Sensex down 527 pts; HDFC twins drag

The benchmark indices were hovering near the day's low afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, tumbled 527.74 points or 1.05% at 49,608.84. The Nifty 50 index dropped 128.50 points or 0.87% at 14,716.60.

A surge in India's COVID-19 cases spooked investors as states move to impose partial restrictions, curb large public gatherings and order random testing at malls.

HDFC Bank (down 4.08%), HDFC (down 3.75%) and Infosys (down 1.22%) were major drags.

The broader markets traded sideways. The S&P BSE Mid-Cap index fell 0.04%. The S&P BSE Small-Cap index added 0.21%.

The market breadth was almost even. On the BSE, 1,391 shares rose and 1,323 shares fell. A total of 192 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 769.47 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,181.01 crore in the Indian equity market on 30 March 2021, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 12,82,35,377 with 28,03,806 deaths. India reported 5,52,566 active cases of COVID-19 infection and 1,62,468 deaths while 1,14,34,301 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) said on Tuesday that India's economic output in 2021 is expected to remain below the 2019 level. According to the report, India is estimated to record an economic growth of 7% in 2021-22, over a contraction of 7.7% witnessed in the previous fiscal on account of the pandemic's impact on normal business activity. Observing that India entered the pandemic with subdued GDP growth and investment, the report said: Following one of the most stringent lockdowns in the world, the economic disruptions that the country experienced mounted in the second quarter of 2020, it said.

Gainers & Losers:

Tata Motors (up 2.15%), UPL (up 1.82%), SBI Life Insurance Company (up 1.41%), State Bank of India (up 1.36%) and Tata Steel (up 1.33%) were major gainers in Nifty 50 index.

Power Grid Corporation of India (down 2.51%), HeroMoto Corp (down 1.98%) and Tech Mahindra (down 1.93%) were major losers in Nifty 50 index.

Stocks in Spotlight:

SJVN slipped 1.13%. The company won a solar power project in Gujarat. In terms of the letter of acceptance (LoA) issued by Gujarat Urja Vikas Nigam (GUVNL), SJVN will develop 70 megawatt (MW) solar power project in Gujarat, including arrangement of land with long term connectivity with grid. Tariff of the electricity supplied will be Rs 2.21/KWh and power generated from this project will be procured by GUVNL for 25 years.

IRB Infrastructure Developers spurts 5.37% after the company said that its total order book stood at Rs 14,509 crore, providing revenue visibility of more than 2 years.

Insecticides (India) rose 0.79%. The company's board on Tuesday approved a proposal to buyback equity shares worth upto Rs 60 crore. The company proposes to buyback shares at a maximum price of Rs 575.

Mahindra & Mahindra (M&M) lost 0.16%. M&M's Japanese subsidiary, Mitsubishi Mahindra Agricultural Machinery Company, and Japan's Kubota Co. announced collaboration for Japanese domestic operations.

Global Markets:

Most shares in Europe and Asia declined on Wednesday. China's factory activity expanded at a faster-than-expected pace in March. The official manufacturing Purchasing Managers Index (PMI) rose to 51.9 from 50.6 in February, data from the National Bureau of Statistics (NBS) showed today.

Japan's industrial output fell in February. Official data released today showed factory output shrank 2.1% from the previous month in February, dragged down by falls in production of cars, electrical machinery and information and communication equipment.

US stocks fell Tuesday as major technology shares came under pressure again after the 10-year Treasury yield touched its highest level since January 2020.

The 10-year Treasury yield climbed 6 basis points to top 1.77% earlier Tuesday, hitting its highest level in 14 months as vaccine rollouts and expected infrastructure spending boosted the outlook for a broad economic recovery and rising inflation. The benchmark rate was currently hovering at 1.724%.

The Conference Board's Consumer Confidence Index surged in March to 109.7, its highest reading in a year.

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