Post Session: Quick Review

Indian equity markets witnessed volatility during the day and concluded day’s trade in green territory ahead of monthly F&O Expiry. Indices held the gains till the end of the session amid positive data from HSBC Flash India Composite PMI. The broader indices, the BSE Mid cap index ended with gain of over half percent, while Small cap index ended with gain of over a percent. Traders were seen piling up positions in Realty and TECK sectors’ stocks while selling was witnessed in Metal and Oil & Gas sectors’ stocks.

Markets made positive start and traded in green amid positive cues from global markets. Easing worries about Middle East tensions helped underpin sentiments. Some support came with RBI Monetary Policy Committee (MPC) member Shashanka Bhide stating that sustaining the economic growth momentum of 7 per cent in 2024-25 and beyond is feasible on the back of favorable monsoon, higher farm productivity and improved global trade. Meanwhile, Union Minister Piyush Goyal said that the Modi government has provided a corruption free regime in the last 10 years and the country in the next few years will become the world's third largest economy. 

In afternoon session, markets continued to trade in green, as sentiments got boost with a survey showing that India's business activity expanded at its fastest pace in nearly 14 years in the month of April thanks to robust demand. It also showed easing input inflation and positive jobs growth. That suggests India is well placed to remain the fastest growing major economy this year after posting strong expansion over the past few quarters. HSBC's flash India Composite purchasing managers' Index INPMCF=ECI, compiled by S&P Global, rose to 62.2 this month from March's final reading of 61.8. The reading has been consistently above the 50-mark separating expansion from contraction since August 2021. Besides, Union Finance Minister Nirmala Sitharaman has said that reverse migration has started in which a lot of people, who have a global footprint, are finding businesses, professions and careers to be built in India. She said ‘Ideally, India should be a country which is worth for our grandchildren to stay and live and lead their lives and contribute for the country rather than run away from here because opportunities, job satisfaction, career enhancement, are better there and not here.' By close of trade, Sensex and Nifty, settled above the crucial 73,700 and 22350 levels respectively. 

On the global front, European markets were trading higher after a preliminary survey showed private sector activity in Germany unexpectedly returned to growth in April as the services sector outperformed. Asian markets ended in green with hopes for earnings this week from tech titans helping to offset worries about the Federal Reserve's interest rate plans ahead of the release of key US growth and inflation data. Back home, Civil aviation ministry in its latest data has showed that domestic air traffic touched a new single-day high of 4,71,751 passengers on April 21, 2024. The traffic on April 21 was more than 14 per cent higher than the average pre-Covid count of 3,98,579.

The BSE Sensex ended at 73,738.45, up by 89.83 points or 0.12% after trading in a range of 73,688.31 and 74,059.89. 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 0.52%, while Small cap index was up by 1.05%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 4.27%, Realty up by 2.42%, TECK up by 1.23%, Utilities up by 0.95% and Consumer Durables was up by 0.82%, while Energy down by 0.78%, Oil & Gas down by 0.61%, Healthcare down by 0.57% and Metal was down by 0.39% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 3.89%, Nestle up by 1.77%, Maruti Suzuki up by 1.53%, Tata Motors up by 1.48% and HCL Tech up by 1.26%. On the flip side, Sun Pharma down by 3.63%, Reliance Industries down by 1.42%, Mahindra & Mahindra down by 1.00%, JSW Steel down by 0.77% and Tech Mahindra down by 0.63% were the top losers. (Provisional)

Meanwhile, the economic growth across India's private sector continued to strengthen in April, as positive demand trends fuelled new business intakes and output. The manufacturing industry led the latest upturn, as was the case in March, although softening growth at goods producers compared with accelerations at service providers.

The headline HSBC Flash India Composite PMI Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors -surged to 62.2 in April from 61.8 in March, indicating the fastest rate of increase in aggregate business activity since mid-2010. According to the HSBC Flash India PMI data, sustained increases in new orders added pressure on the capacity of manufacturing firms and their services counterparts, which in turn underpinned recruitment. Jobs growth was notably stronger among the former. 

On the price front, input cost inflation receded at both manufacturing companies and their services counterparts, with the latter noting the faster rise. The labour costs were the main factor behind rising expenses at service providers. At the composite level, the rate of increase was below its long-run average. Finally, the latest results showed a pick-up in business confidence during April. The composite Future Output Index rose from March's four-month low and was above the series average (since April 2012).

The CNX Nifty ended at 22,368.00, up by 31.60 points or 0.14% after trading in a range of 22,349.45 and 22,447.55. There were 29 stocks advancing against 20 stocks declining on the index, while 1 stock remained unchanged. (Provisional)

The top gainers on Nifty were Grasim Industries up by 3.93%, Bharti Airtel up by 3.45%, Nestle up by 1.73%, Maruti Suzuki up by 1.65% and HCL Tech up by 1.42%. On the flip side, Sun Pharma down by 3.60%, BPCL down by 1.73%, Reliance Industries down by 1.39%, Mahindra & Mahindra down by 1.34% and Hindalco down by 1.09% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 24.6 points or 0.31% to 8,048.47, France’s CAC rose 29.55 points or 0.37% to 8,069.91 and Germany’s DAX was up by 128.74 points or 0.72% to 17,989.54.

Asian markets finished mostly in green on Tuesday, on increased risk appetite in the market followed by fading Middle east tensions and on mirroring tech sector stock rally with its peers on Wallstreet overnight. Supportive measures by Chinese government to stem the ailing economy and the latest better than expected Q1 GDP data buoyed investor sentiments. Bargain hunting ahead to corporate earnings results from major corporates also aided the positive trend. Nikkei advanced with the softer local currency yen and continued accommodative monetary settings by BoJ.