Post Session: Quick Review

Indian equity benchmarks ended higher on Wednesday. After a cautious start, key indices traded in red during early morning deals, amid rising coronavirus cases in the country. India has recorded a spike of 40,215 fresh Covid-19 cases in the last 24 hours, taking the total caseload to 30,944,949, according to Worldometer. The death count increased to 411,439 with 623 new fatalities, the data showed. Traders took note of report that global rating agency Standard and Poor’s has affirmed India’s sovereign rating at BBB- and maintained a stable outlook on gradual recovery in the economy. It said India’s recovery will gather pace through the second half of FY22 and into the following year, helping to stabilise the country’s overall credit profile.

In late morning session, markets turned positive to trade in green terrain. Traders were positive, amid a private report stating that India’s monthly services exports have largely rebounded after an initial COVID-19 shock. Besides, Finance Secretary T V Somanathan has underlined the need for improving the fiscal position of the government through reforms in farm, food and fertilizer subsidies so that additional funds can be generated for development of infrastructure and education system. He said that farm, food and fertilizer reforms are administratively easy but politically difficult in view of the ramifications.

Finally, key indices ended the day on a positive note. Sentiments remained upbeat as wholesale price-based inflation eased marginally to 12.07 per cent in June as crude oil and food items witnessed some softening in prices. However, WPI inflation remained in double digit for the third consecutive month in June, mainly due to a low base of last year. WPI inflation was (-) 1.81 per cent, in June 2020. Additional support also came with report that the government may extend the scheme for investment promotion 2017-20, with an aim to attract investors and promote economic growth of the country.

On the global front, European markets were trading in red. Asian markets settled lower on Wednesday, even after Singapore's gross domestic product expanded 14.3 percent on year in the second quarter of 2021. The Ministry of Trade and Industry said in Wednesday's advance estimate that beat forecasts for an increase of 14.2 percent and was up sharply from the 1.3 percent gain in the previous three months. On a seasonally adjusted quarterly basis, GDP contracted 2.0 percent after expanding 3.1 percent in the three months prior.

The BSE Sensex ended at 52904.05, up by 134.32 points or 0.25% after trading in a range of 52611.97 and 52978.58. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.21%, while Small cap index up by 0.24%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 2.25%, TECK up by 1.89%, Capital Goods up by 0.90%, Healthcare up by 0.28% and Metal up by 0.21%, while Realty down by 1.00%, Oil & Gas down by 0.78%, Energy down by 0.65%, Auto down by 0.25% and FMCG down by 0.13% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tech Mahindra up by 2.69%, HCL Tech. up by 2.09%, Infosys up by 2.07%, Larsen & Toubro up by 2.05% and Tata Steel up by 1.28%. On the flip side, Maruti Suzuki down by 1.32%, Hindustan Unilever down by 0.81%, Nestle down by 0.78%, Dr. Reddy's Lab down by 0.74% and Reliance Industries down by 0.65% were the top losers. (Provisional)

Meanwhile, India’s inflation based on wholesale price index (WPI) eased marginally to 12.07% in the month of June as against 12.94% in May. The annual rate of inflation is 12.07% (Provisional) for the month of June 2021 as compared to -1.81% in June 2020.

Component wise, primary articles index having weight of 22.62%, increased by 0.86% to 151.8 (Provisional) in June 2021 from 150.5 (Provisional) for the month of May 2021. Prices of non-food articles; crude petroleum & natural gas; minerals and food articles increased in June 2021 compared to May 2021.

Fuel & Power index, having weight of 13.15%, increased by 2.90% to 113.7 (Provisional) in June 2021 from 110.5 (Provisional) for the month of May 2021. Prices of Mineral Oils increased by 4.91% in June 2021 as compared to May 2021. Besides, Manufactured Products constituting the major portion of the index with weight of 64.23%, increased by 0.38% to 131.5 (Provisional) in June 2021 as compared to 131.0 in May 2021.

The CNX Nifty ended at 15853.95, up by 41.60 points or 0.26% after trading in a range of 15764.20 and 15877.35. There were 22 stocks advancing against 27 stocks declining, while 1 stock remained unchanged on the index. (Provisional)

The top gainers on Nifty were Wipro up by 7.02%, Tech Mahindra up by 2.70%, HCL Tech. up by 2.22%, Infosys up by 2.07% and Larsen & Toubro up by 2.05%. On the flip side, UPL down by 1.47%, Maruti Suzuki down by 1.39%, Adani Ports & SEZ down by 0.96%, Hindustan Unilever down by 0.90% and Nestle down by 0.86% were the top losers. (Provisional)

European markets were trading in red; France’s CAC decreased 21.43 points or 0.33% to 6,537.04, Germany’s DAX was down by 30.44 points or 0.19% to 15,759.20 and UK’s FTSE 100 was down by 41.89 points or 0.59% to 7,082.83.

Asian markets settled lower on Wednesday tracking pulled back of US stocks from record highs overnight due to sharp increase in US consumer prices in June, that fanned worries that the Federal Reserve may raise rates sooner than expected. Meanwhile, global investors also awaited Fed Chair Jerome Powell's congressional testimony before Congress for any hints on the central bank's monetary policy outlook. Chinese shares declined because of escalating Sino-US tensions. The US government strengthened its warnings to businesses about the growing risks of having supply chain and investment links to China's Xinjiang region. Investors also reacted to comments from China's premier that the country will keep its economic operations within a reasonable range over the next 18 months and take comprehensive measures to ease rising commodity prices.