Post Session: Quick Review

Last trading day of week ended on a higher note, with both Sensex and Nifty closing marginally higher. Markets made a strong start of the trading day, aided with a report stating that the Income-tax department has collected around Rs 28 crore in taxes after about 1 lakh returns were filed by taxpayers under the newly introduced return filing form called ITR-U that was notified this year as part of the Budget 2022-23. Some support also came in as RBI data showed bank credit growth accelerated to 14.2 per cent in the quarter ended June 2022 from 6 per cent in the same period of the previous year.

Positive trade continued over the Dalal Street for the most part of the trading session. Domestic sentiments remained optimistic, as Services Export Promotion Council (SEPC) said that implementation of the proposed India-UK free trade agreement will help to boost the country's services exports, particularly from legal, accounting and auditing sectors. Adding some more relief, a private report stated that the Indian software-as-a-services (SaaS) market is expected to grow multi-fold by 2025, accounting for almost 7 to 10 per cent of the global market from 2 to 4 per cent currently.

However, in the last hours of the trade, key indices turned negative and again back in green to end higher, after the Reserve Bank of India (RBI) in its latest report on ‘the private corporate sector performance’ has showed that the manufacturing sector recorded impressive sales growth of 41.6 per cent (y-o-y) in Q1 FY23, aided by both volume and price effects along with broad based demand expansion across industries. Besides, sales growth (y-o-y) of listed private non-financial companies surged to 41 per cent in Q1 FY23 from 22.3 per cent in the previous quarter.

On the global front, European markets were trading mostly higher as global attention turned to US Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole economic symposium. Asian markets ended mostly higher, even after Hong Kong's merchandise exports decreased for the third straight month in July, while imports fell for the first time in four months. The data from the Census and Statistics Department showed that exports fell 8.9 percent year-on-year in July, faster than the 6.4 percent decrease in June. Imports declined notably by 9.9 percent annually in July, reversing a 0.5 percent rise in the previous month.

The BSE Sensex ended at 58833.87, up by 59.15 points or 0.10% after trading in a range of 58722.69 and 59321.65. There were 22 stocks advancing against 8 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.40%, while Small cap index up by 0.35%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 1.62%, Consumer Durables up by 1.50%, Utilities up by 1.31%, PSU up by 1.26% and Capital Goods up by 1.25%, while Realty down by 0.40%, FMCG down by 0.15% and Healthcare down by 0.07% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 2.80%, Titan Co up by 2.65%, Power Grid up by 1.92%, Kotak Mahindra Bank up by 1.71% and Larsen & Toubro up by 1.47%. On the flip side, Indusind Bank down by 1.92%, HDFC down by 1.20%, Asian Paints down by 1.18%, Bharti Airtel down by 1.02% and Dr. Reddy's Lab down by 0.60% were the top losers. (Provisional)

Meanwhile, the Reserve Bank of India (RBI) in its latest report on ‘the private corporate sector performance’ has showed that the manufacturing sector recorded impressive sales growth of 41.6 per cent (y-o-y) in Q1 FY23, aided by both volume and price effects along with broad based demand expansion across industries. Besides, sales growth (y-o-y) of listed private non-financial companies surged to 41 per cent in Q1 FY23 from 22.3 per cent in the previous quarter.

The report further said that annual sales growth of information technology (IT) companies, which remained steady in positive terrain even during the COVID-19 pandemic, stood at 21.3 per cent during the latest quarter, while sales of non-IT services companies swelled by 62.1 per cent (y-o-y) in Q1 FY23, as the service activities continued their ascend on strong revival path after the second wave of the pandemic a year ago.

On the expenditure front, manufacturers’ expenses on raw materials increased by 52.0 per cent (y-o-y) in tandem with robust demand expansion; the ratio of raw material expenditure to sales moved up on both sequential as well as annual basis. Further, annual growth in staff cost for manufacturing, IT and non-IT services companies stood at 10.3 per cent, 23.5 per cent and 20.0 per cent, respectively, whereas the ratio of their staff cost to sales stood at 5.0 per cent, 50.1 per cent and 8.0 per cent, respectively.

The CNX Nifty ended at 17558.90, up by 36.45 points or 0.21% after trading in a range of 17519.35 and 17685.85. There were 35 stocks advancing against 15 stocks declining on the index. (Provisional)

The top gainers on Nifty were Grasim Industries up by 3.10%, NTPC up by 2.83%, JSW Steel up by 2.82%, Titan Co up by 2.69% and Adani Ports & SEZ up by 2.66%. On the flip side, Eicher Motors down by 3.63%, Indusind Bank down by 1.85%, Bharti Airtel down by 1.37%, Asian Paints down by 1.16% and HDFC down by 0.95% were the top losers. (Provisional)

European markets were trading mostly higher, UK’s FTSE 100 rose 8.11 points or 0.11% to 7,487.85 and France’s CAC gained 5.76 points or 0.09% to 6,387.66, while Germany’s DAX was down by 30.20 points or 0.23% to 13,241.76.

Asian markets ended mostly higher on Friday followed by overnight gains on Wall Street as the US government reported the US economy contracted mildly than initially expected in the second quarter. But investors are cautiously awaiting US Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole economic symposium due later in the day for further clues about the pace of the US Fed's interest rate hikes. Although, Chinese shares declined despite news of US-China agreement that would allow US regulators access to audits of Chinese companies that are listed on American exchanges.