Markets trade bearish ahead of CPI Inflation, IIP data; Sensex sheds 410 pts, Nifty 50 below 14,740; HDFC, M&M, RIL, HUL weigh down

The government will present CPI Inflation data for April 2021, while IIP data for March 2021 later today.

May 12, 2021 09:05 IST India Infoline News Service

Businessman sleeping with bear with down trend graph
Sensex and Nifty traded on a bearish note tracking weak global cues on Wednesday. Private banks, financial along with IT and pharma stocks weighed the most on Indian markets during the opening bell. Even though India's Covid daily cases continue to remain below 3.5 lakh, investors concern were broadly shifted towards inflation risk. The government will announce Consumer Price India (CPI) inflation and Index of Industrial Production (IIP) data later today.

At around 09.38 am, Sensex was trading at 48,747.92 surging down by 413.89 points or 0.84%. The index has touched an intraday low of 48,746.58.

Nifty 50 was performing at 14,737.25 lower by 113.50 points or 0.76%. The index has clocked the day's low of 14,728.15.

Tata triplets along with major power stocks were among top gainers on Nifty.

Nifty gainers were - Power Grid surging by 2.5% followed by NTPC and Tata Motors advancing by 1.9% and 1.5% respectively. Tata Steel and Tata Consumer Products climbed by 0.5% and 0.3% respectively.

However, index heavyweights dragged the benchmarks.

Underperformers on Nifty 50 were - M&M diving by 2% followed by HDFC down 1.8%. HUL and Shree Cement dropped by 1.7% each.

Major stocks like Kotak Bank, Nestle, Tech Mahindra, ICICI Bank, JSW Steel, SBI Life, Axis Bank, BPCL, Grasim, Reliance Industries dived more than 1% each. TCS, IndusInd Bank and Eicher Motors also slipped nearly 1% each.

Stocks like Asian Paints, Lupin, UPL, Apollo Tyres and Tata Power will be in focus ahead of their March 2021 (Q4FY21) quarterly result scheduled for later today.

Other companies that are set to announce their Q4 result today are - Avadh Sugar & Energy, Birla Corporation, Borosil Renewables, Dwarikesh Sugar Industries, GRM Overseas, Happiest Minds Technologies, HG Infra Engineering, Jindal Steel & Power, JSW Ispat Special Products, Kaycee Industries, Kennametal India, Khaitan Chemicals & Fertilizers, Mahindra Lifespace Developers, Mid East Portfolio Management, Orient Electric, Palash Securities, Pidilite Industries, Prince Pipes and Fittings, PTL Enterprises, Sagar Cements, Saregama India, SIL Investments, Sonata Software, Swiss Military Consumer Goods, Thambbi Modern Spinning Mills, Trigyn Technologies, UPL, Vaibhav Global, Vardhman Concrete, Vikas WSP, Voltas and Yasho Industries.

In terms of sectoral indices, Nifty Bank and Nifty Financial Services fell nearly 1% each. Nifty PSU Bank and Nifty Metal were among the outperformers.

Maintaining below 3.5 lakh active cases mark, India registered about 3,48,421 new Covid cases, however, recorded the highest Covid death count of 4,205 in the last 24 hours. The country's total tally comes at 2,33,40,938 cases along with 1,93,82,642 recoveries and a death toll of 2,54,197.

The government will present CPI Inflation data for April 2021, while IIP data for March 2021 later today.

The Consumer Price Index (CPI) or retail inflation spiked to 5.52% in March 2021 compared to 5.03% of the previous month. The Quick Estimates of Index of Industrial Production (IIP) stood at 129.4 in February 2021, shrinking by 3.6% due to lower production in the mining and manufacturing sectors.

The Reserve Bank of India (RBI) last month said that as India battles the ferocious rise of new infections, a strong policy response is building. In its April 2021 bulletin, RBI states that economic activity in India is holding up against COVID -19’s renewed onslaught. RBI warns that the resurgence in COVID-19, if not contained in time, risks protracted restrictions and disruptions in supply chains with consequent inflationary pressures.

On the global front, Asian stocks plummeted along with US futures tracking a decline on Wall Street overnight as investors were cautioned about faster inflation and surge in commodities that could test the economic recovery from the Covid-19 pandemic.

Hong Kong's Hang Seng and Japan's Nikkei dived more than 100 points or 550 points respectively. South Korea's KOSPI and Nikkei were worst hit weakening by nearly 2% each. 

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