Bloomberg, Reuters Mumbai
India’s benchmark equity index fell, erasing its weekly gain, led by a decline in banks and auto stocks.
The S&P BSE Sensex dropped 1.1% to 37,877.34 points in Mumbai, wiping out an advance of as much as 0.6% early in the session. It closed the week with a 0.4% loss. The NSE Nifty 50 Index slipped by a similar magnitude.
“Investors are concerned that the liquidity that had been aiding the gains may not be available,” said Vishal Wagh, head of research at Bonanza Portfolio Ltd in Mumbai. “The market has overshot itself and the economic realities of a weak earnings outlook and weak demand are resurfacing.”
As earnings season continues, 27 of the 46 Nifty 50-member companies that have announced results so far have beaten or matched estimates. NTPC Ltd posted results that beat estimates today, while Hindalco Industries Ltd’s earnings missed expectations.
India’s death toll from Covid-19 has surpassed that of the UK, pushing the nation to the No. 4 spot globally. Total confirmed cases of 2.4mn are the third-largest in the world, while new daily infections exceed those in both the US and Brazil, the two biggest outbreaks in absolute terms.
The rupee weakened 0.1% to 74.9037 per US dollar, while the yield on the 10-year bond rose 6 basis points to 5.96%.
Sixteen of 19 sector sub-indexes compiled by BSE Ltd declined led by a gauge of vehicle manufacturers.
HDFC Bank Ltd contributed the most to the Sensex’s drop, decreasing 2.3%, while Axis Bank Ltd slid the most, falling 2.8%.
Meanwhile the rupee settled 6 paise lower at 74.90 (provisional) against US dollar yesterday tracking weak domestic equities.
At the interbank forex market, the local unit opened at 74.85 against the US dollar, then lost ground and finally settled at 74.90 against the American currency, registering a decline of 6 paise over its previous close of 74.84.
During the session, the rupee witnessed an intra-day high of 74.74 and a low of 74.93 against the greenback.
Meanwhile, wholesale price-based inflation declined 0.58% in July, even as food items turned costlier. WPI inflation in June was at (-) 1.81%, according to official data.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05% lower at 93.29.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 376.46 points lower at 37,934.03 and broader NSE Nifty was trading 133.70 points down at 11,166.75. Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs416.28 crore on Thursday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, fell 0.67% to $44.66 per barrel.
LEAVE A COMMENT Your email address will not be published. Required fields are marked*
Qatari Islamic banks’ balance sheet grew to nearly $90bn in 2019: S&P
Turkey hikes interest rate for first time since 2018
US labour market slowing as fiscal stimulus fades
Oil traders puzzled by extra Iraqi cargoes on spot market
Asian markets tumble again as virus, stimulus and election fan fears
European stocks slump as fears grow over new lockdowns, US risks
Top Toshiba investor calls for inquiry in widening votes scandal
Wells Fargo CEO sorry for ‘insensitive’ comments
Qatar partakes in meetings of commercial, industrial co-operation committees of GCC countries