Investors posted profits on cyclical stocks as growing concerns over new coronavirus outbreaks in Asian countries, undermining the economic recovery, worried investors. In addition, valuation issues regarding Indian stocks reported by global agency HSBC and economic growth concerns raised by S&P, following the second wave of the Covid-19 pandemic, have compounded investor concerns.
During its conference on the Asian outlook for the second half of 2021, brokerage firm HSBC said on Tuesday that the valuation of the Indian stock market had become a concern after rising sharply from its March 2020 low. rating “neutral” on Indian stocks and believes that the latest government stimulus measures announced on Monday are slightly positive. Compared to the economic dislocation observed in India, the package is not very large, he believes.
S&P, meanwhile, cut India’s GDP growth forecast for fiscal 22 to 9.5% from 11% previously and said permanent damage to private and public sector balance sheets will limit growth in the past. over the next two years.
Against this backdrop, the frontline S&P BSE Sensex ended the day at 52,549 levels, down 186 points or 0.35%, while the larger 50-stock Nifty closed at 15,748 levels, down 66 points or 0.42%.
PowerGrid, HUL, Nestlé India, Cipla, Divis Labs and IndusInd Bank made gains of up to 2% to end the day at the top of the Nifty winners. On the other hand, ONGC, Indian Oil Corporation, Hindalco, Kotak Bank, ICICI Bank and Bajaj Auto fell in the range of 1.6% to 2.5% to rank among the main laggards.
Broad markets also reversed their gains, with the BSE MidCap and SmallCap indices closing down 0.42% and 0.07% respectively, amid losses in Oil India, SJVN, NHPC, Adani Transmission, Vodafone Idea, IFCI, Srei Infra and Gujarat Mineral Development. Society.
Among individual stocks, HDFC Life shares slipped 3.4% to Rs 672 in intraday trading today after nearly 110.6 million shares changed hands on the meter. ESB. Standard Life would have sold 3.46% of the capital.
That aside, shares of Bajaj Healthcare rose 20% to a new high of Rs 863.95 on BSE under an intraday deal on Tuesday after the company announced it had requested to the Indian Patent Office to grant a compulsory license for the manufacture and supply of Covid-19 drug “Baricitinib”.
Cipla shares also rose nearly 3% to Rs 989 each on BSE amid reports that India’s drug regulator has cleared the company to import Moderna’s Covid-19 vaccine for emergency use restricted in the country.
In a separate communication, Moderna informed that the United States has agreed to donate a number of doses of its Covid-19 vaccine via Covax to the Indian government for use here and has requested approval from Central Drugs. Standard Control Organization (CDSCO), while Cipla, on behalf of the US pharmaceutical major, has requested permission to import and market these jabs.
From a sector perspective, the Nifty Bank, Auto, Metal and PSB index slipped between 1% and 1.5% on the NSE while the Nifty Pharma and FMCG indices rose 0.5% each.
Shares retreated slightly from record highs Tuesday on emerging variants of Covid-19 across the world, while investors also remained nervous over the US exit from accommodative policy.
European stocks, as measured by the pan-European STOXX 600 index, rose 0.4%, helped by a jump in industrials, financials and mining stocks.
In contrast, MSCI’s largest Asia-Pacific stock index outside of Japan was 0.5% lower as the recent positive momentum halted as some countries reimposed lockdowns to contain the spread of the Delta variant of the virus.
The Japanese Nikkei fell 0.8%, while in Australia, the ASX / 200 index closed 0.1% lower. Chinese stocks lost 0.92% as investors made profits after a rally thanks to the country’s strong rebound from the impact of the Covid-19 pandemic.