Monday turned
out to be a disappointing day of trade for Indian equity benchmarks as
frontline gauges shaved off three and a half percentage points, as traders
remained concerned over surging COVID-19 cases in the country. Fears of
lockdown and additional curbs also spooked investors' sentiments. Markets
started the day with a gap-down opening on report that breaking all records,
India has recorded a massive surge of 169,899 Covid-19 cases in the last 24
hours. Worldometer showed that with this, India has once again taken its spot
as the second-worst hit nation with 13,525,364 cases in total. Sentiments also
remain dampened on report that foreign portfolio investors (FPIs) have withdrawn
a net Rs 929 crore from Indian markets so far this month amid concerns over
rising COVID-19 cases denting the economic recovery. Market participants are
also eyeing the macro-economic data -- consumer price index (CPI) and the Index
of Industrial Production (IIP) -- to be out later in the day for further
direction. Markets extended massacre to end near intraday lows as traders
continued to selloff risky assets after Fitch Ratings has said the second wave
of COVID-19 infections poses increased risks for India's fragile economic
recovery and its banks. Sentiments also remain dampened after Reserve Bank of
India (RBI) data showed that country's foreign exchange reserves declined by
$2.415 billion to stand at $576.869 billion in the week ended April 2. Besides,
making a strong case for an additional economic stimulus to address the impact
of the pandemic on the country's economy, the International Monetary Fund (IMF)
Deputy Chief Economist, Petya Koeva Brooks has said that India, which is
projected to grow at an impressive rate of 12.5 percent this year, needs to
grow at a much faster pace to make up for the unprecedented contraction of
eight percent that it clocked during the COVID-19 pandemic in 2020. Finally,
the BSE Sensex fell 1707.94 points or 3.44% to 47,883.38, while the CNX Nifty
was down by 524.05 points or 3.53% to 14,310.80.
The US markets
ended lower on Monday with investors largely making cautious moves as they
looked ahead to earnings season and the release of some crucial economic data
this week. Sentiments were weak on worries about a surge in coronavirus cases
in several countries across the world and likelihood of fresh lockdown measures
at several places weighed on markets. A lack of fresh triggers after the market
rose to record highs last week contributed as well to the somewhat sluggish
movements in the market. Data on inflation, retail sales and industrial
production are due out this week. Fed's Beige Book, a compilation of economic
evidence from the twelve Fed districts also is scheduled this week. Fed
Chairman Jerome Powell reiterated that the Fed wants to see inflation rise
above its 2% for an extended period before officials move to raise interest
rates. He added that amid an accelerated Covid-19 vaccine rollout and strong
fiscal support, the US economy appears to be at a turning point.
Crude oil futures ended higher on
Monday on optimism over the pace of coronavirus vaccinations in the United
States and after the Yemen-based Houthi movement said it fired missiles on
Saudi oil sites. The United States has fully vaccinated 22% of its population,
while the United Kingdom has vaccinated 11% fully. Besides, oil prices also
found some support after Yemen's Iran-aligned Houthi movement said it had fired
17 drones and two ballistic missiles at Saudi targets, including towards Saudi
Aramco refineries in Jubail and Jeddah. Crude oil futures for May rose 38 cents
or 0.6 percent to settle at $59.70 barrel on the New York Mercantile Exchange.
June Brent crude gained 33 cents or 0.5 percent to settle at $63.28 a barrel on
London's Intercontinental Exchange.
Indian rupee concluded
substantially weaker against dollar on Monday, on account of sustained dollar
demand from importers and banks. Besides, dollar firmness against some global
currencies also weighed on the rupee sentiment. Sentiments were weak as foreign
portfolio investors (FPIs) have withdrawn a net Rs 929 crore from Indian
markets so far this month amid concerns over rising Covid-19 cases denting the
economic recovery. Also, fast-rising covid cases and weakness in equity markets
put pressure on the domestic currency. On the global front; dollar gained
ground on Monday after last week's drop as traders assessed the outlook for
treasury yields while awaiting crucial U.S. inflation and retail sales data in
the coming days. Finally, the rupee ended 75.05, weaker by 32 paise from its
previous close of 74.73 on Friday. The currency touched a high and low of 75.14
and 74.78 respectively.
The FIIs as per Monday's data were
net seller in both equity and debt segment. In equity segment, the gross buying
was of Rs 6320.46 crore against gross selling of Rs 6928.17 crore, while in the
debt segment, the gross purchase was of Rs 548.09 crore with gross sales of Rs
1254.63 crore. Besides, in the hybrid segment, the gross buying was of Rs 8.78
crore against gross selling of Rs 16.17 crore.
The US markets ended in red on
Monday with investors waiting for cues from the upcoming corporate earnings
season and a key inflation report later this week. Asian markets are trading
mixed on Tuesday after US markets weakened in overnight trade. Indian markets
nosedived on Monday as the steep rise in COVID-19 cases and the probability of
lockdown-like conditions in more states had investors rushing for the exit
door. Today, the markets are likely to make cautious start amid mixed cues from
global peers. Rising coronavirus cases is likely to continue weight on market
sentiments. India recorded a massive surge of 160,694 Covid-19 cases in the
last 24 hours. Worldometer showed that with this, India's Covid tally has shot
up to 13,686,073 cases. India is now the 2nd worst-hit nation in terms of total
Covid-19 cases and 3rd-worst hit country in terms of active cases. India also
witnessed 880 fatalities due to covid-19 in a single day. The death toll from
the deadly infection stands at 171,089. Weak macro-economic data may also
dampen sentiments in markets. Industrial production declined for the second
month in a row in February at a faster rate of 3.6 per cent than 0.9 per cent
in the previous month. The retail price inflation rate rose to a four-month
high of 5.52 per cent in March due to upward movement in core as well as food
rates, barring vegetables and cereals. Also, there will be some cautiousness as
S&P Global Ratings said systemic risk in Indian banks is likely to remain
high in the wake of the second wave of COVID-19 and high proportion of weak
loans. S&P estimates the weak loans in banks at 11-12 percent of gross
loans. There will be some buzz in telecom stocks as ICRA said it expects steady
recovery in telecom sector to sustain by way of ARPU expansion which is likely
to boost revenues and margins for the industry. Sugar stocks will be in focus
as trade body AISTA said sugar mills have exported 2.49 million tonnes of the
sweetener so far in the ongoing 2020-21 marketing year ending September, with
maximum shipments to Indonesia. There will be some reaction in jewellery
industry stocks as GJEPC said the overall gems and jewellery exports declined
by 25.71 per cent to Rs 1,85,952.34 crore during 2020-21, compared to the
previous financial year, on account of COVID-related disruptions. Meanwhile,
according to new norms issued by the Department of Telecom (DoT), companies
providing satellite connectivity services through gateway set-up in India will
have to install network equipment as recommended by the government. There will
be some result announcements to keep the markets in action.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
14,310.80
|
14,155.50
|
14,559.30
|
BSE
Sensex
|
47,883.38
|
47,398.99
|
48,662.20
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
1,053.42
|
286.55
|
277.01
|
301.96
|
State
Bank of India
|
755.01
|
328.85
|
319.60
|
341.05
|
ITC
|
345.11
|
205.30
|
203.20
|
209.20
|
Cipla
|
301.41
|
902.40
|
874.36
|
935.21
|
Adani
Ports And Special Economic Zone
|
281.12
|
744.65
|
716.46
|
791.36
|
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