Despite the central government's economic package, the indifference of investors in the market


Mumbai - The Indian stock markets continued to bleed on Monday with S&P BSE Sensex and NIFTY 50 registering a fall of over 3%. At the end of the trading session the 30-share Sensex was at 30020.76 points, after a fall of 1076.97 points or 3.46%.

The 50-share NIFTY too fell in the same range, shedding 313.60 points, or 3.43% to close at 8823.25 points, told Mr. Aamar Deo Singh, Head Advisory, Angel Broking Ltd. 

Mr. Amar Said that, government had announced a Rs 20 lakh crore financial stimulus package for the economy last week, and the stock markets have been in the red ever since, suggesting that the investor sentiment is negative on the measures announced by the government.

Another reason for the continued negative sentiment in the stock markets is the extension of the nationwide lockdown by the government which has entered into its fourth phase since it was first announced on March 25. Axis bank, ICICI Bank, IndusInd Bank, Maruti, and Bajaj Finance were the major losers of the day.

Bellwether stock RIL made a major comeback today with its General Atlantic deal that made the share gain close to 2% from the previous closing trade. The company declared the sale of 1.34 % stake of its digital unit to global equity enterprise General Atlantic for Rs 6,598.38 crore. However, the stock ended in the red at Rs. 1,438.15, tumbling down by Rs. 21.25 or 1.46%. 

Defense stocks in spotlight; shoot up by 10%
The Defense companies’ stocks reported a rise of up to 10% in early Monday trade after the Government announced to offer relaxation in provisions regarding foreign direct investment. The ministry declared an ease of manufacturing in defensesector by granting 74 % foreign direct investment under the automatic route in order to captivate overseas players in the sector.

The stock that registered major gains include TAAL Enterprises Ltd that closed at Rs. 119.90, rising by Rs 8.55 or 7.68%. Another stock in limelight was Hindustan Aeronautics Ltd that ended at Rs. 545.30, escalating by 21.80 or 4.16%.

Perking up to the comprehensively weaker Monday market trend, shares of Bharat Electronics rose 5.53 %, Bharat Dynamics surged 4.71%, whereas Astra Microwave Products traded 4.93% up on the BSE against previous closing trade.

Banking stocks take a beating
While most sectoral indices registered losses in the day’s trade, losses in banking sector stocks weighed the most on Sensex today. Banking stocks witnessed selling pressure from investors on account of worries over their asset quality, after the government’s decision to suspend filing of fresh insolvency cases under the Insolvency and Bankruptcy Code for the next 12 months.

Private sector lender HDFC Bank dropped 5.56 per cent in its value, while Housing Development Finance Corp lost 7.42 percent of its value. Other banks that were under pressure today included Axis Bank, ICICI Bank and Kotak Mahindra Bank, with losses in the range of 3% to 7%.

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