Market wrap: Third consecutive weekly decline as rising Covid-19 cases weigh on sentiment

Market wrap: Third consecutive weekly decline as rising Covid-19 cases weigh on sentiment

Last updated: 23 Apr, 2021 | 06:01 pm

Market wrap: Third consecutive weekly decline as rising Covid-19 cases weigh on sentiment

The markets saw another interesting week, with factors such as fresh curbs due to rising Covid-19 cases, Q4 earnings releases, and FII outflows weighing on investor sentiments. 

The Nifty plunged by more than 1.7% on Monday, after fresh lockdowns were announced in different parts of the country. The index continued its decline on Tuesday, as investors remained concerned about the record surge in Covid-19 cases in various states and huge FII outflows.

The stock market was closed on Wednesday on account of Ram Navami. The Nifty posted a recovery on Thursday, ending 0.8%, led by heavy buying in banks and financials. Trading was volatile on Thursday, due to expiry of weekly index options on NSE.  Indian equities ended the final trading day of the week with losses, after swinging between profit and losses. For the week, the Nifty lost 1.65%, posting its third straight weekly loss. This is the longest streak of weekly decline in 11 months.

Top gainers and losers

  • PSU Bank, FMCG & Realty were the top losing indices this week
  • UltraTech, Shree Cement, HUL, Tech Mahindra and Titan were the top Nifty losers in the week
  • Tata Steel, DRL, JSW Steel and BPCL were the top Nifty gainers in the week

Here is a quick recap of the market moving developments

  • Earnings season gains momentum: Nifty heavyweights including HDFC Bank, Nestle, TCS, Infosys and Wipro have announced their Q4 results so far. While the ongoing pandemic has affected various businesses, it has forced businesses to move towards greater digitization, providing a good opportunity for the IT industry. HCL Tech is scheduled to report Q4 earnings today. You can check out the analysis for TCS, Infosys, Wipro, HDFC Bank and Nestle India.
  • CARE revises India’s GDP forecast: CARE Ratings has revised down its forecast for GDP growth to 10.2% in 2021-22 from earlier projection of 10.9%. This is the third revision by the rating agency in the last one month. With economic activities getting affected across the country due to fresh restrictions imposed by states, the agency now expects India’s GDP growth to take a hit.
  • FII’s turn sellers for first time in 6 months: Global funds have turned net sellers of Indian stocks in April, halting a six-month buying spree. FIIs have sold Rs 8,674 crore in April so far, as the global investor sentiment took a hit after India’s tally of daily infections climbed to successive records.

Gold prices rebound

Gold prices moved to a 2-month high on Wednesday, supported by a stable US dollar and a fall in 10-year US treasury yields. The decline in equity markets during the week also supported the prices for the yellow metal, as investors moved towards lower risk assets amid rising Covid cases. Gold has gained for the second consecutive week.

Check out our other analysis on important market developments!

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