Post Session: Quick Review

Tuesday turned out to be wonderful day for Indian equity benchmarks on Tuesday, as bulls held a tight grip on the Dalal Street along with heavy buying. After a strong start, markets remained bullish for the entire day, as the southwest monsoon entering Madhya Pradesh, Chhattisgarh, coastal Andhra Pradesh, Odisha, west Bengal, Jharkhand and Bihar on Monday, cumulative rainfall deficiency so far has been reduced to 5% from 25% reported on June 16. The India Meteorological Department (IMD) has predicted an intense spell of rainfall along the west coast in the next five days.

Some support also came as retirement fund body EPFO has added 17.08 lakh net new subscribers in April 2022, nearly 34 per cent more than 12.76 lakh enrolled in the same month a year ago. Traders overlooked a labour bureau statement that retail inflation for farm and rural labourers increased to 6.67 per cent and 7 per cent, respectively in May, mainly due to higher prices of certain food items.

Markets added gains in the second half of the trading session, as sentiments remained positive, after the commerce and industry minister Piyush Goyal said that the proposed free trade agreement with the European Union, when implemented, will provide greater market access for several domestic sectors such as textiles, leather and sports goods in the EU market. Besides, the pension Fund Regulatory and Development Authority (PFRDA) data showed that the number of subscribers in various schemes of the National Pension System (NPS) rose to 53.17 million in May 2022, registering a 24.07 per cent YoY growth. Till May 2021, the NPS subscribers numbers stood at 42.85 million.

On the global front, European markets were trading higher as the selloff paused, but major central banks' rate hike plans and global recession risks kept investors cautious. Asian markets ended mostly higher on Tuesday, after Taiwan's export orders increased more than expected in May. The data from the Ministry of Economic Affairs showed that export orders rose 6.0 percent year-on-year in May. Orders for mineral products grew 124.1 percent annually in May and those of electronic products gained 17.4 percent.

The BSE Sensex ended at 52532.07, up by 934.23 points or 1.81% after trading in a range of 51808.76 and 52799.40. There were 29 stocks advancing against 1 stock declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 2.42%, while Small cap index up by 2.99%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 5.96%, Energy up by 4.95%, Consumer Durables up by 3.93%, Metal up by 3.90% and Realty up by 3.79%, while there were no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Titan Co up by 5.92%, SBI up by 3.79%, TCS up by 3.17%, HCL Tech. up by 2.81% and Dr. Reddy's Lab up by 2.70%. On the flip side, Nestle down by 0.26% was the only loser. (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 1707688 new jobs in the month of April 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, 6535 new jobs were created in less than 18 age group category, while 288756 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 429662, 248545, 374120 and 360070 new payrolls, respectively in April.

The CNX Nifty ended at 15638.80, up by 288.65 points or 1.88% after trading in a range of 15419.85 and 15707.25. There were 49 stocks advancing against 1 stock declining on the index. (Provisional)

The top gainers on Nifty were Titan Co up by 5.93%, Hindalco up by 5.52%, JSW Steel up by 4.70%, Coal India up by 4.50% and Adani Ports & SEZ up by 3.91%. On the flip side, Apollo Hospital Ent. down by 0.09% was the only loser. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 39.86 points or 0.56% to 7,161.67, France’s CAC increased 85.77 points or 1.45% to 6,005.86 and Germany’s DAX was up by 143.69 points or 1.08% to 13,409.29.

Asian markets ended mostly higher on Tuesday in the absence of cues from Wall Street as the US stock markets were closed Monday for the Juneteenth federal holiday. Meanwhile, bargain hunting emerged at lower levels after stock markets selloff recently. But, investors are remained concerned about recession fueled by skyrocketing inflation and keenly awaiting US Fed Chair Jerome Powell’s testimony for fresh hints on the world’s most powerful central bank’s next rate hike move. Chinese shares settled down as China saw Covid-19 flare-up in cities such as Shenzhen, sparking worries about China’s uncertain recovery path.