Post Session: Quick Review

Key benchmark indices witnessed volatile day and ended in green on Wednesday. The volatility occurred during the day amid weekly F&O expiry. Most part of the day, indices managed to trade in green amid positive wholesale price index (WPI) data. Sector wise, buying was witnessed in IT sector stocks, while selling was seen in Metal sector stocks. As for broader indices, the BSE Mid cap index and Small cap index ended in red on Wednesday. 

Markets made positive start following the broadly positive cues from Wall Street overnight as data showing a smaller than expected increase in U.S. producer prices raised hopes of a 50-basis point interest rate cut by the US Fed in September. However, soon markets turned volatile as traders were cautious with a private report that the RBI is unlikely to consider softening rates this fiscal year even after the consumer inflation gauge declined below the mandated 4% target for the first time in five years, with street attributing the fall to a statistical base effect and might not indicate a durable victory against sticky prices just yet. In afternoon session, markets maintained their gains, as traders got some encouragement after government data showed India's wholesale inflation, measured using the Wholesale Price Index, eased by 2.04 per cent on an annual basis in July as against a 16-month high of 3.36 per cent in June. But, in late afternoon session trimmed their gains and ended with minor gains. Traders overlooked private report that India's trade deficit expanded to $23.50 billion in July, up from $19 billion a year earlier, Merchandise exports declined by 1.4% year-on-year to $33.98 billion, while imports increased by 5% to $56.18 billion. In June, exports had risen by 2.6% to $35.2 billion.

On the global front, European markets were trading higher as investors awaited key data from the U.S. and the euro zone, while a raft of upbeat corporate updates lifted risk appetite. Asian markets ended mostly in green on signs of falling U.S. inventories and simmering tensions in the Middle East. Back home, Society of Indian Automobile Manufacturers (SIAM) in its latest report on auto sales in the month of July, has said that passenger vehicle (PV) wholesales in India declined 2.5 per cent year-on-year to 3,41,510 units in July 2024, impacted by high base effect as well as companies reducing vehicle dispatches to dealers amid moderation in demand.

The BSE Sensex ended at 79,105.88, up by 149.85 points or 0.19% after trading in a range of 78,895.72 and 79,228.94. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.41%, while Small cap index down by 0.57%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 1.41%, TECK up by 1.33%, Consumer Durables up by 0.13%, Consumer Disc up by 0.09% and Auto was up by 0.04%, while Metal down by 1.51%, Basic Materials down by 1.04%, Energy down by 0.95%, Power down by 0.90% and Oil & Gas was down by 0.78% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were TCS up by 2.29%, HCL Tech. up by 2.09%, Tech Mahindra up by 1.44%, Infosys up by 1.28% and Mahindra & Mahindra up by 1.08%. On the flip side, Ultratech Cement down by 2.46%, JSW Steel down by 1.85%, Tata Steel down by 1.81%, Adani Ports &Special down by 1.55% and Power Grid down by 1.02% were the top losers. (Provisional)

Meanwhile, in a positive development for the Indian economy, inflation based on wholesale price index (WPI) slowed down in the month of July 2024 to 2.04% from 3.36% in June 2024, on account of fall in prices of basic metals, machinery and equipment. 

The Component wise, primary articles index, having weight of 22.62%, increased 3.13% to 197.6 (provisional) in July 2024 from 191.6 (provisional) for the month of June 2024, on the back of rise in prices of food articles, crude petroleum & natural gas, minerals and non-food articles. Fuel & Power index, having weight of 13.15%, increased 0.14% to 147.9 (provisional) in July 2024 from 147.7 (provisional) for the month of June 2024, as  prices of mineral oils increased in the reported month.

Further, Manufactured Products constituting the major portion of the index with weight of 64.23%, declined by 0.14% to 141.7 (provisional) in July, 2024 from 141.9 (provisional) for the month of June 2024, as there was a decrease in prices of basic metals; other non-metallic mineral products; computer, electronic and optical products; machinery and equipment; furniture etc. in July 2024. Meanwhile, for the month of May 2024 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 153.5 and 2.74% respectively.

The CNX Nifty ended at 24,143.75, up by 4.75 points or 0.02% after trading in a range of 24,099.70 and 24,196.50. There were 23 stocks advancing against 27 stocks declining on the index. (Provisional)

The top gainers on Nifty were TCS up by 2.34%, HCL Tech up by 2.10%, Infosys up by 1.44%, Tech Mahindra up by 1.40% and BPCL up by 1.04%. On the flip side, Divi's Lab down by 4.11%, Hero MotoCorp down by 3.30%, Coal India down by 3.27%, Ultratech Cement down by 2.38% and ONGC down by 2.31% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 40.36 points or 0.49% to 8,275.59, France’s CAC rose 34.94 points or 0.48% to 7,310.81 and Germany’s DAX was up by 70.23 points or 0.39% to 17,882.28.

Asian markets settled mostly higher on Wednesday tracking Wall Street gains overnight due to signs of cooling inflation in the United States. Softer producer prices data fuelled bets that the US Federal Reserve will begin cutting interest rates soon, while investors are awaiting the US CPI report due later in the day. Japanese shares advanced and the yen stabilized after Japanese Prime Minister Fumio Kishida made the surprise announcement that he would not run for re-election, paving the way for Japan to have a new leader in September. However, Chinese shares declined ahead of key retail sales, home prices and industrial production data on Thursday that might show the economy is still faltering. Meanwhile, New Zealand shares rallied sharply after the country's central bank slashed its benchmark rate for the first time since March 2020 and flagged more interest rate cuts over coming months.