After opening with a big gap Thursday morning, the Indian market swiftly tumbled into negative territory and remained weak as the session progressed with investors turning cautious and making stock specific moves.
Earnings announcements and vehicles sales data are providing some direction. A survey report showing India’s factory activity to have contracted for the first time in almost a year is weighing on sentiment.
According to the survey, factory activity contracted in June due to decline in demand and output following restrictions imposed to contain the second wave of the coronavirus. The IHS Markit India Manufacturing PMI fell to 48.1 in June 2021 from 50.8 a month earlier.
The benchmark BSE Sensex, which spurted to 52,638.50 at the start, is down 66 points or 0.13 percent at 52,416.71. The National Stock Exchange’s Nifty is down 14.70 points or 0.09 percent at 15,706.80 after hitting a high of 15,755.55 at the start.
Bajaj Auto shares are up more than 2 percent after the two-wheeler maker reported a 24 percent jump in vehicles sales in the month of June 2021 over the same month last year. Sequentially, sales increased by 27.3% last month.
Tata Motors is gaining 1.35 percent, TVS Motor is up 1.3 percent and Hero Motocorp is gaining 1.25 percent. Mahindra & Mahindra and Ashok Leyland both are up 0.85 percent, while Maruti Suzuki is gaining 0.6 percent.
Escorts said it sold 12,533 units in June 2021, up 15.5 percent from 10,851 units sold in June last year. The stock is down by about 0.8 percent.
Vodafone Idea shares are down more than 7 percent. The company reported consolidated loss of Rs 7,022.8 crore for the quarter ended March 2021, compared with a loss of Rs 11,643.5 crore in the year-ago quarter.
Jain Irrigation Systems shares are soaring nearly 10 percent after the company reported consolidated profit of Rs 49.09 core for the fourth quarter of 2020-21, compared with loss of Rs 324.16 crore in the same quarter in the previous financial year.
SpiceJet shares are down in 1.6 percent despite the airlines reporting a much narrower net loss of Rs 256.98 crore for the fourth quarter of FY21, compared with net loss of Rs 816.25 crore in the year-ago quarter.
On the economic front, data released by the Controller General of Accounts on Wednesday showed India’s fiscal deficit for the first two months (April-May) of 2021-22 came in at Rs 1.23 lakh crore, or 8.2 percent of the full year target of Rs 15.07 lakh crore. For the same period last year, the fiscal deficit was 58.6% of the full year target as revenues had dried up due to lack of economic activity as the country was in the lockdown mode.
Another data released by the government showed Infrastructure output in India increased by 16.8 percent year-on-year in May, after rising by a revised 60.9 percent in April due to low base effects from last year when the coronavirus pandemic hit the economy hard. In May last year, infrastructure output declined 21.4 percent.
Market Analysis
Indian Market Roughly Flat In Cautious Trade; Automobile Stocks Rally
2021-07-01 06:07:27
