Post Session: Quick Review

Indian equity benchmarks witnessed volatility on Friday, with both Sensex and Nifty finally ending in red terrain. Markets made a negative start, as referring to economic crisis in Sri Lanka, a Reserve Bank article said states are showing warning signs of building stress, and the 5 most indebted ones -- Punjab, Rajasthan, Bihar, Kerala and West Bengal -- need to take corrective measures by cutting down expenditure on non-merit goods.

Weak trade continued over the Dalal Street during the entire trading session, on the back of negative cues from other Asian markets. Domestic sentiments remained negative, as RBI Governor Shaktikanta Das has said that big tech's play in finance poses systemic concerns like overleverage. Besides, RBI Governor said that loan recovery agents using harsh methods like calling up at odd hours, foul language unacceptable.

Traders overlooked Economic Affairs Secretary Ajay Seth’s statement that the government does not see any adverse impact on the Indian economy post the US Federal Reserve's decision to raise interest rates by 75 basis points. Meanwhile, the Goods and Services Tax (GST) Council will meet on June 28-29 to deliberate on the way forward after end of the five-year compensation period for states on June 30, including rationalization of tax rates in a phased manner, as a multi-year goal due to inflationary concerns.

On the global front, European markets were trading higher as investors looked for bargains among beaten-down stocks. Asian markets ended mostly lower on Friday, even after non-oil domestic exports in Singapore were up 3.2 percent on month in May.  That topped expectations for an increase of 1.4 percent following the 3.3 percent decline in April. On a yearly basis, NODZ jumped 12.4 percent - again exceeding expectations for a gain of 7.6 percent following the 6.4 percent increase in the previous month.

Back home, on the sectoral front, bank stocks were in focus, as M Rajeshwar Rao, deputy governor of the Reserve Bank of India (RBI), said that gross non-performing assets (NPAs) of the banking sector dropped below 6 per cent as of March 2022 - the lowest since 2016 - and net NPAs fell to 1.7 per cent during the same period, indicating that the sector has remained largely unscathed from the ill-effects of the Covid-19 pandemic so far.

The BSE Sensex ended at 51360.42, down by 135.37 points or 0.26% after trading in a range of 50921.22 and 51652.83. 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 0.68%, while Small cap index down by 0.88%. (Provisional)

The only gaining sectoral indices on the BSE were Bankex up by 0.42%, Metal up by 0.20% and Realty up by 0.03%, while Oil & Gas down by 3.07%, Consumer Durables down by 2.68%, Energy down by 1.86%, Healthcare down by 1.60%, Power down by 1.59% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finance up by 2.63%, Bajaj Finserv up by 2.47%, ICICI Bank up by 1.43%, HDFC Bank up by 1.22% and Reliance Industries up by 1.18%. On the flip side, Titan Co down by 6.06%, Wipro down by 4.07%, Dr. Reddy's Lab down by 3.35%, Asian Paints down by 2.79% and Sun Pharma down by 2.78% were the top losers. (Provisional)

Meanwhile, a day after the US Federal Reserve's decision to raise interest rates by 75 basis points, Economic Affairs Secretary Ajay Seth has said that the government does not see any adverse impact on the Indian economy post the US Federal Reserve's decision.

Economic Affairs Secretary noted that all central banks are grappling with it and taking adequate measures which are needed to control the inflation. He further said ‘I see fair amount of coordination...directly or indirectly they are moving in tandem.

On the inflation front, Seth said inflation in India is mainly because of high energy and food prices and hoped that it would moderate in the coming months. Meanwhile, the US Federal Open Market Committee raised the target range for federal funds rate by 75 basis points to 1.50-1.75 per cent. It also said it would hike rates aggressively in the rest of the calendar year.

The CNX Nifty ended at 15293.50, down by 67.10 points or 0.44% after trading in a range of 15183.40 and 15400.40. There were 12 stocks advancing against 38 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bajaj Finance up by 2.57%, Bajaj Finserv up by 2.47%, JSW Steel up by 1.60%, Coal India up by 1.53% and ICICI Bank up by 1.23%. On the flip side, Titan Co down by 6.04%, Wipro down by 4.05%, Shree Cement down by 3.56%, HDFC Life Insurance down by 3.46% and BPCL down by 3.42% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 46.67 points or 0.66% to 7,091.65, France’s CAC increased 51.66 points or 0.88% to 5,937.90 and Germany’s DAX was up by 129.80 points or 1% to 13,168.29.

Asian markets ended mostly lower on Friday on concerns that aggressive monetary tightening by major central banks could lead to a slowdown in global growth and even recession. Market sentiments weakened further by tracking a broad sell-off in US stocks overnight following disappointing US housing, regional manufacturing activity and labor market data. Japanese shares declined as the country's central bank BoJ wrapped up its monetary policy meeting with no major changes to its ultra-low interest rates. However, mainland Chinese and Hong Kong shares rallied after China's cabinet pledged more policy steps to help the world's second-largest economy recover from the coronavirus pandemic.