Post Session: Quick Review

After hitting new high levels in the last few trading sessions, Indian equity benchmarks ended flat on Wednesday. Markets saw volatility during entire session as traders played safer ahead to the release of the Federal Reserve's latest monetary policy meeting minutes later in a day as well as the U.S. jobs report for hints on the trajectory of U.S. monetary policy later in the week. Besides, weak India’s services sector data kept markets lower during the day. As for broader indices, the BSE Mid cap index and Small cap index ended at record closing highs. 

After making cautious start, Indices soon turned negative, as traders opted for profit taking after recent rally. Besides, disappointing cues from global markets dampened investors’ sentiments. Traders were worried with Icra Ratings’ report that States continue to pay higher interest rates to investors for their debt, with the latest weighted average cost rising to 7.46 per cent at Tuesday's auctions wherein nine states raised Rs 16,200 crore. Markets remained lower in afternoon session, as sentiments got hit after India’s services sector activity eased to a three-month low in June. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index fell at 58.5 in June from 61.2 in May. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- eased to 59.4 in June as against 61.6 in May. In late afternoon session, markets extended their losses led by selling in banking stocks. However, in last leg of trade, markets managed to cut most of their losses. 

On the global front, European markets were trading lower as fresh data pointing to China's faltering economic recovery as well as slowing services sector activity in the euro zone stoked concerns about a sharp hit to global growth. Asian markets ended mostly in red. Back home, Fitch Ratings has said that Indian oil marketing companies' (OMCs) marketing segment to turn profitable from the financial year ending March 2024 (FY24) as crude oil prices fall to Fitch's assumption of $78.8 per barrel, following large losses in FY23 due to high crude prices and unchanged retail fuel prices.

The BSE Sensex ended at 65,446.04, down by 33.01 points or 0.05% after trading in a range of 65,256.49 and 65,584.33. There were 20 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.68%, while Small cap index was up by 0.62%. (Provisional)

The top gaining sectoral indices on the BSE were FMCG up by 1.71%, Auto up by 1.62%, Oil & Gas up by 1.04%, PSU up by 0.80% and Energy was up by 0.75%, while Bankex down by 0.27% and Telecom was down by 0.13% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 3.61%, Indusind Bank up by 2.38%, Tech Mahindra up by 2.37%, Hindustan Unilever up by 2.03% and ITC up by 1.90%. On the flip side, HDFC Bank down by 3.20%, HDFC down by 2.93%, Bajaj Finserv down by 0.80%, Wipro down by 0.57% and Tata Motors down by 0.50% were the top losers. (Provisional)

Meanwhile, India’s services sector activity eased to a three-month low in June but remained above the neutral level of 50.0, amid stronger increase in new business volumes. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index fell at 58.5 in June from 61.2 in May. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- eased to 59.4 in June as against 61.6 in May.

The report further noted that there was a sharp and quicker expansion in intakes of new business at the end of the first fiscal quarter. Positive demand trends, advertising and favourable market conditions were among the reasons for the latest upturn in sales. There was also an increase in new export business during June. The rise was the fifth in successive months, but modest and slower than in May.

The data report also showed a notable increase in prices charged for the provision of services in India. The rate of inflation was marked and the strongest seen in just under six years. The pass-through of greater input and staff costs to clients was the primary factor highlighted by firms for the latest upturn in charges. Although input costs continued to increase in June, the overall rate of inflation softened since May and broadly converged towards its long-run average.

The CNX Nifty ended at 19,398.50, up by 9.50 points or 0.05% after trading in a range of 19,339.60 and 19,421.60. There were 30 stocks advancing against 20 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bajaj Auto up by 5.72%, Divi's Lab up by 5.57%, Hero MotoCorp up by 4.24%, HDFC Life Insurance up by 4.11% and Maruti Suzuki up by 3.58%. On the flip side, HDFC Bank down by 3.18%, HDFC down by 3.07%, Eicher Motors down by 2.71%, Tata Consumer down by 1.13% and UPL down by 1.06% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 42.29 points or 0.57% to 7,477.43, France’s CAC fell 49.14 points or 0.67% to 7,320.79 and Germany’s DAX was down by 89.38 points or 0.56% to 15,949.79. 

Asian markets ended mostly lower on Wednesday with caution ahead to the release of the Federal Reserve's latest monetary policy meeting minutes as well as the US jobs report for further clues on the US central bank’s rate-hike path. Chinese shares declined after a private survey showed China's services activity expanded at the slowest pace in five months in June, adding to worries about a faltering post-pandemic recovery in China. Goldman Sachs downgraded ratings on some Chinese banks. Meanwhile, the au Jibun Bank Flash Japan Services Business Activity Index eased to 54 in June 2023 from a series record 55.9 in May 2023.