Q3 GDP numbers of India || Indian stock market today

 

Indian stock market fell sharply today ahead of the Q3 GDP numbers of India

 

Stock markets opened a gap down today ahead of the Q3 GDP numbers of India, tracking negative trends in global markets. Heavy selling in the Banking and Financial sectors dragged down the markets today. The key benchmark indices extended their morning losses on account of selling in frontline counters and in the end the indices closed in the deep red today.

The market sentiments remained down-beat with Moody’s Investor Service stating that loans to retail customers, especially those to the low-income borrowers, will remain most affected due to the chock caused by the coronavirus pandemic. Traders remained cautious ahead of the gross domestic product (GDP) numbers of India estimates for the Oct-December end quarter for FY21.

Traders also took note of the WTO review report stated that India’s trade policy had remained largely unchanged since the previous review in 2015, with continued heavy reliance on instruments such as the tariff, export taxes, minimum import prices, import, and export restrictions, and licensing. On custom duties, it said, concern was expressed with respect to its complexity and uncertainty, the increase in tariff rates, tariff preferences, and tariff concessions.

On the global front, Asian markets were closed in the red due to negative global cues. The European markets are trading lower as investors booked profits in technology shares due to concerns over rising inflation and interest rates on the back of rising bond yields. The US futures markets are trading flat at this moment at 4 pm IST.

 

Stock market Indices ahead of the Indian GDP numbers

 

At the close, Nifty fell 568.20 points or 3.76% and closed at 14529.15 while Sensex slipped 1939.32 points or 3.79% and finished at 49099.99 levels. The Bank Nifty on the spot price tanks 1745.40 points or 4.77% and ended at 34803.60 levels.

The Nifty midcap and smallcap 100 indices also closed lower today. The Nifty midcap index fell 378.30 points or 1.60% and closed at 23268.50. The smallcap index was down by 98.80 points or 1.21% and ended at 8049.70 levels.

There is no gainer in the Nifty50 index for today the top five losers are ONGC, JSW Steel, Hero Motor Corp, M&M, and Kotak Mahindra Bank. The most active stocks in the Nifty50 index for the day were Bharti Airtel, Reliance, and ICICI Bank.

On the sectoral front, today all major sectors closed in the red. The sectors that closed in the deep red are Banking, Finance, Insurance, Infrastructure, Oil & Gas, Metals, and IT & Software.

 

Indian stock market on a weekly basis

 

Indian stock markets on a weekly closing basis closed more than 3 percent lower. The markets declined due to weakness in global markets, profit booking due to fear of FIIs pulling out, and cautiousness ahead of the Q3 GDP numbers of India. 

Sensex on a weekly basis slipped 1789.77 points or 3.52% and closed at 49099.99 levels while Nifty declined 452.6 points or 3.01% and ended at 14529.15 levels. The Bank Nifty on the spot price tanks 1038 points or 2.90% and closed at 34803.6 level.

The midcap and smallcap indexes outperformed the benchmark indices and closed marginally higher on a weekly basis. The Nifty midcap index up by 149.75 points or 0.65% and closed at 23268.5 levels. The small-cap index closed higher by 69.45 points or 0.87% and ended at 8049.7 levels

 

F&O market updates today: Nifty & Bank Nifty futures 

 

The Nifty futures share price today opened at 14948, it made a gap down opening of 221.5 points. It has touched an intraday high at 14949.95 and a day’s low at 14521.65

The Nifty futures share price has given a movement of 428.3 points. In the end, it fell 604.25 points or 3.98%, and closed at 14565.25 levels.

The Bank Nifty futures share price opened at 36000 It made a gap down opening of 719.7 points today. It has touched an intraday high at 36080 and a day’s low at 34660

During the day, the Bank Nifty futures share price has given a movement of 1420 points. In the end, it plunged 1830.7 points or 4.99% and closed at the 34889 levels.

 

Q3 GDP numbers of India

 

The  Q3 FY21 GDP number of India is reported 0.4% growth, this as compared to -7.5% on a QoQ basis. The FY21 GDP is seen contracting 8% now.  The analyst and various research institutions expected the Q3 GDP to be between 0.7-1.3%, though the GDP number is below expectation, the positive part is Indian economy is back on track.

 

Conclusions:

A sharp correction witnessed in the market today, the banking and financial service sector took the led in today’s fall. The weakness in global markets due to the rise in bond yields and inflationary fear and cautiousness ahead of the domestic Q3 GDP numbers are the main reason behind the market fall. 

Going ahead, Indian markets will first react to the Q3 GDP numbers on Monday. You can follow our next week’s stock recommendations and key factors that are going to impact the stock markets next week reports tomorrow.

 

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