Post Session: Quick Review

After performing optimistically on Friday, Indian equity markets turned volatile during the session and ended flat. Initially, indices hit new all-time highs, but as the day progressed the gauges come off from high levels. Traders were cautious ahead of macro data. HSBC Manufacturing PMI Final scheduled to be released on August 01. Besides, Fed Interest Rate decision due on Wednesday. The broader indices, the BSE Mid cap index and Small cap index ended with healthy gains. 

Markets made positive start and extended their gains following the broadly positive cues from Wall Street on Friday coupled with firm trade in Asian counterparts. Foreign fund inflows also offered some support to markets. Foreign investors injected over Rs 33,600 crore into Indian equities so far this month on the expectation of continued policy reforms, sustained economic growth and a better-than-expected earnings season. Traders took encouragement as Piyush Goyal, the union minister for commerce and industry, said that the hike in capital gains taxes is unlikely to slow down capital market activity. Some support also came as Fitch Ratings said India's post-election budget confirms that the new administration remains committed to reducing the fiscal deficit for FY25 and FY26, despite demands of the coalition government. It added the sustained focus on supporting economic growth through high public capex also points to continuity in key areas. In afternoon session, indices witnessed sharp selloff and turned volatile as traders were worried after credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has predicted that the recent surge in container freight rates by 4x (YoY basis), if sustained, could affect the business operations, EBITDA margins and working capital of exporters during FY25. Besides, an internal presentation of the Ministry of Electronics and Information Technology (MeitY) has said that the government is worried about the impact of Big Tech and the increase in data usage in making people vulnerable by revealing patterns, trends and associations. Markets were hovering around neutral lines in late afternoon session and finally ended flat. 

On the global front, European markets were trading mostly in green with energy stocks surging amidst fears of a widening conflict in the Middle East. All Asian markets were trading higher ahead to the release of mega-cap U.S. tech earnings and central bank policy meetings in the United States, Japan and U.K. Back home, NITI Aayog in a paper titled 'Vision for Viksit Bharat @ 2047: An Approach Paper' has said that India needs to strive to be a $30 trillion economy with a per capita income of $18,000 per annum by 2047.

The BSE Sensex ended at 81,355.84, up by 23.12 points or 0.03% after trading in a range of 81,135.91 and 81,908.43. There were 16 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.80%, while Small cap index up by 1.17%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 2.73%, Industrials up by 2.33%, PSU up by 1.68%, Realty up by 1.51% and Oil & Gas was up by 1.17%, while TECK down by 0.59%, Telecom down by 0.58%, Consumer Durables down by 0.36%, IT down by 0.31% and FMCG was down by 0.26% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Larsen & Toubro up by 2.77%, Bajaj Finserv up by 2.24%, Mahindra & Mahindra up by 2.05%, Ultratech Cement up by 1.42% and SBI up by 1.05%. On the flip side, Titan Co down by 2.38%, Bharti Airtel down by 2.22%, ITC down by 1.33%, Tech Mahindra down by 1.07% and Kotak Mahindra Bank down by 1.04% were the top losers. (Provisional)

Meanwhile, NITI Aayog in a paper titled 'Vision for Viksit Bharat @ 2047: An Approach Paper' has said that India needs to strive to be a $30 trillion economy with a per capita income of $18,000 per annum by 2047. It said India needs to avoid the Middle-Income trap and carefully work towards breaking out of it. It said ‘The GDP would have to grow nine times from today's $3.36 trillion and the per capita income would need to rise 8 times from today's $2,392 per annum’.

The paper also noted that progressing from a middle-income to a high-income level requires sustained growth in the range of 7-10 per cent for 20-30 years and very few countries have managed to do this. Defining the concept of Vikshit Bharat, the paper said it is a Bharat which will have all the attributes of a developed country with a per capita income that is comparable to the high-income countries of the world today. It is a Bharat whose social, cultural, technological, and institutional features will mark it out as a developed nation with a rich heritage and one that is capable of functioning at the frontiers of knowledge. The paper said upgrading capabilities in manufacturing and logistics and bridging the gap between rural and urban incomes are some of the structural challenges that India needs to address. 

It noted that the country needs to achieve a balance between energy, security, access, affordability and sustainability. The document said improving the competitiveness of industry is equally necessary for the transformation of the country's agricultural workforce into an industrial workforce and making India a global manufacturing and service hub. Noting that a vision for India cannot be the work of a few individuals or of one government, the document said it has to be the result of the collective efforts of the entire nation. According to the document, India is at a turning point in its history and the 21st century can be India's century, as the country pole-vaults into the future confident of its capabilities.

The CNX Nifty ended at 24836.10, up by 1.25 points or 0.01% after trading in a range of 24774.60 and 24999.75. There were 25 stocks advancing against 25 stocks declining on the index. (Provisional)

The top gainers on Nifty were Divi's Lab up by 2.78%, BPCL up by 2.77%, Larsen & Toubro up by 2.58%, Bajaj Finserv up by 1.94% and Ultratech Cement up by 1.72%. On the flip side, Titan Company down by 2.36%, Bharti Airtel down by 2.18%, Cipla down by 1.34%, ITC down by 1.22% and Kotak Mahindra Bank down by 1.10% were the top losers. (Provisional)  

European markets were trading mostly in green; UK’s FTSE 100 increased 74.85 points or 0.9% to 8,360.56 and Germany’s DAX gained 73.28 points or 0.4% to 18,490.83. On the flip side, France’s CAC was down by 2.34 points or 0.03% to 7,515.34.

Asian markets settled higher on Monday, tracking Wall Street’s gains last Friday as soft PCE inflation data bolstered expectations of more interest rate cuts this year. Meanwhile investors were awaiting the release of mega-cap US tech earnings and central bank policy meetings in Japan, the United States, and UK for directional cues. Hong Kong shares gained after upbeat industrial profits data. Chinese shares ended almost flat as investors awaited potential stimulus measures from an upcoming Politburo meeting.