising cost of raw materials amid the second COVID wave as restrictions in many parts of the country have disrupted supply chains and also impacted the pace of economic recovery. In a survey, the industry body said that going ahead, a substantial stimulus to push the growth of the Indian economy impacted by the second wave of the pandemic would be crucial. Some concern also came as domestic credit ratings agency Crisil has cut India’s gross domestic product (GDP) growth forecast to 9.5 per cent for the current fiscal (FY22) as compared to 11 percent projected earlier due to the hit to private consumption and investments following the second wave of COVID-19.
On the global front, Asian markets were trading in red following the mixed cues from Wall Street overnight. Investors await key U.S. inflation data due on Thursday for more indications about the Fed's policy outlook and cues about the global economic recovery. The coronavirus infection rate in the region is also keeping the underlying mood cautious. Back home, on the sectoral front, agriculture stocks remained in focus as Niti Aayog Member (Agriculture) Ramesh Chand said the second COVID-19 wave will not impact the Indian agriculture sector in any way as rural areas saw the spread of infections in May when agriculture activities remained at a bare minimum.
The BSE Sensex is currently trading at 52254.59, down by 73.92 points or 0.14% after trading in a range of 52135.04 and 52432.43. There were 11 stocks advancing against 19 stocks declining on the index.
The broader indices were trading in red; the BSE Mid cap index fell 0.25%, while Small cap index was down by 0.04%.
The top gaining sectoral indices on the BSE were IT up by 1.67%, TECK up by 1.44%, Utilities up by 0.81%, Power up by 0.66% and Capital Goods up by 0.39%, while Metal down by 2.20%, Basic Materials down by 1.15%, Bankex down by 1.04%, Energy down by 0.92% and PSU down by 0.90% were the top losing indices on BSE.
The top gainers on the Sensex were Tech Mahindra up by 2.11%, Infosys up by 2.04%, HCL Tech. up by 1.50%, TCS up by 1.36% and Larsen & Toubro up by 1.35%. On the flip side, Ultratech Cement down by 1.69%, ONGC down by 1.36%, SBI down by 1.35%, Sun Pharma down by 1.34% and Kotak Mahindra Bank down by 1.29% were the top losers.
Meanwhile, domestic credit ratings agency Crisil has cut India’s gross domestic product (GDP) growth forecast to 9.5 per cent for the current fiscal (FY22) as compared to 11 percent projected earlier due to the hit to private consumption and investments following the second wave of COVID-19. It joins other watchers who have cut their FY22 growth projections, with some pegging it as low as 7.9 percent. The economy had contracted by 7.3 percent in FY21.
It also said downward revision is premised on the clearly evident hit to the two engines of growth -- private consumption and investment -- by the second wave. It noted that daily cases have mercifully peaked, but states will be cautious about unlocking anytime soon owing to risks of another wave and tardy vaccinations. It underlined that this is unlike what was witnessed after the first wave last fiscal, when a largely uniform and calibrated reopening spurred quite a sharp recovery.
The agency further said it has assumed that COVID-19 restrictions will continue and mobility will remain affected in some form or other, at least till August, adding that the pace of recovery will also be a function of how the vaccination drive progresses in the coming months. It also said a third wave would pose a significant downside risk to the growth forecast, as would a slower-than-anticipated pace of vaccination. In such a pessimistic case, it sees GDP growing at 8 percent.
The CNX Nifty is currently trading at 15712.70, down by 38.95 points or 0.25% after trading in a range of 15680.00 and 15778.80. There were 18 stocks advancing against 32 stocks declining on the index.
The top gainers on Nifty were Infosys up by 2.20%, Tech Mahindra up by 2.09%, Tata Consumer Product up by 1.66%, Britannia Industries up by 1.63% and HCL Technologies up by 1.58%. On the flip side, Hindalco down by 3.09%, JSW Steel down by 2.58%, Tata Steel down by 1.98%, Ultratech Cement down by 1.53% and ONGC down by 1.48% were the top losers.
Asian markets were trading in red; Straits Times trembled 8.74 points or 0.28% to 3,167.07, Taiwan Weighted dropped 10.07 points or 0.06% to 17,073.84, Shanghai Composite declined 18.29 points or 0.51% to 3,581.25, Nikkei 225 slipped 31.15 points or 0.11% to 28,988.09, Jakarta Composite lost 44.69 points or 0.74% to 6,025.25 and Hang Seng decreased 101.78 points or 0.35% to 28,685.50.
On the flip side, KOSPI rose 1.39 points or 0.04% to 3,253.51.