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Market Watch (ETMarkets.com)
07:51 Min | May 12, 2021, 7:31 PM IST
Tune in as we discuss investment themes for next few months, what Nifty charts are suggesting, and more.
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Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Nikhil Agarwal and here are the top headlines at this hour.
Asian Paints Q4 net up 85% YoY to Rs 852 crore
Active Covid-19 cases in India dip for second day
UN raises 2021 global economic growth forecast to 5.4%
SIAM says MoM fall in April auto sales due to Covid 2.0
MUMBAI: The BSE Sensex darted up on Wednesday after three days of losses after the RBI unveiled a slew of measures to support the economy facing headwinds due to the second wave of the Covid-19 pandemic.
Banking, pharma and IT stocks led the rebound, even as a depreciating rupee capped the gains, traders said.
The 30-share BSE index jumped 424.04 points or 0.88 per cent to close at 48,677.55.
Similarly, the broader NSE Nifty surged 121.35 points or 0.84 per cent to 14,617.85.
Sun Pharma was the top gainer in the Sensex pack, soaring 5.94 per cent, followed by Kotak Bank, Axis Bank, IndusInd Bank, ICICI Bank, Dr Reddy s, Titan and TCS.
The market seems a little caught up in macro concerns Covid resurgence and earnings. Your view?
I don’t think Covid concerns are bothering the market as otherwise, it wouldn’t have rallied for the last three-four days. Last quarter’s results are going to be very good except for some auto stocks which got hit due to rising input prices and also may be some other consumer durables companies.
Most managements believe that post lockdown, the bounce-back would be similar to what happened the last time. But it looks like a tough act to follow. Last year, there was no inflation; this year inflationary pressures are very high. Last year, fear was more and the actual number of people who got infected was very less. This time, it is across the board, Extended families, people we know seem to have got this infection this time. So, the post Covid bounceback is not going to be as rapid. That will be a challenge for investors.
RBI to conduct first special OMO of FY22 on May 06
April 29, 2021
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The central bank will purchase and sell securities for an aggregate amount of ₹10,000 crore each
The Reserve Bank of India (RBI) on Thursday said it will conduct the first special open market operation (OMO) of fiscal year 2022 (FY2022), entailing simultaneous purchase and sale of government securities (G-Secs) for an aggregate amount of ₹10,000 crore each, on May 06, 2021.
Under the special OMO (also known as Operation Twist/ OT), the central bank will purchase three G-Secs maturing in 2026, 2028 and 2030 for an aggregate amount of ₹10,000 crore.
It will simultaneously sell two 182-day treasury bills maturing on October 21 and October 28.
MUMBAI: The Indian equity market has been the third-best performer in all of Asia over the past 12 months with 59 per cent returns, but a fierce second Covid-19 wave could see foreign investors pull out as much as $5 billion in the coming months.
Brokerage firm UBS Securities India reckons that the recent foreign outflows from India could touch the $5 billion mark, as the Indian equity market undergoes a correction due to the risk to earnings growth from the second Covid wave.
“If valuations correct faster, the drawdown might be smaller; but if equity valuations are slow to correct and Covid-19 situation worsens, we could see a larger drawdown,” UBS Securities said in a report.