Post Session: Quick Review

In highly volatile trading session, Indian markets finished last trading day of the week below neutral line. The overall markets breadth was negative till the end. Disappointing cues from Asian markets and European markets took their toll on domestic sentiments. Globally, investors were cautious after rate hikes from policymakers in England, Norway and Switzerland pushed global bond yields higher. As for broader indices, the BSE Mid cap index and Small cap index ended the day’s trade deep in red. Sector wises, IT, Metal, Oil & Gas counters traded with heavy losses in a day, while banking counters traded with limited losses on Friday. 

Indices made negative start despite US markets ended mostly higher on Thursday. Traders were concerned as the minutes of the June MPC released by the central bank revealed that sounding a note of caution, RBI’s rate-setting panel member Jayanth R Varma opined that monetary policy is now dangerously close to levels at which it can inflict significant damage to the economy. Further, markets remained in red as traders failed to take support with India and the US stating that they are looking forward to the reconvening of the India-US Trade Policy Forum later this year to further enhance trade relationship and identify new areas for engagement. A joint statement issued after a meeting between Prime Minister Narendra Modi and US President Joe Biden showed that the two countries have also taken steps towards deepening bilateral cooperation to strengthen economic relationship, including trade ties. However, in late afternoon session, markets witnessed some recovery but in last hour of trade, once again markets extend losses and finally both Nifty and Sensex ended the session below their psychological 18700 and 63000 levels respectively. 

On the global front, European markets were trading lower as investors react to mixed economic data from the region. Asian markets ended in red after overall consumer prices in Japan were up 3.2 percent on year in May. That was well shy of estimates for 4.1 percent and down from 3.5 percent in April. On a monthly basis, consumer prices rose 0.1 percent - slowing from 0.6 percent a month earlier. Back home, Reserve Bank of India (RBI) Governor Shaktikanta Das has said that bringing back inflation within the target band is like a job half done. He said ‘our fight against inflation is not yet over so we need to undertake forward-looking assessment of the evolving inflation-growth outlook and stand ready to act, if situation so warrants.’

The BSE Sensex ended at 62,979.37, down by 259.52 points or 0.41% after trading in a range of 62,874.12 and 63,240.63. There were 7 stocks advancing against 23 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 1.24%, while Small cap index was down by 1.17%. (Provisional)

The top losing sectoral indices on the BSE were Oil & Gas down by 1.74%, Consumer Durables down by 1.67%, Metal down by 1.61%, PSU down by 1.38% and Energy was down by 1.38%, while there were no gaining sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Indusind Bank up by 2.68%, Bharti Airtel up by 1.60%, Asian Paints up by 1.53%, NTPC up by 1.14% and HCL Tech up by 0.40%. On the flip side, Tata Motors down by 1.77%, SBI down by 1.48%, Power Grid down by 1.44%, Tata Steel down by 1.35% and Infosys down by 1.32% were the top losers. (Provisional)

Meanwhile, Union Minister Jitendra Singh has expressed need for a mechanism to be put in place to follow up the progress of Startups as their number have risen to more than a lakh. He said that this is the age of innovation and ideas.

Singh added that under Prime Minister Narendra Modi, the government is providing every kind of technical as well as financial support for ideas and innovations to grow and sustain.  As a result, India has emerged as the leading StartUp ecosystem in the world with more than one lakh StartUps and more than 100 Unicorns and the time has come to strategise sustainability.

Meanwhile, Union Minister chaired a high-level joint meeting of Science Ministries and Departments where it was projected that lack of innovation, lack of skilled workforce or lack of funds could possibly be the major factors adversely affecting the sustainability of some Startups. The Minister proposed that an exercise could be undertaken to assess whether the Startups could be identified by a ‘Unique ID’ for effective monitoring across all sectors.

The CNX Nifty ended at 18,665.50, down by 105.75 points or 0.56% after trading in a range of 18,647.10 and 18,756.40. There were 10 stocks advancing against 40 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indusind Bank up by 2.83%, Dr. Reddy's Lab up by 1.93%, Asian Paints up by 1.53%, Bharti Airtel up by 1.42% and NTPC up by 1.19%. On the flip side, Adani Enterprises down by 6.83%, Adani Ports down by 4.20%, BPCL down by 3.70%, Hindalco down by 2.75% and Divi's Lab down by 2.28% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 12.47 points or 0.17% to 7,489.56, France’s CAC fell 11.48 points or 0.16% to 7,191.80 and Germany’s DAX was down by 89.79 points or 0.56% to 15,898.37.

Asian markets finished in red on Friday, as the fears of a potential global recession spooked after Bank of England surprisingly raised interest rate more than expected, while central banks of Turkey, Sitzerland, and Norway also continued monetary tightening this month to tame the stubborn inflation. The looming warning of Federal Reserve about continued hawkish measures also spurred worries about global economic health. Additionally, hotter than expected Japan inflation figures also rattled investor sentiments. Japan's core inflation excluding food and fuel costs surged to a 42 year high in May pressured Bank of Japan to tighten its monetary policy. The BoJ, however reiterated its plan to continue with the ultra-dovish policy. Meanwhile, markets in China, and Taiwan were closed for the Dragon Boat Festival.