Covid resurgence subdues equities, metal stocks fall


Mumbai, May 14 (IANS): Economic impact of Covid resurgence dented investors' sentiments during Friday's trade session.

Both the key indices closed on a flat note. They opened slightly higher but kept seeing repeated bouts of sell-offs, followed by bounces through the day.

Globally, Asian shares rose Friday after Wall Street put the brakes on a three-day losing streak with a broad stock market rally powered by Big Tech companies and banks.

Similarly, European stocks climbed modestly higher.

On the domestic front, FMCG was the main gainer, while metals, healthcare, power, auto, realty and oil & gas were the biggest losers.

The S&P BSE Sensex closed at 48,732.55, higher by 41.75 points, or 0.086 per cent, from its previous close.

However, the Nifty50 of the National Stock Exchange traded at 14,677.80, down 18.70 points, or 0.13 per cent, from its previous close.

"After two weeks of gains, the Nifty ended the week 0.98 per cent lower as coronavirus cases continue to surge, triggering concerns that a wider lockdown may be reimposed," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"Advance decline ratio was again negative suggesting continued profit taking in the broad market."

Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: "Indian equity markets ended lower amidst inflation concerns and rising Covid cases. Sentiments were weak as FY22 GDP growth forecast was downgraded by many rating agencies. Slowdown in the vaccination programme due to the supply crunch is worrying the market. With daily Covid cases not subsiding below 3L and deaths continuing to be high, many states are extending the localised lockdown or curbs."

"The fear of national lockdown continues to loom in the market. 4QFY21 earnings are healthy so far but management commentaries have turned cautious, thus resulting in more downgrades. The state level restrictions along with surging commodity prices have weakened the FY22E earnings visibility. Thus markets are likely to continue with its range bound movement with wide spells of volatility."

 

  

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Title: Covid resurgence subdues equities, metal stocks fall



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