Post Session: Quick Review

In volatile trading session, Local equity markets ended Wednesday’s trade mixed. During the trade, markets managed to hit fresh record highs couple of times but selling in last leg of trade forced markets to end near neutral lines. Investors now turned their focused towards full Budget of FY25. As for broader indices, the BSE Mid cap index and Small cap index ended in red. Buying was witnessed in banking and IT sector’s stocks. 

Markets made positive start tracing positive cues from global markets. Some support also came after Central Board of Direct Taxes (CBDT) has said that net direct tax collection grew 21 per cent to Rs 4.62 lakh crore during April 1 to June 17, 2024 period, on higher advance tax mop-up. The first instalment of advance tax, which was due on June 15, showed collections rose 27.34 per cent to Rs 1.48 lakh crore. Further, markets turned negative and traded near flatline in afternoon session as traders sold their riskier assets. Traders took a note of the Reserve Bank Governor Shaktikanta Das’ statement that India should avoid adventurism and continue to focus on bringing down inflation towards the target of 4% despite the growing clamour to signal a pivot in monetary policy. He stated ‘At this point there is again clamour that one should change the stance. But we want clear evidence that inflation should moderate and perhaps a little faster. It will be too premature to talk in terms of changing the stance’. In late afternoon session, indices gained traction to trade higher but failed to protect gains and come off from high levels. 

On the global front, European markets were trading lower after several Federal Reserve officials urged patience on interest-rate cuts. Asian markets ended mostly in green after Indonesia's foreign trade surplus increased notably in May from a year ago as exports rose amid a significant fall in imports. The figures from Statistics Indonesia showed that the trade surplus rose to $2.93 billion in May from $0.43 billion in the same month last year. Back home, the government has released the 17th instalment of about Rs 20,000 crore under PM-KISAN scheme and distributed certificates to over 30,000 self-help groups known as Krishi Sakhis.

The BSE Sensex ended at 77,337.59, up by 36.45 points or 0.05% after trading in a range of 76,954.87 and 77,851.63. There were 10 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.91%, while Small cap index down by 0.58%. (Provisional)

The only gaining sectoral indices on the BSE were Bankex up by 1.97% and IT was up by 0.38%, while Realty down by 2.97%, Consumer Durables down by 2.42%, Capital Goods down by 2.15%, Oil & Gas down by 1.97% and Power was down by 1.86% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Axis Bank up by 3.17%, HDFC Bank up by 3.06%, ICICI Bank up by 1.93%, Kotak Mahindra Bank up by 1.67% and Indusind Bank up by 1.48%. On the flip side, Titan Company down by 3.47%, Bharti Airtel down by 2.49%, Maruti Suzuki down by 2.43%, Larsen & Toubro down by 2.27% and NTPC down by 1.99% were the top losers. (Provisional)

Meanwhile, as voices for changing the policy stance grow, the Reserve Bank of India(RBI) Governor Shaktikanta Das said it is 'too premature' to make the shift and stressed that the apex bank has to 'shun' any adventurism on the rates front, given the pressure from food inflation. Das acknowledged that there is a 'clamour' to change the stance but RBI wants clear evidence that inflation is moderating perhaps a little faster'.

He said even though inflation has cooled in the recent past and is expected to go down further, there is a possibility of the headline number touching 5 per cent as well in the near future given a slew of pressures. He said even though core inflation has moderated to comfortable levels, food inflation has been at or above 8 per cent in the last few readings, and added that adverse aspects like severe heat conditions make it uncertain.

Further, he said that the growth momentum continues to be strong, and sounded confident of the economy expanding at a conservative RBI projection of 7.2 per cent. Besides, he said that the Reserve Bank of India is monitoring the high trading volumes in the futures and options segment along with Sebi but any action on it will be taken by the markets regulator. 

The CNX Nifty ended at 23,516.00, down by 41.90 points or 0.18% after trading in a range of 23,412.90 and 23,664.00. There were 11 stocks advancing against 39 stocks declining on the index. (Provisional)

The top gainers on Nifty were HDFC Bank up by 3.11%, Axis Bank up by 2.92%, ICICI Bank up by 1.92%, Kotak Mahindra Bank up by 1.59% and Indusind Bank up by 1.35%. On the flip side, Titan Company down by 3.53%, Larsen & Toubro down by 2.69%, Maruti Suzuki down by 2.54%, Bharti Airtel down by 2.52% and Hindalco down by 2.41% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 3.14 points or 0.04% to 8,188.15, France’s CAC fell 39.35 points or 0.52% to 7,589.45 and Germany’s DAX was down by 37.77 points or 0.21% to 18,094.20. 

Asian markets settled mostly higher on Wednesday tracking Wall Street gains overnight, while a weaker-than-expected US retail sales report reinforced expectations of an early rate cut by the Federal Reserve. However, some gains were limited as commentary from a slew of Fed officials emphasizing the need for more evidence of cooling inflation before lowering rates. Seoul shares gained as technology shares surged on bullish outlook for Artificial Intelligence technology. Japanese shares marginally rose by tracking an overnight rally in US semiconductor shares led by Nvidia. Meanwhile, the minutes of Bank of Japan's April policy meeting showed policymakers debating about the weak yen's impact on inflation, which has remained relatively low compared with other major economies.