Post Session: Quick Review

Indian equity benchmarks ended slightly lower on Tuesday’s trading session. After a positive start, markets cut gains and traded volatile during the trading session, as Finance Ministry in its report on ‘India's external debt’ has said that India's external debt rose by 8.2 per cent year-on-year to USD 620.7 billion as of March 2022. It stated while 53.2 per cent of it was denominated in the US dollar, Indian rupee-denominated debt, estimated at 31.2 per cent, was the second largest. Some concerns also came after the exchange data showed foreign institutional investors (FIIs) offloaded shares worth Rs 811.75 crore on Monday.

Despite volatility, indices managed to trade in green for the most part of the session, as Finance Minister Nirmala Sitharaman said that while the necessary stimulus for growth would continue, her ministry and the Reserve Bank of India (RBI) would work on a pathway to maintain the growth momentum for the next 25 years in order to make India an advanced economy. Some relief came after Governor Shaktikanta Das said that the Reserve Bank of India’s (RBI’s) interventions in the foreign exchange market are not just aimed at preventing excessive volatility in the rupee but also to anchor expectations around the depreciation of the domestic currency.

At the end, markets ended in red but losses remained limited, as union Commerce and Industry Minister Piyush Goyal highlighted India's stable economic conditions during COVID-19 pandemic and said that the country has emerged as the trusted partner of the world. Besides, traders got support after credit rating agency Moody’s has allotted a Baa3 rating for the Government of India with a stable outlook. India's credit profile reflects key strengths including its large and diversified economy with high growth potential, a relatively strong external position, and a stable domestic financing base for government debt.

On the global front, European markets were trading mostly in green. Asian markets ended mostly higher on Tuesday, after China's services companies continued to recover in August from the recent wave of the pandemic underpinned by strong sales. The survey results from S&P Global showed that the Caixin services Purchasing Managers' Index came in at 55.0, down from 55.5 in July. A score above 50.0 indicates expansion. Moreover, the rate of expansion was the second-quickest recorded since May 2021.

The BSE Sensex ended at 59196.99, down by 48.99 points or 0.08% after trading in a range of 58974.26 and 59566.67. There were 9 stocks advancing against 20 stocks declining, while 1 stock remained unchanged on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.47%, while Small cap index up by 0.10%. (Provisional)

The top gaining sectoral indices on the BSE were Power up by 1.90%, Utilities up by 1.74%, Oil & Gas up by 1.35%, Energy up by 1.08% and Metal up by 0.87%, while FMCG down by 0.46%, Bankex down by 0.41%, IT down by 0.29%, Auto down by 0.10% and Consumer Disc down by 0.07% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 2.56%, Bharti Airtel up by 2.36%, Tata Steel up by 1.64%, Reliance Industries up by 0.89% and Power Grid up by 0.65%. On the flip side, Bajaj Finserv down by 2.08%, Mahindra & Mahindra down by 1.08%, Hindustan Unilever down by 1.07%, Bajaj Finance down by 1.05% and Kotak Mahindra Bank down by 0.99% were the top losers. (Provisional)

Meanwhile, amid constantly changing business scenario, Union Minister Smriti Irani expressed need for the traders and merchants to modernize and digitize their business models. The Minister made the remarks while launching CAIT India Knowledge Mission in the national capital.

The initiative will educate and assist the traders across the country to adopt new and modern technologies to their businesses. The Confederation of All India Traders (CAIT) will organise both offline and online workshops across the country as part of the programme.

The mission has been launched to teach the traders and merchants the needs and benefits of digitization. They will be guided with the use of digital payments in the businesses, changes to be made in the stock, customers' demand for types of products among others.

The CNX Nifty ended at 17655.60, down by 10.20 points or 0.06% after trading in a range of 17587.65 and 17764.65. There were 21 stocks advancing against 29 stocks declining on the index. (Provisional)

The top gainers on Nifty were Apollo Hospital Ent. up by 3.10%, Bharti Airtel up by 2.82%, NTPC up by 2.40%, Shree Cement up by 1.69% and Tata Steel up by 1.59%. On the flip side, Bajaj Finserv down by 2.34%, Tata Consumer Products down by 2.29%, Britannia down by 1.47%, UPL down by 1.17% and Kotak Mahindra Bank down by 1.15% were the top losers. (Provisional)

European markets were trading mostly in green; UK’s FTSE 100 increased 14.52 points or 0.20% to 7,301.95 and Germany’s DAX was up by 129.46 points or 1.01% to 12,890.24. On the flip side, France’s CAC was down by 3.28 points or 0.05% to 6,089.94.

Asian markets ended mostly higher on Tuesday as investors expecting more clarity ahead of several central bank meetings. The European Central Bank would meet on Thursday to discuss interest rate action, followed by the US Federal Reserve on September 21. Chinese shares gained after China's central bank promised fresh measures to follow a stimulus package released in May. Meanwhile, China reduced amount of foreign-exchange deposits banks need to set aside as reserves for the second time this year to uplift the yuan after the currency hit a two-year low. However, ongoing energy crisis in Europe and the decision to cut global oil output deepened the market concerns over global economic growth.