Post Session: Quick Review

Indian equity markets hit all-time high levels in opening trade, but soon profit booking emerged with Nifty and Sensex settling below the psychological 24,150 and 79,500 levels respectively. The volatility occurred in the day ahead of key macroeconomic data. HSBC Composite PMI Final, HSBC Services PMI Final data due on tomorrow. Globally, traders were cautious ahead of Fed's June FOMC meeting will be released on July 3. Most part of the day, markets traded near neutral lines. 

Markets made optimistic start tracking overnight gains on Wall Street. However, indices failed to protect their gains and entered into red amid foreign fund outflows. The Foreign institutional investors (FIIs) sold equities worth Rs 426 crore on July 1.  Traders shrugged off report that gross Goods and Services Tax (GST) collection surged 8 per cent to Rs 1.74 lakh crore in June 2024 as compared to Rs 1.61 lakh crore mopped up in June 2023, reflecting a buoyant economy, with businesses demonstrating commendable self-compliance. Besides, Commerce and Industry Minister Piyush Goyal said that the Centre is committed to create a business-friendly environment for industry and innovation. The minister said such interactions are key for understanding the challenges faced by the industry and policy-making. Markets wavered between green and red in afternoon session, as sentiments were pessimistic after the Indian government has raised the windfall tax on petroleum crude to 6,000 rupees per metric ton from 3,250 rupees, with effect from July 2. The Special Additional Excise Duty (SAED) on the export of diesel, petrol, and ATF is to continue at nil. In late afternoon session, markets continued to trade near neutral lines. 

On the global front, European markets were trading lower as a relief rally following the first round of French parliamentary elections proved to be short-lived, while investors awaited inflation data for hints on the euro zone's interest rate path. Asian markets ended mixed following the broadly positive cues from global markets overnight, as traders seemed reluctant to make significant moves ahead of key US employment data later in the week, which is expected to show a slowdown in the pace of job growth in June, could impact the outlook for interest rates. Back home, Union ministry of finance said the number of e-way bills generated in the last financial year had recorded a 16 percent growth over FY23, indicating a robust economic growth.

The BSE Sensex ended at 79,441.45, down by 34.74 points or 0.04% after trading in a range of 79,231.11 and 79,855.87. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.57%, while Small cap index up by 0.07%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 1.09%, Realty up by 0.88%, Industrials up by 0.50%, Capital Goods up by 0.44% and TECK was up by 0.44%, while Telecom down by 1.31%, Bankex down by 0.91%, Auto down by 0.74%, FMCG down by 0.67% and PSU was down by 0.57% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Larsen & Toubro up by 2.70%, Infosys up by 1.90%, HDFC Bank up by 1.36%, TCS up by 0.80% and HCL up by 0.70%. On the flip side, Kotak Mahindra Bank down by 2.38%, Bharti Airtel down by 2.26%, Tata Motors down by 1.76%, Indusind Bank down by 1.76% and ICICI Bank down by 1.74% were the top losers. (Provisional)

Meanwhile, expressing hopefulness over the country’s rainfall situation, the India Meteorological Department (IMD) has said that India could experience above-normal rainfall in July, except for parts of the northeastern region. IMD chief Mrutyunjay Mohapatra said July rainfall averaged over the country as a whole is most likely to be above normal - more than 106 per cent of the long-period average of 28.04 cm. He added ‘Normal to above-normal rainfall is most likely over most parts of the country except many parts of northeast India and some parts of northwest, east, and southeast peninsular India’.

IMD said maximum temperatures are likely to be normal to below normal over many parts of northwest India and south peninsular India, except the west coast. Above-normal maximum temperatures are likely over many parts of central India, east and northeast India, and along the west coast. It added the minimum temperatures are most likely to be above normal over many parts of the country except some parts of northwest and the adjoining areas of central India, and some pockets of southeastern peninsular India.

It noted northwest India recorded its warmest June last month since 1901, with a mean temperature of 31.73 degrees Celsius. The monthly average maximum temperature in the region settled at 38.02 degrees Celsius, 1.96 degrees Celsius above normal. According to IMD data, the average minimum temperature stood at 25.44 degrees Celsius, 1.35 degrees Celsius above normal. Northwest India recorded a mean temperature of 31.73 degrees Celsius in June, 1.65 degrees Celsius above normal and the highest since 1901.

In June, India recorded below-normal rainfall in June, with the deficit standing at 11 per cent, the highest in five years. According to the IMD data, the country received 147.2 mm of rainfall against a normal of 165.3 mm for the month, the seventh lowest since 2001. June rainfall accounts for 15 per cent of the total precipitation of 87 cm recorded during the four-month monsoon season in the country.

The CNX Nifty ended at 24,123.85, down by 18.10 points or 0.07% after trading in a range of 24,056.40 and 24,236.35. There were 21 stocks advancing against 29 stocks declining on the index. (Provisional)

The top gainers on Nifty were Larsen & Toubro up by 2.83%, Wipro up by 2.06%, Infosys up by 1.90%, HDFC Bank up by 1.49% and TCS up by 0.99%. On the flip side, Shriram Finance down by 3.40%, Bharti Airtel down by 2.41%, Kotak Mahindra Bank down by 2.13%, Tata Motors down by 2.07% and SBI down by 1.88% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 21.94 points or 0.27% to 8,144.82, France’s CAC fell 55.23 points or 0.73% to 7,505.90 and Germany’s DAX was down by 182.69 points or 1% to 18,107.97. 

Asian markets exhibited mixed trend on Tuesday, as investors cautiously awaiting Fed Chair Jerome Powell's comments and the release of key US economic data for more clarity on the Fed's interest rate trajectory. Meanwhile, data showed US manufacturing sector contracted for a third straight month in June and prices paid by manufacturers dropped to a six-month low, that fuelled bets that the Federal Reserve will start reducing interest rates in September. Chinese and Hong Kong shares rose after data showed the downturn in China's residential real estate sector slowed further in June, following the government’s efforts to put a floor under the housing market in some of its biggest cities. Japanese shares gained as the Japanese yen hit a new 37-year low against the US dollar.