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Benchmarks continue lackluster trade
Jun-04-2020

Local equity benchmarks continued their lackluster trade in late afternoon session, tracking weak European markets.  Traders remain concerned with report that India has on June 04 recorded its biggest spike in the number of coronavirus cases, with over 9,000 of them being reported in a single day, besides over 250 deaths. The total number of corona cases in the country stands at 216,824. Sector wise, airline stocks remained in focus, as Ratings agency ICRA in its latest report has said that India’s air passenger traffic is likely to witness sharp decline of 45-50 percent in the current financial year (FY21). It pointed out that with almost negligible air traffic already in the first two months of the current fiscal, possible dilemma amongst travelers to travel amidst continuing coronavirus (Covid-19) pandemic fears and gradual addition of capacities by airlines, passenger traffic at airports is expected to remain under pressure for the first half (April-September) of FY21, with some recovery likely only in H2FY21, on a full year basis.

On the global front, European markets were trading lower as investors assessed the outlook for the global economy after the coronavirus pandemic, while keeping an eye on protests in the U.S. Back home, in scrip specific development, SSWL jumped on bagging exports orders for over 8,000 wheels and Maruti Suzuki India gained on introducing ‘Health and Hygiene’ range of genuine accessories.

The BSE Sensex is currently trading at 33850.34, down by 259.20 points or 0.76% after trading in a range of 33711.24 and 34310.14. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.36%, while Small cap index was down by 0.45%.

The top gaining sectoral indices on the BSE were Energy up by 1.32%, Healthcare up by 1.29%, Utilities up by 1.26%, IT up by 1.02% and Telecom was up by 1.01%, while Bankex down by 2.36%, Consumer Durables down by 1.86%, Capital Goods down by 1.69%, Consumer Discretionary down by 1.46% and Realty was down by 1.37% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 4.63%, Sun Pharma up by 2.96%, Power Grid up by 2.22%, Reliance Industries up by 2.04% and TCS up by 1.52%. On the flip side, Bajaj Finance down by 4.42%, Indusind Bank down by 4.17%, Asian Paints down by 4.15%, HDFC down by 3.55% and Axis Bank down by 3.21% were the top losers.

Meanwhile, with an aim to give historic boost to Rural India, the Union Cabinet has taken several landmark and historic decisions in the meeting, which will go a long way in helping India’s farmers while also transforming the agriculture sector.

The cabinet approved historic amendment to the Essential Commodities Act. This is a visionary step towards transformation of agriculture and raising farmers’ income. With the amendment to Essential Commodities Act, commodities like cereals, pulses, oilseeds, edible oils, onion and potatoes will be removed from list of essential commodities. This will remove fears of private investors of excessive regulatory interference in their business operations.

Besides, the cabinet approved 'The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020'. The Ordinance will create an ecosystem where the farmers and traders will enjoy freedom of choice of sale and purchase of agri-produce. It will also promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislations.

The cabinet also approved ‘The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020’. The ordinance will empower farmers for engaging with processors, wholesalers, aggregators, wholesalers, large retailers, exporters etc., on a level playing field without any fear of exploitation. It will transfer the risk of market unpredictability from the farmer to the sponsor and also enable the farmer to access modern technology and better inputs. It will reduce cost of marketing and improve income of farmers.

The CNX Nifty is currently trading at 9993.20, down by 68.35 points or 0.68% after trading in a range of 9944.25 and 10123.85. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 4.86%, Tech Mahindra up by 4.45%, Sun Pharma up by 2.86%, Cipla up by 2.47% and Power Grid up by 2.10%. On the flip side, Bajaj Finance down by 4.12%, Indusind Bank down by 4.01%, Asian Paints down by 3.99%, HDFC down by 3.43% and Axis Bank down by 3.03% were the top losers.

European markets were trading lower, UK’s FTSE 100 decreased 0.71 points or 0.01% to 6,381.70, France’s CAC decreased 7.48 points or 0.15% to 5,014.90 and Germany’s DAX was down by 26.47 points or 0.21% to 12,460.89.

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