Post Session: Quick Review

Volatile trading session ended on a higher note on Monday, with both Sensex and Nifty closing near their intraday high points. After a negative start, markets traded lower in early deals, impacted with continued FIIs selling. In June, FPIs sold equity worth Rs 50,145 crore through the stock market, taking the total FPI selling in CY 22 to Rs 2,23,944 crore. Some cautiousness also came in with a private report stating that about 10 states in India have detected a new sub-variant of Omicron BA.2.75, which may be alarming in nature.

However, in late morning session, key indices cut losses and remained flat with a positive bias for the most part of the trading session, as the gross Goods and Services Tax (GST) revenue collection in the month of June 2022 increased by 55.84% to Rs 144,616 crore as compared to Rs 92,800 crore in the same month last year. On the total revenue collection, CGST is Rs 25,306 crore, SGST is Rs 32,406 crore, IGST is Rs 75887 crore (including Rs 40102 crore collected on import of goods) and cess is Rs 11,018 crore (including Rs 1197 crore collected on import of goods).

Markets added gains in the last hour of the trade, following positive European markets. Traders got relief, as the commerce ministry is working to release the new five-year foreign trade policy (FTP) before September this year and Districts as Export Hubs scheme would be part of that document, which aims at promoting exports and job creation. Some comfort also came with reports that the windfall tax on oil produced within India and fuel exported overseas will make up for more than three-fourths of the revenue that the government lost when it cut excise duty on petrol and diesel to cool soaring inflation.

On the global front, European markets were trading higher though overall trading activity remained muted due to a U.S. market holiday. Asian markets ended mostly lower, after Indonesia's consumer prices increased at a faster than expected rate in June. The data from statistics bureau showed that the consumer price index increased 4.35 percent year-over-year in June, following a 3.55 percent rise in May. Street had expected inflation to accelerate to 4.17 percent. Core inflation was 2.63 percent in June, while economists had forecast 2.72 percent.

Back home, the power industry stocks remained in focus, as the portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators) has showed that total outstanding dues owed by electricity distribution companies (discoms) to power producers rose by 4 per cent year-on-year (Y-o-Y) to Rs 1,32,432 crore in June 2022 as compared to Rs 1,27,306 crore in June 2021.

The BSE Sensex ended at 53234.77, up by 326.84 points or 0.62% after trading in a range of 52674.81 and 53301.99. There were 24 stocks advancing against 6 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.82%, while Small cap index up by 0.59%. (Provisional)

The top gaining sectoral indices on the BSE were FMCG up by 2.49%, Bankex up by 1.08%, Capital Goods up by 0.97%, Consumer Durables up by 0.82% and Industrials up by 0.74%, while Metal down by 1.49%, Energy down by 0.50%, Oil & Gas down by 0.46%, IT down by 0.42% and TECK down by 0.21% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindustan Unilever up by 4.03%, Indusind Bank up by 2.95%, ITC up by 2.62%, ICICI Bank up by 2.25% and Power Grid up by 2.15%. On the flip side, TCS down by 2.46%, Tata Steel down by 2.15%, Mahindra & Mahindra down by 1.58%, Dr. Reddy's Lab down by 1.12% and Tech Mahindra down by 1.01% were the top losers. (Provisional)

Meanwhile, with an aim to provide necessary support to Project Sponsoring Authorities in transaction of PPP projects, the Department of Economic Affairs (DEA), Ministry of Finance has empaneled 12 Transaction Advisers for Public Private Partnership (PPP) Projects.

To create an enabling environment for stepping up of private investment in Infrastructure and to cater State Governments demand, the TA panel is made available to all Central Ministries, State Governments, Statutory Bodies, Public Sector Enterprises (PSE) and other such undertakings within the purview of Ministries/ Departments of Government of India and State Governments either undertaking or intending to undertake PPP transactions.

As per the notification released by the Ministry of Finance, the Panel will help to make the process of appointment of transaction advisors/consultant effective by ensuring transparency and accountability through clear definition of the processes, role and responsibilities of the agencies and the private sector, leading to preparation of bankable PPP projects.

The CNX Nifty ended at 15835.35, up by 83.30 points or 0.53% after trading in a range of 15661.80 and 15852.35. There were 36 stocks advancing against 14 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindustan Unilever up by 4.07%, Britannia up by 3.24%, Indusind Bank up by 3.07%, ITC up by 2.66% and ICICI Bank up by 2.30%. On the flip side, JSW Steel down by 4.72%, ONGC down by 3.85%, TCS down by 2.41%, Tata Steel down by 2.10% and Cipla down by 1.96% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 67.45 points or 0.94% to 7,236.10, France’s CAC increased 36.68 points or 0.62% to 5,967.74 and Germany’s DAX was up by 21.86 points or 0.17% to 12,834.89.

Asian markets ended mostly lower on Monday amid signs of new waves of infections in the second largest economy, while a private report stating that many major economies will enter recessions over the next 12 months. Meanwhile, US stock market is closed today for the Independence Day holiday. Soft US data helped raise expectations that the Fed might opt for a less aggressive pace of interest rate hikes in the months ahead. Data showed US manufacturing activity slowed more than expected in June, with a measure of new orders contracting for the first time in two years, while construction spending unexpectedly dipped in May. However, Japanese shares gained by utility companies as Japan continues to deal with an unprecedented heatwave heading into July.