Sensex dips 627 pts as investors book profit on last trading day of FY21

The S&P BSE Sensex and Nifty50 have rallied 68 per cent and 70.8 per cent, respectively in FY21

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Stock market updates: Equity markets ended the last trading session of the financial year 2020-21 (FY21) on a tepid note as profit-booking in the private banking and IT sector outweighed buying in PSU banking, FMCG, and realty sectors. The headline S&P BSE Sensex settled the day at 49,509 levels, down 627 points or 1.25 per cent, while the broader Nifty50 ended at 16,691 levels, after erasing 154 points or 1 per cent.

20 of the 30 constituents on the Sensex ended the day in the red with HDFC Bank, HDFC, Power Grid, Tech Mahindra, ONGC, ICICI Bank, Infosys, and Bajaj Finance leading the list of losers. On the Nifty, the list also included the likes of Hero MotoCorp, Asian Paints, Reliance Industries, and Coal India. All these stocks were down in the range of 1 per cent to 5 per cent.

On the upside, Bajaj Finserv, ITC, SBI, HUL, Tata Motors, UPL, and Grasim surged up to 4 per cent.

The overall market breadth remained neck and neck amid buying in broader markets. The S&P BSE MidCap index ended 0.07 per cenr higher while the S&P BSE SmallCap inndex advnced 0.52 per cent.

FY21 Wrap

Despite the economy slipping into recession and all activity coming to a standstill for a few months due to the Covid-19 pandemic, markets registered their best financial year performance in a decade.

The S&P BSE Sensex and Nifty50 have rallied 68 per cent and 70.8 per cent, respectively in FY21. Earlier during FY10, the S&P BSE Sensex had surged 80.5 per cent, while Nifty50 rallied 73.7 per cent.

The gains in mid-and small-caps have, in fact, been sharper with both the indices rallying 91 per cent and 115 per cent, respectively on the BSE. READ MORE

Global markets

Global stocks wavered on Wednesday while the safe-haven dollar held near five-month highs as Treasury yields resumed their upward march before US President Joe Biden announces a multitrillion-dollar plan to rebuild America’s infrastructure.

Europe's regional STOXX 600 index was up 0.2 per cent, while Britain's FTSE 100 was down 0.1 per cent.

In Asia, MSCI’s All Country World Index, which tracks stocks across 49 countries, traded 0.1 per cent lower. MSCI’s broadest index of Asia-Pacific shares outside of Japan fell 0.3 per cent, its first monthly loss in five months.

China's blue-chip index sank 0.9 per cent and Japan's Nikkei slid 0.9 per cent as investors sold financial shares amid growing uncertainty over the fallout from the margin calls that brought down Archegos Capital.

(With inputs from Reuters)

4:10 PM

MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Sec

The market retreated from the day's highs and continued to consolidate throughout the day. The bias was negative and most of the index heavyweight weights shares closed lower. The market width was 1: 1 and therefore the market trend could not be determined. The trading range for tomorrow's market could be 14650/49300 and 14550/49000. The market could see 14400/48700 levels below 14550/49000 levels. Beyond 14750/49700, the market could pick up speed again. In short, hold long poses until 14550/49000 breaks. Today, the Bank Nifty did not rise as expected. However, there also we feel 33000 would act as major support

4:00 PM

TECH VIEW :: Sumeet Bagadia, Executive Director at Choice Broking

Technically, the benchmark index has taken immediate resistance at Upper Bollinger Band formation and shifted below 100 Exponential Moving Averages on an hourly chart, which suggests a downward move for the upcoming session. At present, Nifty is finding support at 14550 levels, whereas resistance is placed at 14900 levels.

3:51 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Markets opened weak as Joe Biden shall unveil his Infrastructure Package today with an increase in corporate taxes. HDFC twins and profit booking in IT stocks led the decline today even as Cement and Real Estate stocks saw keen investor interest. In the broader market, PSU Banks and select Pharma names were seen buzzing around

3:51 PM

Tech view :: FY22 Outlook

S&P BSE SENSEX

Likely target: 54,000 - 55,100 (Upside potential : 8.32% - 10.53%)

The index is constantly making efforts to conquer the 50-days moving average (DMA) placed at 50,060 levels. Once the Relative Strength Index (RSI) manages to aggressively cross 50-value, the upside bias is expected to receive higher interest of market participants. The medium-term outlook is well placed above 48,000 levels.

NIFTY50

Likely target: 16,000 - 16,500 (Upside potential: 8.40% - 11.79%)

The positive crossover of 50-weekly moving average (WMA) with 100-WMA shows a positive bias from a medium-term scale. This breakout is expected to gain momentum above the 15,000-mark, as per the weekly chart. As long as the index defends the 14,500-mark on the weekly scale, the upside sentiment is here to stay.

3:48 PM

Star performers of FY21

As many as 228 stocks from the BSE500 index have seen their market values more-than-doubled in FY21. Adani Total Gas, Adani Green Energy and Adani Enterprises from the Adani Group rallied in the range of 600 per cent to 1,020 per cent. Hindustan Copper, Aarti Drugs, Dixon Technology, APL Apollo Tubes, Laurus Labs and Affle India zoomed over 400 per cent during the fiscal.

3:47 PM

FY21 Wrap

In FY21, the S&P BSE Sensex and Nifty50 have rallied 68 per cent and 71 per cent, respectively.

The gains in mid-and small-caps have, in fact, been sharper with both the indices rallying 91 per cent and 115 per cent, respectively on the BSE.

3:43 PM

BSE Snapshot :: M-cap of all BSE listed firms more-than-doubles in FY21

3:41 PM

Broader market check :: SmallCap index outruns benchmarks, MidCap index ends 0.07% up

3:40 PM

HDFC duo, RIL :: Stocks that lifted the Sensex today

3:38 PM

Sectoral trends on the NSE :: Banks, financials, IT stocks drag markets

3:37 PM

Sensex Heatmap at Close

3:33 PM

CLOSING BELL

Equity markets ended the last trading session of the financial year 2020-21 (FY21) on a tepid note as profit-booking in the private banking and IT sector outweighed buying in PSU banking, FMCG, and realty sectors. The headline S&P BSE Sensex settled the day at 49,509 levels, down 627 points or 1.25 per cent, while the broader Nifty50 ended at 16,691 levels, after erasing 154 points or 1 per cent.

3:27 PM

Biden to unveil $2 trn investment plan and increasing corporate tax to 28%

US President Joe Biden will announce a massive once-in-a-century USD 2 trillion plan on Wednesday to transform America's aging infrastructure, and position the country to out-compete China, according to officials.

The American Jobs Plan, to be announced by Biden in Pittsburgh, Pennsylvania, will create millions of good-paying jobs and rebuild the US infrastructure. READ MORE

3:19 PM

Corporate Action :: Asian Granito board okays allotment of shares to promoter on warrant conversion

Click here for details

3:09 PM

NEWS ALERT :: RBI extends deadline for processing auto-debit payments by 6 months

In a huge relief for banks, Reserve Bank of India on Wednesday extended the timeline for processing recurring online transactions by 6 months to September 30, 2021.

On December 4, RBI had directed all banks including RRBs, NBFCs, and payment gateways that the processing of recurring transactions (domestic or cross-border) using cards or Prepaid Payment Instruments (PPIs) or Unified Payments Interface (UPI) under arrangements/practices not compliant with Additional Factor of Authentication (AFA) would not be continued beyond March 31, 2021. READ MORE

2:59 PM

Heatmap: S&P BSE Sensex gainers and losers at this hour

2:53 PM

Increased participation in NDF market a concern for RBI's forex management

On Tuesday, the rupee dropped 1.2 per cent against the dollar. Before Tuesday’s trading session, the currency was the best performing Asian currency in 2021 and the only one to appreciate against the US dollar in the region despite rising dollar index and slower foreign portfolio investment. To understand what happened on Tuesday, one needs to go back to a Reserve Bank of India circular a year back – March 27 to be precise – when banks were allowed to trade in off-shore non-convertible forward (NDF) rupee market. READ MORE