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Detailed review of the post market session of the day.

Sensex slumps 1700 pts, Nifty holds 14,300; VIX spurts to 23 mark

12-Apr-21 17:06 Hrs IST

Domestic equity indices ended with sharp losses on Monday, as surging COVID-19 cases in the country triggered fears of fresh lockdowns. The Nifty managed to close above the 14,300 mark after hitting the day's low of 14,248.70 in late trade. All the sectoral indices on NSE ended in the red. Pharma stocks bucked weak market trend while banks and metal shares tumbled.

The barometer index, the S&P BSE Sensex, slumped 1,707.94 points or 3.44% at 47,883.38. The Nifty 50 index tanked 524.05 points or 3.53% at 14,310.80.

Bajaj Finance (down 7.39%), ICICI Bank (down 4.95%), HDFC (down 3.72%), HDFC Bank (down 3.87%) and Reliance Industries (down 3.60%) were major drags.

In the broader market, the BSE Mid-Cap index slumped 5.32% and the BSE Small-Cap index tumbled 4.81%. Both these indices underperformed the Sensex.

Sellers outnumbered buyers. On the BSE, 509 shares rose and 2,478 shares fell. A total of 174 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, soared 16.22% to 23.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 13,60,56,956 with 29,36,768 deaths.

India reported 12,01,009 active cases of COVID-19 infection and 1,70,179 deaths while 1,21,56,529 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India on Monday reported 1,68,912 new COVID-19 cases and 904 deaths in last 24 hours, according to data from the Union Health Ministry.

The media reported that a total lockdown may be impending in Maharashtra. With rising COVID cases, a total lockdown is mulled by state government officials. State health minister Rajesh Tope said that a decision could happen after it is discussed during Wednesday's cabinet meeting.

Economy:

India's foreign exchange reserves declined $2.415 billion to stand at $576.869 billion in the week ended 2 April 2021, RBI data showed on Friday. The reserves had touched a record high of $590.185 billion in the week ended 29 January 2021.

The gold reserves dropped by $884 million to $34.023 billion in the reporting week, as per the central bank data. The special drawing rights (SDRs) with the International Monetary Fund (IMF) dipped by $4 million to $1.486 billion.

Meanwhile, commercial banks in India gave almost one fourth of loans (about Rs 1.55 trillion) in the last fortnight of the financial year. The total lending was Rs 5.80 trillion in FY21 lower than about Rs 6 trillion in FY20. The outstanding credit stood at Rs 109.51 trillion as of 26 March 2021, according to Reserve Bank of India data. On a year-on-year (Y-o-Y) basis, the lending by commercial banks rose by 5.6% in the financial year (FY21), a period marked by economic contraction due to COVID-19 pandemic as against 6.1% in FY20.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.008% as compared with 6.017% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 75.0550, compared with its close of 74.73 during the previous trading session.

MCX Gold futures for 4 June 2021 settlement rose 0.30% to Rs 46,733.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.07% to 92.10.

In the commodities market, Brent crude for June 2021 settlement rose 71 cents at $63.66 a barrel. The contract fell 25 cents, or 0.40% to settle at $62.95 a barrel in the previous trading session.

Foreign Markets:

Shares in Europe and Asia saw a mixed trend on Monday as global stocks continue to search for direction after record highs in several regions last week.

The U.K. government is relaxing lockdown measures in England on Monday, with outdoor dining and hospitality venues, hairdressers, gyms, shops and outdoor attractions allowed to reopen.

In the US, the Dow Jones Industrial Average and S&P 500 index closed at record highs Friday as investors remain cautiously optimistic about economic growth and progress against the pandemic. Stocks linked to the recovering economy led the gains again amid the accelerating vaccine rollout.

On the data front, the U.S. producer-price index rose 1% in March, the U.S. Labor Department said Friday. The rate of wholesale inflation over the past 12 months climbed to 4.2% in March. That's the highest level since September 2011.

Buzzing Indian Segment:

The Nifty PSU Bank index slumped 9.26% to 1,988.30. The index rose 2.09% in the previous session.

Indian Bank (down 11.14%), Canara Bank (down 10.52%), PNB (down 10.17%), Bank of India (down 10.07%), Punjab & Sind Bank (down 9.87%), Bank of Baroda (down 9.59%), Indian Overseas Bank (down 9.5%), Union Bank of India (down 9.23%), Jammu and Kashmir Bank (down 8.16%), UCO Bank (down 6.69%), Central Bank of India (down 6.34%), SBI (down 6.32%) and Bank of Maharashtra (down 6.26%) slumped.

Stocks in Spotlight:

IT bellwether TCS fell 2.43% to end at Rs 3241.45 ahead of its Q4 earnings today, 12 April 2021.

Infosys fell 1.04%. The IT major said its board will consider a share buyback proposal on Wednesday, 14 April 2021. On the same day, the company will announce its audited consolidated financial results for the quarter and year ending 31 March 2021. The board will also recommend a final dividend for the financial year ending 31 March 2021.

Dr Reddy's Laboratories shares jumped 4.83% after the media reported that India approved the use of Russia's Sputnik V COVID-19 vaccine. Sputnik V is being marketed in India by Dr. Reddy's Laboratories .

Dr Lal Path Labs soared 6.36% to Rs 3338.70, rising for the third straight session. The stock has risen 11.77% in three sessions from its recent closing low of Rs 2,987.25 on 7 April 2021. The stock hit a record high of Rs 3,398.95 in the intraday today.

Biocon fell 3.85%. Biocon Pharma, a wholly-owned subsidiary of Biocon, received a certificate of Good Manufacturing Practice (GMP) compliance from the Medicines & Healthcare products Regulatory Agency (MHRA), the United Kingdom (UK), for its manufacturing facility at Biocon Park in Bengaluru (Karnataka). The certificate, which includes manufacturing and packaging of tablets and capsules in the non-potent and potent blocks of the facility, was issued based on a remote inspection in the week of 22 March 2021, in the wake of travel restrictions amidst COVID-19.

Ratnamani Metals & Tubes fell 2% after the company received a domestic order of Rs 594 crore for coated carbon steel pipes from oil and gas sector. The said order is to be executed between September 2021 and July 2022.

Anupam Rasayan India fell 0.23%. The company has re-paid certain identified borrowings aggregating to Rs 470.73 crore as on 31 March 2021 of its total outstanding debt from the net proceeds of its recently completed initial public offering. The repayment of debt will result in significant savings in the finance cost. The company's total debt as on 31 December 2020 stood at Rs 841.975 crore.