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Indian benchmark equity indices gave up opening gains to close in the red on Monday tracking a negative trend in the global stocks. After hitting a lifetime high of 53,126, Sensex closed at 52,735.59, down 189.45 points or 0.36%. Similarly, Nifty closed 45 points or 0.29% lower after scaling a fresh high of 15,814.

“After opening at a record high, the domestic markets slipped into the negative zone tracking cues from global peers due to spike in Covid cases across Asia. PSU Banks were in focus in anticipation of progress in privatization. The market got volatile in the closing hour, ahead of & during the FM announcement, though it was focused on the Covid-19 relief package mainly for healthcare and stressed sectors, which will benefit the broad economy,” said Vinod Nair, Head of Research at Geojit Financial Services.

Gainers & losers

Top gainers & losers on Sensex

Sectoral strand

Sectoral indices closed mixed. Nifty PSU Bank, closing 2.40% higher on reports of progress in privatization, was the top sectoral gainer,  followed by Nifty Metal and Nifty Pharma closing over 1% each. Nifty FMCG index rose 0.13%, while Nifty Auto and Nifty Realty closed marginally higher.

On the downside, the Nifty IT lost 0.49% and Nifty Bank ended with a marginal loss of 0.01%. 

Broader market

Broader market, continued the uptrend as the BSE MidCap index ended at 22,639 levels, up 0.40% while the BSE SmallCap index closed at 25,111, up 0.46%.

New listing

Both Dodla Dairy and KIMS showcased a strong debut on the exchanges. Dodla Dairy closed at Rs 609 apiece, after debuting at Rs 550, a 28 per cent premium over its initial public offer (IPO) issue price of Rs 428 per share on the National Stock Exchange (NSE). KIMS, on the other hand, ended at Rs 987.5 after listing at Rs 1,009, up 22 per cent against its issue price of Rs 825 per share on the National Stock Exchange (NSE).

Economy

Finance Minister Nirmala Sitharaman announced a Rs 1.1-lakh crore loan guarantee for Covid-affected sectors. The health sector, she said, will receive attention for scaling up infrastructure in cities and towns other than the eight metros.

Besides, she also announced an additional Rs 1.5 lakh crore for the Emergency Credit Line Guarantee Scheme, launched as part of the Atmanirbhar Bharat package.

Credit guarantee scheme will facilitate loans up to Rs 25 lakh through microfinance institutions with a maximum tenure of three years. 

FM also announced Financial support to more than 11,000 registered tourist guides/travel and tourism stakeholders. The government will also issue free tourist visa to the first 5 lakh tourists; the scheme will be applicable till March 31, 2022, or till 5,00,000 visas are issued. The scheme will hit the exchequer by Rs 100 crore.

Atmanirbhar Bharat Rozgar Yojana  has been extended  to March 31, 2022 from June 30, 2021. Through this scheme a subsidy will be provided for 2 years from registration for new employees drawing monthly wages less than Rs 15,000: Both employer’s and employee’s share of contribution (total 24% of wages) establishment strength up to 1,000 employees. Only employee’s share (12% of wages) in case of establishment strength of more than 1,000

Additional subsidy for di-ammonium phosphate (DAP) and Phosphatic and Potassic (P&K) fertilisers: Additional amount of Rs 14,775 crore to be provided and includes Rs 9,125 crore, additional subsidy for DAP and Rs 5,650 crore, additional subsidy for NPK (nitrogen, phosphorus, and potassium) based complex fertiliser

Pradhan Mantri Gareeb Kalyan Yojana has been extended, the total cost of the Pradhan Mantri Gareeb Kalyan Yojana now stands at 2,27,841 crore. The scheme entails providing free food grains to the vulnerable sections amid the pandemic.