Post Session: Quick Review

Bulls made a strong comeback over Dalal Street on Thursday, with both Sensex and Nifty ending with strong gains. After an optimistic start, key indices remained higher till the end of the trading day, as International Monetary Fund's (IMF) Managing Director Kristalina Georgieva said that despite global uncertainty and headwinds, India continues to be a bright spot in the global economy. Adding more optimism among traders, Sanjiv Bajaj, President of industry body CII said India is in a much better position to deal with the challenges related to growth and inflation.

In the second half of the trade, markets extended their gains to end near their intraday high points. Buying by foreign investors in domestic markets also aided sentiments. Foreign institutional investors (FIIs) have net-bought shares worth Rs 758.37 crore on September 7, as per provisional data available on the NSE. Traders got support, amid a private report stating that the Indian market has chartered a divergent path with most world markets over the past three months. To illustrate, the benchmark Sensex is up 7 per cent over the past three months even as the MSCI World index has declined 7 per cent.

On the global front, European markets were trading mostly in green following a rebound on Wall Street that lifted global sentiment. Asian markets ended mostly higher, after Japan posted a current account surplus of 229.0 billion yen in July, the Ministry of Finance said on Thursday - down 86.6 percent from a year ago. That was week shy of expectations for a surplus of 713.5 billion yen following the 132.4 billion yen deficit in June. Imports jumped 47.6 percent on year to 9.795 trillion yen, while exports rose an annual 18.5 percent to 8.583 trillion yen - resulting in a trade deficit of 1.212 trillion yen.

The BSE Sensex ended at 59688.22, up by 659.31 points or 1.12% after trading in a range of 59315.71 and 59711.96. There were 24 stocks advancing against 6 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.29%, while Small cap index up by 0.60%. (Provisional)

The top gaining sectoral indices on the BSE were Bankex up by 1.94%, TECK up by 1.04%, IT up by 1.02%, PSU up by 0.87% and Telecom up by 0.71%, while Metal down by 1.18%, Consumer Durables down by 0.48%, Realty down by 0.34%, Utilities down by 0.18% and Power down by 0.16% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tech Mahindra up by 3.23%, Axis Bank up by 3.22%, ICICI Bank up by 2.57%, Mahindra & Mahindra up by 2.48% and Bharti Airtel up by 2.28%. On the flip side, Tata Steel down by 1.63%, NTPC down by 0.33%, Titan Co down by 0.32%, Nestle down by 0.15% and Power Grid down by 0.09% were the top losers. (Provisional)

Meanwhile, in order to tame inflation, Finance Minister Nirmala Sitharaman has said that the Reserve Bank of India (RBI) will have to be more synchronised with the fiscal policy and other factors. She further said that inflation management cannot be singularly left to the monetary policy, which has proved totally ineffective in many countries.

Sitharaman further noted that there are economies where policy is designed in such a way that the monetary policy and the interest rate management is the one and the only tool to handle inflation.  She said ‘I would say India's inflation management, the word taming inflation or the word keeping it within the tolerance limit is an exercise of so many different activities and majority of which is outside of the monetary policy given in today's circumstances.’

Besides, Finance Minister Nirmala Sitharaman said that there could have been a time when people would have thought this is sacrilegious for the finance minister of a country to say so.

The CNX Nifty ended at 17798.75, up by 174.35 points or 0.99% after trading in a range of 17691.95 and 17807.65. There were 36 stocks advancing against 13 stocks declining, while 1 stock remained unchanged on the index. (Provisional)

The top gainers on Nifty were Shree Cement up by 5.51%, BPCL up by 3.98%, Axis Bank up by 3.22%, Tech Mahindra up by 3.20% and ICICI Bank up by 2.58%. On the flip side, Hindalco down by 2.84%, Tata Steel down by 1.63%, SBI Life Insurance down by 1.04%, Coal India down by 1.00% and Tata Motors down by 0.82% were the top losers. (Provisional)

European markets were trading mostly in green, UK’s FTSE 100 increased 14.59 points or 0.20% to 7,252.42 and France’s CAC was up by 5.89 points or 0.1% to 6,111.81. On the flip side, Germany’s DAX was down by 36.07 points or 0.28% to 12,879.90.

Asian markets ended mostly higher on Thursday following the broadly positive cues from the US markets overnight. Japanese markets ended higher as the yen's rapid depreciation raised hopes for better outlook for exporters. Seoul stocks eked out modest gains to rebound from a seven-week low hit the previous day, as the dollar rally paused, and Treasury yields eased. However, Chinese and Hong Kong markets ended on a subdued note on news of extended lockdowns in the Chinese city of Chengdu. A cautious undertone prevailed as investors awaited the ECB rate decision and a speech by US Federal Reserve Chair Jerome Powell.