Sensex ends 189 pts lower; FM announces relief for Covid-hit economy

Stock market updates: Equity indices declined in the fag-end of the session on Monday, even as Finance Minister Nirmala Sitharaman announced relief measures for an economy, battered by a second wave of Covid-19, and which is bracing for a possible third wave.

Among notable steps, FM Sitharaman announced Rs 1.1-trillion loan guarantee for Covid-affected sectors. Health sector, she said, will receive attention for scaling up infrastructure on cities and towns other than the eight metros. 

That apart, she announced an additional Rs 1.5 trillion for Emergency Credit Line Guarantee Scheme, launched as part of Atmanirbhar Bharat package

After hitting a lifetime high of 53,126 in the morning deals, the benchmark S&P BSE Sensex slipped into the red to end at 52,735 levels, down 189 points or 0.36 per cent. The broader Nifty50, on the other hand, closed at 15,815 levels, down 46 points or 0.29 per cent. The index scaled new peak of 15,915.6 earlier today.

The broader market, on the contrary, resumed their uptrend and outperformed the headline indices. The BSE MidCap index ended at 22,639 levels, up 0.40 per cent while the BSE SmallCap index shut shop at 25,111, up 0.46 per cent.

Individually, shares of Thyrocare Technologies tumbled 11.5 per cent to hit a low of Rs 1,281 apiece after nearly 3.74 lakh shares changed hands on the BSE by 3:15 PM. Docon Technologies, along with API Holdings, the parent company of unicorn PharmEasy, an online medical platform, had said on Friday that it will acquire 66.1 per cent equity stake in diagnostic chain firm for Rs 4,546 crore. They also made an open offer for acquisition of additional 26 per cent stake in Thyrocare at a price of Rs 1,300 per share for Rs 1,788.16 crore.

Meanwhile, newly listed Dodla Dairy closed at Rs 609 apiece, after debuting at Rs 550, a 28 per cent premium over its initial public offer (IPO) issue price of Rs 428 per share on the National Stock Exchange (NSE). KIMS, on the other hand, ended at Rs 987.5 after listing at Rs 1,009, up 22 per cent against its issue price of Rs 825 per share on the National Stock Exchange (NSE).

Global markets

European travel stocks sank 2% on Monday on the back of a spike in COVID-19 cases across Asia, while worries of a sudden tapering in ultra-loose global monetary policy in the wake of rising inflation pushed pan-European STOXX 600 down 0.2 per cent.

In Asia, Japan's Nikkei was down 0.06 per cent and South Korea's Kospi eased 0.03 per cent.

(With inputs from Reuters)

5:50 PM

TECH VIEW :: Ashis Biswas, Head of Technical Research at CapitalVia Global Research

After breaching all-time high of 15900, the market witnessed some lackluster movement and an attempt to hold the support level above the Nifty 50 Index level of 15800. The market suggests, trading above 15800 is positive from a short-term perspective. Sustaining above 15800 levels, the market to gain momentum, leading to an upside projection till 16100-16200 level. the momentum indicators like RSI, MACD to further strengthen in favor of a positive outlook

5:49 PM

MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Sec

The witnessed a range-bound activity near its all-time high level.  The weekly opening of the Nifty / Sensex was positive, the benchmark index Nifty/ Sensex opened at 15915.65/ 53126.73 but due to lack of follow-through buying it consolidated in the range of 15800 to 15910/ 52700 to 53100 levels.

Technically, today the market made a fresh high but failed to sustain above the 15900/ 53100 level. However, on the intraday charts the index still maintains higher bottom series formation which is broadly positive for the market.

We are of the view that, as long as the Nifty/ Sensex is trading above 15750 /52550 the uptrend texture should intact. We can expect an uptrend continuation wave up to 15900- 15950/ 53100-53500. On the flip side, below 15750/ 52550 would increase further weakness up to 15700-15660/ 52000-51700. Among sectors, the metal stocks continue the positive momentum and strong buying was seen in PSU Banks. Intraday profit booking was seen in HDFC Life and selective IT stocks

5:43 PM

Trade set-up for Tuesday

 For the coming session, Monday’s high would be seen as an immediate hurdle; whereas only a convincing move in few heavyweights would push the index towards its magical figure of 16000. Till then the long wait continues. As far as supports are concerned, 15750 – 15700 remains to be a key zone. Generally when key indices gives dull movement, we have the tendency to look for trading opportunities in individual stocks. But since last 2 – 3 sessions, we are unable to find such potential movers in the broader market as well and hence, it would be interesting to see how things pan out in the forthcoming session

Views by: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking

5:34 PM

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Retail Research at HDFC Securities

Indian benchmark equity indices ended lower on June 28 after a higher opening and making a fresh intra day all time high. Nifty opened higher, and made a new high in the first minute of trade. It later started to fall and closed almost at the intra day low. At close, the Nifty was down 45.70 points or 0.29% at 15814.70.

 

Nifty shifted to higher opening and lower closing once again. Very low volumes suggest low participation from institutions even as they are unsure of the direction of the markets which has also led to lower volatility. This has resulted in lower trading interest. The Nifty has formed an engulfing Top pattern. An opening below today’s low could accelerate the downtrend. 15702-15915 could be range for the near term for Nifty.  

5:24 PM

EXPERT VIEW :: Madhavi Arora, Lead Economist at Emkay Global Financial Services on FM’s relief measures

While the measures are welcome and target Covid sensitive sectors , most of the fiscal support is still below the line and in the form of loan guarantees, and not direct stimulus. Overall, Amid various push and pull, there is a likelihood of fiscal slippage to the tune of around 0.5% from the initially budgeted 6.8%.

Despite the slippage, the effective fiscal impulse will still be negative in FY22. Given the limited efficacy of monetary easing currently, continued countercyclical fiscal policy support—and avoiding a premature consolidation—remains crucial

5:12 PM

MARKET VIEW :: Nish Bhatt, Founder & CEO, Millwood Kane International on FM's announcement

The onslaught of the second wave and the impact of the lockdown was severe, particularly for the contact-oriented businesses like travel & tourism and small businesses. The travel & tourism sector is crucial to earning foreign currency in the case of international tourism. The announcement by the government is well-timed and in the right direction. MSMEs, MFIs, and small and unorganized sectors are the biggest employment creators. The measures will help boost growth, given the increased pace of vaccination across the country. The announcement for the health infra sectors will help strengthen the fight against the pandemic.

 

The enhanced limit for the credit guarantee scheme will ensure funding for businesses and help the most affected sectors. The economy needs the government's support especially post the lockdown in months of April and May.

4:50 PM

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

The nifty index closed at 15,815, forming a bearish candle on the daily chart

The index, once again, witnessed strong resistance at 15,900. Going forward, until we don’t see a decisive close above 15,900 zone, we may not see aggressive northward move

Support is near 15,775-15,675 zone.

4:38 PM

MARKET VIEW :: Vinod Nair, Head of Research at Geojit Financial Services on FM's announcements

Extension of emergency credit schemes by 50% to Rs 4.5lac cr with a focus on stressed sectors will be a boom for the straggling MSMEs. The subsidy financing by 2% interest rate below the RBI prescribed rate will be again for MFI, NFBCs and small borrowers, which are in dire need of falling NPAs & working capital.

The extended & new Atmanirbhar program is positive for the broad economy, especially rural, healthcare & hospitality sector, though unlikely to impact the market directly which will maintain its character"

4:26 PM

MARKET OUTLOOK :: What would move the markets on Tuesday?

Markets settled marginally lower as participants preferred to book profit at higher levels. The benchmark opened on a firm note following supportive global cues however profit-taking in the index majors erased all the gains and pushed the index lower. Eventually, the Nifty index ended lower by 0.2% at 15,815 levels. 

 

Markets may react to the announcements made by the Finance Minister(FM) in early trades on Tuesday which were primarily focused on boosting the economic recovery and supporting the vulnerable sectors and individuals impacted due to COVID. We reiterate our bullish view and suggest continuing with a stock-specific trading approach. Among the sectors, banking has the potential to trigger the next up move.

Views by: Ajit Mishra, VP - Research, Religare Broking 

4:12 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Worries on Inflation kept markets muted today on the Index as the street looked forward towards relief measures from the FM on the ECLGS and Health Infrastructure. The broader market though remained reasonably buoyant with several stocks across PSU Banking, Metals & Gas seen buzzing around today

4:01 PM

NEW STOCK ON THE BLOCK :: KIMS ends at Rs 996 on the BSE

4:00 PM

NEW STOCK ON THE BLOCK :: Dodla Dairy ends at Rs 609 on the BSE

3:56 PM

NSE Snapshot :: Top Nifty50 gainers of the day

3:55 PM

Stocks that weighed on the Sensex today

3:50 PM

BSE SmallCap index settles 0.46% higher