Post Session: Quick Review

After witnessing bloodbath in previous session, Indian equity benchmarks made a gap-up opening and hold their gains till afternoon session, however selling pressures in last leg of trade forced markets to end in red on Tuesday. Initially, markets traded higher as investors opted to buy stocks at lowest levels. But, markets failed to continue buying mood amid US recession fears. As for broader indices, the BSE Mid cap index and Small cap index ended lower. 

Markets made positive start and extended their gains, as traders took support after private report stated that India's economy is expected to grow at 7-7.2 per cent in the current fiscal year driven by robust economic fundamentals and continuity in domestic policy reforms. Besides, think tank GTRI stated that reforms in certain customs and banking rules, access to credit, and incentives at par with China will be key for India to boost its exports through e-commerce medium to $350 billion by 2030. Markets continued to trade higher in afternoon session amid value buying by investors. Market participants overlooked private report that New Delhi’s trade and investment relationship with Dhaka may have entered a phase of uncertainty after Bangladesh Prime Minister Sheikh Hasina resigned following weeks of violent demonstrations and their Army chief declared that an interim government will now run the country. However, in last leg of trade, indices wiped out all their gains and ended lower. Investors ignored S&P Global Ratings’ statement that India is a well-diversified exporter and a blip in its exports to Bangladesh is unlikely to have any meaningful impact on India's overall trade position for the full year. Bangladesh is facing its worst political crisis since independence in 1971, with Prime Minister Sheikh Hasina resigning amid massive anti-government protests.

On the global front, European markets were trading lower ahead of the release of Eurozone retail sales data later in the day. Sales are forecast to drop 0.1 percent month-on-month in June, offsetting the 0.1 percent rise in May. Asian markets ended mostly in green despite concerns about supply disruptions from rising tensions in the Middle East. Back home, the government has collected Rs 8,262.94 crore towards the Goods and Services Tax (GST) on health insurance premium in 2023-24 fiscal year (FY24) as against Rs 7,638 crore GST mopped up in the 2022-23, higher by 8.18% year on year. 

The BSE Sensex ended at 78,593.07, down by 166.33 points or 0.21% after trading in a range of 78,496.57 and 79,852.08. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.71%, while Small cap index was down by 0.57%. (Provisional)

The few gaining sectoral indices on the BSE were Realty up by 0.84%, IT up by 0.25% and FMCG was up by 0.10%, while PSU down by 1.31%, Telecom down by 1.15%, Consumer Durables down by 0.92%, Bankex down by 0.76% and Oil & Gas was down by 0.70% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were JSW Steel up by 2.32%, Tech Mahindra up by 1.63%, Larsen & Toubro up by 1.62%, Hindustan Unilever up by 1.55% and HCL Tech. up by 1.40%. On the flip side, Bharti Airtel down by 1.44%, Mahindra & Mahindra down by 1.32%, SBI down by 1.28%, HDFC Bank down by 0.75% and Titan Company down by 0.72% were the top losers. (Provisional)

Meanwhile, the government has said that Viksit Bharat is not a project but a vision document under preparation, outlining the growth trajectory for India to become a developed nation by 2047. Union Minister for Planning Rao Inderjit Singh said ‘It is not a project per se’.

Viksit Bharat, Singh said ‘It is a vision document that is under preparation...As Viksit Bharat is not a project, therefore, provision of financial assistance to states does not arise’. He added ‘Infrastructure development is an ongoing priority of the government to boost growth and development’.

About the policy steps taken in the infrastructure and connectivity sector to boost growth and development, the minister stated that the government firmly believes that these sectors are going to be growth engines for Viksit Bharat.

The CNX Nifty ended at 23,992.55, down by 63.05 points or 0.26% after trading in a range of 23,960.40 and 24,382.60. There were 19 stocks advancing against 31 stocks declining on the index. (Provisional)

The top gainers on Nifty were Britannia up by 2.75%, JSW Steel up by 2.34%, Tech Mahindra up by 1.86%, Larsen & Toubro up by 1.37% and LTIMindtree up by 1.31%. On the flip side, HDFC Life Insurance down by 4.40%, SBI Life down by 2.77%, BPCL down by 2.05%, Shriram Finance down by 1.89% and Mahindra & Mahindra down by 1.72% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 26.8 points or 0.34% to 7,981.43, France’s CAC fell 39.28 points or 0.55% to 7,109.71 and Germany’s DAX was down by 35.11 points or 0.2% to 17,303.89.

Asian markets settled mostly higher on Tuesday after a day of brutal sell-off around the world over concerns about a potential US recession. Japan's Nikkei 225 jumped following the index's biggest one-day decline since October 1997, while the Japanese yen retreated modestly after a strong rally in recent days. Chinese shares gained ahead of a string of economic data. July’s Chinese trade figures are set to be released on Wednesday, and inflation data is due to be released on Friday.