HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Benchmarks trade lower in early deals; metal down over 3%
Jan-18-2021

Indian equity benchmarks made slightly negative start on Monday tracking weakness in global peers. Soon, markets extended their losses and are trading lower with cut of over half a percent each in early deals. Broad-based selling in all the sector indices, led by Metal, Realty and Auto, dragged the markets down.  There was some cautiousness as India registered 13,962 fresh Covid-19 cases in the last 24 hours, taking the tally to 10,572,672. Globally, more than 95.4 million people have been infected by the virus. Besides, investors were tracking latest developments and trends on the COVID-19 pandemic front, especially the vaccine rollout in the country that kicked off on January 16 in the country and for signs of any adverse reactions from the vaccine. Traders took note of former chief economic adviser Arvind Virmani’s statement that the Indian economy is likely to contract in the range of 5-7.5 per cent this fiscal but will see a growth of 9 to 11 per cent in FY 2021-22.

On the global front, Asian markets were trading mixed tracking the weak cues from Wall Street Friday that reflected a negative reaction to earnings results from major banks and weak US retail sales data. Worries about US-China tensions also weighed on the markets after a private report stating that the Trump administration has notified Chinese telecom giant Huawei's suppliers, including chipmaker Intel, that certain licenses to sell to the Chinese company will be revoked.

Back home, aviation stocks were in limelight reacting to their passenger load factor data. Besides, auto stocks were in focus with Union Minister Nitin Gadkari’s statement that the much-awaited policy to scrap 15-year old vehicles is likely to get government nod soon. In scrip specific development, HDFC Bank gained on reporting an 18 per cent on-year growth in net profit for the quarter ended December to Rs 8,578 crore on the back of a 15 per cent on-year rise in net interest income (NII) to Rs 16,317.6 crore.
 
The BSE Sensex is currently trading at 48729.85, down by 304.82 points or 0.62% after trading in a range of 48728.63 and 49122.23. 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 1.78%, while Small cap index was down by 1.15%.

The losing sectoral indices on the BSE were Metal down by 3.09%, Realty down by 2.50%, Auto down by 1.94%, Basic Materials down by 1.93%, Industrials down by 1.77%, while there was no gainer on BSE sectoral front.

The top gainers on the Sensex were HDFC Bank up by 1.57%, SBI up by 0.56%, HCL Technologies up by 0.41%, Tech Mahindra up by 0.29% and ICICI Bank up by 0.08%. On the flip side, Indusind Bank down by 3.16%, Power Grid down by 2.09%, Maruti Suzuki down by 2.00%, Bajaj Finance down by 1.81% and ONGC down by 1.78% were the top losers.

Meanwhile, India’s merchandise exports rose marginally by 0.14% in December over the same period of last year, after two months of decline, on the back of drugs and pharmaceuticals, electronics, and gems and jewellery exports. Imports moved into positive territory for the first time since March, sending the trade deficit, gap between imports and exports, to a 25-month high of $15.44 billion in December 2020 against $9.87 billion in the previous month. It was 23.66% higher compared to the deficit of $12.49 billion in December 2019.

As per the data released by the Commerce Ministry, exports increased marginally by 0.14% to $27.15 billion in December 2020, as compared to $27.11 billion in December 2019. In Rupee terms, exports were Rs 1,99,770.58 crore in December 2020, as compared to Rs 1,92,984.47 crore in December 2019, registering a positive growth of 3.52%. Cumulative value of exports for the period April-December 2020-21 was $ 200.80 billion as against $238.27 billion during the period April-December 2019-20, registering a negative growth of (-) 15.73%. Rupee terms, it was down by 10.83% to Rs 14,95,705.96 crore from Rs 16,77,370.97 crore in the corresponding month a year ago.

Non-petroleum and Non-Gems and Jewellery exports in December 2020 were $ 22.22 billion, as compared to $21.06 billion in December 2019, registering a positive growth of 5.50%. Non-petroleum and Non-Gems and Jewellery exports in April-December 2020-21 were $166.33 billion, as compared to $178.15 billion for the corresponding period in 2019-20, which is a decrease of (-) 6.63%.

On the other hand, imports increased by 7.56% to $42.59 billion in December 2020 as compared to $39.59 billion in December 2019, while in rupee terms it was up by 11.18% to Rs 3,13,407.53 crore  from Rs 2,81,880.86 crore in December 2019.  Cumulative value of imports for the period April-December 2020-21 was $258.27 billion, as against $364.18 billion during the period April-December 2019-20, registering a negative growth of (-) 29.08%. In rupee terms, it was Rs 19,22,790.49 crore, down by 24.97% from Rs 25,62,539.91 crore in the same period last year.

Oil imports in December 2020 were $9.58 billion, which was 10.61% lower, compared to $10.72 billion in December 2019. Oil imports in April-December 2020-21 were $53.69 billion which was 44.49% lower over the same period last year. Non-oil imports in December 2020 were estimated at $33.00 billion which was 14.30% higher, compared to $28.88 billion in December 2019. Non-oil imports in April-December 2020-21 were $204.58 billion which was 23.51% lower, compared to $267.47 billion in April-December 2019-20. Non-Oil and Non-Gold imports were $28.52 billion in December 2020, recording a positive growth of 7.99%, as compared to $26.41 billion in December2019. Non-Oil and Non-Gold imports were $187.80 billion in April-December 2020-21, recording a negative growth of (-) 23.16%, over the same period of last year.

The CNX Nifty is currently trading at 14335.45, down by 98.25 points or 0.68% after trading in a range of 14321.90 and 14459.15. There were 6 stocks advancing against 44 stocks declining on the index.

The top gainers on Nifty were UPL up by 2.40%, HDFC Bank up by 1.46%, SBI up by 0.71%, ICICI Bank up by 0.57% and Reliance Industries up by 0.25%. On the flip side, Hindalco down by 4.16%, Tata Steel down by 3.71%, Coal India down by 2.76%, JSW Steel down by 2.75% and Shree Cement down by 2.72% were the top losers.

Asian markets were trading mixed; Nikkei lost 216.19 points or 0.76% to 28,302.99, Straits Times slipped 21.98 points or 0.73% to 2,982.89, Taiwan Weighted fell 48.39 points or 0.31% to 15,568.00 and KOSPI declined 42.69 points or 1.38% to 3,043.21. On the other hand, Hang Seng gained 156.49 points or 0.55% to 28,730.35, Jakarta Composite rose 38.95 points or 0.61% to 6,412.36 and Shanghai Composite was up by 24.95 points or 0.70% to 3,591.33.
  RELATED NEWS >>
Most Viewed >>
April 19 , 2024
JPMorgan bullish on Indian stocks, suggests ma
April 19 , 2024
Is it time to take small bets in FMCG stocks?
April 19 , 2024
Lok Sabha Elections 2024: How will they impact
April 19 , 2024
FPIs pull out of debt, selling pressure may co
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.