Post Session: Quick Review

Indian equity benchmarks ended in red with notable losses on Monday’s trading session. The start of the trading day was on a negative note, as fears of a third wave and the spread of Delta and Delta plus variant dampened sentiments in markets. Some cautiousness came in as the health ministry India reported 39,742 new Covid-19 cases in the last 24 hours. The Covid-19 death toll rose by 535 deaths in the last 24 hours, with the total reaching 420,551.

In late morning deals, markets managed to trade in green, as Commerce and Industry Minister Piyush Goyal expressed confidence that India will continue to attract high foreign direct investment (FDIs) in the current financial year. Meanwhile, the provisional commerce ministry data showed that the country's exports grew 45.13 per cent to $22.48 billion during July 1-21 on account of healthy growth in sectors such as gems and jewellery, petroleum and engineering. Imports also rose 64.82 per cent to $31.77 billion in the said period, leaving a trade deficit of $9.29 billion.

Key indices remained weak for the most part of the trading session and added losses in the last hour of the trade. Traders were worried, amid reports that foreign portfolio investors (FPIs) offloaded Indian equities to the tune of over Rs 5,689 crore in July so far as they continued to adopt a cautious stance in view of various domestic and global factors. During July 1-23, FPIs took out Rs 5,689.23 crore from equities, as per depositories data.

On the global front, European markets were trading lower after regulatory concerns knocked Asian markets lower, while automakers retreated following a strong showing last week. Asian markets settled mostly lower on Monday, after the manufacturing sector in Japan continued to expand in July, albeit at a slower pace, the latest survey from Jibun Bank revealed on Monday with a manufacturing PMI score of 52.2. That's down from 52.4, although it remains above the boom-or- bust line of 50 that separates expansion from contraction.

The BSE Sensex ended at 52852.27, down by 123.53 points or 0.23% after trading in a range of 52783.63 and 53103.42. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.06%, while Small cap index was up by 0.34%. (Provisional)

The top gaining sectoral indices on the BSE were Basic Materials up by 0.83%, Consumer Durables up by 0.68%, Healthcare up by 0.62%, Metal up by 0.62% and IT up by 0.26%, while Energy down by 1.09%, Realty down by 0.76%, Power down by 0.75%, Auto down by 0.73% and Telecom down by 0.66% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finserv up by 2.46%, Ultratech Cement up by 1.55%, Sun Pharma up by 1.38%, Titan Co up by 1.29% and Tata Steel up by 1.26%. On the flip side, SBI down by 1.36%, Reliance Industries down by 1.31%, Mahindra & Mahindra down by 1.24%, Tech Mahindra down by 0.91% and Larsen & Toubro down by 0.88% were the top losers. (Provisional)

Meanwhile, in a relief, the Central Board of Indirect Taxes and Customs (CBIC) has abolished the requirement of periodic renewals of Licence/Registration issued to Customs Brokers and Authorised Carriers. This would greatly help reduce the compliance burden cast on the trade, which had to otherwise make application and submit numerous documents to renew their licenses/registrations.

As per the notification, the net effect of the amendments carried out to the Customs Brokers Licensing Regulations, 2018 and Sea Cargo Manifest and Transhipment Regulations, 2018, is that the existing licenses/registration would have a lifetime validity.

Another change that has been introduced is to allow a licensee/registration holder to voluntarily come forward to surrender his license/registration if s/he wishes. Also, a provision has been made to invalidate licences/registrations that are inactivity for more than a year.

The CNX Nifty ended at 15824.45, down by 31.60 points or 0.20% after trading in a range of 15797.00 and 15893.35. There were 21 stocks advancing against 29 stocks declining on the index. (Provisional)

The top gainers on Nifty were SBI Life Insurance up by 2.49%, Bajaj Finserv up by 2.45%, Hindalco up by 2.12%, Divi's Lab up by 2.00% and Ultratech Cement up by 1.69%. On the flip side, JSW Steel down by 1.81%, Wipro down by 1.45%, Reliance Industries down by 1.37%, SBI down by 1.31% and Mahindra & Mahindra down by 1.30% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 30.98 points or 0.44% to 6,996.60, France’s CAC decreased 43.81 points or 0.67% to 6,525.01 and Germany’s DAX was down by 102.24 points or 0.65% to 15,567.05.

Asian markets settled mostly lower on Monday, while investors eyeing to the US Federal Open Market Committee meeting this week for clues on the timing of stimulus tapering. Chinese shares ended lower amid concerns over crackdowns by Beijing on the nation’s industries from tech to real estate and education firms. However, Japanese shares gained after a four-day weekend as the Olympic Games began, a year late, but concerns over surge in corona virus infections limited gains. The manufacturing sector in Japan continued to expand in July, albeit at a slower pace, the latest survey from Jibun Bank revealed on Monday with a manufacturing PMI score of 52.2, down from 52.4 in June.