Indian bourses extended their losses in afternoon session as investors grew uneasy about high valuations and rising global inflation ahead of central bank meetings. Some anxiety also came in as foreign institutional investors stood as net sellers in the capital market on Monday as they sold shares worth Rs 186.46 crore, as per exchange data. However, downfall remain limited as the government pledged to provide free COVID-19 vaccines to all adults, in an effort to rein in a pandemic that has killed hundreds of thousands. Also, daily COVID-19 cases in India have been on a downward trend since early May, with data from the health ministry on Tuesday showing 86,498 infections in the last 24 hours.
On the global front, Asian markets were under pressure as investors awaited the release of key U.S. inflation data later in the week, with another strong reading likely adding pressure on the Federal Reserve to begin reconsidering its ultra-loose monetary policy. Back on street, on the sectoral front, hospital stocks were in focus as government declared to cap the service charge levied by private hospitals for COVID-19 vaccine at Rs 150 per dose.
The BSE Sensex is currently trading at 52221.72, down by 106.79 points or 0.20% after trading in a range of 52135.04 and 52432.43. There were 14 stocks advancing against 16 stocks declining on the index.
The broader indices were trading in green; the BSE Mid cap index rose 0.22%, while Small cap index was up by 0.68%.
The top gaining sectoral indices on the BSE were IT up by 1.46%, TECK up by 1.25%, Power up by 1.15%, Utilities up by 1.07% and Telecom was up by 0.54%, while Metal down by 1.77%, Bankex down by 1.18%, PSU down by 0.69%, Energy down by 0.62% and Basic Materials was down by 0.55% were the top losing indices on BSE.
The top gainers on the Sensex were Tech Mahindra up by 2.19%, HCL Tech up by 1.81%, Infosys up by 1.65%, TCS up by 1.07% and Maruti Suzuki was up by 0.90%. On the flip side, SBI down by 1.65%, ICICI Bank down by 1.47%, Ultratech Cement down by 1.34%, Axis Bank down by 1.30% and Kotak Mahindra Bank was down by 1.16% were the top losers.
Meanwhile, rating agency Crisil in its latest report has said that the second wave of the coronavirus disease (COVID?19) pandemic and consequent restrictions to curb the infections may limit the commercial vehicles' sales growth to 23-28 percent in 2021-22 as compared to earlier estimate of 32-37 percent rise. It also said despite this growth, the overall commercial vehicle (CV) volumes are likely to be around 30 percent lower in this fiscal year compared to the 2019 level.
According to the report, volume growth hit a decadal-low last fiscal year. It said sit hard by the pandemic, CV sales in India plunged 21 percent to 568, 559 units in 2020-21 as against 717,539 units in 2019-20. The CV market saw two consecutive fiscals of steep volume decline, 29 per cent and 21 per cent in 2020 and 2021, respectively, following multiple headwinds such as revised axle norms, BS-VI transition, and the pandemic. While a sharp recovery from the lows was on the cards this fiscal year, it will be constrained by a weak first quarter because of the second wave of the pandemic.
Rating agency has stated that in April, freight rates fell around 20 percent month-on-month even as diesel prices remained elevated, hurting fleet operators. With lockdowns becoming widespread in May, freight movement, and consequently the profitability of fleet operators, would remain under pressure, weighing on demand at least in the first quarter. As lockdowns ease from the second quarter, freight demand and rates could normalise, aiding demand for CVs.
The CNX Nifty is currently trading at 15714.30, down by 37.35 points or 0.24% after trading in a range of 15680.00 and 15778.80. There were 26 stocks advancing against 24 stocks declining on the index.
The top gainers on Nifty were Britannia Industries up by 2.15%, Tech Mahindra up by 1.98%, Tata Consumer Products up by 1.74%, Infosys up by 1.69% and HCL Tech was up by 1.64%. On the flip side, Hindalco down by 2.51%, Tata Steel down by 2.07%, JSW Steel down by 2.03%, SBI down by 1.60% and ICICI Bank was down by 1.33% were the top losers.
Asian markets were trading lower; Jakarta Composite lost 57.63 points or 0.95% to 6,012.31, KOSPI fell 4.29 points or 0.13% to 3,247.83, Nikkei 225 slipped 55.68 points or 0.19% to 28,963.56, Straits Times trembled 4.79 points or 0.15% to 3,171.02, Shanghai Composite declined 24.71 points or 0.69% to 3,574.83, Taiwan Weighted dropped 7.70 points or 0.05% to 17,076.21 and Hang Seng was down by 91.96 points or 0.32% to 28,695.32.