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Banking and financial stocks were star of the day. IndusInd Bank, SBI, ICICI Bank, HDFC Bank and UPL were among the top gainers on the Nifty
Indian equity indices ended the first day of the week with strong gains of around 1.7% on Monday as investors ignored the spike in WPI inflation numbers and were more optimistic about the future due to a drop in Covid-19 cases and positive global cues. At close, the Sensex was up 848 points or 1.74% at 49,580, and the Nifty closed at 14,923 after rallying 245 points or 1.67%.
Banking and financial stocks were star of the day. IndusInd Bank, SBI, ICICI Bank, HDFC Bank and UPL were among the top gainers on the Nifty. Losers included Cipla, Bharti Airtel, Larsen and Toubro, SBI Life Insurance and Nestle India.
“Bulls took centre stage today as the vaccination drive is expected to pick up momentum and the launch of the DRDO drug ignited the street as pivotals led by Banks saw support from Autos & Metals. In the broader market we did witness profit taking in Pharma stocks.” S Ranganathan, Head of Research at LKP Securities.
On the sectoral front, Nifty Bank lead the pack with gains of over 4%. The Nifty Metal index rallied over 2% and the Nifty Auto jumped 1.95%. While Nifty IT index was up about 0.45% and the Nifty FMCG index ended with marginal gains of 0.07%. On the contrary, the Nifty Pharma index slipped 0.19%.
In the broader market BSE MidCap & BSE SmallCap indices mirrored benchmark indices as they ended with gains of around 1.6% each.
Economy:
India’s April Wholesale Price Index (WPI) inflation stood at 10.49% compared with 7.39% in March 2021. The annual rate of inflation in April 2021 is high primarily because of rise in prices of crude petroleum, mineral oils viz petrol, diesel etc, and manufactured products as compared to the corresponding month of the previous year.
The data released by the Union Ministry of Commerce & Industry on Friday, 14 May 2021, showed that India’s exports in April jumped nearly three-fold to $30.63 billion from $10.36 billion in the same month last year. Imports also rose to $45.72 billion last month as against $17.12 billion in April 2020.
Trade deficit widened to $15.10 billion in April 2021 as against $6.76 billion in April 2020. The sharp rise in exports and imports seen in April 2021 was due to a low base in trade volumes in the same period last year as the country was put under a national lockdown to contain the spread of coronavirus. The Commerce secretary has said that there were no major issues on logistics for exporters due to restriction due to COVID-19, adding that sectors, which have done well in FY21, have done some market diversification.
Global markets:
European shares declined while Asian stocks were mixed today as investors reacted to the release of Chinese economic data.
China’s industrial output grew 9.8% in April from a year ago, slower than the 14.1% surge in March, official data showed on Monday. Retail sales rose 17.7% year-on-year in April, down from the 34.2% jump seen in March.
Wall Street closed higher on Friday in a broad rally as signs of a rebounding economy squared off against mounting inflation jitters.