Post Session: Quick Review

Local equities spent most part of day in red territory and ended the session near low points. Markets witnessed volatility at the end of the session ahead of monthly F&O expiry. Besides, traders were worried ahead of India’s GDP Growth Rate data due this week. Most of the sectoral indices ended in red on BSE. The broader indices, the BSE Mid cap index and Small cap index seen heavy selling pressure. 

Markets made positive start as investors took support after the India Meteorological Department (IMD) said that India is likely to receive above average monsoon rains this year, retaining its April forecast. Above average rains will help India, which depends heavily on the summer rains for its farm output, boost agriculture and overall economic growth. Further, markets turned volatile amid foreign fund outflows. In the domestic market, foreign institutional investors (FIIs) offloaded shares worth Rs 541.22 crore on Monday. Indices wavered between gains and losses in afternoon session. Sentiments were negative, amid a private report stating that India's economy likely grew at its slowest pace in a year in the January-March quarter due to weak demand. Traders ignored that Reserve Bank of India (RBI) in its latest data on ‘the financial performance of non-government non-financial (NGNF) foreign direct investment (FDI) companies in India’ has showed that the net profit of FDI companies in India, or multinational companies, rose 45.2 per cent during 2022-23. Private limited FDI companies recorded higher profit growth as compared with public limited FDI companies. Markets enlarged their losses and touched low levels as investors were concerned after domestic rating agency Crisil said the banking system's credit growth will drop by 2 percentage points to 14 per cent in financial year 2024-25. The slowdown will be due to lower GDP growth at 6.8 per cent in FY25, as against 7.6 per cent in FY24, RBI measures like higher risk weights on unsecured loans and a high base.

On the global front, European markets were trading mostly lower as investors awaited key inflation readings from the U.S. and Eurozone this week for directional cues. Meanwhile, an ECB survey showed that consumers lowered their inflation expectations last month. Asian markets ended mostly lower as investors took a breather after the previous day’s rally and as they gear up for the release of key US inflation data later in the week. Back home, rating agency ICRA in its latest report has said that the general insurance industry’s gross direct premium income (GDPI) is likely to touch Rs 3.7 trillion by FY2026, a robust 32% rise from Rs 2.8 trillion in FY2024.

The BSE Sensex ended at 75,170.45, down by 220.05 points or 0.29% after trading in a range of 75,083.22 and 75,585.40. There were 10 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.63%, while Small cap index was down by 1.09%. (Provisional)

The only gaining sectoral indices on the BSE were Healthcare was up by 0.29%, while Realty down by 2.22%, Power down by 1.86%, Utilities down by 1.55%, PSU down by 1.37% and Telecom was down by 1.26% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Asian Paints up by 1.30%, Wipro up by 0.76%, Hindustan Unilever up by 0.37%, JSW Steel up by 0.37% and Bajaj Finserv up by 0.35%. On the flip side, Power Grid down by 1.64%, Tech Mahindra down by 1.21%, NTPC down by 1.16%, Tata Motors down by 1.12% and Bharti Airtel down by 0.95% were the top losers. (Provisional)

Meanwhile, retaining its April forecast, the India Meteorological Department (IMD) has said that India is likely to receive above average monsoon rains this year. Above average rains will help India, which depends heavily on the summer rains for its farm output, boost agriculture and overall economic growth. The India Meteorological Department (IMD) said India likely to experience normal rainfall (92-108 per cent of long period average of 166.9 mm) in June. Barring a few parts of southern peninsular India, normal to above-normal maximum temperatures expected in country in June.

It noted that ‘Conditions favourable for onset of monsoon over Kerala in next 5 days’. It added that ‘India's monsoon core zone comprising most of the rain-fed agriculture areas likely to receive above normal rainfall.’ According to IMD, below-normal monsoon rainfall predicted in northeast India, normal in northwest, and above normal in central and south peninsular India. It also added that Northwestern and central parts of the country are likely to get some relief from scorching heat after three days due to a fresh western disturbance.

According to IMD chief Mrutyunjay Mohapatra, Rajasthan and Gujarat saw nine to 12 heat wave days, with temperatures reaching 45-50 degrees Celsius. He said ‘Expect relief from the heat wave in northwest and central parts of the country after three days due to a western disturbance and moisture incursion from the Arabian Sea. There could be some thunderstorm activity in northwest India and rain in the western Himalayan region’. He added Delhi, south Haryana, southwest UP and Punjab recorded five-seven heat wave days, with maximum temperatures ranging from 44 degrees Celsius to 48 degrees Celsius. Assam also experienced a heat wave with record breaking temperatures on May 25-26. The IMD attributed the heat wave in northwest India and some parts of the central region in the second half of May to the lack of rainfall, stronger dry and warm winds and an anti-cyclonic circulation over southwest Rajasthan and adjoining Gujarat.

The CNX Nifty ended at 22,888.15, down by 44.30 points or 0.19% after trading in a range of 22,858.50 and 22,998.55. There were 21 stocks advancing against 29 stocks declining on the index. (Provisional)

The top gainers on Nifty were Divi's Lab up by 3.22%, SBI Life up by 2.88%, HDFC Life Insurance up by 2.52%, Grasim Industries up by 2.08% and Hero MotoCorp up by 1.97%. On the flip side, Adani Ports down by 2.18%, Power Grid down by 1.62%, BPCL down by 1.46%, Coal India down by 1.38% and Adani Enterprises down by 1.37% were the top losers. (Provisional)

European markets trading mostly lower; UK’s FTSE 100 decreased 13.18 points or 0.16% to 8,304.41, France’s CAC fell 29.86 points or 0.37% to 8,102.63. while, Germany’s DAX was up by 32.25 points or 0.17% to 18,806.96.

Asian markets settled mostly lower on Tuesday on caution ahead of upcoming release of the United States and European inflation data, while market participants are also awaiting speeches from Fed officials for more clarity on the path for Federal Reserve monetary policy. Japanese shares fell as investors anticipated potential policy tightening by the Bank of Japan ahead of its June meeting. While, Japan's service prices rose at the fastest clip in over 30 years in a sign of a broadening inflation trend that boosting the case for gradual increase in interest rates. Chinese shares declined, even as the China's commercial hub Shanghai has lowered down-payment ratios and the minimum mortgage threshold.