Markets manage to end higher amid volatility

Indian equity benchmarks remained range bound for the second consecutive session and managed to end higher on Tuesday, as investors await domestic GDP (gross domestic product) data for the April-June quarter, scheduled to be released post-market hours on Thursday. After a positive start, the markets traded in the tight range, as traders took some support with India Ratings stating that with falling trade deficit, India's current account deficit is likely to narrow to around $10 billion or 1 per cent of GDP in the April-June quarter of the ongoing fiscal. The country's current account deficit (CAD) stood at $18 billion or 2.1 per cent in the corresponding period of the previous fiscal. Some support also came with Union Minister for Labour and Employment Bhupender Yadav’s statement that more than 1.5 crore jobs have been created in nine organised sectors, including IT, manufacturing, trade and transport, during the nine-year rule of Narendra Modi government at the Centre.

However, gains remained capped as some concern came with a private report stating that post-Covid, Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) in the real estate sector saw a major dip in 2022. Some cautiousness crept in with a private report that India is poised for its lowest monsoon rains in eight years, with the El Nino weather pattern seen crimping September precipitation after an August that is on track to be the driest in over a century. Besides, exchange data showed Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,393.25 crore on Monday. Traders also took note of reports that India's G20 Sherpa Amitabh Kant stressed on the need to boost crop productivity through adoption of new cutting-edge technologies and said the farm sector should be made smart and adaptive to climate change.

On the global front, European markets were trading higher with hopes for more policy support from top consumer China and Fed pause hopes helping underpin investor sentiment. Asian markets ended higher on Tuesday amid positive sentiment stemming from Fed pause hopes and Chinese stimulus measures. Markets looked ahead to a raft of key economic readings from the U.S. and China this week for additional clues on the rate and economic outlook.

Finally, the BSE Sensex rose 79.22 points or 0.12% to 65,075.82 and the CNX Nifty was up by 36.60 points or 0.19% to 19,342.65.          

The BSE Sensex touched high and low of 65,229.03 and 64,956.67, respectively. There were 22 stocks advancing against 9 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.45%, while Small cap index was up by 0.69%.

The top gaining sectoral indices on the BSE were Realty up by 1.61%, Utilities up by 1.15%, Metal up by 1.12%, Power up by 1.10%, Capital Goods up by 0.78% while, Telecom down by 0.67%, FMCG down by 0.31%, Healthcare down by 0.16%, Bankex down by 0.10% were the losing indices on BSE.

The top gainers on the Sensex were JIO Financial Services up by 4.72%, Tata Steel up by 1.66%, Tech Mahindra up by 1.60%, NTPC up by 1.21% and JSW Steel up by 1.15%. On the flip side, Bharti Airtel down by 1.75%, Hindustan Unilever down by 1.13%, Axis Bank down by 0.96%, Reliance Industries down by 0.91% and Indusind Bank down by 0.55% were the top losers.

Meanwhile, Union Minister for Labour and Employment Bhupender Yadav has said that more than 1.5 crore jobs have been created in nine organised sectors, including information technology, manufacturing, trade, transport, education, hospitality and medical sector, besides agriculture during the Modi government's tenure.

Yadav said along with the expansion of manufacturing capacities in the country, the registration of new industries and enrolment of new members in the Employees' Provident Fund Organisation (EPFO) has increased, which shows a positive growth rate of employment. He noted that nine years ago, India used to be among the five most fragile economies in the world, but now under the leadership of Prime Minister Narendra Modi, India has become one of the five largest economies in the world.

The minister also informed that 29 crore workers from the unorganised sector, including those from remote villages, have been registered on the government's 'e-Shram' portal within the last one year. He added that this portal is helping in the financial inclusion of unorganised sector workers by including them in the formal economy and giving benefits of social security schemes.

The CNX Nifty traded in a range of 19,377.90 and 19,309.10. There were 37 stocks advancing against 13 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were JIO Financial Services up by 5.00%, UPL up by 2.44%, Hindalco up by 2.38%, Tata Steel up by 1.87% and Hero MotoCorp up by 1.80%. On the flip side, Bharti Airtel down by 1.73%, Hindustan Unilever down by 1.20%, Reliance Industries down by 0.89%, Dr. Reddy's Lab down by 0.87% and Axis Bank down by 0.84% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 116.89 points or 1.59% to 7,455.47, France’s CAC rose 36.13 points or 0.49% to 7,360.84 and Germany’s DAX gained 88.44 points or 0.56% to 15,881.05.

Asian markets ended higher on Tuesday, following positive cues from global markets, as China announced a slew of measures to boost the sagging economy. Chinese market climbed on expectations that policymakers will unveil more supportive measures to support the sputtering economy. Japanese shares ended higher amid the yen continued to weaken in quiet trade. Investors shrugged off data showing that Japan's unemployment rate rose for the first time in four months in July. The unemployment rate in Japan came in at a seasonally adjusted 2.7 percent in July, the Ministry of Internal Affairs and Communications said. That exceeded expectations for 2.5 percent, which would have been unchanged from the June reading. Meanwhile, Markets looked ahead to a raft of key economic readings from the U.S. and China this week for additional clues on the rate and economic outlook.