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Markets witness volatility ahead of GDP data; Auto stocks underperform; M&M, Tata Motors drag; ITC shines – Indiainfoline

At around 10 am, Sensex was performing at 51,525.72 up by 102.84 points or 0.20%. Nifty 50 was trading at 15,458.75 higher by 23.10  points or 0.15%.

In the early trading hours, around 09.35 am, Sensex was trading at 51,221.83 down by 201.05  points or 0.39%. Nifty 50 plunged by 47.35 points or 0.31% and was trading at 15,388.30.

In the opening bell, Sensex has tumbled to an intraday low of 51,179.94, while Nifty 50 slipped to the day’s low of 15,374.

Auto and PSU Bank stocks were top laggards, while the FMCG sector also witnessed profit booking ahead of giant ITC’s Q4 earnings later this week. IT further weighed down on the benchmarks.

Nifty PSU Bank and Nifty Auto dipped by 1.5% and 1.4% respectively, while Nifty FMCG and Nifty IT fell nearly 1% each.

Pharma and metal stocks were in a rally with the indexes on NSE surging nearly 1%.

Nifty 50 gainers were – Divis Lab soaring 3% followed by ITC advancing 1.6%. Asian Paint and Hindalco followed with 1.5% upside each. Tata Steel climbed 1.2%.

Nifty 50 underperformers were – M&M nosediving over 6%, while Tata Motors following with a 2% downside. Stocks like Shree Cement, IndusInd Bank and Tech Mahindra contracted more than 1% each.

Companies that will announce their March 2021 quarterly result and will be in focus on exchanges are – Aurobindo Pharma, Chemcon Speciality Chemicals, Asian Granito India, Honeywell Automation India, Ingersoll-Rand (India), Jamna Auto Industries, JBF Industries, Kolte-Patil Developers, Magma Fincorp, Man Industries, Marksans Pharma, Prakash Industries, Rupa & Company, Shilpa Medicare, Simplex Realty, Tourism Finance Corporation of India, Uttam Galva Steels, Vascon Engineers, and Venus Remedies among others.

This week, Indian markets trend will be directed due to GDP data, policy announcement, corporate earnings and other macroeconomic data.

India is set to announce the GDP data for the March 2021 quarter later today. While RBI’s monetary policy meet will begin from June 02-June 04, 2021. Also, India’s monthly purchasing managers’ index (PMI) data will be released for the manufacturing sector on Tuesday and the services sector on Thursday.

Further, a slowdown in active Covid cases also has played its role in swaying markets sentiments. In the last 24 hours, India registered over 1.52 lakh new covid-19 cases which would be the lowest since April 09, 2021. The death toll at 3,128 is also the lowest since April.

Asian markets struggled to keep up pace with Japan’s Nikkei 225 witnessing a steep selloff after a strong performance last week on Friday. Investors eye US job figures to show the expected revival in employment for May and further outline the prospects of economic recovery.

Chinese shares traded on a lacklustre note as investors react to the country’s official manufacturing Purchasing Managers’ Index for May 2021, which came at 51.0 slightly down from 51.1 of the previous month. Meanwhile, Australian shares were on a subdued note after the National Australia Bank’s index of business conditions climbed 8 points to +32 in April 2021 with strength recorded in most sectors and regions.

Overnight, US indices settled on a positive note as Dow Jones inches higher by 65 points to close above 34500, however, Nasdaq closed flat. Bond yields edged lower even as inflation data gets stronger.US$ weakness sees higher inflows into emerging markets as investors chase higher beta in emerging markets.

Markets in the United States and Britain are closed today due to holiday, however, futures are still trading in Asian markets.