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The sentiment on the D-street this week was majorly dampened amid concerns of the new delta variant of the Coronavirus which raised concerns of a slowdown in the economic progress of the country.
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In the weekly newsletter of what moved the D-Street in the entire week, we pen down all the major actions and blows that created an impact on the Indian bourses from Monday, June 28 to Friday, July 2. We have also collected a list of news and developments from various sectors and global markets during the entire week.
The sentiment on the street this week was majorly dampened amid concerns of the new delta variant of the Coronavirus which raised concerns of a slowdown in the economic progress of the country as it could further lead to another wave of the Covid-19. The global cues also remained weak during the week as the spread of the new variant triggered further risks among the investors.
Weekly Snapshot
On Monday, June 28, the equity markets started the week on a positive note with the indices marching upwards to their all-time highs, but the rally couldn’t be sustained as profit booking across the board dragged the markets to close lower with Sensex/Nifty closing at 52,736/15,815 down by 189/46 points. The Finance Minister also announced eight relief packages later in the afternoon to boost the economic recovery.
Following the negatives from Asian markets and also the absence of any major happenings in the home, the markets gradually slipped for the second consecutive session to close lower after opening flat on Tuesday, June 29. ONGC, IOC, Hindalco, Kotak Bank, and ICICI Bank were the top stocks that dragged the Sensex/Nifty down at 52,550/15,748.
However, on Wednesday, June 30, the markets traded mostly positive until the last hour of the session wherein the indices gave up all the gains to close lower by 27/67 points at 15,722/52,483. The India VIX index which indicates volatility also ended higher by 0.3 per cent at 13.05. Banks and Financials dragged the most after S&P Global ratings projected an elevation in the bad loans.
As the concerns of the new delta variant spread elsewhere in Asia and neighboring countries, the markets across the globe traded on the sidelines and dragged the Indian bourses down at 15,680/52,319 lower by 42/164 points on Thursday, July 1. Stocks in the Private Bank, Financials, IT, and Metals witnessed selling pressure in the intraday session.
Breaking the losing streak, Sensex and Nifty on Friday, July 2 elevated led by advances in index heavyweights Reliance, ICICI Bank, and HDFC. The indices closed higher by 42/166 points at 15,722/52,484.
The Nifty-50 and BSE Sensex both declined over 0.8 per cent each in the entire week ended Friday, July 2. The PMI numbers in India & China coupled with reports from rating agencies that hinted a surge in the bad loans of the banks to rise above 11 per cent in FY’22, kept the markets in check during the week.
Piping hot news during the week:
The Finance Minister in her address on Monday, June 28, announced yet another relief package for the affected sectors by Covid-19 to boost the economic progress of the country. A total of Rs 1.1 lakh crore loan guarantee scheme is announced for the COVID-affected sectors, out of which, Rs 50,000 crore has been allocated to the health sector, and Rs 60,000 crore for other sectors.
UPI enabled digital transactions surged 11.6 per cent month-on-month to Rs 5.47 lakh crore in June this year, NPCI data showed on Thursday. In terms of numbers, there were as many as 2.80 billion (280 crore) transactions during the month under review, as against 2.53 billion (253 crore) in May, according to the data.
India’s factory activity declined for the first time in June owing to the restrictions amid the deadly second wave of the Coronavirus. The PMI index dipped to an 11-month low of 48.1 in June from May’s 50.8 as demand and output declined which pushed the firms to cut jobs.
Shares of Krishna Institute of Medical Sciences listed at a premium of 22 per cent at Rs 1,009 per share on both NSE & BSE against its issue price of Rs 825/share. Similarly, shares of Dodla Dairy also witnessed a 28 per cent premium against its issue price of Rs 428/share. The stock listed at Rs 550 on NSE, and at Rs 528 on the BSE.
The ease in restrictions in several parts of the country led to a surge in the sales number of passenger vehicles in June after a devastating month of May. Nearly 2,55,937 passenger vehicles were sold in June. The figures advanced 118 per cent YoY and 147 per cent YoY. Maruti Suzuki marked the highest gain in the market share for June as the company’s domestic volumes surged over 277 per cent in June against May.
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