Post Session: Quick Review

Shrugging off weak global cues, Indian equity benchmarks ended Monday’s trade in green terrain with frontline gauges recapturing their crucial 59,200 (Sensex) and 17,650 (Nifty) levels. Markets made a gap-up opening and built on the gains throughout the day as buying was seen across sectors and segments. Sentiments remained up-beat as hoping for a double-digit growth in GDP in this financial year, Union Finance Minister Nirmala Sitharaman said the nation is on a strong wicket when compared to others, and is responsive in terms of extending hand-holding to the required sections. Traders took support with State Bank of India’s report that India is likely to become the third largest economy by 2029. India is currently ranked fifth largest economy. Besides, foreign investors have pumped in a little over Rs 51,200 crore into the Indian equity markets in August, making it the highest inflow in 20 months, amid improving risk sentiment and stabilisation in oil prices.

Markets extended gains as traders got encouragement after S&P Global in a report said India’s Services PMI rose to 57.2 in August from July’s 4-month low of 55.5, on stronger expansion in new work intakes, upturn in business activity, and the sharpest rise in employment for over 14 years.  Meanwhile, the commerce ministry showed that India's exports contracted by 1.15 per cent to $33 billion and trade deficit more than doubled to 28.68 billion in August. Trade deficit in August 2021 stood at 11.71 billion.

On the global front, European shares edged lower after Russia extended a halt on gas flows down the Nord Stream 1 pipeline leading to worries over energy prices and prompting governments to announce emergency measures. Asian markets ended mostly in red following the broadly negative cues from Wall Street on Friday, as traders remain concerned aver the outlook for the global economy amid the energy crisis in Europe and the report of fresh COVID-19 related lockdowns in China following new virus outbreaks, with the sixth-largest city Chengdu entering full lockdown. Adding more pessimism, the latest survey from Jibun Bank revealed Japan’s services sector fell into contraction territory in August, with a services PMI score of 49.5.

Back home, former RBI governor D Subbarao has said India's GDP growth of 13.5 per cent in the April-June quarter of 2022-23 (Q1FY23) has turned out be a cause for 'disappointment and concern', as there was expectation of a bigger bounce back from the first quarter of last year when economic activity was crippled by the Delta wave of COVID-19. On the sectoral front, metal stocks remained in focus as ICRA said it expects steel prices to remain under pressure in the country over the near future as the prices in the domestic market cannot be cushioned from the global trends.

The BSE Sensex ended at 59245.98, up by 442.65 points or 0.75% after trading in a range of 58812.20 and 59308.25. There were 23 stocks advancing against 7 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.46%, while Small cap index was up by 0.89%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 2.04%, Capital Goods up by 1.07%, Telecom up by 0.93%, Basic Materials up by 0.91% and Bankex up by 0.89%, while Oil & Gas down by 0.32% and Power down by 0.09% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Sun Pharma up by 1.82%, ITC up by 1.73%, NTPC up by 1.70%, Reliance Industries up by 1.57% and HCL Tech up by 1.23%. On the flip side, Nestle down by 1.62%, Ultratech Cement down by 1.06%, Wipro down by 0.47%, Asian Paints down by 0.28% and Hindustan Unilever down by 0.17% were the top losers. (Provisional)

Meanwhile, former RBI governor D Subbarao has said India's GDP growth of 13.5 per cent in the April-June quarter of 2022-23 (Q1FY23) has turned out be a cause for 'disappointment and concern', as there was expectation of a bigger bounce back from the first quarter of last year when economic activity was crippled by the Delta wave of COVID-19.

He added that risk factors for the country's growth outlook in the short term include high commodity prices, possibility of a global recession, monetary tightening by the RBI and an uneven monsoon that could threaten crop output, especially of rice.

Besides, he stated that ‘in order to get to $5 trillion over the next 4-5 years, India should be growing consistently at 8-9 per cent which requires us to be firing on all cylinders, but most of the country's growth drivers are ebbing’. In 2019, Prime Minister Narendra Modi envisioned to make India a $5 trillion economy by 2024-25.

The CNX Nifty ended at 17665.80, up by 126.35 points or 0.72% after trading in a range of 17540.35 and 17683.15. There were 36 stocks advancing against 14 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindalco up by 3.47%, JSW Steel up by 3.11%, ITC up by 1.76%, Sun Pharma up by 1.73% and NTPC up by 1.67%. On the flip side, Bajaj Auto down by 1.84%, Nestle down by 1.54%, Britannia down by 1.12%, Ultratech Cement down by 0.84% and Apollo Hospital down by 0.69% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 50.28 points or 0.69% to 7,230.91, France’s CAC decreased 105.96 points or 1.72% to 6,061.55 and Germany’s DAX was down by 309.60 points or 2.37% to 12,740.67.

Asian markets ended mostly lower on Monday following the broadly negative cues from US markets on Friday as investors reacted to a key US jobs report which showed hiring slowed in August, as widely expected, and the unemployment rate ticked up to 3.7%. Market sentiments weakened further on fears over energy rationing in Europe after Russia said one of its main supply pipelines to Europe would remain shut indefinitely. Japanese shares dropped after the final au Jibun Bank Japan Services purchasing managers' index falling to a seasonally adjusted 49.5 in August, marking the first contraction since March. Hong Kong shares declined as Chinese authorities extended Covid-19 lockdowns of Chengdu and Shenzhen. However, Chinese shares gained after a private survey showed the country's services sector activity grew more than expected in August. The Caixin services purchasing managers index edged down to 55.0 in August from 55.5 in July but remained firmly in expansion territory.