Benchmark domestic stocks decline around 2 per cent amid mixed global cues

Continuing the trend, the benchmark domestic stocks on Wednesday, January 27, 2021, declined around two per cent amid mixed global cues. The BSE Sensex closed below 48,000 mark while the NSE Nifty settled below 14,000 level.

The Sensex plunged 937.66 points, or 1.94 per cent, to 47,409.93. The NSE Nifty also tumbled 271.40 points, or 1.91 per cent, to settle at 13,967.50, while the Nifty Bank lost 913.85 points, or 2.93 per cent, and close at 30,284.55.

The broader market at BSE also fell out-performing the Sensex. The BSE Mid-Cap index ended 1.38 per cent down and the BSE Small-Cap index slipped 0.52 per cent.

Investor sentiment was dented after the new coronavirus variant resulted in fresh lockdowns and other restrictions on movement in certain countries across the globe. However, the COVID-19 vaccine rollout in many countries offered some respite.

Domestic shares were also under pressure ahead of monthly derivatives expiry on Thursday and the upcoming Union Budget.

Sellers outnumbered buyers. On the BSE, 1075 shares rose and 1839 shares fell. On the Nifty 50 index, 12 shares advanced and 38 declined. The top five stocks that gained on Nifty 50 index includes Tech Mahindra (up 2.62 per cent), SBI Life (up 2.34 per cent), Wipro (up 2 per cent), ITC (up 1.42 per cent), and UltraTech Cement (up 1.15 per cent). The top five losers were Tata Motors (down 4.44 per cent), Tata Steel (down 4.28 per cent), Titan (down 4.19 per cent), IndusInd Bank (down 4.02 per cent) and Hindalco (down 3.97 per cent).

COVID-19 Update

Total COVID-19 confirmed cases worldwide were at 10,02,70,602 with 21,57,355 deaths. India reported 1,76,498 active cases of COVID-19 infection and 1,53,724 deaths while 1,03,59,305 patients have been discharged, data showed.

International Monetary Fund Forecast on global economic growth

The International Monetary Fund (IMF) on Tuesday raised its forecast for global economic growth in 2021 and said the Coronavirus-triggered downturn in 2020 would be almost a full percentage point less severe than expected. It said multiple vaccine approvals and the unveiling of vaccinations in some countries in December had boosted hopes of an eventual end to the pandemic. IMF projected an impressive 11.5% growth rate for India in 2021. IMF's growth projections for India in its latest update released on Tuesday reflected a strong rebound in the economy. India's economy, the IMF said, is projected to grow by 6.8% in 2022 and that of China by 5.6%.

US future Stimulus Checks

The Biden administration signalled on Tuesday it could be open to tweaking eligibility for future stimulus checks. President Joe Biden's $1.9 trillion proposal calls for $1,400 direct deposits but the plan has drawn critiques from a bipartisan group of lawmakers because of its lofty price tag.