Post Session: Quick Review

Indian equity benchmarks ended volatile session in red terrain on Tuesday. After a cautious start, markets remained volatile during the day, as India reported 31,222 new cases of Covid-19 and 290 deaths from the disease in 24 hours. Some cautiousness came in as a private report projected a real gross value added (GVA) growth of 7 to 8 per cent year-on-year in the second quarter of current fiscal year versus 20.1 per cent growth in 1Q FY22. It said estimates suggest some moderation in economic activity index (EAI)-GVA growth in July, largely on account of weaker fiscal spending.

Key indices traded in green during afternoon deals, amid RBI data report that sales of 1,647 listed private manufacturing companies recorded ‘extraordinarily high’ growth of 75 per cent in the first quarter of FY'22 mainly due to a very low base in the pandemic-hit year-ago period. But, in the last hour of the trade, markets failed to hold gains and ended in red. Traders took note of a private report that industries have raised red flags over fresh notices being issued denying input tax credit (ITC), alleging wrongful claims, in turn leading to hardships for businesses.

On the global front, European markets were trading lower as investors awaited updates on when European and other central banks might wound down their stimulus. Asian markets ended mostly higher on Tuesday, after China's exports grew more than expected in August. The data from the General Administration of Customs revealed that exports advanced 25.6 percent year-on-year in August, bigger than the forecast of 17.1 percent and July's 19.3 percent increase. Imports increased 33.1 percent annually after rising 28.1 percent in July.

The BSE Sensex ended at 58279.48, down by 17.43 points or 0.03% after trading in a range of 58005.07 and 58553.07. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.23%, while Small cap index down by 0.42%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 3.08%, Consumer Durables up by 1.26%, FMCG up by 0.31%, Energy up by 0.24% and Consumer Disc up by 0.12%, while Realty down by 2.24%, IT down by 1.24%, Utilities down by 1.10%, Oil & Gas down by 1.05% and Power down by 0.89% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were HDFC up by 2.56%, Bharti Airtel up by 2.48%, Indusind Bank up by 1.20%, ITC up by 1.15% and Ultratech Cement up by 0.84%. On the flip side, Tech Mahindra down by 1.69%, Sun Pharma down by 1.61%, Axis Bank down by 1.58%, HCL Tech. down by 1.44% and Infosys down by 1.36% were the top losers. (Provisional)

Meanwhile, Union minister for Road transport and Highways Nitin Gadkari has said that under the leadership of Prime Minister Narendra Modi, road infrastructure is being developed faster, safer and more sustainable than ever before.

Union minister said “it is our collective mission to give the country, road infrastructure of global standard.” The minister emphasised on safety-first approach for Road design and construction, construction of environment-friendly roads, industry-friendly approach, new technology for safe, faster and economic roads and faster construction.

Besides, Gadkari said with an investment of Rs 11,000 crore the 313 km long highway will transform the road infrastructure of Punjab, Haryana and Rajasthan. He said 80% of the corridor has been completed and is scheduled to open to public by March 2022.

The CNX Nifty ended at 17362.10, down by 15.70 points or 0.09% after trading in a range of 17287.00 and 17436.50. There were 19 stocks advancing against 31 stocks declining on the index. (Provisional)

The top gainers on Nifty were HDFC up by 2.59%, Bharti Airtel up by 2.44%, Grasim Industries up by 1.53%, ITC up by 1.17% and Indusind Bank up by 0.94%. On the flip side, Sun Pharma down by 1.83%, BPCL down by 1.80%, Wipro down by 1.78%, Tech Mahindra down by 1.78% and Axis Bank down by 1.62% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 12.37 points or 0.17% to 7,174.81, France’s CAC decreased 2.95 points or 0.04% to 6,740.55 and Germany’s DAX was down by 24.99 points or 0.16% to 15,907.13.

Asian markets ended mostly higher on Tuesday, despite lack of directional cues from Wall Street which was closed overnight for a Labor Day holiday. Market sentiments improved by expectations that US interest rates would stay low for longer combined with talk of more stimulus in Japan and China. Chinese and Hong Kong shares gained after data showed China’s exports unexpectedly grew at a faster pace in August. Exports from China rose in August at a faster-than-expected rate of 25.6% from a year earlier from a 19.3% gain in July, while imports increased 33.1% annually after rising 28.1 percent in July. As a result, the trade balance showed a surplus of $58.34 billion, which was above the expected level of $51.05 billion and the previous month’s $56.59 billion reading. Moreover, Japanese shares closed higher on expectation that the ruling Liberal Democratic Party will compile additional economic stimulus to tackle the coronavirus crisis and its impact on the economy.