Barometers trade almost flat; breadth turns weak

The key barometers hovered near the flat line in early afternoon trade. Metal shares tumbled while autos and FMCG shares bucked weak market trend.

At 12:20 IST, the barometer index, the S&P BSE Sensex, rose 6.05 points or 0.01% at 51,943.49. The Nifty 50 index lost 15.25 points or 0.10% at 15,567.55. The Nifty pared losses after hitting the day's low of 15,528.30 in early afternoon trade.

In the broader market, the S&P BSE Mid-Cap index fell 0.39% while the S&P BSE Small-Cap index slipped 0.51%.

The market breadth was weak. On the BSE, 1,112 shares rose and 1,857 shares fell. A total of 124 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 5.92% to 17.89. The Nifty 24 June 2021 futures were trading at 15,564.45, at a discount of 3.10 points as compared with the spot at 15,567.55.

The Nifty option chain for 24 June 2021 expiry showed maximum Call OI of 7.2 lakh contracts at the 16,000 strike price. Maximum Put OI of 5.1 lakh contracts was seen at 14,500 strike price.

Economy:

India's Gross Domestic Product (GDP) contracted by 7.3% in 2020-21, as per provisional National Income estimates released by the National Statistical Office on Monday. GDP growth in 2019-20, prior to the COVID-19 pandemic, was 4%. Meanwhile, the fourth quarter (Q4) of 2020-21 reported expected growth of 1.6% in GDP.

India recorded a Fiscal Deficit of 9.3% of GDP in 2020-21, 0.2% lower than the revised estimate of 9.5% of GDP, according to the Controller General of Accounts (CGA). Total revenue receipts turned out to be about Rs 88,000 crore higher than estimated, driven largely by higher excise and customs collections, while total expenditure was Rs 61,000 crore more than the revised estimate.

Unveiling the revenue-expenditure data of the Union government for 2020-21, the Controller General of Accounts (CGA) on Monday said that the revenue deficit at the end of the fiscal was 7.42%.

The reading of the Index of Eight Core Industries for last month showed an expansion of over 56% from a (-) 37.9% dip in output during the same month of last year. In March this year, the eight sectors had recorded a growth rate of 11.4%.

Manufacturing PMI:

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) stood at 50.8 in May, down from 55.5 in April. The latest figure pointed to a marginal improvement in business conditions that was the weakest in the current ten-month sequence of expansion.

Commenting on the latest survey results, Pollyanna De Lima, Economics Associate Director at IHS Markit, said: The Indian manufacturing sector is showing increasing signs of strain as the COVID-19 crisis intensifies. Key gauges of current sales, production and input buying weakened noticeably in May and pointed to the slowest rates of increase in ten months. In fact, all indices were down from April." Amid a lack of new work, goods producers reduced headcounts again, with the rate of job shedding quickening in May.

"That said, the detrimental impacts of the pandemic and associated restrictions seen in the manufacturing sector are considerably less severe than during the first lockdown when unprecedented contractions had been recorded.

"Growth projections were revised lower, as firms became more worried about the escalation of the pandemic and local restrictions. The overall degree of optimism towards the year-ahead outlook for output was at a ten-month low, a factor which could hamper business investment and cause further job losses."

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 17,07,21,894 with 35,50,007 deaths. India reported 18,95,520 active cases of COVID-19 infection and 3,31,895 deaths while 2,59,47,629 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India recorded 1,27,510 new COVID-19 cases and 2,795 deaths in the last 24 hours, according to data from the Union Health Ministry. The ministry said cases have been declining for the past few days, with daily new cases being the lowest in 54 days. The recovery rate continues to increase and stands at 92.09% on Tuesday.

Buzzing Index:

The Nifty Realty index fell 1.20% to 332.10. The index added 1.41% in past two sessions.

IndiaBulls Real Estate (down 2.85%), Hemisphere Properties India (down 2.48%), Sunteck Realty (down 2.44%), DLF (down 1.82%) and Sobha (down 1.17%) declined.

Stocks in Spotlight:

Glenmark Pharmaceuticals rose 0.24%. On Tuesday, the pharmaceutical major announced the launch of Rufinamide tablets USP, 200 mg and 400 mg. The tablets are a therapeutic equivalent of Banzel tablets, 200 mg and 400 mg of Eisai Inc. The company was one of the first ANDA applicants to submit a substantially complete ANDA for Rufinamide Tablets USP, 200 mg and 400 mg, with a paragraph IV certification and received final approval on 16 May 2016. According to IQVIA sales data for the 12-month period ending April 2021, the Banzel tablets achieved annual sales of approximately $285.3 million.

Jubilant Pharmova dropped 4.32%. Jubilant Pharma, a wholly-owned subsidiary of Jubilant Pharmova, announced $92 million investment plans to expand sterile injectable manufacturing capacity at its Spokane site in Washington, US. This investment is being made to set up a high speed 400 vials a minute injectable fill line with isolator technology, which will enhance the Spokane facility's capacity by 50%. This expansion will also include two 300 sq. feet Lyophilizers. This expansion will be spread over 50,000 sq feet at the Spokane facility and will be commercially operational by the end calendar year 2024 (CY24).

EPL (formerly known as Essel Propack) advanced 2.83% after the company announced that the company has been selected as a partner by Unilever, in their journey towards achieving 100% sustainability in the oral care segment. Accordingly, EPL will supply their APR approved, 100% recyclable and fully sustainable Platina Tubes, for the toothpaste category of Unilever. EPL's Platina Tube with HDPE closure, is the world's first fully sustainable and completely recyclable tube accredited by APR. This partnership will help Unilever's oral care brands like Signal, Pepsodent and Closeup to be 100% recyclable by 2025.

Powered by Capital Market - Live News