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EQUITY
Post Session: Quick Review
Apr-15-2021

Indian equity benchmarks cut all of their losses to end higher on Thursday. After a cautious start, indices traded in red terrain for the most part of the trading session, as breaking all records, India registered its biggest-ever single day spike with 199,569 fresh cases. With this, India's Covid tally has shot up to 14,070,890 cases. Some cautiousness came after Moody’s said that the re-imposition of virus management measures following a surge in Covid infections will dent economic activity and could hurt market and consumer sentiment, and it warned of a threat to recovery. However, it said targeted containment measures, versus last year’s complete lockdown, and rapid vaccination will soften the hit on the economy.

In late morning deals, markets added more losses to trade near their intraday low points. Domestic sentiments remained negative, amid surging pandemic cases forcing many states to curb mobility and businesses, a private report has said these localised lockdowns in key economic hubs can cost the economy an average of USD 1.25 billion each week and may shave off 140 bps from the Q1 nominal GDP. Adding more worries among traders, another private report said that the recruitment activity saw a drop of 2 per cent in March 2021 over the previous month, mainly dragged by a decline in job postings in sectors including banking/financial services, insurance, production and manufacturing.

Investors were concerned, as firmer prices of crude oil, petroleum products and basic metal drove India’s inflation based on wholesale price index (WPI) to 7.39% (provisional) for the month of March 2021 over March 2020. However, in the last hour of the trade, indices staged recovery to end higher, after the Ministry of Finance in its latest report has showed that fund raising in FY 2020-21 was better than that in FY 2019-20 for both Public Issues and Rights Issues, despite the uncertainty prevailing in FY 2020-21 owing to COVID-19 pandemic. As per the report, during FY 2020-21, Rs. 46,029.71 crore and Rs. 64,058.61 crore were raised through Public Issues and Rights Issue respectively, as against Rs. 21,382.35 crore and Rs. 55,669.79 crore raised last year.

On the global front, European markets were trading higher, as a rally in commodity prices lifted miners, while some positive earnings reports offset worries about the pace of COVID-19 vaccination in the continent. Asian markets ended mostly higher on Thursday, after Singapore central bank retained its monetary policy stance as the policymakers viewed it appropriate amid weak outlook for core inflation and continuing economic recovery. The Monetary Authority of Singapore decided to maintain a zero percent per annum rate of appreciation of the Nominal Effective Exchange Rate, or S$NEER. The width of the policy band and the level at which it is centered will be unchanged. The MAS applies the exchange rate against a basket of currencies within an undisclosed band as its monetary policy tool.

The BSE Sensex ended at 48803.68, up by 259.62 points or 0.53% after trading in a range of 48010.55 and 48887.85. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.10%, while Small cap index was down by 0.03%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 1.48%, Bankex up by 1.07%, Power up by 0.93%, Energy up by 0.91% and Oil & Gas up by 0.85%, while Auto down by 1.20%, Consumer Disc down by 0.40%, Realty down by 0.39% and FMCG down by 0.18% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were TCS up by 3.67%, ONGC up by 2.89%, ICICI Bank up by 2.69%, HDFC Bank up by 2.13% and Dr. Reddy’s Lab up by 1.29%. On the flip side, Infosys down by 2.65%, Indusind Bank down by 2.54%, Maruti Suzuki down by 2.44%, Nestle down by 1.69% and Bajaj Finance down by 1.64% were the top losers. (Provisional)

Meanwhile, the Ministry of Finance in its latest report has showed that fund raising in FY 2020-21 was better than that in FY 2019-20 for both Public Issues and Rights Issues, despite the uncertainty prevailing in FY 2020-21 owing to COVID-19 pandemic.

As per the report, during FY 2020-21, Rs. 46,029.71 crore and Rs. 64,058.61 crore were raised through Public Issues and Rights Issue respectively, as against Rs. 21,382.35 crore and Rs. 55,669.79 crore raised last year. This is an increase of 115% and 15% respectively in FY 2020-21 as compared to last year.

The report further noted that around 2003 issues of Corporate Bonds for an amount of Rs. 7,82,427.39 crore happened in FY 2020-21, surpassing the amount raised (Rs 6,89,686.19 crore) through 1,821 issues for the fiscal year 2019-20. Thus, while the number of issues increased by 10% in FY 2020-21, the amount raised increased by 13.5% as compared to the previous financial year.

The CNX Nifty ended at 14581.45, up by 76.65 points or 0.53% after trading in a range of 14353.20 and 14597.55. There were 28 stocks advancing against 22 stocks declining on the index. (Provisional)

The top gainers on Nifty were TCS up by 3.70%, Cipla up by 3.28%, ONGC up by 2.99%, Wipro up by 2.80% and Adani Ports & SEZ up by 2.64%. On the flip side, Eicher Motors down by 3.26%, Grasim Industries down by 3.09%, Infosys down by 2.61%, Maruti Suzuki down by 2.52% and Indusind Bank down by 2.17% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 32.36 points or 0.47% to 6,971.94, France’s CAC increased 12.33 points or 0.2% to 6,220.91 and Germany’s DAX was up by 49.57 points or 0.33% to 15,258.72.

Asian markets ended mostly higher on Thursday despite fears of a fresh US-China tussle as well as renewed concerns over the surge in coronavirus cases in the region offset stellar earnings from US banks against the backdrop of an improving economy. Chinese and Hong Kong markets fell after a Chinese diplomat indirectly warned the US over strong linkages and interference over Hong Kong issues. Also, Taiwan President Tsai Ing-wen said that the island would work with the United States to deter 'adventurous manoeuvres and provocations' amid threats from Chinese military activities. Meanwhile, Japanese market ended on a flat note after Bank of Japan Governor Haruhiko Kuroda warned the economic recovery was likely to be modest due to uncertainty over the coronavirus pandemic. Japan on Wednesday reported more than 4,000 new cases as the highly contagious variants drive a fourth wave of infections.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,398.99

-17.73

-0.52

Hang Seng

28,793.14

-107.69

-0.37

Jakarta Composite

6,079.50

29.22

0.48

KLSE Composite

1,608.25

9.97

0.62

Nikkei 225

29,642.69

21.70

0.07

Straits Times

3,186.52

7.13

0.22

KOSPI Composite

3,194.33

11.95

0.38

Taiwan Weighted

17,076.73

210.76

1.25
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