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Benchmarks trim some losses
Jan-18-2021

The Indian equity benchmarks trimmed some of their losses in late afternoon session, but continue to trade below the neutral lines. A level of pressure was seen on frontline stocks, especially Reliance Industries and HDFC Bank. Markets traded below neutral lines despite Reserve Bank of India (RBI) in its latest report has showed that bank credit grew 3.2 per cent to Rs 107.05 lakh crore in the first nine months (April-December) of the current financial year (FY21), against a growth of 2.7 per cent registered in the corresponding period of 2019-20. In the fortnight ended March 27, 2020, bank advances stood at Rs 103.72 lakh crore. However, losses were limited with the government data showing that India's exports rose marginally to $27.15 billion in December 2020, while imports surged 7.56 per cent to $42.59 billion. The merchandise exports were valued at $27.11 billion in December 2019, while imports had totalled $39.59 billion. On the global front, Asian markets were trading mixed with Chinese and Hong Kong markets gaining ground on growth optimism, while markets elsewhere fell amid climbing coronavirus cases and worries about worsening U.S.-China relations. European markets were trading lower, amid a pullback in global markets.

The BSE Sensex is currently trading at 48945.87, down by 88.80 points or 0.18% after trading in a range of 48525.55 and 49122.23. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 1.39%, while Small cap index was down by 1.36%.

The few gaining sectoral indices on the BSE were Energy up by 1.56%, Consumer Durables up by 0.85% and FMCG was up by 0.23%, while Metal down by 2.95%, Power down by 1.77%, Basic Materials down by 1.75%, Utilities down by 1.74% and PSU was down by 1.69% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.62%, HDFC Bank up by 1.98%, Titan Company up by 1.88%, ITC up by 1.31% and Bajaj Auto up by 0.76%. On the flip side, ONGC down by 3.26%, Bajaj Finserv down by 2.96%, Sun Pharma down by 2.80%, Indusind Bank down by 2.72% and Power Grid down by 2.66% were the top losers.

Meanwhile, following a review of current liquidity and financial conditions, the Reserve Bank of India (RBI) has decided to conduct purchase of Government securities under Open Market Operations (OMO) for an aggregate amount of Rs 10,000 crore on January 21, 2021.

The RBI reserves the right to decide on the quantum of purchase of individual securities, accept bids for less than the aggregate amount, purchase marginally higher/lower than the aggregate amount due to rounding-off and accept or reject any or all the bids either wholly or partially without assigning any reasons.As per the notification, eligible participants should submit their bids in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10:00 am and 11:00 am on January 21, 2021. Only in the event of system failure, physical bids would be accepted.

The CNX Nifty is currently trading at 14402.05, down by 31.65 points or 0.22% after trading in a range of 14263.60 and 14459.15. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were UPL up by 4.68%, Reliance Industries up by 2.77%, HDFC Bank up by 2.02%, Titan Company up by 1.85% and ITC up by 1.42%. On the flip side, Tata Steel down by 4.04%, Hindalco down by 3.49%, ONGC down by 3.16%, Tata Motors down by 3.03% and Sun Pharma down by 2.89% were the top losers.

Asian markets were trading mixed, Nikkei 225 slipped 276.97 points or 0.97% to 28,242.21, KOSPI fell 71.97 points or 2.33% to 3,013.93, Straits Times trembled 18.16 points or 0.6% to 2,986.71 andTaiwan Weighted was down by 4.39 points or 0.03% to 15,612.00. On the flip side, Jakarta Composite soared 16.42 points or 0.26% to 6,389.83, Shanghai Composite gained 29.84 points or 0.84% to 3,596.22 and Hang Seng was up by 288.91 points or 1.01% to 28,862.77.

European markets were trading lower, UK’s FTSE 100 decreased 8.12 points or 0.12% to 6,727.59, France’s CAC decreased 21.24 points or 0.38% to 5,590.45 and Germany’s DAX was down by 24.93 points or 0.18% to 13,762.80.
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