Post Session: Quick Review

Indian equity benchmarks closed Friday’s trading session on a higher note. After a positive start of the day, key indices traded in green terrain during whole trading session, supported with a private report that Russia is looking for a partnership with India for producing the Covid-19 vaccine Sputnik V. Russian Direct Investment Fund (RDIF) is likely to do phase 3 clinical trials in Russia, UAE, Saudi Arabia, Brazil and Philippines. The street remained positive with latest payroll data showing that net new enrolments with retirement fund body EPFO rose to 6.55 lakh in June from 1.72 lakh during May 2020, providing a perspective on employment in the formal sector amid the COVID-19 crisis. Provisional payroll data released by the EPFO last month had shown that net new enrolments stood at 3.18 lakh in May this year. The figure has now been revised to 1,72,174.

Firm trade continued over the Dalal Street in the second half of the trading session, on the back of positive cues from the global markets. Adding comfort among market participants, the Income Tax department said it has issued refunds worth Rs 88,652 crore to over 24 lakh taxpayers so far this fiscal. This include personal income tax (PIT) refunds amounting to Rs 28,180 crore issued to over 23.05 lakh taxpayers and corporate tax refunds amounting to Rs 60,472 crore to over 1.58 lakh taxpayers during this period. Domestic sentiments remained upbeat on a private report that foreign investors pumped in nearly $4 billion in Indian equities in the three months ended June on attractive valuations, lifting of lockdown curbs and the government's efforts to kick start economic activity.

On the global front, European markets were trading mostly in green seemingly shrugging off disappointing economic data out of the euro zone, while geopolitical tensions remain in focus. Asian markets ended higher on Friday, even after the manufacturing sector in Japan continued to contract in July, albeit at a weaker pace. The latest survey from Jibun Bank showed with a manufacturing PMI score of 46.6. That's up from 45.2 in June, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the services PMI fell to 45.0 from 45.4 in June, while the composite PMI was unchanged at 44.9.

The BSE Sensex ended at 38434.72, up by 214.33 points or 0.56% after trading in a range of 38411.37 and 38579.83. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.57%, while Small cap index was up by 1.41%. (Provisional)

The top gaining sectoral indices on the BSE were Power up by 2.83%, Utilities up by 2.63%, Realty up by 1.43%, Bankex up by 1.27% and PSU up by 1.25%, while Telecom down by 0.80%, Energy down by 0.60%, TECK down by 0.48%, Metal down by 0.44% and Oil & Gas down by 0.36% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 4.75%, Asian Paints up by 4.43%, Power Grid up by 4.39%, HDFC Bank up by 2.68% and Sun Pharma up by 2.25%. On the flip side, ONGC down by 1.16%, Bharti Airtel down by 1.05%, Tata Steel down by 0.81%, Reliance Industries down by 0.70% and Infosys down by 0.65% were the top losers. (Provisional)

Meanwhile, the Retirement fund body, Employees' Provident Fund Organisation (EPFO) in its latest ‘Provisional Estimate of Net Payroll’ data report has showed that India created 65,5311 new jobs in the month of June 2020 as against revised figure of 17,2174 in May 2020.

As per the report, the maximum jobs were created in the age bracket of 22-25 and in this bracket the top sectors which have created more fresh jobs include Expert Services; Trading - Commercial Establishments; establishment engaged in manufacture, marketing servicing, usage of computers; Electric-Mechanical-or General Engineering Products; Engineers- Engineering Contractors; Building & Construction Industry; Financing Establishment and Hospitals. In the similar age bracket, Maharashtra was the first among the States to create maximum payroll, followed by Karnataka, Gujarat, Tamil Nadu, Delhi and Haryana.

According to the data report, 6044 new jobs were created in less than 18 age group category, while 15,0493 jobs in 18-21 age group category. Further, 22-25 age, 26-28 age, 29-35 age and more than 35 age group category witnessed 15,6339, 86,952, 13,2755 and 12,2728 new payrolls, respectively in June 2020.

The CNX Nifty ended at 11371.60, up by 59.40 points or 0.53% after trading in a range of 11362.20 and 11418.50. There were 30 stocks advancing against 20 stocks declining on the index. (Provisional)

The top gainers on Nifty were NTPC up by 4.80%, Asian Paints up by 4.43%, Power Grid up by 4.36%, Hero MotoCorp up by 2.62% and HDFC Bank up by 2.52%. On the flip side, Zee Entertainment down by 3.71%, Hindalco down by 1.38%, ONGC down by 1.34%, Bharti Airtel down by 1.01% and Tata Steel down by 0.87% were the top losers. (Provisional)

European markets were trading mostly in green; France’s CAC rose 9.65 points or 0.2% to 4,920.89 and Germany’s DAX gained 45.03 points or 0.35% to 12,890.83, while UK’s FTSE 100 dropped 16.67 points or 0.28% to 5,996.67.

Asian markets ended higher on Friday on expectations for a corona virus vaccine, with Pfizer Inc and BioNTech SE stating that they are on track to seek regulatory review for their corona virus vaccine candidate as early as October 2020. Investors' sentiment also improved further in tracking a technology stocks-driven rally on Wall Street in which the Nasdaq Composite index hit a record high. China and the United States have agreed to hold trade talks in the coming days to evaluate the Phase One trade deal’s progress, helped to outweigh downbeat US jobless claims data released overnight. The US Labor Department said initial jobless claims for the week ending August 15 came in at 1.106 million. Chinese shares closed higher ahead of the implementation of reforms measures for Shenzhen's start-up board ChiNext. Seoul stocks ended sharply higher after data showed South Korean exports contracted by a smaller percentage in the first 20 days of August than in July. Exports contracted 7 percent from a year earlier in the period, versus a drop of 13 percent in the same period in July. While, imports declined 12.8 percent year-on-year in the first 20 days of August.