Post Session: Quick Review

Indian equity benchmarks ended volatile session in green terrain on Monday. After a positive start of the day, indices trade volatile during the day, as the government data showed that contracting for the fifth straight month, India's exports slipped 10.21 per cent to $23.64 billion in July, on account of decline in the shipments of petroleum, leather and gems and jewellery items. Traders were worried, amid a private report stating that as many as 159 companies listed on the BSE cumulatively saw a decline of Rs 22,538 crore in their EBITDA in the three months ended March 2020 compared to the December quarter, reflecting an early impact of the coronavirus pandemic. EBITDA stands for earnings before interest, tax, depreciation and amortisation.

However, markets remained in green for the most part of the session and extended gains in late hour of the trade, with report that foreign portfolio investors (FPI) remained net investors in Indian markets in the first half of August, pumping in Rs 28,203 crore in debt and equities on net basis in the period. Market participants took a note of president of CII’s statement that ‘PM’s address was an address of confidence in COVID times combined with aspiration & hope. India has to understand the global trend, which is instead of multilateralism to bilateralism. Move away from multilateralism because that is out of fashion as I see it.’

On the global front, European markets were trading slightly higher despite geopolitical tensions and concerns over the spread of the coronavirus on investors’ radar. Asian markets ended mixed on Monday, after Japan's gross domestic product plummeted an annualized 27.8 percent on year in the second quarter of 2020. That missed expectations for a decline of 27.2 percent following the 2.2 percent drop in the previous three months. On a seasonally adjusted quarterly basis, GDP sank 7.8 percent - again missing forecasts for a fall of 7.6 percent following the 0.6 percent slide in the three months prior.

The BSE Sensex ended at 38050.78, up by 173.44 points or 0.46% after trading in a range of 37734.14 and 38119.38. There were 24 stocks advancing against 5 stocks declining, while 1 stock remained unchaged on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.41%, while Small cap index was up by 0.84%. (Provisional)

The top gaining sectoral indices on the BSE were Power up by 2.96%, Metal up by 2.73%, Utilities up by 2.66%, Auto up by 2.50% and Consumer Disc up by 1.83%, while Energy down by 0.69% and Telecom down by 0.58% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 7.92%, Bajaj Auto up by 4.27%, Tech Mahindra up by 3.62%, ONGC up by 2.79% and Maruti Suzuki up by 2.67%. On the flip side, SBI down by 1.73%, Bharti Airtel down by 1.42%, Reliance Industries down by 1.07%, Sun Pharma Inds. down by 0.58% and ICICI Bank down by 0.33% were the top losers. (Provisional)

Meanwhile, expressing optimism, Telecom Equipment Manufacturers Association of India (TEMA) has said that the Prime Minister's vision around building national infrastructure pipeline projects will boost employment and create new opportunities.

TEMA views announcements as a signal from the PM for the industry to enhance its participation in the development of National Infrastructure. Besides, TEMA Chairman Ravi Sharma said the industry is bullish about the thrust given to promoting the domestic industry to make India' Aatmanirbhar.'

Further, Sharma noted that support in terms of reduced levies to the local manufacturers and special provisions to upskill the talent that has come back to the country during COVID should be taken up on priority.

The CNX Nifty ended at 11247.10, up by 68.70 points or 0.61% after trading in a range of 11144.50 and 11267.10. There were 39 stocks advancing against 11 stocks declining on the index. (Provisional)

The top gainers on Nifty were NTPC up by 7.81%, Zee Entertainment up by 5.52%, Eicher Motors up by 4.92%, Hero MotoCorp up by 4.40% and Bajaj Auto up by 4.29%. On the flip side, SBI down by 1.73%, Bharti Airtel down by 1.36%, BPCL down by 1.29%, Reliance Industries down by 1.06% and Tata Motors down by 0.84% were the top losers. (Provisional)

European markets were trading slightly higher; UK’s FTSE 100 added 0.09 points or 1.84% to 6,071.94, France’s CAC gained 2.49 points or 0.05% to 4,965.42 and Germany’s DAX was up by 0.7 points or 0.01% to 12,902.04.

Asian markets ended mixed on Monday after the United States and China postponed virtual trade talks planned for this weekend, while US President Donald Trump issued an executive order on Friday forcing ByteDance, the Chinese company behind TikTok, to sell-off or spin-off its US social media business in 90 days. Chinese shares ended higher after the Chinese central bank (PBOC) injected liquidity into the financial system. The PBOC extended 700 billion yuan of one-year loans via its medium-term lending facility on Monday, up from the two batches of MLF loans worth a combined 550 billion yuan that were due to expire in August, albeit at the same rate of 2.95%.However, Japanese shares ended down after data showed the country’s economy plummeted an annualized 27.8 percent in the second quarter of 2020, missed expectations for a decline of 27.2 percent following the 2.2 percent drop in the previous three months. Markets in South Korea and Indonesia were closed for holidays.