Post Session: Quick Review

Indian equity markets held in green till end of the session on Tuesday with Nifty and Sensex settling above the psychological 23,550 and 77,300 levels respectively. Positive global markets provided some support to domestic Indices. Markets scaled up new high levels in a day. Traders awaited for the HSBC Composite PMI Flash, HSBC Manufacturing PMI Flash, HSBC Services PMI Flash data to be announced on June 21. The broader indices, the BSE Mid cap index and Small cap index ended in green.

Indices made positive start and extended their gains following positive cues from US markets. Traders took support after India's foreign exchange reserves jumped $4.307 billion to touch a new lifetime high of $655.817 billion during the week that ended June 7, data from the Reserve Bank of India (RBI) showed. The reserves have been rising on and off for a long time now. So far in 2024, they have risen over $30 billion, on a cumulative basis. Some support came in as President of the Confederation of Indian Industry (CII) said that within a few years, India will undoubtedly be among the world’s top three economies. In afternoon session, markets continued their firm trade, as Fitch Ratings raised India's growth forecast for current fiscal to 7.2 per cent, from 7 per cent projected in March, citing a recovery in consumer spending and increased investment. For the fiscal years 2025-26 and 2026-27, Fitch projected growth rates of 6.5 per cent and 6.2 per cent, respectively. Indices continued to trade higher in late afternoon session as investors continued to hunt for fundamentally strong stocks. Some comfort also came as India and the US have agreed to closer engagement and cooperation on supply chain, semiconductors and critical minerals during the meeting of the India-US initiative on Critical and Emerging Technology (iCET), led by Indian National Security Adviser Ajit Doval and his US counterpart Jake Sullivan in New Delhi.

On the global front, European markets were trading higher ahead of survey results from Germany and final inflation data from the euro area due later in the day. Asian markets ended mostly in green as Singapore posted a trade surplus of SGD4.563 billion in May. That was roughly in line with expectations following the downwardly revised SGD 4.516 billion surplus in April (originally SGD4.525 billion). Back home, the Confederation of Indian Textile Industry (CITI) in its latest report has said that India’s textile exports grew by 9.59 per cent in May this year compared to the same month of the previous year, despite unfavourable economic conditions in major markets such as the European Union (EU), the US and West Asian nations.

The BSE Sensex ended at 77,301.14, up by 308.37 points or 0.40% after trading in a range of 77,071.44 and 77,366.77. There were 22 stocks advancing against 8 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.43%, while Small cap index was up by 0.96%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 2.11%, Consumer Durables up by 1.27%, Utilities up by 1.05%, Telecom up by 1.00% and Consumer Discretionary was up by 0.90%, while Healthcare down by 0.46%, Metal down by 0.21%, Oil & Gas down by 0.08%, FMCG down by 0.07% and Auto was down by 0.03% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid up by 3.17%, Wipro up by 3.04%, Titan Company up by 1.74%, ICICI Bank up by 1.56% and Mahindra & Mahindra up by 1.10%. On the flip side, Maruti Suzuki down by 2.14%, Ultratech Cement down by 0.96%, Tata Steel down by 0.90%, Tata Motors down by 0.68% and ITC down by 0.53% were the top losers. (Provisional)

Meanwhile, Chief Economic Adviser (CEA) V Anantha Nageswaran has said that as India tries to grow faster, the country needs to grapple with unfavourable factors like slowing globalisation, divisive world politics and the raging issue of climate change.

He stated China, which grew at almost double digits between 1980 and 2015, did not have to contend with these factors during its high growth phase. Between 1980 and 2015, China was blessed with very strong globalisation, global politics not being as divisive and polarising, and the world not being as conflict-ridden.

Making it clear that India has 'troubled relations' with China, the CEA asked the auto industry to reflect on the growing reliance on China, given the northern neighbour's strengths in electric mobility and the imports we have to undertake to feed the fashion of the day. He noted ‘We should not be substituting our dependence on Arab nations for crude oil to another country with which India has had troubled relations.’

The CNX Nifty ended at 23,557.90, up by 92.30 points or 0.39% after trading in a range of 23,499.70 and 23,579.05. There were 35 stocks advancing against 15 stocks declining on the index. (Provisional)

The top gainers on Nifty were Shriram Finance up by 3.57%, Power Grid up by 3.20%, Wipro up by 3.01%, Titan Company up by 1.67% and ICICI Bank up by 1.56%. On the flip side, Maruti Suzuki down by 2.21%, Dr. Reddy's Lab down by 1.54%, Tata Steel down by 1.11%, Ultratech Cement down by 1.10% and Hero MotoCorp down by 0.85% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 38.96 points or 0.48% to 8,181.11, France’s CAC rose 32.94 points or 0.43% to 7,604.51 and Germany’s DAX was up by 74.52 points or 0.41% to 18,142.73.

Asian markets finished mostly higher on Tuesday, kindled by the rally in technological sector stocks amidst artificial intelligence frenzy. Moreover, renewed optimism over Fed interest rate trim after tamer than expected US May inflation figures and risk appetite ahead to the release of series of US economic data this week boosted equity investments. Bargain hunting after previous sessional losses, weakness in crude oil, and negative trend in gold also buoyed indices. Shanghai index advanced despite China-EU trade tensions and rebound in treasury bond yield notes. Stock market of Indonesia was closed for Eid-al-Adha.