Markets closed near flat line; Sensex fell 14 points & Nifty closed at 15,208

The range-bound trade ended near the flat line on Tuesday, May 25, 2021. The S&P BSE Sensex lost 14.37 points or 0.03 per cent to close at 50,637.53. On the NSE, the Nifty 50 index defended the psychological level of 15,200 and closed 10.75 points or 0.07 per cent higher at 15,208.45. The Nifty Bank index fell 281.60 points or 0.81 per cent to 34,662.

In the broader market, the BSE MidCap index slipped 0.31 per cent and the BSE SmallCap index added 0.26 per cent.

The market breadth was positive. On the BSE, 1,786 shares rose and 1,342 shares fell. A total of 153 shares were unchanged. On the Nifty 50 index on NSE, 38 shares advanced and 11 shares declined while one share remain unchanged. The top five gainers on Nifty were Asian Paints (up 3.51 per cent), Titan (up 3.31 per cent), JSW Steel (up 3.02 per cent), Eicher Motors (up 2.93 per cent) and Britannia (up 2.21 per cent). The top five losers were HDFC Bank (down 1.92 per cent), HDFC Life (down 1.37 per cent), Axis Bank (down 1.18 per cent), Reliance (down 1.09 per cent) and Coal India (down 0.94 per cent).

COVID-19 Update

Total COVID-19 confirmed cases worldwide were at 16,73,22,795 with 34,73,574 deaths. India reported 25,86,782 active cases of COVID-19 infection and 3,07,231 deaths while 2,40,54,861 patients have been discharged, data showed.

Indian Economy

Domestic ratings agency ICRA on Monday forecast 2 per cent GDP growth in the fourth quarter of 2020-21, and 7.3 per cent contraction for the full fiscal year. From a gross value added (GVA) perspective, the agency pegs Q4 growth at 3 per cent and the full-year contraction at 6.3 per cent. According to the agency, the 2 per cent projected GDP growth will help the economy avoid a double-dip recession as indicated by the National Statistical Office (NSO) for the fourth quarter.

Global forecasting firm Oxford Economics has lowered India's growth projections for the current financial year to 9.1 per cent from 10.2 per cent because of the slow COVID-19 vaccination drive and the need to extend state-imposed lockdowns for a longer period to contain the spread of the virus.

Meanwhile, a foreign brokerage on Tuesday slashed India's FY22 GDP growth estimate by a sharp 0.80 per cent to 9.2 per cent, saying the economic impact of the second wave of infections has been deeper than initially expected. The brokerage also mentioned the slow pace of vaccinations in the country and the rolling lockdowns across many states for the estimate.

Hallmarking of Gold Jewellery set to begin from June 15

Hallmarking of Gold Jewellery is set to begin from June 15, 2021. In view of COVID, the Government accepted the request of stakeholders to give jewellers some more time to get prepared for implementation and resolve issues. Earlier it was expected to be implemented from June 1, 2021. A committee was formed to ensure proper coordination and resolve the implementation issues.

Under Hallmarking scheme of the Bureau of Indian Standards, BIS Jewellers are registered for selling hallmarked jewellery and recognise testing and hallmarking centres. BIS (Hallmarking) Regulations were implemented from June 14, 2018. Hallmarking will enable Consumers and Jewellery buyers to make the right choice and save them from any unnecessary confusion while buying gold. At present, only 30 per cent of Indian Gold Jewellery is hallmarked.

Singapore Economy

Singapore's economy expanded 1.3 per cent year-on-year in the first quarter, data from the Ministry of Trade and Industry released on Tuesday showed. The ministry also announced it would maintain Singapore's GDP growth forecast for 2021 at 4 to 6 per cent.