Post Session: Quick Review

Indian equity benchmarks ended higher with notable gains on Monday. After a negative start, markets remained lower for the most part of the trading session, as cautiousness came after Care Ratings said the credit growth for FY22 is likely to remain in low double-digit on the back of muted economic activity. Traders were cautious, as private report has projected real GDP growth of 8.7 per cent in FY22, down from 11.1 per cent it had forecast earlier. However, it revised up the FY23 forecast from 4 per cent to 5.4 per cent.

Adding more worries among market participants, a private report stated that hiring across sectors declined in May, though the tech industry job market rebounded from the pandemic-induced downturn as many technology companies have been on full expansion mode. There was a 2 percent decline in the overall number of new job posts in May on the SCIKEY Market Network, a job site, including in sectors like banking with a dip of 12 percent, retail 16 percent, and FMCG 12 percent, while there was a growth of 5 percent in the insurance sector.

But, in the last hours of the trade, indices turned positive, taking support with a UN report stated that India received $64 billion in Foreign Direct Investment in 2020, the fifth largest recipient of inflows in the world, It also said that the COVID-19 second wave in the country weighs heavily on the country's overall economic activities but its strong fundamentals provide optimism for the medium term. Some support also came in as Chief Economic Advisor (CEA) K V Subramanian has said the government is open to coming out with more measures to boost the economy which has been hit by the second wave of the coronavirus pandemic.

On the global front, European markets were trading higher. Asian markets ended mostly lower on Monday, after China kept its benchmark lending rates unchanged, as widely expected. The one-year loan prime rate was maintained at 3.85 percent and the five-year loan prime rate was retained at 4.65 percent. The one-year and five-year loan prime rates were last lowered in April 2020. The one-year loan prime rate was cut by 20 basis points and five-year rate by 10 basis points in April 2020.

The BSE Sensex ended at 52574.46, up by 230.01 points or 0.44% after trading in a range of 51740.19 and 52629.18. There were 21 stocks advancing against 9 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.82%, while Small cap index was up by 0.83%. (Provisional)

The top gaining sectoral indices on the BSE were Power up by 2.55%, Realty up by 2.37%, Utilities up by 1.89%, PSU up by 1.61% and Oil & Gas up by 1.18%, while Auto down by 0.51%, IT down by 0.28% and TECK down by 0.26% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 3.87%, Titan Co up by 1.87%, SBI up by 1.64%, Hindustan Unilever up by 1.42% and Ultratech Cement up by 1.31%. On the flip side, Maruti Suzuki down by 0.82%, TCS down by 0.74%, Tech Mahindra down by 0.71%, Mahindra & Mahindra down by 0.63% and Larsen & Toubro down by 0.59% 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 1275729 new jobs in the month of April 2021.

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; 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, Haryana and Delhi.

According to the data report, 6424 new jobs were created in less than 18 age group category, while 225920 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 327019, 185564, 271833 and 258969 new payrolls, respectively in April 2021.

The CNX Nifty ended at 15746.50, up by 63.15 points or 0.40% after trading in a range of 15505.65 and 15765.15. There were 34 stocks advancing against 16 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Ports & SEZ up by 5.29%, NTPC up by 3.92%, Titan Co up by 1.84%, SBI up by 1.66% and HDFC Life Insurance up by 1.35%. On the flip side, UPL down by 4.43%, Wipro down by 1.39%, Hindalco down by 1.01%, Tata Motors down by 0.92% and Maruti Suzuki down by 0.85% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 3.44 points or 0.05% to 7,020.91, France’s CAC increased 2.07 points or 0.03% to 6,571.23 and Germany’s DAX was up by 38.39 points or 0.25% to 15,486.43.

Asian markets ended mostly lower on Monday. Japanese shares dropped as the safe-haven yen firmed up following possible rate hikes sooner and faster. St. Louis Fed President James Bullard said he sees an initial interest rate increase happening in 2022. However, Chinese shares settled higher as the country's central bank PBoC kept its benchmark lending rates unchanged, as widely expected. The one-year Loan Prime Rate (LPR) was maintained at 3.85% and the five-year LPR was also unchanged at 4.65%.