Post Session: Quick Review

Indian equity markets rebounded on Tuesday with Nifty and Sensex settling above the psychological 24,400 and 80,300 levels respectively. Markets exhibited strength till the end of the session driven by buying in blue-chip stocks and foreign fund inflows. Markets witnessed fresh record highs after three day of consolidation. Traders were braced for upcoming Q1 earnings of FY25. Investors were eyeing on inflation data due this week.

Markets made positive start and remained higher tracking gains in global peers. Besides, Foreign institutional investors (FIIs) were net buyers in the cash segment for the fourth day in a row yesterday. They net purchased stocks worth Rs 61 crore on July 08. Some support came as the Reserve Bank of India’s KLEMS database showed that the total number of employed people as a ratio of the total population has increased to 44.2 per cent in FY24 from 34.7 per cent in FY18, with the workforce growing by 168 million during the period at 643.3 million. Total employment was 596.7 million in FY23, thereby adding 46.6 million in FY24. Indices continued their upward journey in afternoon session, as sentiments remained positive with rating agency Crisil’s report stating that securitisation volume rose to Rs 45,000 crore in the first quarter of the current fiscal (Q1FY25), marking a around 17% on-year, like-to-like growth (adjusted for the exit of a large HFC and regulatory measures on gold loan securitisation). Over 95 originators, including NBFCs and banks, tapped the market to diversify funding sources, compared with around 80 in previous fiscal. In late afternoon session, markets scaled new high levels amid value buying. Some optimism came as total sown area under kharif crop as on July 08, 2024 stood at 378.72 lakh hactare. In 2023, Kharif crop sowing done in 331.90 lakh hactare area.

On the global front, European markets were trading mostly in red as investors fret about France's uncertain political outlook, the country's economic stability and growth. Asian markets ended mostly in green after Wall Street equities inched higher to close at record peaks overnight ahead of the Federal Reserve Chair's testimony and key U.S. consumer and producer price inflation figures due this week. Back home, India's informal sector grew post-pandemic, with Andhra Pradesh, Bihar, and Chhattisgarh logging big output gains in fiscal 2022-23. The number of informal firms in India increased 9 percent to 65 million in 2022-23 from 59.7 million in 2022-21, according to the Annual Survey of Unincorporated Sector Enterprises data released by the Ministry of Statistics and Programme Implementation.

The BSE Sensex ended at 80,351.64, up by 391.26 points or 0.49% after trading in a range of 79,998.56 and 80,397.17. There were 18 stocks advancing against 12 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.36%, while Small cap index was up by 0.22%. (Provisional)

The gaining sectoral indices on the BSE were Auto up by 2.17%, Consumer Durables up by 2.01%, Realty up by 1.23%, Consumer Disc up by 1.21%, FMCG up by 1.06% while, Telecom down by 0.44%, Energy down by 0.14%, Capital Goods down by 0.11%, Oil & Gas down by 0.07%, TECK down by 0.02% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 6.60%, Mahindra & Mahindra up by 2.51%, ITC up by 2.09%, Sun Pharma Inds. up by 1.97% and Titan Co up by 1.96%. On the flip side, Reliance Industries down by 0.69%, Kotak Mahindra Bank down by 0.61%, Bajaj Finance down by 0.44%, JSW Steel down by 0.39% and Tata Steel down by 0.29% were the top losers. (Provisional)

Meanwhile, the Reserve Bank of India (RBI) data has showed that the number of persons employed in 27 sectors, including agriculture, trade and financial services, increased by 3.31 per cent year-on-year to 59.66 crore in 2022-23. During 2021-22, the employment in these 27 sectors stood at 57.75 crore. The RBI has reported an update on 'Measuring Productivity at the Industry Level-The India KLEMS [Capital (K), Labour (L), Energy (E), Material (M) and Services (S)] Database'. The database covers 27 industries comprising the entire Indian economy.

It comprises the Data Manual 2024 and time-series data on productivity for 27 industries covering the period 1980-81 to 2022-23. The 'agriculture, hunting, forestry and fishing' had employed 25.3 crore individuals, up from 24.82 crore in 2021-22. Construction, trade, and transport and storage were among the leading employment provider segments.

The RBI said the document describes the procedures, methodologies and approaches used in the construction of India KLEMS database version 2024. The production and publication of India KLEMS database are meant to support empirical research in the area of economic growth and its sources. It added most importantly, the database is meant to support the conduct of policies aimed at supporting the acceleration of productivity growth in the Indian economy.

The CNX Nifty ended at 24,433.20, up by 112.65 points or 0.46% after trading in a range of 24,331.90 and 24,443.60. There were 33 stocks advancing against 17 stocks declining on the index. (Provisional)

The top gainers on Nifty were Maruti Suzuki up by 6.69%, Mahindra & Mahindra up by 2.60%, ITC up by 2.03%, Divi's Lab up by 1.97% and Titan Company up by 1.87%. On the flip side, Tata Consumer down by 0.75%, Reliance Industries down by 0.66%, ONGC down by 0.57%, Shriram Finance down by 0.57% and Bajaj Finance down by 0.43% were the top losers. (Provisional)

European markets were trading mostly in red; France’s CAC fell 45.86 points or 0.6% to 7,581.59 and Germany’s DAX was down by 32.25 points or 0.17% to 18,439.80. On the flip side, UK’s FTSE 100 was up by 6.86 points or 0.08% to 8,200.35. 

Asian markets settled mostly higher on Tuesday as traders were awaiting the Federal Reserve Chair Jerome Powell's testimony and key US consumer and producer price inflation figures due this week, that could provide cues on monetary policy path. Meanwhile, big US banks like JPMorgan, Citigroup and Wells Fargo due to report their quarterly results on Friday. Japanese shares gained as chip-related shares leading the surge. Moreover, Chinese shares rose ahead of one of the country's biggest annual policy meetings. However, Hong Kong shares declined marginally ahead the release of Chinese inflation data.