Post Session: Quick Review

Tuesday turned out to be a wonderful day for Indian equity benchmarks, with both Sensex and Nifty ending near their intraday high points. After a positive start, markets remained under a grip of bulls for the entire trading session, as Commerce and Industry Minister Piyush Goyal has said that India is looking at getting duty-free access for different products identified under One District One Product (ODOP) initiative, to promote their exports . The Minister said that these products, which include gold jewellery, toys, handicrafts and handlooms, hold huge opportunities.

Sentiments were on upbeat mood with a joint survey conducted by industry body FICCI and Indian Banks' Association revealing that the economic activity in India is in recovery mode as growth seen broad basing with most sectors operating at pre-pandemic levels. The uptick in growth was despite a muted start to this year due to emergence of Omicron variant. Besides, as part of its efforts to strengthen customer protection, Reserve Bank is considering setting up a fraud registry to create a database of fraudulent websites, phones and various modus operandi used for digital fraud.

In the second half of the trading session, key indices extended their gaining rally to end on a strong note. Market participants remained optimistic, as credit rating agency Icra in its a note based on the analysis of 620 listed companies, excluding financial sector entities, has said that India Inc saw a 39 per cent jump in top lines during April-June quarter. However, it said their operating margins declined 213 basis points to 17.7 per cent due to input cost inflation.

On the global front, European markets were trading higher. Asian markets settled mostly higher on Tuesday, after Singapore's producer price inflation eased for the first time in three months in July to the lowest level in ten months. The data from the Department of Statistics showed that the manufacturing producer price index climbed 16.2 percent year-on-year in July, slower than the 20.2 percent surge in June. Further, this was the slowest rate of increase since September last year, when prices had risen 14.4 percent.

The BSE Sensex ended at 59537.07, up by 1564.45 points or 2.70% after trading in a range of 58245.49 and 59599.78. All 30 stocks were advancing on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.97%, while Small cap index up by 1.40%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 3.51%, Bankex up by 3.33%, Utilities up by 2.82%, Power up by 2.82% and Oil & Gas up by 2.65%, while there were no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finserv up by 5.47%, Bajaj Finance up by 4.86%, Indusind Bank up by 4.38%, Tech Mahindra up by 3.96% and ICICI Bank up by 3.72%. (Provisional)

Meanwhile, highlighting the government’s aim to emerge as a reliable and trusted partner in Global value chains, Minister of State for Electronics & Information Technology and Skill Development & Entrepreneurship, Rajeev Chandrasekhar has said that the Government is laser focused on achieving the target of $300 billion electronic production by 2026. He further said ‘And for this, we have always emphasised on strengthening our domestic manufacturing ecosystem to make India more resilient to supply chain disruptions’.

Chandrasekhar said that it is very timely and will help the Government identify the challenges that are to be met and the strategies that are to be adopted to achieve this target. The Minister said that India has succeeded in systematically building a framework and a strategy that has clearly outlined goals of a $300 billion electronics manufacturing ecosystem with a $120 billion of exports by 2026.

Talking about the journey of Electronics sector in India in last some years, the Minister said ‘electronics in India has travelled a long way since 2014. We were, in 2014, a country that was increasingly dependent not just on petroleum imports but also on Electronics imports. Systematically Prime Minister Shri Narendra Modi over the years has built back an electronics sector.’

The CNX Nifty ended at 17759.30, up by 446.40 points or 2.58% after trading in a range of 17401.50 and 17777.65. All 50 stocks were advancing on the index. (Provisional)

The top gainers on Nifty were Bajaj Finserv up by 5.44%, Bajaj Finance up by 4.91%, Indusind Bank up by 4.56%, Tata Motors up by 3.92% and Tech Mahindra up by 3.92%. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 35.32 points or 0.48% to 7,462.63, France’s CAC increased 62.68 points or 1.01% to 6,284.96 and Germany’s DAX was up by 171.24 points or 1.33% to 13,064.23.

Asian markets settled mostly higher on Tuesday, despite weak cues from Wall Street as concerns remained about the Federal Reserve's aggressive interest rate hikes to fight inflation. Japanese shares gained by a fresh round of weakness in the Japanese yen after the release of upbeat employment data. The jobless rate remained unchanged at 2.6% percent in July, while the availability of jobs grew for the seventh straight month to a more than two-year high, data showed. Although, Chinese and Hong Kong shares declined despite Chinese authorities pledged to stimulate the world’s second-largest economy.