Post Session: Quick Review

Indian equity benchmarks ended flat with a negative bias on Monday’s trading session. After a negative start, key indices remained weak during the entire trading session, as continuing its heavy selling spree for the eighth consecutive month, foreign investors pulled out nearly Rs 40,000 crore from the Indian equity market in May on fears of an aggressive rate hike by US Federal Reserve that dented investor sentiments.

Adding more pessimism, the Union Health Ministry data showed that India logged 4,270 new coronavirus infections taking the tally of COVID-19 cases to 4,31,76,817, while the daily positivity rate was recorded above one per cent after 34 days. Sentiments were negative, amid reports that with inflation showing no signs of abatement, the Reserve Bank is likely to increase the benchmark lending rate in quick succession in its forthcoming monetary policy review, a hint for which has already been given by Governor Shaktikanta Das.

However, markets managed to cut their losses in the second half of the trading session, after Prime Minister Narendra Modi shared details of various initiatives of his government, and asserted that it has made a series of efforts to boost pro-people governance which helps the poor, youth, farmers, women and the marginalised. Some support came with private report stated that hiring activity in India increased by 40 per cent year-on-year in May 2022 led by strong growth in the sectors like travel, hospitality, retail, real estate and banking and financial services.

On the global front, European markets were trading higher. Asian markets settled mostly higher on Monday, even after China's service sector logged another marked contraction in May due to measures taken to contain the recent uptick in COVID-19 cases. The survey results from S&P Global showed that the Caixin services Purchasing Managers' Index rose to 41.4 in May from a 26-month low of 36.2 in April. But a score below 50.0 indicates contraction in the sector.

The BSE Sensex ended at 55675.32, down by 93.91 points or 0.17% after trading in a range of 55295.74 and 55832.28. There were 9 stocks advancing against 21 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.15%, while Small cap index down by 0.54%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 0.72%, Oil & Gas up by 0.50%, Energy up by 0.41%, Auto up by 0.21% and Bankex up by 0.15%, while Realty down by 0.87%, Consumer Disc down by 0.79%, Consumer Durables down by 0.59%, Capital Goods down by 0.53% and Telecom down by 0.31% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 0.99%, Indusind Bank up by 0.78%, Mahindra & Mahindra up by 0.77%, ITC up by 0.70% and Kotak Mahindra Bank up by 0.67%. On the flip side, Asian Paints down by 2.36%, Ultratech Cement down by 1.68%, Bajaj Finserv down by 1.34%, Nestle down by 1.01% and Larsen & Toubro down by 0.79% were the top losers. (Provisional)

Meanwhile, expressing need to seek the Centre's help for rationalisation of international MRL laws for the crop, Indian Tea Exporters' Association Chairman Anshuman Kanoria has said that the Indian tea industry has a realistic chance to achieve the $1 billion exports target in the next two-three years.

Kanoria also said it is also essential that the beverage produced for the overseas market is compliant with the safety regulations of importing countries. He said that this is essential to uphold the quality image of Indian tea in international markets and make the country’s tea the preferred one worldwide.

MRLs are defined as the maximum concentration of pesticide residue likely to occur in food after the use of pesticides according to good agricultural practice. MRLs are primarily trading standards, but they also help ensure that residue levels do not pose unacceptable risks for consumers.

The CNX Nifty ended at 16569.55, down by 14.75 points or 0.09% after trading in a range of 16444.55 and 16610.95. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bajaj Auto up by 3.93%, JSW Steel up by 2.94%, Cipla up by 1.57%, ONGC up by 1.55% and Tata Consumer Products up by 1.29%. On the flip side, Shree Cement down by 3.08%, BPCL down by 2.68%, Asian Paints down by 2.41%, Ultratech Cement down by 1.72% and Hero MotoCorp down by 1.66% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 96.44 points or 1.28% to 7,629.39, France’s CAC increased 72.75 points or 1.12% to 6,558.05 and Germany’s DAX was up by 130.18 points or 0.9% to 14,590.27.

Asian markets settled mostly higher on Monday, despite the broadly negative cues from Wall Street last Friday. Japanese shares ended higher with local energy stocks topped the gainers list as oil prices climbed after Saudi Arabia raised prices sharply for its crude sales in July. Chinese and Hong Kong shares gained as Shanghai has lifted most of the corona-virus restrictions in recent days. Although, China's services activity contracted for the third month in a row in May suggesting a slow recovery in the world's second-largest economy, a private business survey showed. Meanwhile, markets in South Korea and Malaysia were shut for holidays.