Post Session: Quick Review

Markets rebounded sharply on Tuesday after two consecutive sessions of fall, which lifted both Sensex and Nifty above psychologically crucial 37,800 and 11,400 levels respectively, with gains of over half a percent. Sentiments remained upbeat right from the start of trade on the back of good macro-economic data. The Central Statistics Office’s (CSO) data showed that India’s Retail inflation fell to nine-month low of 4.17% in July on account of slowdown in prices of vegetables and fruits. Its previous low was in October 2017 at 3.58%. Retail inflation, measured by Consumer Price Index (CPI) had hit a five-month high of 5% in June. Traders also took some encouragement with a private report that India’s foreign reserves are in a comfortable range and another 5-8% fall in reserves will not jeopardise the situation.

Buying intensified during second half of the day, as traders remained in a jubilant mood with data indicating that Inflation based on wholesale prices cooled slightly to 5.09% in July as compared to 5.77% in June, indicating that prices of certain commodities have fallen marginally. Local investors also cheered with a report that micro and small enterprises (MSEs) are getting more and more optimistic about their business prospects. The CriSidEx index, which measures sentiment among MSEs rose to a three-quarter high of 127 in the first quarter of the current financial year, up from 121 in the fourth quarter of the previous financial year.  However, markets erased some of the initial gains as the Reserve Bank of India (RBI) in its annual inspection of banks’ books examined 200 stressed accounts dating back to 2011.

On the global front, Asian markets ended mixed, after Wall Street declined and Turkey’s currency crisis fed fears about emerging markets. European markets were trading in green in early deals on Tuesday. Back home, aviation related stocks ended lower with ASSOCHAM’s statement that the aviation sector which was showing an immense promise till about a year ago, is facing head winds with most of the airlines battling a survival issue, hit by rising fuel costs and other expenses even as a cut - throat competition is making the aviation firms bleed. Besides, realty sector was in focus with private report stating that the sector needs more reforms to break free of the various ills that still plague it in order to realise its full potential as a major contributor to the country's GDP.

The BSE Sensex ended at 37849.82, up by 204.92 points or 0.54% after trading in a range of 37689.71 and 37932.40. There were 18 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index surged 0.95%, while Small cap index was up by 0.52%. (Provisional)

The top gaining sectoral indices on the BSE were Healthcare up by 2.49%, Realty up by 1.60%, Energy up by 1.22%, Bankex up by 0.98% and Consumer Disc up by 0.67%, while Capital Goods down by 0.43%, Telecom down by 0.36%, Power down by 0.21%, Industrials down by 0.19% and PSU down by 0.15% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Sun Pharma up by 6.81%, Yes Bank up by 3.06%, ICICI Bank up by 2.35%, Axis Bank up by 2.06% and Reliance Industries up by 1.84%. (Provisional)

On the flip side, Adani Ports &SEZ down by 1.21%, Hero MotoCorp down by 1.19%, Larsen & Toubro down by 1.17%, NTPC down by 0.73% and Tata Motors - DVR down by 0.70% were the top losers. (Provisional)

Meanwhile, Petroleum Planning and Analysis Cell (PPAC) of the oil ministry in its latest data has showed India’ fuel demand surged 7.3 percent in July 2018, driven by sharp rise in petrol and diesel consumption. In the month of July, fuel consumption totalled 17.05 million tonnes as compared to 15.88 million tonnes in the same month last year. The rise comes on back of 8.6 percent growth in June when demand totalled 17.99 million tonnes.

During the month of July, petrol sales were up 7.8 percent at 2.3 million tonnes, while diesel consumption was up 4.8 percent to 6.6 million tonnes. In the previous month (June), petrol sales were up almost 15 percent, while diesel showed a flatish growth.

Additionally, while Rs 3.8 a litre hike in petrol and Rs 3.38 in diesel propelled rates to hit an all-time high of Rs 78.43 a litre and Rs 69.31, respectively, on May 29 in Delhi, prices cooled off in subsequent months. Petrol price was down to Rs 76.31 by the end of July and diesel to Rs 67.82. The drop in oil prices was also one of the factors that fuelling rise in consumption. Besides, during July, jet fuel or aviation turbine fuel (ATF) sale was up 12.7 percent at 6,72,000 tonne.

The CNX Nifty is currently trading at 11431.10, up by 75.35 points or 0.66% after trading in a range of 11370.80 and 11452.45. There were 31 stocks advancing against 19 stocks declining on the index. (Provisional)

The top gainers on Nifty were Sun Pharma up by 6.71%, Yes Bank up by 3.52%, Lupin up by 3.14%, Cipla up by 2.78% and Ultratech Cement up by 2.49%. (Provisional)

On the flip side, UPL down by 2.67%, Hero MotoCorp down by 1.41%, Larsen & Toubro down by 1.28%, HPCL down by 1.23% and Adani Ports &SEZ down by 1.05% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 was up by by 1.23 points or 0.02% to 7,643.68, France’s CAC rose 7.90 points or 0.15% to 5,420.22 and Germany’s DAX increased by 29.67 points or 0.24% to 12,388.41.

Asian equity markets ended mixed on Tuesday as Chinese data disappointed and worries about Turkey eased slightly after the country's central bank announced a raft of measures aimed at soothing markets. Chinese shares ended lower after a slew of Chinese data on industrial output, retail sales and fixed asset investment came in slightly below expectations. Retail sales in China jumped an annual 8.8 percent on year in July, a tad below expectations for a 9.1 percent gain and down from 9.0 percent in June. Industrial production advanced an annual 6.0 percent - unchanged from a month earlier but again beneath forecasts for 6.3 percent. Fixed asset investment grew 5.5 percent from a year earlier - missing expectations for 6.0 percent growth. Meanwhile, Japanese shares rose sharply and the yen pared some of Monday's rise after Turkey's central bank pledged to provide liquidity and cut reserve requirements for banks.