Post Session: Quick Review

Indian equity benchmarks failed to hold gains on Monday and ended lower. After a cautious start, markets gained traction, as the commerce and industry ministry said that total foreign direct investment into India rose 2 per cent to the highest ever $83.57 billion in 2021-22 on account of various measures like policy reforms and ease of doing business taken by the government. Sentiments were up-beat with private report stated that India Inc seems to be optimistic about opening of new vacancies amid steady hiring trends during the current financial year as the country's economy is on a growth trajectory. It said at least 72 per cent organisations which participated in a survey believed that there will be more hirings for new positions during this fiscal.

Indices remained higher for the most part of the trading session, amid a private report stating that the Union government’s move to cut excise duty on petrol and diesel by Rs 8 and Rs 6 a litre, respectively, is likely to ease the retail inflation rate by up to 25 basis points (bps) from June onwards. If the move’s indirect impact on other items, including food prices, is also considered, the average inflation rate may reduce by 40 basis points during the current fiscal year. Adding more comfort, Niti Aayog CEO Amitabh Kant said that India is in the midst of a major transformation in the digital space, and strong political leadership and the commitment to continue with radical reforms would play a key role in taking the country to a leadership role in the global economy.

Some support also came as retirement fund body EPFO has added 15.32 lakh subscribers in March 2022, over 19 percent more than 12.85 lakh enrolled in February this year. Meanwhile, the Indian government is considering spending an additional 2 trillion rupees ($26 billion) in the 2022/23 fiscal year to cushion consumers from rising prices and fight multi-year high inflation. However, markets cut all of their gains in the last hours of the trade, as market participants got concerned with report that the outflow of funds from domestic markets has continued as Foreign Portfolio Investors (FPI) remain net sellers. So far in the month of May, FPIs have pulled out Rs 37,216 crore as headwinds such as tighter monetary policy and rising inflation force investors towards safer havens.

On the global front, European markets were trading higher as traders attempted to call an end to a downturn in global stocks driven by surging inflation and fears of major economies falling into recession.  Asian markets finished mixed on Monday, after Taiwan's export orders declined unexpectedly in April. The data from the Ministry of Economic Affairs showed that export orders fell 5.5 percent year-on-year in April. Orders for optical, photographic, cinematographic apparatus declined 27.7 percent annually in April and those of information and communication products fell 21.5 percent.

The BSE Sensex ended at 54288.61, down by 37.78 points or 0.07% after trading in a range of 54191.55 and 54931.30. There were 20 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.26%, while Small cap index down by 0.64%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 1.90%, Capital Goods up by 0.91%, IT up by 0.79%, Consumer Disc up by 0.78% and Consumer Durables up by 0.73%, while Metal down by 8.33%, Basic Materials down by 4.08%, Oil & Gas down by 1.74%, Energy down by 1.47% and PSU down by 1.18% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 4.14%, Maruti Suzuki up by 4.07%, Hindustan Unilever up by 2.35%, Larsen & Toubro up by 2.21% and Asian Paints up by 2.07%. On the flip side, Tata Steel down by 12.53%, Ultratech Cement down by 3.33%, ITC down by 1.93%, Power Grid down by 1.72% and HDFC down by 1.40% 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 1532119 new jobs in the month of March 2022.

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, Tamil Nadu, Gujarat, Haryana and Delhi.

According to the data report, 7105 new jobs were created in less than 18 age group category, while 293097 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 411009, 221554, 316606 and 282748 new payrolls, respectively in March 2022.

The CNX Nifty ended at 16214.70, down by 51.45 points or 0.32% after trading in a range of 16185.75 and 16414.70. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Mahindra & Mahindra up by 4.22%, Maruti Suzuki up by 4.10%, Hindustan Unilever up by 2.32%, Larsen & Toubro up by 2.11% and Asian Paints up by 2.07%. On the flip side, JSW Steel down by 13.24%, Tata Steel down by 12.61%, Divi's Lab down by 9.45%, ONGC down by 4.20% and Hindalco down by 3.72% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 51.44 points or 0.7% to 7,441.42, France’s CAC increased 10.55 points or 0.17% to 6,295.79 and Germany’s DAX was up by 102.46 points or 0.73% to 14,084.37.

Asian markets finished mixed on Monday, as the market sentiments got dampened after China imposed lockdown again in the wake of rise in covid cases in most of the cities. Additionally, lingering concerns over peaking inflationary pressure, existing supply chain chaos,  and looming aggressive interest rate hikes also pressured investments. Meanwhile, some investors side-lined on caution ahead to the impending FOMC minutes and US personal consumption expenditure price data, for more cues on Fed monetary policy measures. Meanwhile, International Labour Organization (ILO) reports uncertainty over global job market recovery to the pre-covid period, due to the extended Chinese lockdown, and persisting Ukraine war. As per reports, China accounted for 86% of the dip in working hours due to containment measures to stop the spread of COVID-19.