Sensex, Nifty Fall For Second Day Ahead Of U.S. Consumer Price Data
Indian stocks fell, erasing early gains, with energy companies leading the decline ahead of the release of U.S. consumer-price data on Thursday, a report that investors are taking cues from in absence of major triggers in the domestic market.
The S&P BSE Sensex closed 0.6% lower at 51,941.64, while the NSE Nifty 50 Index fell nearly 0.7% to 15,635.35. Fourteen of the 19 sector indexes compiled by BSE Ltd. fell, led by a gauge of energy stocks.
The selloff in the broader market was in line with their larger peers. The S&P BSE MidCap was down 0.7% and S&P BSE SmallCap fell 0.9%. Sixteen of the 19 sector sub-indices compiled by BSE Ltd. fell, led by S&P BSE Energy. The S&P BSE Utilities was the best performer, up 0.9%.
“Investors remain in a wait-and-watch mode ahead of crucial U.S. inflation data tomorrow, with domestic equities looking muted as of now,” said Binod Modi, a strategist at Reliance Securities Ltd. “The beginning of gradual withdrawal of restrictions by states indicates that economic indicators should start improving from this month.”
While domestic equites continue to look good, investors must focus on quality stocks with robust earnings visibility and margins of safety. In our view, sectors considered to be major beneficiaries of capex revival are likely to be back in focus in coming weeks.Binod Modi, Strategist at Reliance Securities
GAIL India Q4 Net Income Beats Estimates
GAIL India reported net income for the fourth quarter that beat the average analyst estimate.
- Net income Rs 1,910 crore, -37% YoY, estimate Rs 1,830 crore
- Revenue Rs 15,550 crore, -12% YoY, estimate Rs 18,420 crore
- Total costs Rs 13,510 crore, -14% YoY
- Other income Rs 568 crore, +11% YoY
Market Update: Sensex, Nifty Decline As Banks, Autos Selloff
Indian equity benchmarks fell in afternoon trade as banks and autos led the decline, while utilities extended their record run.
The S&P BSE Sensex dropped as much as 0.8% at 51,858.21, while NSE Nifty 50 Index slipped 0.8% as well to 15,608.40.
The selloff in the broader market was in line with their larger peers. The S&P BSE MidCap was down 0.9% and S&P BSE SmallCap fell 0.6%. Sixteen of the 19 sector sub-indices compiled by BSE Ltd. fell, led by S&P BSE Telecom. The S&P BSE Utilities was the best performer, up 0.6%.
The market breadth was slightly skewed in favour of the bulls. About 1,603 stocks gained, 1,493 declined and 152 remained unchanged.
Adani Ports, NTPC, Power Grid, SBI Life in Focus: Options Watch
- Power Grid options volume 2.7x the 20-day average, with 21,638 calls changing hands vs 3,152 puts
- Stock up 3.7%, volume 1x the 20-day average for this time of day
- SBI Life options volume 2.7x the average, with 20,429 calls vs 3,427 puts
- Stock up 2.6%, volume 1.4x the average
- NTPC options volume 2.4x the average, with 31,336 calls vs 6,437 puts
- Stock up 3.6%, volume 1.3x the average
- Adani Ports options volume 1.6x the average, with 52,601 calls vs 11,549 puts
- Stock up 0.4%, volume 1.1x the average
Utilities Surge As Easing Of Lockdown Curbs To Push Demand
Tata Power is a prominent gainer as utilities continue to rally on expectations that demand for electricity will rise with Indian states loosening lockdown rules amid a steady fall in coronavirus cases.
- S&P BSE Utilities index extends gain to an eighth day; boosting its YTD rally to ~49%
- All but two of its 26 constituents rise
- Tata Power, Torrent Power and Power Grid Corp. contribute the most to the index’s increase
- Tata Power rises 10% to head for its highest level since January 2008; trading volume is 2.6x 3-month full-day average
- NOTE: On June 8, India’s antitrust agency approved Tata’s proposal to acquire a 51% stake in three power utilities in eastern Odisha state