Virus Scare Grips Markets Again
The automotive sector seems to be in for a tough ride as shortage of semiconductor chips has hit the automobile players
The global indices enjoyed bullish sentiments during the fortnight while Indian benchmark indices underperformed and grappled with various obstacles. The domestic benchmark indices came under pressure during the fortnight on account of a sharp rise in corona virus cases in the country, leading to rising concerns over its impact on economic activity. India recorded its highest ever new cases numbers on Sunday i.e. April 4, 2021. As a result, investors have remained cautious over a fear of a further rise in numbers across states and its impact on the economic activity as lockdowns and movement restrictions are being implemented on a stricter note once again.
The Sensex dipped by 1.27 per cent while Nifty declined by 0.72 per cent during the fortnight. On the sectoral front, selling pressure in automotive stocks led to the Auto index declining by 3.99 per cent during the fortnight. The automotive sector seems to be in for a tough ride as shortage of semiconductor chips has hit the automobile players, further disrupting and even temporarily halting production. Also, increase in fuel price continues to hit demand, leading to a selloff in automotive stocks. On the other hand, IT stocks have been outperforming on the back of clear earnings’ visibility. During the fortnight domestic technology stocks gained as global peers jumped high.
Post the severe impact of the pandemic on the economy, metal stocks have been gaining as investors have anticipated economic recovery
As a result, the IT index gained 3.21 per cent for the same period of time. Post the severe impact of the pandemic on the economy, metal stocks have been gaining as investors have anticipated economic recovery. With a domestic price hike looming large, export realisation at 5 per cent premium and no threat of imports, metal stocks have been enjoying undivided investors’ attention. The Metal index skyrocketed by 9.29 per cent during the fortnight. Companies involved in the metal sector are also seeing an uptick in projects and a steady and positive growth trend.
With vaccinations going on in full swing, the healthcare sector continues to be in the limelight. The Healthcare index rose by 3.96 per cent during the fortnight. The FMCG and Power indices fell by mere 0.59 per cent and 0.05 per cent in the last few weeks. Realty index tumbled by 4.23 per cent while selling pressure on banking stocks during correction times led to Bankex declining by 2.58 per cent. Small-Cap index and Mid-Cap index outperformed domestic benchmark indices during the fortnight, gaining by 1.09 per cent and 0.15 per cent, respectively. Trading data shows that FIIs were net sellers to the tune of Rs 3,249.26 crore while DIIs were net buyers to the tune of 6,777.65 crore during the fortnight.
