Benchmarks end with marginal gains

Indian equity benchmarks ended with marginal gains in the volatile session on Monday, helped by buying in Auto, Power and Industrials stocks and firm beginning in European markets. Benchmarks made a negative start amid weak trends from global markets and fresh foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,790.19 crore on Friday, according to exchange data. Some concern also came as data released by the Ministry of Labour & Employment showed that the retail inflation for agricultural labourers (CPI-AL) and rural workers (CPI-RL) remained almost unchanged at 7 per cent and 7.02 per cent respectively in May 2024. Traders also remained cautious as the Reserve Bank said India's forex reserves dropped by $2.922 billion to $652.895 billion for the week ended June 14. In the previous reporting week, the kitty had jumped by $4.307 billion to $655.817 billion, a new all-time high after consecutive weeks of increase in the reserves. 

However, key indices recouped all of their initial losses in late morning deals and managed to keep their heads above water till the end, as traders found some support after the GST Council at its 53rd meeting introduced sweeping reforms with an aim to simplify tax compliance and ease the burden on taxpayers. Key among these is the introduction of biometric-based Aadhaar authentication for registration applicants nationwide. This is intended to curb fraudulent registrations and tax evasion. Sentiments remained positive as S&P Global Market Intelligence said that the new government will likely focus on job creation and addressing farmers’ concerns in its first 100 days. It also said ‘India’s recent parliamentary elections have resulted in Prime Minister Narendra Modi’s continued leadership, although the Bharatiya Janata Party (BJP) has lost its majority and now relies on coalition parties for stability and policy passage.’  

On the global front, European markets were trading higher, as Germany's private sector expanded for the third straight month in June, though the pace of growth was weak amid a solid and accelerated drop in manufacturing production. Asian markets settled mixed on Monday as investors awaited U.S. inflation data and comments from Fed officials for additional clues on the outlook for interest rates. Back home, in efforts to make the country self-sufficient in coal sector by significantly reducing foreign imports, Ministry of Coal has launched the 10th tranche of commercial coal mine auctions and a total of 67 coal mines are offered. The Ministry of Coal has taken a series of reforms to ensure that the coal sector grows at a rapid pace and is able to meet the country’s energy needs.

Finally, the BSE Sensex rose 131.18 points or 0.17% to 77,341.08, and the CNX Nifty was up by 36.75 points or 0.16% points to 23,537.85.   

The BSE Sensex touched high and low of 77,423.02 and 76,745.94 respectively. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.37%, while Small cap index was up by 0.27%.

The top gaining sectoral indices on the BSE were Auto up by 1.33%, Power up by 1.28%, Industrials up by 1.00%, Capital Goods up by 0.99% and Utilities up by 0.88%, while Metal down by 0.91%, Energy down by 0.55%, Oil & Gas down by 0.46%, Basic Materials down by 0.19% and Healthcare down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.69%, Power Grid Corporation up by 2.23%, Sun Pharma up by 1.93%, Nestle up by 1.35% and Ultratech Cement up by 1.14%. On the flip side, Indusind Bank down by 2.37%, Adani Ports &SEZ down by 1.72%, Tata Steel down by 1.08%, Reliance Industries down by 0.82% and Axis Bank down by 0.64% were the top losers.

Meanwhile, the Labour Ministry has said that retail inflation for agricultural labourers and rural workers remained almost flat at 7% and 7.02%, respectively, in May 2024. The comparative figures in the previous month were 7.03% and 6.96%, respectively. The corresponding figures in May 2023 were 5.99% for Consumer Price Index-Agricultural Labourers (CPI- AL) and 5.84% for Consumer Price Index-Rural Labourers (CPI-RL). 

The point-on-point inflation rate based on CPI-AL was recorded at 7% in May, showing a deceleration from 7.03% in April 2024. Conversely, for CPI-RL, the inflation rate was recorded at 7.02% in May, a marginal increase from 6.96% in the preceding month. The All-India Consumer Price Index for agricultural labourers and rural labourers registered an increase of 6 points each in May, reaching levels of 1,269 and 1,281, respectively. The CPI-AL and CPI-RL stood at 1,263 and 1,275, respectively, in April.

The main items that drove the indices were vegetables, pulses, wheat (atta), milk, turmeric whole, ginger, fish, jowar, pan leaf, medicines, shirts, saree, leather sandals, among others, the statement said. A diverse pattern was observed in the indices of constituent states. Bihar experienced a decline for both CPI–AL and RL. The index of agricultural labourers remained stationary for Jammu and Kashmir.

The CNX Nifty traded in a range of 23,558.10 and 23,350.00. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 2.86%, Power Grid Corporation up by 2.22%, Shriram Finance up by 2.17%, Sun Pharma up by 1.99% and Grasim Industries up by 1.96%. On the flip side, Indusind Bank down by 2.42%, Cipla down by 2.19%, Adani Ports & SEZ down by 1.70%, Coal India down by 1.20% and Tata Steel down by 1.19% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 33.82 points or 0.41% to 8,271.54, France’s CAC rose 44.45 points or 0.58% to 7,673.02 and Germany’s DAX gained 88.36 points or 0.49% to 18,251.88.

Asian markets settled mixed on Monday ahead of key US inflation data and comments from Fed officials for additional clues on the outlook for interest rates. Moreover, clash between US Democratic President Joe Biden and Republican former President Donald Trump also weighed on market sentiments. Chinese shares declined after the yuan hit a seven-month low after data showed China's fiscal revenue fell 2.8% in the first five months of 2024 from a year earlier, accelerating from a 2.7% decline in the January-April period. Meanwhile, China and the European Union agreed to start talks on the planned imposition of tariffs on Chinese-made electric vehicles (EVs) being imported into the European market. However, Japanese shares gained as the Bank of Japan's summary of opinions from its June 13-14 policy meeting showed board members debated the need for timely rate hike, while a weaker yen bolstered exporter shares.