Post Session: Quick Review

Indian equity markets wavered between gains and losses during the day and ended in red on Monday. Indices able to hit new high levels during the day. Investors were cautious ahead of consumer price index (CPI) and Index of Industrial Production (IIP) data, which going to be out on June 12. The broader indices, the BSE Mid cap index and Small cap index ended with healthy gains. Traders were seen piling up positions in Realty sectors’ stocks, while selling was witnessed in Metal, IT and Oil & Gas sectors’ stocks.

After making positive start, markets turned volatile following the broadly negative cues from Wall Street Friday overnight, as traders react to data showing much stronger than expected US job growth in the month of May and also an unexpected uptick in the unemployment rate. Some cautiousness came in after Fitch Ratings reportedly said as India’s medium-term fiscal consolidation, critical to any ratings upgrade, is likely to get more challenging as a new coalition government comes to power. Further, markets traded near neutral line with positive bias. Some comfort came with a labour ministry’s statement that retail inflation for industrial workers eased to 3.87 per cent in April compared to 4.2 per cent in March this year. Traders also took support with a private report stating that India stands out in the Asian growth narrative, with the RBI's projection of a 7.2 per cent growth rate for 2025 reflecting strong domestic economic fundamentals. Markets managed to trade in green in afternoon session but failed to maintain their gains and entered into red in late afternoon session. Sentiments were downbeat after the Reserve Bank of India (RBI) in its latest ‘Inflation Expectations Survey of Households (IESH) - May 2024’ has showed that Households’ inflation expectations for the three months and one year ahead periods increased by 20 basis points (bps) and 10 bps, respectively, but remained in single digits, while their perception on current inflation moderated by 10 bps and stood at 8.0 per cent in the latest survey round. 

On the global front, European markets were trading lower as a snap election call in France sparked wider political concerns and weighed on the euro. Asian markets ended mixed after a jobs report released Friday came in hotter than expected, while the euro fell after French President Emmanuel Macron dissolved the National Assembly following a setback in Sunday’s parliamentary election. Back home, industry body Digital Infrastructure Providers Association (DIPA) has pledged its support to India's digital and telecom transformation under the new government and sought a clear roadmap that would cement the country's lead in digital infrastructure.

The BSE Sensex ended at 76,490.08, down by 203.28 points or 0.27% after trading in a range of 76,379.73 and 77,079.04. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.56%, while Small cap index was up by 1.04%. (Provisional)

The gaining sectoral indices on the BSE were Realty up by 1.34%, Basic Materials up by 1.28%, Utilities up by 1.11%, Healthcare up by 0.77%, Telecom up by 0.58% while, IT down by 1.50%, TECK down by 1.20%, Metal down by 0.34%, Oil & Gas down by 0.27%, Energy down by 0.12% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Ultratech Cement up by 3.19%, Power Grid up by 2.13%, Nestle up by 1.81%, NTPC up by 0.94% and Tata Steel up by 0.87%. On the flip side, Tech Mahindra down by 2.65%, Infosys down by 2.26%, Wipro down by 1.81%, Bajaj Finance down by 1.46% and Mahindra & Mahindra down by 1.46% were the top losers. (Provisional)

Meanwhile, Commerce Secretary Sunil Barthwal has said that as India's growth rate continues to outpace other emerging markets, a notable trend of 'reverse flipping' has emerged. He added startups that once relocated abroad for better capital and tax incentives are now finding fertile ground back home. He highlighted that the digital economy and emerging technologies, such as AI and data centers, are cornerstone factors propelling India's future growth. 

The commerce ministry organized an event in Singapore in conjunction with the Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum, underscored India's investment potential. The event drew over 60 participants from a global pool of investors and financial institutions, eager to explore opportunities in India's dynamic market.

Meanwhile, the ministry reported that India's economy grew by 8.2 percent in the fiscal year ending March 2024, solidifying its status as the fastest-growing major economy. In the previous 2022-23 fiscal year, the economy grew 7 per cent.

The CNX Nifty ended at 23,259.20, down by 30.95 points or 0.13% after trading in a range of 23,227.15 and 23,411.90. There were 30 stocks advancing against 20 stocks declining on the index. (Provisional)

The top gainers on Nifty were Ultratech Cement up by 3.47%, Grasim Industries up by 2.81%, Hero MotoCorp up by 2.51%, Cipla up by 2.47% and Power Grid up by 2.09%. On the flip side, Tech Mahindra down by 2.70%, Infosys down by 2.21%, Wipro down by 1.92%, Mahindra & Mahindra down by 1.75% and LTIMindtree down by 1.48% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 41.79 points or 0.51% to 8,203.58, France’s CAC fell 176.3 points or 2.25% to 7,825.50 and Germany’s DAX was down by 185.58 points or 1.01% to 18,371.69. 

Asian markets ended mostly lower on Monday, amid markets in China, Hong Kong and Taiwan were closed for Dragon Boat Festival. Meanwhile, stronger-than-expected jobs report raised doubts about whether the Fed will be able to cut interest rates this year. Investors were cautiously awaiting this week's US Federal Reserve interest rate decision and crucial US inflation data. However, Japanese shares gained as a weaker yen lifted export-related shares. Meanwhile data showed Japan's economy contracted less than initially reported in January-March on upward revisions to capital spending and inventory data, that lending modest support to the central bank's plans to raise interest rates again this year.