Inflation, delta variant jitter drag Sensex by 495 points; Nifty below 15,800

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Benchmark equity indices opened with a gap down on Monday tracking a negative trend in Asian peers. In early trade Sensex cracked 454 points or 0.86% to 52,685, while the Nifty 50 was at 15,775 diving 132 points or 0.83%.

Gainers & losers

Sectoral strand

All major sectoral indices were trading with losses in early trades. Nifty Bank index slipped around 1.58%, while Nifty Metal & Nifty Auto indices were lost around 0.75%, Nifty Realty index was down 0.64%. Whereas Nifty IT & Nifty FMCG are down 0.27% each.

Broader market

The pain in broader markets was much less than benchmark indices. BSE MidCap index lost 0.13% at 23,099, while the BSE SmallCap index was trading at 26,269 down 0.03%.

The market breadth was also negative as 977 shares declined compared to 837 stocks advancing while 486 scrips remained unchanged.

Earnings today

HCL Technologies, HDFC Life Insurance Company, ACC, Indian Bank, Mastek, Allsec Technologies, Alok Industries, Astron Paper & Board Mill, GTPL Hathway, Nippon Life India Asset Management, Plastiblends India, Ponni Sugars (Erode), PSP Projects, Supreme Petrochem, and Swaraj Engines are slated to release their quarterly earnings today.

New listing

Shares of GR Infraprojects will debut on the bourses today, 19 July 2021. The issue price was fixed at Rs 837 per share.

Shares of Clean Science & Technology will debut on the bourses today, 19 July 2021. The issue price was fixed at Rs 900 per share.

Global markets

Overseas, Asian stocks are trading lower on Monday on concerns about the impact of elevated inflation and Covid-19 outbreaks on economic prospects.

OPEC and its allies reached a deal on Sunday to phase out 5.8 million barrels per day of oil production cuts by September 2022. Coordinated increases in oil supply from the group – collectively known as OPEC+ will start in August, OPEC said in a statement. The development came as Brent surged more than 40% so far in 2021, with demand for crude rising as the global economy recovers from the pandemic.

U.S. stocks fell on Friday weighed down by declines in Amazon, Apple and other heavyweight technology stocks, while investors worried about a rise in coronavirus cases tied to the highly contagious Delta variant.

A preliminary reading of the University of Michigan’s index of consumer sentiment fell to 80.8 in July from a final reading of 85.5 in June, notching the measure’s lowest level since February.

Separately, the Commerce Department released a report showing retail sales climbed by 0.6% in June after plunging by a revised 1.7% in May. Excluding a steep drop in sales by motor vehicle and parts dealers, retail sales jumped by an even stronger 1.3% in June following a revised 0.9% decrease in May.