Sensex slips 186 pts amid profit booking; banks, metals fall; pharmaceutical gains

Scholarship Updates: Investors booked profits on cyclical stocks as growing worries about new coronavirus outbreaks in Asian countries undermining an economic recovery worry investors. In addition, concerns over the valuation of Indian stocks reported by global agency HSBC and concerns over economic growth raised by S&P, following the second wave of the Covid-19 pandemic, added to investors’ woes. .

At its Asian outlook conference for the second half of 2021, brokerage firm HSBC said on Tuesday that the valuation of the Indian stock market has become a concern now after a sharp rise from its low in March 2020. It maintains a rating “neutral” on Indian equities and views the latest government stimulus measures announced on Monday as mildly positive. However, compared to the economic dislocation seen in India, the package is not very large, he believes. READ MORE

S&P, meanwhile, cut India’s GDP growth forecast for FY22 to 9.5% from 11% previously forecast and said permanent damage to private and public sector balance sheets will limit growth. over the next two years. READ MORE

Against this backdrop, the front-line S&P BSE Sensex ended the day at 52,549.6 levels, down 186 points or 0.35%, while the broader 50-stock Nifty closed at 15,748 levels, down down 66 points or 0.42%.

PowerGrid, HUL, Nestle India, Cipla, Divis Labs and IndusInd Bank posted gains of up to 2% to end the day as Nifty’s top gainers. On the other hand, ONGC, Indian Oil Corporation, Hindalco, Kotak Bank, ICICI Bank and Bajaj Auto fell 1.6% to 2.5% to settle among the main laggards.

Broader markets also reversed their gains, with the BSE MidCap and SmallCap indices closing down 0.42% and 0.07% respectively amid losses from Oil India, SJVN, NHPC, Adani Transmission, Vodafone Idea, IFCI , Srei Infra and Gujarat Mineral Development. Company.

From a sector perspective, the Nifty Bank, Auto, Metal and PSB indices slipped between 1% and 1.5% on the NSE while the Nifty Pharma and FMCG indices rose 0.5% each.

Global Markets

Global equities retreated from record highs on Tuesday on emerging variants of Covid-19 across the world, as investors remained jittery over the US exit from dovish policy.

European stocks, as measured by the pan-European STOXX 600 index, rose 0.4%, helped by a jump in industrial, financial and mining stocks, sectors that should benefit from economic improvements.

By contrast, MSCI’s broadest index of Asia-Pacific stocks outside of Japan was 0.5% lower as recent positive momentum stalled as some countries reimposed lockdowns to contain the spread of the Delta variant. of the virus.

The Japanese Nikkei fell 0.8%, while in Australia, the ASX/200 index closed down 0.1%. Chinese stocks fell 0.92% as investors posted profits following a rally following the country’s strong rebound from the impact of the COVID-19 pandemic.

(With contributions from Reuters)