Post Session: Quick Review

Indian equity benchmarks ended flat with a positive bias on Tuesday. After a negative start, markets remained lower for the most part of the trading session, amid persistent foreign fund outflows. As per exchange data, foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 1,278.42 crore on Monday. Firm crude oil prices in the international market also put pressure on equities.

Domestic sentiments remained negative, as Crisil in its latest report has said that a fourth of Indian micro, small and medium enterprises (MSMEs) have lost 3 per cent or more of their respective market share to big corporations during the Covid pandemic. It analysed MSMEs from 69 sectors and 147 clusters having a revenue of Rs 47 lakh crore or a fourth of India's GDP to arrive at the details on how the small businesses fared during the pandemic.

However, in the last hour of the trade, key indices cut all of their losses to turn positive, after Union Minister for MSME Narayan Rane has said under the able leadership of Prime Minister Shri Narendra Modi MSME Ministry is committed to achieve the goals of holistic development and self-reliance of MSMEs. Adding some relief, the electronics and IT ministry has approved a total of 314 applications with proposed investments of Rs 86,824 crore under a modified special incentive package scheme till May 31, 2022.

Traders got some support, as a report by the government think-tank NITI Aayog estimates India’s gig economy could employ 2.35 crore people by FY30, representing a three-and-a-half-times increase over 10 years. The gig economy employed around 68 lakh people in FY20. Meanwhile, India and the European Union (EU) resumed negotiations, after a gap of over eight years, for a comprehensive free trade agreement, a move aimed at strengthening economic ties between the two regions.

On the global front, European markets were trading higher. Asian markets settled mostly higher on Tuesday, even after Hong Kong's merchandise exports declined, while imports rose for the second straight month in May. The data from the Census and Statistics Department showed that exports fell 1.4 percent year-on-year in May, after a 1.1 percent increase in April. Imports increased 1.3 percent annually in May, after a 2.1 percent growth in the previous month.

The BSE Sensex ended at 53177.45, up by 16.17 points or 0.03% after trading in a range of 52771.53 and 53301.40. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.18%, while Small cap index up by 0.24%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.54%, Energy up by 2.45%, Metal up by 1.97%, Auto up by 1.26% and PSU up by 0.85%, while Consumer Durables down by 1.49%, Telecom down by 1.05%, Bankex down by 0.46%, Consumer Disc down by 0.05% and Power down by 0.02% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 2.78%, Reliance Industries up by 1.49%, Dr. Reddy's Lab up by 1.41%, Tech Mahindra up by 1.40% and Tata Steel up by 1.34%. On the flip side, Titan Co down by 3.54%, Asian Paints down by 3.25%, Bajaj Finserv down by 1.94%, Kotak Mahindra Bank down by 1.32% and ICICI Bank down by 1.02% were the top losers. (Provisional)

Meanwhile, terming MSMEs as the backbone of the Indian economy and global sustainable developments, Union Minister for MSME Narayan Rane has said that the MSME Ministry is committed to achieve the goals of holistic development and self-reliance of MSMEs, under the able leadership of Prime Minister Narendra Modi.

The Minister further noted that while recovering from the adverse conditions arising out of the Covid-19 pandemic and the subsequent Ukraine war, the MSME sector not only digitized its business operations but also cut downed their input cost and started a new tradition by domestically producing essential products curtailing import and also started export of those products with the support of various schemes of the Government.

Besides, he said that during this time, MSMEs focused their online services to reach the wider market, consequently they have been able to overcome the adversity. He also underlined that MSMEs are contributing in providing livelihood opportunities to local communities.

The CNX Nifty ended at 15850.20, up by 18.15 points or 0.11% after trading in a range of 15710.15 and 15892.10. There were 31 stocks advancing against 19 stocks declining on the index. (Provisional)

The top gainers on Nifty were ONGC up by 5.55%, Hindalco up by 4.12%, Mahindra & Mahindra up by 2.71%, Coal India up by 2.39% and HDFC Life Insurance up by 1.42%. On the flip side, Titan Co down by 3.54%, Asian Paints down by 3.35%, Bajaj Finserv down by 1.99%, Divi's Lab down by 1.63% and Adani Ports & SEZ down by 1.41% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 69.55 points or 0.96% to 7,327.87, France’s CAC increased 71.79 points or 1.19% to 6,119.10 and Germany’s DAX was up by 113.26 points or 0.86% to 13,299.33.

Asian markets settled mostly higher on Tuesday with Chinese and Hong Kong shares gaining after China's decision to ease some quarantine requirements for international arrivals that raised expectations for stronger growth and a revival in demand for commodities. China’s state planner officer said the country will roll out tools in its policy reserve in a timely way to cope with economic challenges, while the People's Bank of China also pledged to keep monetary policy supportive to aid the economy's recovery. Moreover, Japanese Nikkei ended above the psychologically important level of 27,000 for the first time in two weeks as energy shares surged.