Domestic stock market benchmark indices tumbled almost 2% on Friday dragged down by banking and financial stocks. However, both Sensex and Nifty emerged with 2% net gains on a weekly basis.
BSE Sensex crashed 983.58 points or 1.98% to end the day at 49,765.94, and the 50-share market gauge NSE Nifty slipped 263.80 points or 1.72% to close at 14,631.10.
Investors so far held their nerves against the general gloom and doom unfolding in the streets and hospitals of cities and small towns alike, perhaps taking solace in the fact at least a full-scale lockdown was not announced.
Market breadth on Friday was negative as about 1270 shares have advanced, 1455 shares declined, and 156 shares are unchanged.
ONGC, Sun Pharma, Dr Reddy, Bajaj Auto and Power Grid were the only Sensex stocks out of 30 on the index to close the day with gains.
HDFC twins, ICICI Bank, Reliance, and TCS dragged Nifty down while Divis Labs, Grasim, IOC, and ONGC provided little support.
Among sectoral gauges, Nifty Financial Services, Nifty Private Bank, Nifty Bank slipped between 2.5-3% and Nifty Pharma was the only gainer among indices.
Corporate earnings for the forthcoming April-June quarter now stare at the loaded double-barrel of a spiralling pandemic and local lockdowns as industries divert their capacities to deal with a slow vaccine rollout for the 18-45 age group and local lockdowns.
Although states have been allowed to procure jabs directly from manufacturers, the “double-mutant” B.1.617 variant of the SARS-CoV-2 virus seems to pose a maximum risk to the 18-45 age group in the absence of a firm timeline for inoculation of this age group. The pace of vaccination has slowed and supply from two manufacturers Serum Institute of India and Bharat Biotech hasn’t matched up so far.
Robust corporate earnings in the fourth quarter (Q4) during the January-March period had encouraged investors to bet big on the economic recovery narrative so far which stands threatened by the gargantuan second wave which has only intensified with each passing day of April.
Foreign investors bought Indian equities worth Rs 809 crore in the cash segment on a provisional basis and bought Rs 3461 crore in the futures & options market. Domestic institutions sold Indian equities worth Rs 942 crore in the cash market.
