Post Session: Quick Review

Indian equity benchmarks ended near their intraday high points on Thursday. Markets made a negative start of the day, as the Organization for Economic Cooperation and Development (OECD) pegged India’s FY23 economic growth at 6.9 per cent, the lowest by a major bank or institution, saying the country had been adversely affected by Russia’s invasion of Ukraine. Besides, weakness continued in the markets as foreign institutional investors (FIIs) have net sold Rs 2,484.25 crore worth of shares on June 8, as per provisional data available on the NSE.

Key indices traded near their neutral lines for the most part of the trading session. Markets participants remained cautious, as Reserve Bank of India Governor Shaktikanta Das, while estimating India's overall retail inflation for FY23 at 6.7 per cent, said that the 75 per cent of the increase in inflation projections can be attributed to the food group. Besides, India's daily COVID-19 cases rose further, with government data released on Thursday showing daily cases rose 7,240 in the last 24 hours, the highest since March 2.

However, in the last hour of the trade, markets gained traction, as country’s exports increased 24.18 per cent to USD 9.39 billion during June 1-7, 2022 on account of healthy growth in sectors like engineering, gems and jewellery and petroleum products. The exports during June 1-7, 2021 stood at USD 7.56 billion. Some support came after Finance Minister Nirmala Sitharaman said enabling policies and proactive steps taken by the government - including corporate tax cuts and digitisation of the economy - helped the country deal with the unprecedented situation arising due to the pandemic.

On the global front, European markets were trading lower as investors worried about the impact of rate rises ahead of a European Central Bank meeting later in the day. Asian markets settled mostly lower on Thursday, even after China's exports logged a double-digit growth in May as operations resumed in the Shanghai port after coronavirus-linked lockdowns. Exports advanced 16.9 percent from a year ago, following a 3.9 percent rise in April, the General Administration of Customs said.

Back home, pharmaceutical sector stocks remained in focus, as credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has projected that the revenue of India’s pharmaceutical market (IPM) witnessed 3.3% yoy (year on year) decline during May 2022 on the back of a fall in the sales volumes in acute segment therapies namely anti-infectives, vitamins and respiratory products due to the higher base effect during May 2021 and an inventory correction in the channel.

The BSE Sensex ended at 55320.28, up by 427.79 points or 0.78% after trading in a range of 54507.41 and 55366.84. There were 21 stocks advancing against 9 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.46%, while Small cap index up by 0.24%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 2.10%, Energy up by 2.03%, Oil & Gas up by 1.78%, Healthcare up by 1.01% and TECK up by 0.99%, while Metal down by 1.66%, Basic Materials down by 0.75% and Utilities down by 0.01% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Dr. Reddy's Lab up by 3.00%, Reliance Industries up by 2.73%, Bharti Airtel up by 2.01%, Tech Mahindra up by 1.45% and Sun Pharma up by 1.36%. On the flip side, Tata Steel down by 3.81%, NTPC down by 1.18%, Ultratech Cement down by 1.04%, Bajaj Finance down by 0.91% and SBI down by 0.89% were the top losers. (Provisional)

Meanwhile, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has projected that the revenue of India’s pharmaceutical market (IPM) witnessed 3.3% yoy (year on year) decline during May 2022 on the back of a fall in the sales volumes in acute segment therapies namely anti-infectives, vitamins and respiratory products due to the higher base effect during May 2021 and an inventory correction in the channel.

According to the report, strong volume declines were observed in key therapies such as anti-infectives, vitamins, respiratory and pain/analgesics while derma, central nervous system (CNS) and gynaec therapy reported robust volume growth in May 2022.

The rating agency further highlighted that the IPM performance in May 2022 is better than the agency’s and industry’s expectation, given the high base of 48% yoy growth in May 2021 and expects a positive growth trajectory from June 2022. The revenue growth of 47.8% yoy in May 2021 was led by strong buying patterns impacted by the COVID-19 outbreak.

The CNX Nifty ended at 16478.10, up by 121.85 points or 0.74% after trading in a range of 16243.85 and 16492.80. There were 36 stocks advancing against 14 stocks declining on the index. (Provisional)

The top gainers on Nifty were Dr. Reddy's Lab up by 2.95%, BPCL up by 2.76%, Reliance Industries up by 2.74%, Eicher Motors up by 2.52% and SBI Life Insurance up by 2.43%. On the flip side, Tata Steel down by 3.86%, Shree Cement down by 1.97%, Tata Motors down by 1.64%, Grasim Industries down by 1.48% and NTPC down by 1.21% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 42.04 points or 0.55% to 7,550.96, France’s CAC decreased 23.48 points or 0.36% to 6,425.15 and Germany’s DAX was down by 93.43 points or 0.65% to 14,352.56.

Asian markets settled mostly lower on Thursday tracking weakness in Wall Street overnight amid prospects of tighter policy measures by the US Federal Reserve. Moreover, worries over stagflation added pressure on market sentiments. Meanwhile, investors were cautiously awaiting cues from the European Central Bank meeting later in the day and Friday's US consumer inflation report. Chinese shares declined on profit booking as parts of Shanghai began imposing new Covid-19 lockdown restrictions. However, Japanese shares ended almost flat with positive momentum as a weakening yen buoyed shares of exporters.