Post Session: Quick Review

Indian equity benchmarks managed to end higher on Monday. The start of the trading session was on a cautious trade, as foreign portfolio investors (FPIs) pulled out 31,430 crore equities so far in June. With this, the net foreign outflows from equities reached Rs 1.98 lakh crore in 2022 till now. Adding more pessimism, the latest data released by the Reserve Bank of India (RBI) showed India’s foreign exchange reserves declined $4.6 billion to $596 billion for the week ended June 10. The fall in total reserves was mainly because of a decline in foreign currency assets worth $4.5 billion.

Markets witnessed volatility during the whole day. Some concerns came with a report stating that as many as 428 infrastructure projects, each entailing an investment of Rs 150 crore or more, have been hit by cost overruns of more than Rs 4.98 lakh crore. However, in afternoon deals, markets trade in green for a little time, as traders got relief, with a private report stating that a combination of normal rainfalls aiding bumper agriculture output and the Reserve Bank of India (RBI) further hiking interest rates to cut easy money in the system hold key to bringing down multi-year high inflation triggered by surging food and fuel prices.

Also, in the last leg of the trade, markets remained higher, as member of the economic advisory council to the prime minister -- Sanjeev Sanyal has said that the country's internal market is in a good position and its macroeconomic stability is in a comfortable zone despite the ravage by the pandemic. He said that there has been an unprecedented crisis during the two-year-long pandemic and the Indian economy has emerged stronger after that.  Adding more comfort, the commerce and industry minister Piyush Goyal said that India has completely protected the interests of farmers and fishermen in the recently concluded ministerial conference of the World Trade Organisation (WTO) in Geneva.

On the global front, European markets were trading higher as investors react to central banks' hawkish rhetoric. Asian markets settled mostly lower on Monday, after Malaysia's foreign trade surplus decreased in May, as imports grew faster than exports. The data from the statistical office showed that the trade surplus shrank to MYR 12.619 billion in May from MYR 13.754 billion in the corresponding month last year. In May, the surplus was MYR 23.48 billion. Street had forecast a surplus of MYR 19.9 billion.

The BSE Sensex ended at 51597.84, up by 237.42 points or 0.46% after trading in a range of 51062.93 and 51714.61. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 1.39%, while Small cap index down by 2.95%. (Provisional)

The top gaining sectoral indices on the BSE were FMCG up by 1.21%, TECK up by 0.58%, IT up by 0.42%, Consumer Durables up by 0.41% and Healthcare up by 0.17%, while Metal down by 4.46%, Oil & Gas down by 3.48%, Energy down by 3.26%, PSU down by 2.81% and Basic Materials down by 2.30% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were HDFC up by 3.97%, Hindustan Unilever up by 3.95%, Ultratech Cement up by 2.96%, Asian Paints up by 2.96% and HDFC Bank up by 2.47%. On the flip side, Tata Steel down by 5.03%, Indusind Bank down by 2.92%, Reliance Industries down by 1.80%, NTPC down by 1.57% and Mahindra & Mahindra down by 1.54% were the top losers. (Provisional)

Meanwhile, in order to meet the growing energy demands of the nation, Union Minister of Coal, Mines and Parliamentary Affairs Pralhad Joshi has said that the Ministry of Coal has initiated a number of reforms to further increase the production of coal.

The Minister further recalled the valuable guidance provided by the Prime Minister Narendra Modi from time to time, to bring about key policy changes.  Joshi also noted that achievements of coal sector will be an inspiration to the other segments of the economy.

Meanwhile, ‘Reforms & Achievements of Ministry of Coal Since 2014’ has been released which highlights the major achievements of the Ministry during the last eight years. The Achievement Report highlights major policy reforms from 2014, amendments of Acts, innovative efforts in commercial coal mining, coal import substitution, first mile connectivity, corporate social responsibility of Coal India and subsidiaries, environ- friendly initiatives, afforestation drive etc.

The CNX Nifty ended at 15350.15, up by 56.65 points or 0.37% after trading in a range of 15191.10 and 15382.50. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindustan Unilever up by 4.05%, HDFC up by 4.02%, Asian Paints up by 3.12%, Ultratech Cement up by 3.01% and Apollo Hospital Ent. up by 2.98%. On the flip side, Tata Steel down by 5.00%, ONGC down by 4.98%, UPL down by 3.71%, Hindalco down by 3.66% and Coal India down by 3.18% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 36.53 points or 0.52% to 7,052.78, France’s CAC increased 15.80 points or 0.27% to 5,898.45 and Germany’s DAX was up by 68.88 points or 0.52% to 13,195.14.

Asian markets settled mostly lower on Monday amid growing inflation and global recession worries. Market sentiments weakened further by disappointing reports on US industrial production and leading economic indicators that added to signs of economic slowdown in the world's largest economy. Chinese shares ended marginally lower after the People's Bank of China stood pat on its benchmark lending rates for corporate and household loans in a widely expected move, and concerns that global central banks’ interest rate hikes making it tough for Beijing to stimulate a weak domestic economy by lowering rates. Japanese shares declined as investors struggled to find market moving cues due to federal holiday in the US.