Post Session: Quick Review

Indian equity benchmarks failed to hold gains and ended the trading session in red terrain. After a positive start, markets remained strong for the most part of the trading session, after the commerce ministry in its latest data has showed that India's merchandise exports rose by 16.78 per cent to $37.94 billion in June 2022 as compared to $32.49 billion in the same month last year.

In early afternoon deals, markets traded near their intraday high points, as India's dominant services industry expanded at the fastest pace in over eleven years in June amid strong demand but stubborn inflation remains a concern as prices charged rose at the sharpest rate in almost five years. The S&P Global India Services Purchasing Managers' Index rose to 59.2 in June from 58.9 in May, its highest since April 2011.

However, in the last hours of the trade, markets cut all of their gains to turn negative, amid a private report stated that new IT rules drafted last year may create entry barriers affecting ease of doing business in India. Some concerns came amid report that Industry and trade chambers have voiced concern at some of last week’s decisions of the Goods and Services Tax (GST) Council, such as taxing hospital room tariffs and bringing unbranded packaged consumer items within the tax net.

On the global front, European markets were trading lower. Asian markets ended mostly in green, after Japan's service sector expanded at the sharpest pace in more than eight years in June amid the lifting of remaining domestic COVID-19 restrictions. The survey results from S&P Global showed that the au Jibun Bank services Purchasing Managers' Index advanced to 54.0 in June from 52.6 in May. The index signaled the fastest growth since October 2013.

Back home, auto industry stocks remained in focus, after passenger vehicle retail sales in the country rose 40 per cent in June indicating an improvement in semiconductor supplies even as demand, especially for SUVs, remained robust. According to the Federation of Automobile Dealers Associations (FADA), passenger vehicle (PV) registrations rose to 2,60,683 units last month, as compared to 1,85,998 units in June 2021, registering an increase of 40 per cent.

The BSE Sensex ended at 53134.35, down by 100.42 points or 0.19% after trading in a range of 53054.30 and 53865.93. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.35%, while Small cap index up by 0.20%. (Provisional)

The top gaining sectoral indices on the BSE were Power up by 0.64%, Utilities up by 0.59%, Metal up by 0.47%, Healthcare up by 0.23% and Energy up by 0.16%, while IT down by 0.59%, TECK down by 0.57%, Bankex down by 0.37%, Auto down by 0.32% and Realty down by 0.29% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid up by 1.54%, Bajaj Finserv up by 1.34%, Hindustan Unilever up by 0.92%, Sun Pharma up by 0.90% and Reliance Industries up by 0.80%. On the flip side, ITC down by 1.73%, Wipro down by 1.58%, Mahindra & Mahindra down by 1.20%, Larsen & Toubro down by 1.12% and Maruti Suzuki down by 1.10% were the top losers. (Provisional)

Meanwhile, India’s service sector activity expanded further in the month of June at fastest pace, on the back of further accelerations in growth of new business and output at Indian services companies amid ongoing improvements in demand conditions.

As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index surged to 59.2 in June from 58.9 in May. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- however marginally fell to 58.2 in June from 58.3 in May.

The report noted a substantial upturn in new work intakes at the end of the first fiscal quarter, with the rate of increase improving to the best in over 11 years. On the inflation front, input costs continued to rise at a historically elevated pace, although one that was the slowest in three months, while charge inflation hit a near five-year high.

According to the report, unrelenting inflation continued to concern businesses, who were cautiously optimistic about the year-ahead outlook for business activity. The overall level of sentiment was well below its long-run average as only 9% of companies forecast output growth.

The CNX Nifty ended at 15810.85, down by 24.50 points or 0.15% after trading in a range of 15785.45 and 16025.75. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were Power Grid up by 1.64%, Shree Cement up by 1.42%, Hindalco up by 1.40%, Apollo Hospital Ent. up by 1.25% and Bajaj Finserv up by 1.20%. On the flip side, ITC down by 1.71%, HDFC Life Insurance down by 1.65%, Wipro down by 1.59%, Britannia down by 1.18% and Maruti Suzuki down by 1.12% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 68.14 points or 0.94% to 7,164.51, France’s CAC decreased 60.77 points or 1.02% to 5,893.88 and Germany’s DAX was down by 100.27 points or 0.78% to 12,673.11.

Asian markets settled mostly higher on Tuesday after reports that the United States may decide to cut some tariffs on Chinese imports in an effort to tame record-high inflation. Market sentiments improved further after report that China's services activity jumped to 54.5 -- the highest level in nearly a year in June against expected figure of 49.7, while Japan's services activity expanded at the fastest pace in over 8 years in June, that eased concerns about slowing global growth. Japanese shares gained sharply by tracking declines in US yields. However, Chinese shares declined as flare-up in Covid-19 cases rekindled fears of further lockdowns in the world’s second-largest economy.