Post Session: Quick Review

Indian equity benchmarks ended with strong gains on Tuesday. Markets made an optimistic start of the trading day, taking support with private report stating that investors have been pouring money into India’s stock market, and it could grow to more than $5 trillion to become the fifth largest in the world within three years. It added Indian start-ups have raised $10 billion through IPOs so far this year - more money than was raised in the last three years.  Additionally, India has climbed two spots to 46 in the Global Innovation Index (GII) 2021 prepared by the World Intellectual Property Organization (WIPO). The country’s rank has been consistently rising in the last few years. From 81 in 2015, it has moved to 46 in 2021.

However, key indices soon turned volatile during the first half of the trading session. Traders were worried as Icra Ratings said with the benefits of unlocking measures tapering out, high-frequency indicators have become uneven since August. The performance of the high-frequency indicators in August 2021 was decidedly uneven, especially when compared to the pre-COVID levels. Traders also took a note of labour ministry’s statement that retail inflation for farm and rural workers eased marginally to 3.9 per cent and 3.97 per cent, respectively in August. The CPI-based inflation for farm and rural workers stood at 3.92 per cent and 4.09 per cent, respectively in July this year.

But, in the second half of the trading session, markets gained momentum to end trading day on a higher note. Traders got support, as Reserve Bank of India (RBI) in its latest survey has showed that exports of software services, including services delivered by foreign affiliates of Indian companies, recorded 2.1 per cent growth during 2020-21 and stood at $148.3 billion. Besides, retirement fund body EPFO recorded net new enrolments of 14.65 lakh in July, 31.28 per cent higher than 11.16 lakh in June this year, giving a perspective of formal sector employment in the country.

On the global front, European markets were trading higher helped by a strong debut from Universal Music Group, while the Federal Reserve's policy meeting continues to dominate thinking. Asian markets ended mostly higher on Tuesday, after the Hong Kong economy grew as initially estimated in the second quarter. The Census and Statistics Department said that gross domestic product increased 7.6 percent in real terms in the second quarter over a year earlier, compared with the 8.0 percent expansion in the first quarter. The rate came in line with the estimate published on August 13.

The BSE Sensex ended at 59005.27, up by 514.34 points or 0.88% after trading in a range of 58232.54 and 59084.51. There were 24 stocks advancing against 6 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.79%, while Small cap index up by 0.14%.(Provisional)

The top gaining sectoral indices on the BSE were Realty up by 3.49%, Metal up by 2.62%, Basic Materials up by 1.48%, IT up by 1.46% and TECK up by 1.46%, while Utilities down by 0.55%, Power down by 0.54%, Auto down by 0.26% and Consumer Durables down by 0.21% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finance up by 4.94%, Indusind Bank up by 4.29%, ITC up by 3.36%, Bajaj Finserv up by 3.18% and Tata Steel up by 3.08%. On the flip side, Maruti Suzuki down by 2.54%, Bajaj Auto down by 1.20%, Nestle down by 0.83%, HDFC Bank down by 0.61% and Power Grid Corp down by 0.42% 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 1464782 new jobs in the month of July 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, 8819 new jobs were created in less than 18 age group category, while 327214 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 387916, 205073, 287256 and 248504 new payrolls, respectively in July 2021.

The CNX Nifty ended at 17562.00, up by 165.10 points or 0.95% after trading in a range of 17326.10 and 17578.35. There were 40 stocks advancing against 10 stocks declining on the index. (Provisional)

The top gainers on Nifty were JSW Steel up by 5.65%, ONGC up by 5.21%, Bajaj Finance up by 4.99%, Indusind Bank up by 4.37% and Bajaj Finserv up by 3.34%. On the flip side, Maruti Suzuki down by 2.49%, BPCL down by 1.57%, Hero MotoCorp down by 1.35%, Bajaj Auto down by 1.25% and Nestle down by 0.65% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 68.89 points or 1% to 6,972.80, France’s CAC increased 87.44 points or 1.35% to 6,543.25 and Germany’s DAX was up by 215.86 points or 1.43% to 15,347.92.

Asian markets ended mostly higher on Tuesday, despite weakness in the global markets following anxiety surrounding the imminent stimulus tapering and monetary tightening. Concerns over the growth of the world’s second largest economy following liquidity crisis of Chinese property developer Evergrande too adding pressure on market sentiments. Interest payments on the Evergrande’s bonds are due later in the week and S&P Global warned that the company was in the brink of default. Japanese shares declined as trading resumed after holidays. Markets in China, South Korea and Taiwan remained closed due to local holidays.