Resurgence in COVID-19 cases in some states such as Maharashtra and localised lockdowns to contain them have raised doubts over the pace of recovery in the economy. While economists have not yet pared their GDP growth expectations for 2021-22, the slow rollout of vaccines in India is making some investors nervous, said fund managers.
Today, the Nifty50 index ended 0.1 per cent, or 19.1 points, lower at 14,910.45, while the BSE-Sensex closed at 50,363.96, down 31.1 points or 0.1 per cent.
The broader market showed some resilience as Nifty Midcap 100 and Nifty Smallcap 100 index ended 0.4 per cent and 0.3 per cent higher, respectively.
Here are the major movers in today’s session:
Tata Communications sinks on govt’s OFS
Shares of the Tata Group company slumped 6 per cent after the government opened an offer for sale to sell up to 16.12 per cent stake in the company including a greenshoe option. The more than 10 per cent discount in the floor price of the issue nudged existing investors to sell in the cash segment and subscribe to the OFS, which was open for non-retail investors today.
IT stocks regain their mojo
After largely underperforming the benchmark indices in recent weeks, investors flocked towards shares of largecap and midcap information technology companies today. The Nifty IT index ended 1.3 per cent higher, the top sectoral performer on the National Stock Exchange.
FMCG stocks gain traction as defensive bets
Investors seeking to protect their portfolios against likely increase in volatility in the coming weeks also sought the safety of fast-moving consumer goods stocks. The Nifty FMCG index ended 0.9 per cent with stocks like Hindustan Unilever, ITC and Britannia Industries leading the gains.
Gland Pharma surges on Sputnik V deal
Shares of Gland Pharma soared 7 per cent after the company announced that it has entered a deal to manufacture 252 million doses of Sputnik V vaccine in India. The vaccine today completed its phase-III human trials in India with the drug regulator likely to take up its review in the coming weeks.
Bliss GVS sinks to new depths
Shares of Bliss GVS Pharma plummeted 20 per cent, adding to the 20 per cent slump on Monday backed by heavy volumes. The stock has sunk nearly 50 per cent in 2021.
What gave sell signal?
Over 70 stocks listed on the NSE gave sell signal based on MACD indicators including NTPC, Indiabulls Real Estate, NBCC, Ambuja Cements and Tata Chemicals.
What’s ahead for the market?
Traders sold both the out-of-money call and put options of Nifty50 today suggesting that they remain indecisive over the direction of the market in the coming sessions. In the futures segment, traders unwound their long positions in the March futures contract of the Nifty50.
“We feel the prevailing consolidation would end soon. Meanwhile, we suggest avoiding directional trades and preferring hedged positions,” said Ajit Mishra, vice president research at Religare Broking.
