Post Session: Quick Review

Indian equity markets witnessed volatility throughout the day and ended the session with minor losses ahead of the Union Budget. Markets’ sentiments were also impacted after Union Finance Minister Nirmala Sitharaman tabled the Economic Survey of India 2023-24. Most part of the day, indices traded below neutral lines, as investors maintained risk-averse approach. Besides, investors continuously monitored Q1FY25 earnings during the day. The broader indices, the BSE Mid cap index and Small cap index ended with healthy gains. 

Bourses made negative start tracking weakness in global markets. However, soon markets recouped from losses to trade in green amid foreign fund inflows. Foreign investors injected Rs 30,772 crore into Indian equities so far this month, driven by hopes of continued policy reforms, sustained economic growth and a better-than-expected earnings season. Some support also came as a recent report by the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization (FAO) said that India is likely to have the highest per-capita income growth in the world at 5.4 per cent per annum during 2024-33, allowing it and other emerging economies to drive global consumption of agricultural and fisheries products in the next decade. Besides, data shared by the Reserve Bank of India showed India’s forex reserves jumped by $9.69 billion to hit an all-time high of $666.85 billion as of July 12. Further, markets failed to protect their gains and once aging hit the red territory in late morning session tracing weak cues from other Asian markets. Markets continued to trade lower in late afternoon session, as sentiments were negative after the Economic Survey said that the rising Geopolitical uncertainties will likely to exert a bigger influence on capital flows. Besides, Economic Survey said that GDP of India is expected to grow at 6.5 to 7 per cent in FY24-25. This is lower than the economic growth rate of 8.2 per cent estimated for the previous financial year. 

On the global front, European markets were trading higher rebounding from steep losses in the previous session, while investors assessed the implications of President Joe Biden's exit from the U.S. presidential election race. Asian markets ended mostly in red after President Joe Biden exited the 2024 race. The downbeat start to the week followed losses Friday on Wall Street as businesses around the world scrambled to contain disruptions from a massive technology outage. Back home, Retirement fund body, Employees' Provident Fund Organisation’s (EPFO) latest ‘Provisional payroll data’ report showing that 19.50 lakh net members have been added in the month of May 2024. The addition during the month is the highest since the first payroll data was issued in April 2018.

The BSE Sensex ended at 80,525.22, down by 79.43 points or 0.10% after trading in a range of 80,100.65 and 80,800.92. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 1.33%, while Small cap index was up by 0.85%. (Provisional)

The gaining sectoral indices on the BSE were Power up by 1.68%, Capital Goods up by 1.53%, Basic Materials up by 1.48%, PSU up by 1.42%, Utilities up by 1.38% while, Energy down by 0.57%, Realty down by 0.46%, FMCG down by 0.32%, IT down by 0.19%, Bankex down by 0.16% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 2.58%, Ultratech Cement up by 2.34%, HDFC Bank up by 2.15%, Tata Steel up by 1.87% and Mahindra & Mahindra up by 1.87%. On the flip side, Reliance Industries down by 3.46%, Kotak Mahindra Bank down by 3.30%, ITC down by 1.75%, SBI down by 1.21% and HCL Tech down by 0.94% were the top losers. (Provisional)

Meanwhile, invoking the Indian business community to invest in India, Union Minister for Commerce and Industry Piyush Goyal said that since India has never defaulted in its history, it is the best time to invest in the development of the country. He said ‘Investing in India has tremendous growth potential for jobs and driving the immense growth potential. NRI deposits saw a $3 billion inflow between April and May of the current year. It was four times what it was last year. India has never defaulted on its sovereign bond, which is a very safe investment. Considering the US interest rates, I can ensure that there is no better country to invest in with growth, safety, and stable currency.’ He highlighted ‘India will continue to lead the world economy as the most preferred destination for investment, most favoured destination for manufacturing. Believe in India, believe in PM Modi and I assure you that the future is bright’. He described India-US relations as the golden era and stated that the current relationships have resulted in an opportunity for synergies for the business ecosystem between both countries. He said that the US and Europe will once again be investing in India’s infrastructure and Indian talent.

He further stated that the government is looking for collaboration with the US in the area of semiconductors and associated components. Reiterating PM Modi’s commitment to responsible artificial intelligence (AI), he said that both countries are looking to work together for the responsible use of AI. The Cabinet has approved an allocation of over Rs 10,300 crore for the IndiaAI Mission, marking a significant step towards bolstering India’s AI ecosystem. Lauding the endeavours of the government for infrastructure development he said ‘You will see huge infrastructure projects going on in the country which is transforming the way business works, and the way people commute.’

He also described the upliftment of the economy from the 11th largest economy to the 5th largest economy. He further said ‘In the next three years by 2027-28, we will be the third largest Gross Domestic Product (GDP) economy in the world.’ India is one of the fastest-growing major economies and is currently ranked as the world’s sixth-largest economy. Ministry of Commerce and Industry in its official statement has stated that the economic performance of the country is indicative of the potential of India to achieve a $5 trillion economy by 2025.

The CNX Nifty ended at 24,509.25, down by 21.65 points or 0.09% after trading in a range of 24,362.30 and 24,595.20. There were 30 stocks advancing against 20 stocks declining on the index. (Provisional)

The top gainers on Nifty were Grasim Industries up by 2.50%, NTPC up by 2.43%, Ultratech Cement up by 2.29%, HDFC Bank up by 2.19% and Dr. Reddy's Lab up by 2.03%. On the flip side, Wipro down by 9.22%, Kotak Mahindra Bank down by 3.52%, Reliance Industries down by 3.50%, ITC down by 1.69% and SBI Life Insuran down by 1.61% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 57.59 points or 0.7% to 8,213.31, France’s CAC rose 94.42 points or 1.24% to 7,628.94 and Germany’s DAX was up by 232.32 points or 1.26% to 18,404.25. 

Asian markets settled mostly down on Monday as Joe Biden announced his withdrawal from the 2024 presidential race against Donald Trump and endorsed Vice President Kamala Harris as the new Democratic nominee, adding to uncertainties over the future of the world’s largest economy. Meanwhile, a surprise rate cut by China's central bank failed to give Asian markets a lift. Japanese shares declined sharply to hit a three-week low tracking Wall Street’s fall last Friday, while chip-related shares such as Shin-Etsu Chemical, Tokyo Electron and Advantest fell 2 to 4%. However, Hong Kong shares rebounded from three-month lows.