Indices trade in range; PSU banks rally

Indices traded in a range with modest losses in mid-afternoon trade. The Nifty traded below the 14,750 level. PSU bank bucked weak market trend.

At 14:30 IST, the barometer index, the S&P BSE Sensex, dropped 365.9 points or 0.74% at 48,795.77. The Nifty 50 index lost 105.75 points or 0.71% at 14,745.95.

Trading was volatile due to expiry of weekly index options on the NSE today. Indian stock markets will remain shut tomorrow, 13 May 2021, on account of Id-Ul-Fitr (Ramzan Id).

The broader market was mixed. The S&P BSE Mid-Cap index fell 0.24% while the S&P BSE Small-Cap index rose 0.13%.

Buyers outpaced sellers. On the BSE, 1,723 shares rose and 1,259 shares fell. A total of 187 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 336 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 676.67 crore in the Indian equity market on 11 May 2021, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 15,97,03,471 with 33,18,053 deaths. India reported 37,04,099 active cases of COVID-19 infection and 2,54,197 deaths while 1,93,82,642 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India lost 4,205 people to the coronavirus pandemic in the last 24 hours, said the government data released on Wednesday morning. This is the highest-ever death count that India has ever seen in a single day since the pandemic began in 2020. This is the third time in the span of 10 days that India has officially recorded over 4,000 deaths in 24 hours. India had seen over 4,000 deaths on 8 May 2021. On 9 May 2021, the second day in a row, India reported 4,092 deaths.

Economy:

Amid a strong second COVID-19 wave, Moody's cut India's FY22 GDP growth forecast. The rating agency slashed the projection to 9.3% for FY22 from 13.7% forecasted earlier. It also ruled out a sovereign rating upgrade, at least for now.

However, the UN has raised India's growth forecast to 7.5% for calendar year 2021, a 0.2% increase from its projection in January 2021. The country's outlook for the year, remained "highly fragile", it said. The World Economic Situation and Prospects report released on Tuesday, 11 May 2021, also projected India's GDP to grow by 10.1% in 2022.

Buzzing Index:

The Nifty PSU Bank index jumped 4.35% to 2,263.80, extending its winning run to third consecutive trading session. The index rallied nearly 7% in three days.

Central Bank of India (up 9.94%), UCO Bank (up 8.55%), PNB (up 7.56%), Bank of Baroda (up 7.29%), Union Bank of India (up 6.66%), Bank of India (up 5.55%), Indian Overseas Bank (up 5%), J&K Bank (up 4%), Bank of Maharashtra (up 4%) and Indian Bank (up 3.88%) were top gainers in PSU segment.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee fell to 73.45 compared with its previous closing of 73.34.

MCX Gold futures for 4 June 2021 settlement fell 0.16% to Rs 47,559.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.13% to 90.24.

In the commodities market, Brent crude for July 2021 settlement rose 41 cents to $68.96 a barrel. The contract increased by 0.34% to settle at $68.55 in the previous trading session.

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