Indian bourses continued to trade in deep red in the afternoon session, with the Sensex losing 370 points and Nifty falling below the 15600 level. All indices on BSE were trading in red with Metal becoming top loser down by 3.17% followed by Power and Utilities stocks. Sentiments were fragile as private report stated that lockdowns imposed by the states in April and May to contain the second wave of the deadly COVID-19 pandemic has likely led to the economy contracting 12 per cent in the June quarter as against 23.9 per cent contraction in the same quarter in 2020. Traders took note of report that Indians' funds in Swiss banks climb to Rs 20,700 crore, highest in 13 years. Funds parked by Indian individuals and firms in Swiss banks, including through India-based branches and other financial institutions, jumped to 2.55 billion Swiss francs (over Rs 20,700 crore) in 2020 on a sharp surge in holdings via securities and similar instruments, though customer deposits fell, annual data from Switzerland's central bank.
On the global front, Asian markets were trading mixed amid hawkish stance of Fed Reserve, and hiking covid-19 cases in the region. Back home, the market breadth remained pessimistic, as there were 807 shares on the gaining side against 2268 shares on the losing side, while 137 shares remained unchanged.
The BSE Sensex is currently trading at 51952.88, down by 370.45 points or 0.71% after trading in a range of 51601.11 and 52586.41. There were 5 stocks advancing against 25 stocks declining on the index.
The broader indices were trading in red; the BSE Mid cap index lost 1.44%, while Small cap index was down by 1.66%.
The top losing sectoral indices on the BSE were Metal down by 3.17%, Power down by 2.97%, Utilities down by 2.76%, PSU down by 2.56% and Basic Materials was down by 2.11%, while there were no gainers on the BSE sectoral front.
The top gainers on the Sensex were Hindustan Unilever up by 1.48%, Bajaj Auto up by 1.37%, Dr. Reddys Lab up by 0.56%, Bajaj Finserv up by 0.42% and Sun Pharma was up by 0.08%. On the flip side, ONGC down by 3.20%, Power Grid down by 2.82%, SBI down by 2.77%, NTPC down by 2.17% and Mahindra & Mahindra was down by 2.02% were the top losers.
Meanwhile, an assessment made by the Reserve Bank of India (RBI) has revealed that the devastating second wave of the coronavirus pandemic in April-May is estimated to have cost the nation Rs 2 lakh crore in terms of output. It said the second wave's toll is mainly in terms of the hit to domestic demand on account of regional and specific containment rather than a nation-wide lockdown.
Moreover, it said this wave has fanned into smaller cities and villages, sapping rural demand. The support from government spending may also moderate from the extraordinary expansion undertaken last year. On the brighter side, it said several aspects of aggregate supply conditions such as agriculture and contactless services are holding up amidst pandemic protocols. Industrial production and exports have surged on strong base effects, but there is also evidence of positive momentum.
The article, published in the RBI's monthly Bulletin, stressed that speed and scale of vaccination against COVID-19 will shape the path of economic recovery which has the resilience and the fundamentals to bounce back from the pandemic and unshackle itself from pre-existing cyclical and structural hindrances. Observing that vaccines by themselves will not end the pandemic, the article said ‘we have to learn to live with the virus, complementing vaccines with ramping up investment in healthcare, logistics and research. The pandemic is a real shock with real consequences.’
The CNX Nifty is currently trading at 15571.70, down by 119.70 points or 0.76% after trading in a range of 15450.90 and 15761.50. There were 11 stocks advancing against 39 stocks declining on the index.
The top gainers on Nifty were Adani Ports up by 3.92%, Bajaj Auto up by 1.59%, Hindustan Unilever up by 1.46%, Divi's Lab up by 1.32% and Cipla was up by 0.95%. On the flip side, UPL down by 4.63%, JSW Steel down by 3.97%, Coal India down by 3.58%, Tata Steel down by 3.55% and ONGC was down by 3.36% were the top losers.
Asian markets were trading mixed; Nikkei 225 slipped 54.25 points or 0.19% to 28,964.08, Jakarta Composite lost 112.54 points or 1.85% to 5,955.91, Taiwan Weighted dropped 72.07 points or 0.41% to 17,318.54 and Straits Times was down by 9.15 points or 0.29% to 3,129.16.
On the other hand, Hang Seng increased 205.11 points or 0.72% to 28,763.70, KOSPI rose 2.97 points or 0.09% to 3,267.93 and Shanghai Composite was up by 7.23 points or 0.21% to 3,532.83.