At 13:20 IST, the barometer index, the S&P BSE Sensex, slipped 297.23 points or 0.57% at 51,978.34. The Nifty 50 index lost 88.70 points or 0.56% at 15,651.40. The Nifty index hit a record high of 15,800.45 in early afternoon trade.
Axis Bank (down 1.43%), ICICI Bank (down 1.42%) and Reliance Industries (down 1.21%) were major drags.
Selling was broad based. The S&P BSE Mid-Cap index skid 0.61%. The S&P BSE Small-Cap index declined 0.47%.
The market breadth was almost even. On the BSE, 1,577 shares rose and 1,522 shares fell. A total of 149 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,422.71 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,626.98 crore in the Indian equity market on 8 June 2021, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 17,40,01,158 with 37,47,385 deaths. India reported 12,31,415 active cases of COVID-19 infection and 3,53,528 deaths while 2,75,04,126 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
As many as 92,596 people have tested positive for COVID-19 in the last 24 hours, the Union health ministry said on Wednesday. This marks a slight uptick in the new reported cases after falling to a 63-day low of 86,498 on Tuesday. The positivity rate now stands at 4.67%. India has recorded a positivity rate below 10% for 16 consecutive days now. The cumulative caseload has reached 2,90,89,069.
Economy:
The World Bank, on 8 June 2021, projected India's economy to grow at 8.3% in 2021. Earlier, the World Bank had estimated Indian economy to grow at a pace of 10.1% in FY 2021-22. Citing the reason to slash the FY22 growth of Indian economy, the global lending and monitoring body said that India has been hampered by the largest outbreak of coronavirus cases that any country has seen since the beginning of the pandemic.
"In India, an enormous second COVID-19 wave is undermining the sharper-than-expected rebound in activity seen during the second half of FY2020/21, especially in services. With surging COVID-19 cases, foot traffic around work and retail spaces has again slowed to more than one-third below pre-pandemic levels since March, in part due to greater restrictions on mobility," World Bank said in its latest Global Economic Prospects report.
The World Bank on Tuesday upgraded its growth forecast, with the global economy now expected to grow 5.6% in 2021. That compared against an earlier forecast in January for a 4% global economic expansion in 2021. Still, the organization warned in a Tuesday press release that global output will be about 2% below pre-pandemic projections by the end of this year in spite of the recovery.
Gainers & Losers:
Power Grid Corporation of India (up 3.89%), NTPC (up 3.83%), SBI Life Insurance Company (up 2.46%), Coal India (up 2.44%) and HCL Technologies (up 1.47%) were major gainers in Nifty 50 index.
Shree Cement (down 1.41%), Maruti Suzuki India (down 1.16%), Ultratech Cement Co. (down 1.01%), Larsen & Toubro (L&T) (down 0.83%) and Bajaj Auto (down 0.82%) were major losers in Nifty 50 index.
Earning Impact:
Max Financial Services fell 1.16%. On a consolidated basis, Max Financial Services reported a net profit of Rs 70 crore in Q4 FY21, steeply higher than net profit of Rs 6.7 crore in Q4 FY20. Total income increased 129% to Rs 9,760 crore in the fourth quarter from Rs 4,266 crore in Q4 FY20. Excluding investment gains, the company's revenue has grown by 21% during the quarter. Max Life is the sole operating subsidiary of Max Financial Services and is India's largest non-bank private life insurer and the fourth largest private life insurance company. Max Life's recorded a gross premium of Rs 7,106 crore in Q4 FY21, an increase of 21% from Rs 5,873 crore in Q4 FY20. Individual APE grew 35% in the quarter under review to Rs 1,893 crore from Rs 1,398 crore in the year-ago period.
Stocks in Spotlight:
Glenmark Pharmaceuticals slipped 0.61%. The drug maker announced interim data of 503 patients from its Post Marketing Surveillance (PMS) study on Favipiravir in India. The Post Marketing Surveillance (PMS) study commenced in July 2020 aimed to evaluate safety and efficacy of Favipiravir in mild to moderate COVID-19 patients. Interim data reveals no new safety signals or concerns with the use of Favipiravir and already-known side effects such as weakness, gastritis, diarrhoea, vomiting etc., which were found to be mild in nature. The time to fever resolution was seen on day 3, while two-third of the patients achieved clinical cure on day 7.
Bandhan Bank rose 0.95%. The Reserve Bank of India (RBI) on 8 June 2021, granted approval for re-appointment of Chandra Shekhar Ghosh as the managing director and chief executive officer for a period of 3 years, with effect from 10 July 2021. The re-appointment as above is subject to the approval of shareholders at the ensuing annual general meeting of the bank.
Global Markets:
Shares in Europe and Asia were mixed on Wednesday, 9 June 2021, ahead of the latest inflation data from the U.S., which could lead the Federal Reserve to taper asset purchases sooner rather than later. The U.S. consumer price index for May is set to be released Thursday.
China's factory gate prices increased at the fastest pace since September 2008, official data showed on Wednesday, while consumer inflation also accelerated but at a slower-than-expected rate.
The producer price index (PPI) rose 9.0% from a year earlier in May, according to a statement from the National Bureau of Statistics.
Meanwhile, a Covid-19 outbreak in southern China is curbing activity at some of the country's biggest ports, stoking fears that further disruption in international trade risk pushing up the price of its exports. More than 100 new cases have been reported since late May in Guangdong province, one of China's most important manufacturing hubs, leading to strict counter-measures from the government.
Wall Street stocks finished a choppy session little changed Tuesday as markets digested data showing a lower US trade deficit.
The US trade deficit dipped by $6.1 billion to $68.9 billion in April, slightly larger than expected, as exports rose and imports fell, according to Commerce Department data.
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