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Sunday, May 16, 2021

Markets slip after four days on vaccine worries, Covid surge

According to analysts, the sell-off was led by foreign investors who pulled out Rs 3,465 crore from the equity market on Friday. The broader market performed marginally better with mid- and small-cap indices falling by a relatively smaller extent.

By: ENS Economic Bureau | Mumbai |
May 1, 2021 2:42:21 am
“Markets will first react to Reliance Industries’ earnings and monthly auto sales numbers in early trade on Monday,” said Ajit Mishra, VP—research, Religare Broking Ltd.

After four days of successive rise, domestic stock markets lost nearly two per cent amid rising Covid cases and uncertainties surrounding vaccination. The benchmark Sensex slumped by 984 points to 48,782.36 and the NSE Nifty Index fell 264 points to 14,631.10 in the sell-off.

According to analysts, the sell-off was led by foreign investors who pulled out Rs 3,465 crore from the equity market on Friday. The broader market performed marginally better with mid- and small-cap indices falling by a relatively smaller extent. On the sectoral front, pharma was the best performing sector and the only one to close in the green. Banking was the worst performing sector.

Joseph Thomas, head of research, Emkay Wealth Management, said, “The continuous spread of the pandemic was the key concern governing market sentiment. The impact of the localised lockdowns to control the pandemic and its impact on the economic variables would be the significant market drivers over near term.”

The market turned into a correction phase following weakness in the Asian market despite hopeful signs from Wall Street.

“Rising Covid cases and uncertainties surrounding vaccination added more pressure on the market. Along with small-cap stocks, pharma, metal, and oil & gas were the sectoral gainers,” said Vinod Nair, head of research, Geojit Financial Services.

“Markets will first react to Reliance Industries’ earnings and monthly auto sales numbers in early trade on Monday,” said Ajit Mishra, VP—research, Religare Broking Ltd.

Meanwhile, the rupee snapped its four-day winning streak and settled 2 paise lower at 74.09 against the US dollar on Friday amid a lacklustre trend in the domestic equity market.

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