Post Session: Quick Review

Indian equity benchmarks extended their gaining streak for second straight session and ended with gains of over half a percent, with Sensex and Nifty settling above their crucial 39,100 and 11,650 levels, respectively. After making a cautious start, markets gained traction and traded in fine fettle, as traders reacted positively with Finance Minister Nirmala Sitharaman’s statement that GST collection of states and union territories (UTs) increased to Rs 5.18 lakh crore in the full financial year 2018-19, up from Rs 2.91 lakh crore collected in nine months of 2017-18. Traders took note of Commerce and Industry Minister Piyush Goyal’s statement that India is open to ideas from all sides to strengthen investors' confidence so that they can invest and participate in the country's development.

Benchmark indices rallied further in last hour of trade, taking support from a private report stating that domestic catalysts suggest a largely positive outlook for the bond market in the short-term, despite the recent correction in Indian bond yields. The market participants overlooked report which stated that India’s exports declined by 9.71 per cent to $25.01 billion in June 2019 compared to $27.7 billion in the same month last year due to a fall in shipments of gems and jewellery, engineering goods and petroleum products. Imports too declined by 9 per cent to $40.29 billion in June 2019 against $44.3 billion in June 2018 mainly and the trade deficit lowered to $15.28 billion in June from $16.6 billion in June 2018.

On the global front, Asian markets ended mixed on Tuesday as investors awaited earnings results from major US companies as well as key economic data due later this week for direction. European markets were trading mostly in green. Back home, select auto industry stocks ended lower, after automobile dealers' body Federation of Automobile Dealers Associations (FADA) said that retail sales of passenger vehicles (PV) in June declined by 4.6 per cent to 2,24,755 units as compared to the same period last year, hit by liquidity issues and delayed monsoon.

The BSE Sensex ended at 39117.69, up by 220.98 points or 0.57% after trading in a range of 38845.27 and 39173.89. There were 21 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.70%, while Small cap index was up by 0.29%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 1.80%, Consumer Durables up by 1.56%, Oil & Gas up by 1.52%, Power up by 1.50% and Utilities up by 1.47%, while IT down by 0.37% and TECK down by 0.34% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Yes Bank up by 12.18%, Tata Motors up by 5.90%, Tata Motors - DVR up by 4.31%, Sun Pharma up by 2.75% and NTPC up by 2.58%. (Provisional)

On the flip side, TCS down by 1.86%, Mahindra & Mahindra down by 1.32%, HCL Technologies down by 0.81%, Kotak Mahindra Bank down by 0.52% and Tech Mahindra down by 0.49% were the top losers. (Provisional)

Meanwhile, with a view to strengthen international investors' confidence so that they can invest and participate in the country's development, Commerce and Industry Minister Piyush Goyal has said that Indian government is looking for ideas from all sides. He added that the government aims to give confidence to international investors, with the best of technologies, to come to India and invest.

The Minister said ‘There are obviously some red lines, which each side may find difficult to compromise, but as long as we can respect that, as one would do in a business transaction or while negotiating a good deal, it will not be impossible to resolve it’. He also said that every country has to protect its national interest, legal sovereignty and the interests of its citizens.

Regarding free-trade agreements, Goyal said such pacts implemented by India in 2009-10 had not been good deals and some of them are causing agony which is why India is looking at the US to put that baggage behind and move forward. Talking on the proposed mega free trade pact RCEP, he said that India is working for a fair deal which protects the country's interests and does not allow unfair market access. He highlighted that from now, no agreement or trade pact on commerce will be at the cost of India's interests, the country's sovereign requirements and interests of the citizens.

The CNX Nifty ended at 11662.70, up by 74.35 points or 0.64% after trading in a range of 11573.95 and 11670.05. There were 37 stocks advancing against 13 stocks declining on the index. (Provisional)

The top gainers on Nifty were Yes Bank up by 12.23%, Tata Motors up by 5.75%, Adani Ports &SEZ up by 2.82%, Sun Pharma up by 2.62% and NTPC up by 2.42%. (Provisional)

On the flip side, TCS down by 1.90%, Mahindra & Mahindra down by 1.47%, UPL down by 0.94%, HCL Tech. down by 0.82% and Britannia Industries down by 0.63% were the top losers. (Provisional)

European markets were trading mostly in green; UK’s FTSE 100 increased 13.48 points or 0.18% to 7,545.20 and France’s CAC rose 8.65 points or 0.16% to 5,586.86, while Germany’s DAX decreased 4.60 points or 0.04% to 12,382.74.

Asian markets ended mixed on Tuesday as investors awaited earnings results from major US companies as well as key economic data due later this week for direction. Chinese shares ended lower as investors fretted over slower growth in the world's second-largest economy and the impact of the Sino-US trade war, even as new data highlighted Beijing's efforts to boost spending. Japanese shares closed down as traders returned to their desks after a national holiday on Monday. Meanwhile, Seoul shares ended higher as investors awaited cues from the second-quarter earnings results to be released later this month.