Post Session: Quick Review

Tuesday turned out to be a wonderful trading day for the Dalal Street, with both Sensex and Nifty ending over 2.50% higher. After a positive start of the trading session, markets gained traction, as sentiments got a boost with Sanjiv Bajaj, the newly-elected president of industry body CII, stating that the Reserve Bank’s decision to raise benchmark interest rates and the likelihood of a good monsoon will help in containing inflation. CII estimates India's GDP growth to be in the band of 7.4-8.2 percent, depending upon the global oil prices.

Traders got some support, after a private report revealed that consumers between 35 and 40 years of age are the most credit healthy, while those below 25 years are the least credit healthy. Besides, with a view to guard domestic players from cheap imports, the commerce ministry's investigation arm the Directorate General of Trade Remedies (DGTR) has recommended for continuation of anti-dumping duty on Chinese solar glass for two years. In a notification, the DGTR has said that continued imposition of anti-dumping duty is required on 'textured tempered coated and un-coated glass' from China.

Key indices continued upward rally in the second half of the trading session to end near their intraday high points. The street overlooked reports that India’s inflation based on wholesale price index (WPI) surged further to 15.08% for the month of April as against 14.55% in March. The annual rate of inflation was 15.08% in April 2022 as compared to 10.74% in April 2021, due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, food articles, non-food articles, food products and chemicals & chemical products etc. as compared to the corresponding month of the previous year.

On the global front, European markets were trading higher on hopes that demand in China could be sustained as authorities looked to relax COVID-19 restrictions that had started to squeeze the world's second-largest economy. Asian markets settled in green, after Singapore's non-oil domestic exports were up 6.4 percent on year in April. The Enterprise Singapore said that was shy of expectations for an increase of 6.7 percent and down from 7.7 percent in March. On a monthly basis, exports slipped 3.3 percent - also missing forecasts for a decline of 1.3 percent after falling 2.3 percent in the previous month.

The BSE Sensex ended at 54318.47, up by 1344.63 points or 2.54% after trading in a range of 53176.02 and 54399.42. There were all 30 stocks advancing on the index. (Provisional)

The broader indices were trading in green; the BSE Mid cap index was up by 2.51%, while Small cap index up by 2.78%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 7.62%, Basic Materials up by 4.26%, Energy up by 4.13%, Oil & Gas up by 3.52% and Telecom up by 3.31%, while there were no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 7.62%, Reliance Industries up by 4.26%, ITC up by 4.15%, ICICI Bank up by 3.97% and Wipro up by 3.97%. (Provisional)

Meanwhile, India’s inflation based on wholesale price index (WPI) surged further to 15.08% for the month of April as against 14.55% in March. The annual rate of inflation was 15.08% in April 2022 as compared to 10.74% in April 2021, due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, food articles, non-food articles, food products and chemicals & chemical products etc. as compared to the corresponding month of the previous year.

Component wise, primary articles index, having weight of 22.62%, increased by 2.70% to 174.9 (provisional) in April 2022 from 170.3 (provisional) for the month of March 2022. Prices of Food Articles, Non-food Articles, Crude Petroleum & Natural Gas and Minerals increased in April 2022 as compared to March 2022.

Fuel & Power index, having weight of 13.15%, increased by 2.79% to 151 (provisional) in April 2022 from 146.9 (provisional) for the month of March 2022. Prices of Mineral Oils increased in April 2022 as compared to March 2022. However, Prices of Electricity declined in April 2022 as compared to March 2022.

Besides, Manufactured Products constituting the major portion of the index with weight of 64.23%, increased by 1.69% to 144 (provisional) in April 2022 from 141.6 (provisional) for the month of March 2022. Meanwhile, for the month of February 2022 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 145.3 and 13.43% respectively.

The CNX Nifty ended at 16259.30, up by 417.00 points or 2.63% after trading in a range of 15900.80 and 16284.25. There were 49 stocks advancing against 1 stock declining on the index. (Provisional)

The top gainers on Nifty were Hindalco up by 9.58%, Tata Steel up by 7.72%, Coal India up by 7.48%, JSW Steel up by 6.57% and ONGC up by 6.29%. On the flip side, Tata Consumer Products down by 0.17% was the only loser. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 52.59 points or 0.7% to 7,517.39, France’s CAC increased 93.05 points or 1.47% to 6,440.82 and Germany’s DAX was up by 210.29 points or 1.51% to 14,174.67.

Asian markets settled in green on Tuesday, as the market sentiments got bolstered after Shanghai marked three consecutive days of zero community transmission and as the government plans to reopen the markets gradually. Chinese economic data had tumbled this month in the wake of gruelling covid restrictions. Japan’s Nikkei finished higher for third straight session with the rally in technological and property sector. Meanwhile, optimism over Chinese market re-opening supported the sentiments. Shanghai ended moderately higher, amid optimistic reports that Chinese government will formulate policy measures to stem manufacturing and services sector also lifted the equity investments.