Post Session: Quick Review

Indian equity benchmarks ended in green on Monday. The start of the day was on a strong note, as traders took encouragement with a private report that the government said that the country’s agri-exports are estimated to grow 15% in FY22, adding that export of products like rice, meat, cereals and dairy items rose 44.3% on-year to $4.81 billion during April-June 2021. Their exports were $3.33 billion in the year ago period. Some support also came in as investments in the Indian capital markets through participatory notes (P-notes) rose to Rs 1.02 lakh crore till July-end, making it the highest level in last 40 months.

In late morning deals, markets cut all of their gains and turned negative, as traders got anxious with RBI Governor Shaktikanta Das’ statement that the resurgence in inflation in May and June above the upper threshold has reignited the debate on the appropriate monetary policy response. Some concern also came as RBI data showed India's foreign exchange reserves decreased by $2.099 billion to stand at $619.365 billion for the week ended August 13 due to a fall in core currency assets and gold.

But soon, key indices came back in green terrain and remained higher till the end of the day, amid reports that foreign portfolio investors (FPI) have pumped in a net Rs 7,245 crore into the Indian capital markets in August so far amid positive sentiments due to an improving macroeconomic environment. Besides, Union Finance Minister Nirmala Sitharaman said the micro, small and medium enterprises (MSMEs) are the backbone of the economy, and the Narendra Modi government has given the sector its rightful place.

Sentiments were upbeat as Crisil Ratings revised the credit quality outlook of India Inc for fiscal 2022 to positive from cautiously optimistic earlier, predicated on a sustained recovery in demand after the blip caused by the second wave of Covid-19 afflictions in the first quarter. The increase in coverage of vaccinations should also mitigate the impact of a third wave if it comes about. Besides, Retirement fund body, Employees' Provident Fund Organisation (EPFO) in its latest ‘Provisional Estimate of Net Payroll’ data report has showed that India created 1283448 new jobs in the month of June 2021.

On the global front, European markets were trading higher after a bruising selloff last week on global growth worries, while investors awaited a raft of business activity data. Asian markets settled mostly higher on Monday, after the manufacturing sector in Japan continued to expand in August, albeit at a slower rate, the latest survey from Jibun Bank showed on Monday with a manufacturing PMI score of 52.4. That's down from 53.0 in July, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

The BSE Sensex ended at 55555.79, up by 226.47 points or 0.41% after trading in a range of 55240.29 and 55781.17. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.90%, while Small cap index down by 1.55%. (Provisional)

The top gaining sectoral indices on the BSE were TECK up by 1.26%, IT up by 1.16%, Telecom up by 0.89%, Energy up by 0.62% and Oil & Gas up by 0.55%, while Basic Materials down by 1.52%, Auto down by 1.26%, Industrials down by 1.18%, Consumer Disc down by 1.12% and Realty down by 0.85% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were HCL Tech. up by 4.10%, TCS up by 2.20%, Bajaj Finserv up by 2.06%, Nestle up by 1.78% and Bharti Airtel up by 1.57%. On the flip side, Mahindra & Mahindra down by 2.50%, Bajaj Auto down by 2.23%, Ultratech Cement down by 1.94%, Power Grid down by 1.79% and ITC down by 1.29% 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 1283448 new jobs in the month of June 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, 9515 new jobs were created in less than 18 age group category, while 281772 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 332821, 180324, 254660 and 224356 new payrolls, respectively in June 2021.

The CNX Nifty ended at 16496.45, up by 45.95 points or 0.28% after trading in a range of 16395.70 and 16592.50. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were HCL Tech. up by 4.09%, Nestle up by 2.30%, TCS up by 2.19%, Bajaj Finserv up by 1.96% and Bharti Airtel up by 1.46%. On the flip side, Grasim Industries down by 2.96%, Adani Ports & SEZ down by 2.75%, Mahindra & Mahindra down by 2.51%, Eicher Motors down by 2.22% and Bajaj Auto down by 2.22% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 19.69 points or 0.28% to 7,107.59, France’s CAC increased 35.89 points or 0.54% to 6,662.00 and Germany’s DAX was up by 5.29 points or 0.03% to 15,813.33.

Asian markets settled mostly higher on Monday despite lingering concerns over the fast-spreading Covid-19 Delta variant globally. Investors are anxiously awaiting the Federal Reserve's annual Jackson Hole conference later in the week for cues on possible asset purchase tapering timeline. Chinese shares ended higher after Chinese health authorities reported that no new local Covid-19 cases for the first time since July. Moreover, Japanese shares gained on solid corporate earnings, while auto-related stocks also rebounded from losses stoked by Toyota Motor's announcement of slashing global output by 40 percent next month on chip shortage.