Post Session: Quick Review

Indian equity benchmarks traded in red for most part of the day, but some attempt to pare huge losses in last leg of trade helped markets to end flat on last trading day of week. Markets witnessed weak trade during the day ahead of Q1FY25 earnings and key macroeconomic data due next week. Markets recovered from early slide in last hour of trade as traders preferred to buy stocks at lowest levels. The broader indices, the BSE Mid cap index and Small cap index scaled new high levels during the day. 

Markets started day in negative territory amid lack of directional cues from Wall Street as well as rise in crude oil prices. Traders took note of report that the government is working towards streamlining the application process for Indian business visas for companies that are not beneficiaries under the production-linked incentive (PLI) scheme but have set up manufacturing units across the 14 sectors covered under the scheme.  Meanwhile, former Chief Economic Advisor Arvind Subramanian said that the Centre has sacrificed a large portion of revenue from Goods and Services Tax (GST), up to 1 per cent of GDP, every year since the rollout of the new indirect tax regime to fund a 14 per cent compensation guarantee provided to states. Subramanian, who was actively involved in the implementation of the GST regime, also said that it would not be advisable at this point in time to bring petrol and alcohol under the GST. Markets continued to trade lower in afternoon session as investors maintained risk-averse approach. However, in last leg of trade, markets managed to wipe out most of their losses and finally ended mixed. Sensex ended marginally in red, while Nifty concluded in green. 

On the global front, European markets were trading higher as voters in the UK general election delivered a devastating verdict on 14 years of Conservative rule. Asian markets ended mostly in red as EU tariffs on Chinese imports took effect and China announced the next step in its anti-dumping investigation into European brandy imports. Back home, defence stocks remained in focus after defence minister Rajnath Singh announced that the country's defence production recorded the highest ever growth in 2023-24. The value of production has reached Rs 1,26,887 crore in 2023-24, which is 16.8 percent higher than the value of production of previous financial year.

The BSE Sensex ended at 79,996.60, down by 53.07 points or 0.07% after trading in a range of 79,478.96 and 80,149.87. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.75%, while Small cap index was up by 0.70%. (Provisional)

The top gaining sectoral indices on the BSE were PSU up by 1.85%, Oil & Gas up by 1.77%, Energy up by 1.70%, Capital Goods up by 1.55% and Industrials was up by 1.48%, while Consumer Durables down by 0.43%, Bankex down by 0.18%, IT down by 0.13%, TECK down by 0.06% and Realty was down by 0.04% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were SBI up by 2.48%, Reliance Industries up by 2.32%, Hindustan Unilever up by 2.01%, NTPC up by 1.90% and Larsen & Toubro up by 1.28%. On the flip side, HDFC Bank down by 4.40%, Titan Company down by 1.99%, Tata Steel down by 0.85%, Mahindra & Mahindra down by 0.72% and Indusind Bank down by 0.65% were the top losers. (Provisional)

Meanwhile, the government is set to streamline visa norms for professionals from foreign countries, including China, working in non-Production Linked Incentive (PLI) sectors. This initiative, part of a broader agenda to foster international trade and economic cooperation, was unveiled by Rajesh Kumar Singh, Secretary of the Department of Promotion of Industry and Internal Trade (DPIIT). Singh said ‘Plans are underway to extend streamlining of visas to non-PLI beneficiaries from foreign countries, including China, who are operating in the same centres as beneficiaries.’ Currently, the Indian government is focused on easing visa regulations for Chinese professionals in PLI sectors, a move that underscores the country’s commitment to improving bilateral trade relations.

However, he highlighted that the government plans to extend these streamlined visa procedures to include foreign professionals operating in non-PLI sectors as well. This decision is expected to benefit foreign nationals working alongside PLI beneficiaries in key industrial hubs. The streamlined visa norms are designed to ensure that bureaucratic hurdles do not impede the inflow of talent essential for driving growth across various sectors. In addition to visa reforms, the DPIIT Secretary revealed that the government is committed to addressing tariff barriers that hinder the import of essential electronic components. A case-by-case approach will be adopted to remove these barriers, which are seen as critical to ensuring the competitiveness of India’s electronics industry. Singh also emphasized the need to phase out duty inversion, a situation where finished products attract lower taxes compared to raw materials.

Regarding the much-anticipated e-commerce policy, Singh noted that while the policy is in the pipeline, there is no definitive timeline for its release. The government is also exploring the liberalization of the Foreign Direct Investment (FDI) regime across several sectors. This move, currently in the internal stages of consideration, is expected to attract more foreign investment and drive economic growth. Singh pointed out that FDI from countries sharing land borders with India constitutes less than 1 per cent of the total FDI inflow, highlighting the need for broader reforms.

The CNX Nifty ended at 24,323.85, up by 21.70 points or 0.09% after trading in a range of 24,168.85 and 24,363.00. There were 36 stocks advancing against 14 stocks declining on the index. (Provisional)

The top gainers on Nifty were ONGC up by 4.02%, SBI up by 2.44%, Reliance Industries up by 2.23%, Britannia up by 2.22% and Hindustan Unilever up by 2.05%. On the flip side, HDFC Bank down by 4.58%, Titan Company down by 2.00%, Tata Steel down by 0.90%, Mahindra & Mahindra down by 0.76% and LTIMindtree down by 0.69% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 19.23 points or 0.23% to 8,260.49, France’s CAC rose 38.21 points or 0.49% to 7,733.99 and Germany’s DAX was up by 174.28 points or 0.94% to 18,624.76.

Asian markets ended mostly down on Friday. Chinese shares declined as China announced the next step in its anti-dumping investigation into European brandy imports, and as the European Commission's provisional tariffs on Chinese-made electric vehicles took effect. Meanwhile, investors were awaiting several Chinese data due next week, including CPI and PPI numbers for June and new yuan loans. Investors were also awaiting US job data for cues on the US Federal Reserve's future policy path. Japanese shares ended almost flat note, after touching record levels on the back of a weaker yen and expectations for earnings growth.