Post Session: Quick Review

Despite some initial dizziness, Indian equity markets got upto the gains and held it till end to settle at record closing high levels amid positive India’s manufacturing sector data. Traders were eyeing HSBC Composite PMI Final and HSBC Services PMI Final data scheduled to be released on July 03. IT sector stocks were on the priority list of the buyers. The broader indices, the BSE Mid cap index and Small cap index gave powerful performance by surging over a percent. 

Markets started first day of new month with cautiousness amid mixed global cues. Besides, government data showed growth of the eight core sectors in India slowed to 6.3 per cent on an annual basis in May, mildly down from 6.7 per cent registered in April. But, markets managed to gain traction and maintained their gains. Traders took encouragement as the data released by the Controller General of Accounts (CGA) showed that a fiscal surplus of Rs 1.6 trillion in May due to the Reserve Bank of India’s (RBI’s) record dividend transfer narrowed the Centre’s fiscal deficit for the first two months of 2024-25 to Rs 0.5 trillion or 3 per cent of the full-year estimate. Meanwhile, Commerce and Industry Minister Piyush Goyal said healthy increase in the country's exports, improvement in the current account deficit (CAD) and focus on expanding manufacturing will help the Indian economy register a healthy growth rate. In afternoon session, Indices continued their upward momentum, as sentiments got boost with report that growth in the Indian manufacturing sector recovered some of the ground lost in May, as the headline Purchasing Managers Index (PMI) figure released by HSBC rose to 58.3 in June from 57.5 in May. The recovery in the sector was based on the back of buoyant demand conditions that spurred the expansions in new orders, output and buying levels. In late afternoon session, markets touched day’s high levels. Finally, Nifty and Sensex settled above the psychological 24,100 and 79,400 levels respectively.

On the global front, European markets were trading higher as the first round of voting left Le Pen's National Rally looking short of securing a majority in parliament. Asian markets ended mostly in green as investors reacted to in-line U.S. inflation reading, mixed Chinese data and the results of the first round of voting for the French National Assembly. Back home, Ministry of Electronics and Information Technology will organise a global AI summit on July 3-4 to discuss issues related to artificial intelligence with India firmly committed to ethical and inclusive growth of this new-age technology. Through the 'Global IndiaAI Summit 2024', India aspires to establish itself as a global leader in AI innovation, ensuring that AI benefits are accessible to all and contribute to the nation's socio-economic development.

The BSE Sensex ended at 79,476.19, up by 443.46 points or 0.56% after trading in a range of 78,971.79 and 79,561.00. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 1.11%, while Small cap index was up by 1.58%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 1.84%, TECK up by 1.46%, Basic Materials up by 1.21%, Telecom up by 1.03% and Industrials was up by 0.95%, while Utilities down by 0.64%, Realty down by 0.40% and Power was down by 0.31% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tech Mahindra up by 2.94%, Ultratech Cement up by 2.16%, Bajaj Finance up by 1.99%, TCS up by 1.75% and Hindustan Unilever up by 1.49%. On the flip side, NTPC down by 2.23%, SBI down by 0.80%, Sun Pharma Inds. down by 0.65%, Larsen & Toubro down by 0.61% and Indusind Bank down by 0.57% were the top losers. (Provisional)

Meanwhile, recovering some of the ground lost in May, India's manufacturing sector growth improved in the month of June, as buoyant demand conditions spurred the expansions in new orders, output and buying levels. Concurrently, firms raised employment at the fastest rate seen in more than 19 years of data collection. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 58.3 in June 2024 as against 57.5 in May 2024, thus indicating a sharper improvement in business conditions. The PMI was comfortably above its long-run average.

Manufacturing output increased at a sharp pace that was faster than in May, as underlying demand remained favourable and new business continued to flow in. The performance of the consumer goods industry was especially strong, although substantial increases were also noted in the intermediate and investment goods categories. The survey report further noted that staff expenses reportedly intensified in June, which coupled with rising material and transportation costs caused another overall increase in operating expenses. 

On the inflation front, the rate of input price inflation eased since May, but was nonetheless among the highest since August 2022. A demand environment conducive to growth allowed manufacturers in India to share additional cost burdens with their clients. Selling charges were raised to the greatest extent in over two years. Besides, stocks of purchased materials rose at a near-record pace, supported by another improvement in suppliers' delivery times. Finished goods inventories decreased further as firms often met sales through warehoused items.

The CNX Nifty ended at 24,141.95, up by 131.35 points or 0.55% after trading in a range of 23,992.70 and 24,164.00. There were 33 stocks advancing against 17 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tech Mahindra up by 2.92%, Wipro up by 2.43%, Bajaj Finance up by 2.27%, Grasim Industries up by 2.10% and Ultratech Cement up by 2.03%. On the flip side, NTPC down by 2.27%, SBI down by 0.82%, Eicher Motors down by 0.80%, Dr. Reddy's Lab down by 0.76% and Apollo Hospital down by 0.73% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 23.48 points or 0.29% to 8,187.60, France’s CAC rose 102.17 points or 1.35% to 7,581.57 and Germany’s DAX was up by 52.32 points or 0.29% to 18,287.77. 

Asian markets settled higher on Monday amid growing bet for an early interest rate cut in the United States after US inflation report came broadly in line with expectations. Seoul shares gained as a survey revealed that South Korea's factory activity growth quickened in June to the fastest in 26 months on surging new orders. Chinese shares gained after the Caixin Manufacturing Purchasing Managers' Index (PMI) unexpectedly rose from 51.7 to 51.8 in June. Japanese shares marginally rose after a survey showed confidence among large Japanese manufacturers improved during the three months to June, although, the yen struggled near 38-year lows after Japan downgraded GDP numbers for the March quarter. Hong Kong markets were closed for Special Administrative Region Establishment Day.