Post Session: Quick Review

Bulls held a tight grip over the Dalal Street on Monday, with both Sensex and Nifty ending on a strong note. Markets made slightly negative start of the trading session, ahead of GDP data for the March quarter along with the core sector data for April to be out later in the day. Some cautiousness came in as an SBI Research analysis of EPFO payroll data shows that net job creation in the economy fell by 16.9 lakh in FY21 over the previous fiscal. Additionally, India Meteorological Department (IMD) said that the arrival of monsoon over Kerala is likely to delayed by two days and it is now expected to make an onset over the state by June 3.

But soon, key indices gained traction, as falling COVID-19 infection rates in India lifted up sentiment over the street. India has been witnessing a steady decline in daily cases. The country recorded 153,485 fresh Covid-19 cases in the last 24 hours, the lowest daily count in 48 days or since April 13, 2021. Domestic sentiments remained positive, after the finance ministry expanded the scope of the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), which will now offer concessional loans to hospitals for setting up on-site oxygen generation plants. Adding more comfort among traders, the Ministry of Labour and Employment announced additional benefits for workers through social securities schemes run by the EPFO and the ESIC amid the COVID-19 pandemic.

In the second half of the trading session, markets added more gains, taking support with Revenue Secretary Tarun Bajaj’s statement that Indian economy has not suffered as much this year amid the second wave of COVID-19 as compared to last year when there was complete lockdown. Giving two scenarios, he said if Rs 1.10 lakh crore GST is collected per month, the deficit in states’ revenue would be Rs 1.50 lakh crore. If Rs 1.15 lakh crore GST is collected monthly, then that deficit would be Rs 1.25 lakh crore. So since Rs 1.58 lakh crore would be borrowed this fiscal towards compensating states, the extra borrowing, over and above what is the shortfall this year, would be utilised to make good the shortfall in states’ revenue of previous years.

On the global front, European markets were trading mixed, ahead of inflation data for some of the region’s biggest economies. Asian markets ended mostly higher, after the manufacturing sector in China continued to expand in May, albeit at a slower pace, the latest survey from the National Bureau of Statistics showed on Monday with a manufacturing PMI score of 51.0. That was shy of expectations for 51.1, which would have been unchanged from the April reading. It does, however, remain well above the boom-or-bust line of 50 that separates expansion from contraction.

The BSE Sensex ended at 51937.44, up by 514.56 points or 1.00% after trading in a range of 51179.94 and 52013.22. There were 22 stocks advancing against 8 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.45%, while Small cap index was up by 0.50%. (Provisional)

The top gaining sectoral indices on the BSE were Energy up by 2.46%, Metal up by 2.25%, Telecom up by 1.63%, Oil & Gas up by 1.36% and Realty up by 1.33%, while IT down by 0.15% and Auto down by 0.13% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Reliance Industries up by 3.13%, ICICI Bank up by 2.95%, Bharti Airtel up by 2.16%, Dr. Reddy’s Lab up by 2.08% and Maruti Suzuki up by 1.89%. On the flip side, Mahindra & Mahindra down by 4.53%, Infosys down by 0.79%, Indusind Bank down by 0.53%, Larsen & Toubro down by 0.23% and Sun Pharma down by 0.20% were the top losers. (Provisional)

Meanwhile, with an aim to provide relief to small taxpayers, Union Finance Minister Nirmala Sitharaman has said that compliance burden of small taxpayers and medium-sized taxpayers has been reduced and an amnesty scheme has been recommended for reducing late fee payable.

According to the Union Finance Minster, taxpayers can now file their pending returns and avail the benefits of this amnesty scheme with reduced late fees. Late fees have also been rationalised. The rationalised late fee and the decision to reduce the maximum amount of late fee for small taxpayers will come into effect for future tax periods. This will provide a long-term relief to small taxpayers.

Finance Minister noted that due to rising cases of black fungus, Amphotericin B has also been included in the exemptions list. She also stated that issue of COVID-related equipment was one of the items on the agenda that was discussed.

The CNX Nifty ended at 15582.80, up by 147.15 points or 0.95% after trading in a range of 15374.00 and 15606.35. There were 37 stocks advancing against 12 stocks declining, while 1 stock remained unchanged on the index. (Provisional)

The top gainers on Nifty were Reliance Industries up by 3.13%, ICICI Bank up by 3.06%, JSW Steel up by 3.06%, Dr. Reddy’s Lab up by 2.21% and Bharti Airtel up by 2.16%. On the flip side, Mahindra & Mahindra down by 4.48%, Adani Ports & SEZ down by 0.85%, Infosys down by 0.80%, Larsen & Toubro down by 0.70% and Indusind Bank down by 0.62% were the top losers. (Provisional)

European markets were trading mixed, France’s CAC increased 7.33 points or 0.11% to 6,491.44 and Germany’s DAX was down by 27.78 points or 0.18% to 15,492.20.

Asian markets ended mostly higher on Monday. Chinese shares ended higher, while the yuan hit a three-year high against the dollar today before falling back following warnings from Chinese officials against speculative bets on the currency. Official manufacturing purchasing managers’ index (PMI) fell slightly to 51.0 in May from 51.1 in April. The non-manufacturing PMI came in with a score of 55.2 from 54.9 in April. However, Japanese shares declined on profit booking as Tokyo and other parts of the country are under a virus state of emergency which was extended on Friday until 20 June, just over a month before the opening ceremony on 23 July. Investors also digested downbeat industrial output and retail sales figures.