Post Session: Quick Review

The domestic markets joined global markets run and concluded first trading day of week in green zone. However, markets traded with limited gains throughout the day, as investors maintained risk-averse approach due to weak foreign exchange reserve and FDI data. Traders were seen piling up positions in Banking, and Metal sectors while selling was witnessed in IT sector stocks. As for broader indices, the BSE Mid cap index and Small cap index ended with gains of over half a percent each. 

After making positive start, markets turned volatile for little time, as traders were worried after Reserve Bank of India (RBI) in its latest data has said India's foreign exchange reserve fell by $7.3 billion to a near two-month low of $595 billion in the week ended August 18, registering the most substantial weekly decline in over six months. However, further markets gained some strength, as investors found support with Finance Minister Nirmala Sitharaman’s statement that India's Gross domestic product (GDP) growth in the first quarter of this fiscal (Q1FY24) should be good and that the government's priority is to tame inflation, which has touched a 15-month high. She also said that green shoots of private capital expenditure upcycle can be palpably felt as the government's enhanced capital expenditure is now crowding in private sector investments. Indices continued to trade higher in afternoon session, as sentiments remained upbeat with the commerce ministry’s statement that Indian and UK officials will continue their negotiations till the month-end to iron out differences on the proposed free trade agreement (FTA). It said this meeting will be followed by a review at the higher level. However, in last leg of trade, markets trimmed some of their gains but managed to end session above neutral lines.

On the global front, European markets were trading higher amid hopes that U.S. rate hikes are nearing an end. Asian markets ended mostly higher as investors cheered China's stimulus to ease market unrest and drive economic growth. Chinese authorities announced a slew of measures over the weekend to bolster the country's equity markets and fuel an increase in spending. Back home, Finance Minister Nirmala Sitharaman said Jan Dhan Yojana-led interventions and digital transformation have revolutionised financial inclusion in the country, as more than 50 crore people have been brought into the formal banking system with cumulative deposits surpassing Rs 2 lakh crore.

The BSE Sensex ended at 64,996.60, up by 110.09 points or 0.17% after trading in a range of 64,776.92 and 65,213.45. There were 16 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.59%, while Small cap index was up by 0.67%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 1.37%, Industrials up by 1.09%, Realty up by 0.95%, PSU up by 0.91% and Telecom was up by 0.87%, while IT down by 0.38%, TECK down by 0.33%, FMCG down by 0.27% and Energy was down by 0.05% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid up by 2.62%, Larsen & Toubro up by 2.03%, Mahindra & Mahindra up by 1.97%, HDFC Bank up by 1.02% and Sun Pharma up by 0.89%. On the flip side, Reliance Industries down by 1.38%, JIO Financial down by 0.97%, Nestle down by 0.97%, Titan Company down by 0.59% and ITC down by 0.59% were the top losers. (Provisional)

Meanwhile, Finance Minister Nirmala Sitharaman has said that India's Gross domestic product (GDP) growth in the first quarter of this fiscal (Q1FY24) should be good and that the government's priority is to tame inflation, which has touched a 15-month high. She also said that green shoots of private capital expenditure upcycle can be palpably felt as the government's enhanced capital expenditure is now crowding in private sector investments. 

Mentioning about the key priorities of the government, Sitharaman stressed that the focus is on Aatmanirbhar Bharat (self-reliant India) but essential imports will not be stopped. She also emphasised on the need for diversification of supply chains at the earliest to avoid shocks. She said most of the central banks, including the Reserve Bank of India (RBI), have raised interest rates to tackle inflation following the outbreak of Russia-Ukraine war in February last year that has also disrupted global supply chains. Task for the central banks therefore particularly in today's context is to keep in mind growth and growth-related priorities even as equally looking at controlling inflation.

The minister further said that India has showcased an accelerated pace of economic reforms in the last nine years of Prime Minister Narendra Modi-led government. She said ‘reforms have been continuing, wide ranging domains have been covered, whether it is fiscal, whether it is digital, whether it is physical infrastructure or social inclusion, you spoke about inclusion, yes on social inclusion as well.’

The CNX Nifty ended at 19,306.05, up by 40.25 points or 0.21% after trading in a range of 19,249.70 and 19,366.85. There were 29 stocks advancing against 22 stocks declining on the index. (Provisional)

The top gainers on Nifty were Power Grid up by 2.69%, Larsen & Toubro up by 2.16%, Mahindra & Mahindra up by 1.92%, Cipla up by 1.61% and BPCL up by 1.44%. On the flip side, JIO Financial down by 1.56%, Reliance Industries down by 1.00%, Adani Enterprises down by 0.93%, Hindalco down by 0.82% and Nestle down by 0.69% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 4.95 points or 0.07% to 7,338.58, France’s CAC rose 42.9 points or 0.59% to 7,272.50 and Germany’s DAX was up by 66.79 points or 0.43% to 15,698.61.

Asian markets settled mostly higher on Monday tracking Wall Street’s overnight gains last Friday after US Fed Chair Jerome Powell expressed confidence in continued economic growth in the United States and reiterated Fed's commitment to pull inflation back to the 2% target. Meanwhile investors were awaiting key US jobs and inflation readings due this week. Chinese shares gained after Chinese authorities announced a slew of measures including plans to halve the stamp duty on stock trading starting Monday, while China's securities regulator also approved the launch of 37 retail funds to help infuse new capital into the capital market and said it would slow the pace of initial public offerings. Moreover, Japanese shares gained on tracking persistent weakness of the yen, but tourism-related shares declined amid worries about the impact of a ban on the country’s seafood by China.