Sensex falls 150 points in early trade, Nifty slips below 15,800; banks, financials under pressure

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Indian benchmark equity indices edged lower in the early trade tracking a negative trend in the Asian markets amid rising number of Covid-19 cases. At 10:03am, Sensex was at 52,584.13, down 151.46 points or 0.29%, while Nifty slipped 49.75 points or 0.31% to 15,764.95.

PowerGrid was the top Sensex gainer followed by L&T, ITC, TCS, HCL Tech and Reliance Industries. Maruti Suzuki, ICICI Bank, Kotak Bank, M&M, Bajaj Auto and Ultratech Cement were laggards on the other hand.

Most sectoral indices were in the red. Nifty Private Bank, falling nearly 1%, was the top sectoral laggard, followed by Nifty Bank, Nifty PSU Bank and Nifty Financial Services. Nifty FMCG, up 0.15% bucked the trend.

The broader market, BSE MidCap was flat at 22,638.15, while the BSE SmallCap index climbed 0.17% at 25,154.97.

“Nifty 15900 level has become a strong resistance zone for the market now. Therefore, more action can be expected in the mid-small-cap space where there is not much FII activity. The package announced by the FM yesterday is more relief than stimulus. It relies more on guarantees to the banks rather than the government directly stimulating the economy through higher public expenditure. Raising the ECLGS limit from Rs 3 lakh crores to Rs 4.5 lakh crores is a nudge to banks to lend more on government guarantees. This can stimulate the economy without impacting the fisc in the short-term”

Earnings today

IRCTC, Ruchi Soya, Cochin Minerals & Rutile, DCM, Omaxe, Sintex Industries, and Suzlon Energy are among the companies that will announce their quarterly earnings today.

Economy

Union Finance Minister Nirmala Sitharaman addressed a press conference on Monday announcing eight economic relief measures, four of which are new, including one item related specifically to health infrastructure. The FM also announced eight other items related to growth, trade and employment, in which six are new.

Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors announced. Of this, Rs 50,000 crore has been allocated to the health sector and Rs 60,000 crore for other sectors.

Additional Rs 1.5 lakh crore announced under the Emergency Credit Line Guarantee Scheme (ECLGS). Sector-wise details will be finalised as per evolving needs

Credit guarantee scheme announced to facilitate loans of up to Rs 1.25 lakh per individual to 25 lakh persons through micro-finance instituitions (MFIs). Interest rate on loans from banks will be capped at MCLR plus 2%.

EPF support to employers and employees under Aatmanirbhar Bharat Rozgar Yojana has been extended till 31 March 2022. The scheme was first rolled out in October 2020.

The finance minister announced financial support to more than 11,000 registered tourist guides/travel and tourism stakeholders through the loan guarantee scheme for COVID-affected sectors.

Stocks in spotlight

HDFC Life Insurance Company will be in focus. Foreign promoter Standard Life will reportedly sell 3.46% stake in the company through a block deal at a price band of Rs 658-678 per share.

NALCO posted net turnover and net profit of Rs.8869.29 crore and Rs.1299.56 crore respectively in FY20-21 compared to Rs.8425.75 crore and Rs.138.23 crore achieved during the previous year. The net profit of the company for the financial year 2020-21 has jumped by 840% over the last financial year.

RITES said that Metro Express, Mauritius has awarded additional work of consultancy services (PMC) for extension of the mainline from Rose Hill to Reduit through Ebene for an additional fee of MUR 250 million (Rs 45 crore approximately).

Ramco Systems announced that it will provide its next-gen Enterprise Resource Planning (ERP) software to Aden Ports Development Company (APDC) at their Aden Container Terminal (ACT), deepening its 12-year partnership with Yemen’s largest container terminal.

Great Eastern Shipping Company said that the company had delivered its 1996 built Midsize Gas Carrier ‘Jag Vayu’ to the buyers. The vessel was contracted for sale in May 2021.

Stove Kraft said that the company is launching or upgrading a new range of Home and Kitchen appliances products for Onam festival which includes Mixer Grinder & Wet Grinder, Pressure cookers, Cast Iron Cookware, Sleek Glass Cooktop 2, 3 and 4 Burner, Double Walled Kettle, Hand Blender, Hand Mixer, Induction Stove, Desk Lamp, Turbo Food Processor, Shears and Cutting Board.