Post Session: Quick Review

Indian equity benchmarks ended with notable gains on Tuesday. Indices made an optimistic start, as sentiments got boost with a private report stating that during the April-July period, the central government achieved more than a third of the direct tax collection for this financial year as personal tax collection exceeded corporation tax mop-up amid tightened enforcement and compliance measures. Overall direct tax collections, net of refunds, including corporation and personal income tax, grew by 40 per cent in the first four months of FY23 to Rs 5 trillion, which is nearly 35 per cent of the target of Rs 14.2 trillion for the whole fiscal year.

Traders remained optimistic during the day, as the commerce ministry in its latest data has said that India’s merchandise exports rose 2.14 per cent to $36.27 billion in July 2022 as compared to $35.51 billion in July 2021. Merchandise imports in July 2022 were $66.27 billion, which is an increase of 43.61 per cent over imports of $46.15 billion in July 2021. Traders also took a note of Former RBI Governor D Subbarao’s statement that India may become a USD five trillion economy by 2028-29 only if the GDP grows at nine per cent per annum consistently for the next five years. He said there are eight key challenges for India to overcome to achieve the dream of $5 trillion economy.

Positive trade continued over the Dalal Street for the entire trading session, after India’s inflation based on wholesale price index (WPI) eased to 13.93% in the month of July 2022 as against 15.18% in June, as prices of food articles, nonfood articles and crude petroleum & natural gas declined. Sentiments remained up-beat as the Income Tax Department said tax collected on income of companies surged by 34 per cent in the first four months of the current fiscal that began in April, indicating that a simplified tax regime with low rates is yielding results. Some support also came as the commerce ministry is proposing a host of direct and indirect incentives such as deferral of import duties and exemption from export taxes to revamp Special Economic Zones through a new legislation.

On the global front, European markets were trading higher buoyed by defensive sectors and miners, although concerns over a potential recession limited further upside. Asian markets settled mostly higher on Tuesday, after Japan's industrial production rose more than initially estimated in June. The latest data from the Ministry of Economy, Trade and Industry said that industrial production increased a seasonally adjusted 9.2 percent monthly in June. In the initial estimate, output grew 8.9 percent. Shipments rose by 5.0 percent monthly in June and the inventories grew 1.9 percent. Meanwhile, the inventory ratio decreased 1.4 percent.

The BSE Sensex ended at 59842.21, up by 379.43 points or 0.64% after trading in a range of 59673.96 and 59923.03. There were 25 stocks advancing against 5 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.03%, while Small cap index up by 1.03%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 2.57%, Realty up by 2.03%, Oil & Gas up by 1.76%, Consumer Disc up by 1.58% and Power up by 1.48%, while Telecom down by 0.19%, Metal down by 0.17% and TECK down by 0.01% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 2.28%, Maruti Suzuki up by 2.19%, Asian Paints up by 2.09%, Hindustan Unilever up by 1.90% and Ultratech Cement up by 1.29%. On the flip side, SBI down by 0.90%, Bharti Airtel down by 0.85%, Bajaj Finance down by 0.26%, TCS down by 0.20% and NTPC down by 0.03% were the top losers. (Provisional)

Meanwhile, India’s inflation based on wholesale price index (WPI) eased to 13.93% in the month of July 2022 as against 15.18% in June, as prices of food articles, nonfood articles and crude petroleum & natural gas declined.

Component wise, primary articles index, having weight of 22.62%, declined by 2.69% to 177.5 (provisional) in July, 2022 from 182.4 (provisional) for the month of June, 2022. Prices of Minerals increased in July 2022 as compared to June 2022. Prices of Food Articles, Nonfood Articles and Crude Petroleum & Natural Gas declined in July 2022 as compared to June 2022.

Fuel & Power index, having weight of 13.15%, increased by (6.56%) to 165.6 (provisional) in July 2022 from 155.4 (provisional) for the month of June 2022, as prices of mineral oils and electricity increased in July 2022 as compared to June 2022.

Besides, Manufactured Products constituting the major portion of the index with weight of 64.23%, declined by 0.42% to 143.1 (provisional) in July 2022 from 143.7 (provisional) for the month of June 2022. Meanwhile, for the month of May, 2022 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 155.0 and 16.63 % respectively.

The CNX Nifty ended at 17825.25, up by 127.10 points or 0.72% after trading in a range of 17764.05 and 17839.10. There were 42 stocks advancing against 8 stocks declining on the index. (Provisional)

The top gainers on Nifty were HDFC Life Insurance up by 4.71%, Adani Ports & SEZ up by 4.54%, Eicher Motors up by 3.98%, BPCL up by 3.59% and Maruti Suzuki up by 3.50%. On the flip side, Grasim Industries down by 1.91%, Hindalco down by 1.68%, SBI down by 0.90%, Bharti Airtel down by 0.79% and JSW Steel down by 0.64% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 33.62 points or 0.45% to 7,542.77, France’s CAC increased 37.56 points or 0.57% to 6,607.51 and Germany’s DAX was up by 127.37 points or 0.92% to 13,943.98.

Asian markets settled mostly higher on Tuesday, tracking Wall Street gains overnight with expectations that moderating inflation would help the US central bank to slow the pace of interest-rate hikes from next monetary policy meetings. Chinese shares gained marginally after the Chinese central-bank said China still needs more growth policies to stabilize its economy following the PBoC’s unexpected cut of key interest rates for the first time since January. Hong Kong shares declined as the audit watchdog widened investigation into China Evergrande Group's financial reporting. Meanwhile, weaker-than-expected Chinese economic data released yesterday too pressurized market sentiments. China’s Retail sales grew by 2.7% in July from a year ago, that’s well below an expected rise of 5.3% and down from 3.1% growth in June. While, Industrial production was up 3.8% year-on-year, but down from 3.9% in June and well below forecasts.