Post Session: Quick Review

Indian equity benchmarks ended on a strong note on Tuesday. Markets made a positive start of the day, as Commerce and Industry Minister Piyush Goyal said foreign direct investments into the country is on the rise, jumping to $12.1 billion in May this year. He also said the government is working on a mission mode to achieve exports target of $400 billion in 2021-22. Adding more optimism, Icra Ratings’ report stated that with the easing of COVID-19-related restrictions by the states, the roots of the economic recovery deepened in July 2021. The report said the unlocking in the country has manifested itself in improving performance across various high frequency industrial and service sector indicators, mobility and toll collections in July 2021. Some support also came with IT industry body Nasscom’s statement that India has the potential to become the world's second-largest cloud talent hub with the combined effort of government bodies, education and skilling organisations and technology providers.

Indices cut gains in early deals but soon gained momentum to remain higher till the end of the session. Sentiments remained positive as Finance Minister Nirmala Sitharaman announced a Rs 6 lakh crore National Monetisation Pipeline (NMP) that will look to unlock value in infrastructure assets across sectors ranging from power to road and railways. She also said the asset monetisation does not involve selling of land and it is about monetising brownfield assets. Projects have been identified across sectors, with roads, railways and power being the top segments. Markets added more gains in the second half of the trading session,  after SBI research report Ecowrap said that the country's gross domestic product (GDP) is expected to grow at around 18.5 per cent with an upward bias in the first quarter of the current financial year.

On the global front, European markets were trading higher after a full US approval of a COVID-19 vaccine boosted Wall Street to record highs, while latest data showed a stronger-than-expected economic recovery in Germany. Asian markets ended mostly higher on Tuesday, even after consumer confidence in South Korea dipped slightly in August, according to the latest survey from the Bank of Korea's sentiment index, which came in with a score of 102.5 down from 103.2 in July. Consumer sentiment regarding current living standards and their future outlook were unchanged at 91 and 96, respectively.

The BSE Sensex ended at 55958.98, up by 403.19 points or 0.73% after trading in a range of 55536.84 and 56023.22. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.52%, while Small cap index up by 1.69%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 2.76%, Basic Materials up by 2.16%, Oil & Gas up by 1.99%, PSU up by 1.81% and Industrials up by 1.75%, while IT down by 0.37%, TECK down by 0.36% and FMCG down by 0.32% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finserv up by 7.91%, Tech Mahindra up by 3.41%, Tata Steel up by 3.39%, Bajaj Finance up by 3.33% and HDFC Bank up by 2.31%. On the flip side, Nestle down by 1.34%, Infosys down by 1.06%, HDFC down by 0.97%, HCL Tech. down by 0.92% and Asian Paints down by 0.87% were the top losers. (Provisional)

Meanwhile, the SBI research report Ecowrap has showed that the country's gross domestic product (GDP) is expected to grow at around 18.5 percent with an upward bias in the first quarter of the current financial year (Q1FY22). The report also expects gross value added (GVA) to be at 15 percent in Q1FY22.

According to the report, the corporate GVA of 4,069 companies registered a growth of 28.4 percent in Q1 FY22. However, this is lower than growth in Q4 FY21, thereby corroborating the lower GDP estimate than what was thought earlier.

The report further said it is globally noted that lower mobility leads to lower GDP and higher mobility to higher GDP, but the response is asymmetric. It said that with the decline in mobility, the economic activity declines and thus GDP growth, however, with an increase in mobility the GDP growth does not increase in the same proportion.

The CNX Nifty ended at 16624.60, up by 128.15 points or 0.78% after trading in a range of 16495.30 and 16647.10. There were 35 stocks advancing against 15 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bajaj Finserv up by 7.79%, Adani Ports & SEZ up by 4.06%, Hindalco up by 3.44%, Tata Steel up by 3.39% and Bajaj Finance up by 3.38%. On the flip side, Britannia down by 1.40%, Nestle down by 1.20%, HDFC down by 1.13%, Infosys down by 1.03% and Asian Paints down by 1.02% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 5.63 points or 0.08% to 7,114.65, France’s CAC increased 0.71 points or 0.01% to 6,683.81 and Germany’s DAX was up by 42.03 points or 0.27% to 15,894.82.

Asian markets ended mostly higher on Tuesday, tracking a Wall Street rally overnight after the United States Food and Drug Administration granted full approval for the Pfizer-BioNTech corona-virus vaccine, while global investors are awaiting the US Federal Reserve's annual Jackson Hole conference later in the week for hints at when it may taper its monetary stimulus. Chinese shares gained after reports that the US Securities and Exchange Commission has begun issuing new disclosure requirements to Chinese companies that want to list in New York, part of an effort to boost investor awareness of the risks involved. Further, Japanese shares ended higher with hopes for a faster economic recovery globally.