Post Session: Quick Review

Indian equity benchmarks ended higher with notable gains on Thursday. Markets made a positive start of the trading day, as sentiments got a boost with data released by the Department for Promotion of Industry and Internal Trade (DPIIT) showing that India had attracted a total foreign direct investments (FDI) inflow of $6.24 billion in April, up by 38 per cent year-on-year. Meanwhile, India has recorded 54,319 cases in the last 24 hours, taking the country's total coronavirus caseload to 30,082,169. India also recorded a spike in new deaths with 978 fatalities being reported yesterday. The death toll now stands at 392,014.

Firm trade persisted over the Dalal Street for the whole trading session and in the second half of the trading session, markets added more gains to end on a strong note. Traders remained positive, after the government has notified the accounting standards for small and medium companies that revise the turnover and borrowing limits as well as help in making disclosure requirements less onerous. Besides, Finance Minister Nirmala Sitharaman said the government will actively pursue cases against economic offenders to bring back defrauded money of banks.

On the global front, European markets were trading higher as investors focused on an economic rebound against the backdrop of fears of a tapering in global monetary stimulus, while Carrefour rose on plans to potentially restructure its foreign units. Asian markets ended mostly higher on Thursday, after consumer sentiment in South Korea strengthened in June, the Bank of Korea said on Thursday with a composite consumer sentiment index score of 110.3 - up from 105.2 in May. Consumer sentiment regarding current living standards was unchanged, at 93, while the outlook was two points higher at 95. Consumer sentiment related to future household income was two points higher at 100, while the outlook was five points higher at 113.

The BSE Sensex ended at 52699.00, up by 392.92 points or 0.75% after trading in a range of 52385.05 and 52830.68. There were 20 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.51%, while Small cap index was down by 0.22%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 2.92%, TECK up by 2.52%, Bankex up by 0.76%, Metal up by 0.71% and Capital Goods up by 0.54%, while Energy down by 2.15%, Oil & Gas down by 1.75%, Power down by 1.10%, Utilities down by 1.10% and Telecom down by 0.80% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Infosys up by 3.57%, TCS up by 3.20%, Tech Mahindra up by 2.19%, Larsen & Toubro up by 1.91% and Asian Paints up by 1.89%. On the flip side, Reliance Industries down by 2.66%, Bharti Airtel down by 0.79%, Power Grid down by 0.43%, Dr. Reddys Lab down by 0.37% and Titan Co down by 0.36% were the top losers. (Provisional)

Meanwhile, in a big relief, the government has notified the accounting standards for small and medium companies that revise the turnover and borrowing limits as well as help in making disclosure requirements less onerous.

Besides, the definition of Small and Medium Sized Companies (SMCs) under the standards has been revised. The Companies (Accounting Standards) Rules, 2021 have been notified by the corporate affairs ministry under the Companies Act, 2013.

Under the revised SMC definition, the turnover limit has been increased from Rs 50 crore to not exceeding Rs 250 crore and with enhanced borrowing limits. This is in addition to the requirements that such entities should be unlisted companies, which are not banks, financial institutions or insurance companies.

The CNX Nifty ended at 15790.45, up by 103.50 points or 0.66% after trading in a range of 15702.70 and 15821.40. There were 30 stocks advancing against 20 stocks declining on the index. (Provisional)

The top gainers on Nifty were Infosys up by 3.73%, TCS up by 3.44%, Tech Mahindra up by 2.23%, JSW Steel up by 2.03% and Asian Paints up by 1.87%. On the flip side, Reliance Industries down by 2.35%, Coal India down by 1.38%, Indian Oil Corp. down by 1.28%, Adani Ports & SEZ down by 1.22% and ONGC down by 1.09% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 18.11 points or 0.26% to 7,092.17, France’s CAC increased 46.19 points or 0.71% to 6,597.26 and Germany’s DAX was up by 89.92 points or 0.58% to 15,546.31.

Asian markets ended mostly higher on Thursday, even after two Fed officials said a period of high inflation in the United States could last longer than anticipated. South Korean shares ended higher, led by chip related heavyweights that tracked a record finish on the Nasdaq overnight. Although, Chinese shares ended flat with losses in healthcare companies on concerns over a plunge in drug prices. The Biden administration on Wednesday ordered a ban on US imports of a key solar panel material from Chinese-based Hoshine Silicon Industry Co over alleged human rights abuses. Japanese shares also settled flat on cautious sentiments due to uncertainty about domestic corporate earnings.