Post Session: Quick Review

Indian equity markets held their gains till the end of session, with Nifty and Sensex settled above the psychological 24,650 and 80,800 levels respectively. Indices did not once break out in red and remained firmly placed in the green territory as globally traders took support after Fed officials have indicated a potential rate cut in September. The broader indices, the BSE Mid cap index and Small cap index ended with gains of over half a percent. Sector wise, banking and IT sectors stocks were on the priority list of the buyers.

Markets made positive start and extended their gains tracking strong global cues. Some support came as latest data released by the Reserve Bank of India showed that net foreign direct investment (FDI) during the April-June period of the current financial year was $6.9 billion, compared to $4.7 billion in the year-ago period. The increase was due to an improvement in gross inward FDI, which grew by 26.4 per cent year-on-year (Y-o-Y) to $22.5 billion during Q1 of 2024-25. Besides, data released by the Reserve Bank of India (RBI) showed overseas Indians deposited around $4 billion in non-resident Indian (NRI) deposit schemes in April - June FY25, up 79 per cent over the amount deposited in these schemes in the same period last year. In afternoon session, indices maintained their gains despite Crisil Ratings’ report stated that the weakness in oil, gems, and jewellery exports led to the contraction in India’s merchandise exports in July. Another factor that contributed to the fall in merchandise exports in July was the high domestic demand for oil products, which led to an increase in imports and a decrease in exports. Besides, Reserve Bank of India’s (RBI) latest monthly Bulletin stating that in India, aggregate demand conditions are gathering momentum with revival in rural consumption on the back of growing incomes. This stimulus to demand is expected to reinvigorate the hitherto subdued participation of the private sector in total investment. Markets continued their gaining momentum in late afternoon session amid value buying. 

On the global front, European markets were trading mostly in green with investors holding back from major bets as they awaited critical euro zone data. Asian markets ended mostly in green amid dovish Fed expectations and signs of easing Middle East tensions. Back home, the Directorate General of Civil Aviation (DGCA) in its latest data has showed that India's domestic air passenger traffic grew 7.3 per cent to 129.87 lakh in July 2024 from 121 lakh in the same month last year.

The BSE Sensex ended at 80,802.86, up by 378.18 points or 0.47% after trading in a range of 80,517.95 and 80,942.96. There were 23 stocks advancing against 7 stocks declining on the index. (Provisional)

The broader indices were trading in green; the BSE Mid cap index was up by 0.98%, while Small cap index up by 0.52%. (Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 1.07%, Bankex up by 0.84%, Power up by 0.80%, IT up by 0.76% and Auto was up by 0.75%, while Capital Goods down by 0.01% and FMCG down by 0.01% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finserv up by 3.26%, Indusind Bank up by 2.29%, Tech Mahindra up by 2.11%, Bajaj Finance up by 1.47% and Kotak Mahindra Bank up by 1.42%. On the flip side, Bharti Airtel down by 1.30%, ITC down by 0.48%, Adani Ports down by 0.35%, JSW Steel down by 0.21% and Ultratech Cement down by 0.16% were the top losers. (Provisional)

Meanwhile, the Reserve Bank of India (RBI) has issued the framework for the recognition of Self-Regulatory Organisations in financial markets. The framework was introduced given the potential role of Self-Regulatory Organisations (SROs) in strengthening compliance culture among their members and also providing a consultative platform for policy-making. The framework is specified into broad parameters - objectives, responsibilities, eligibility criteria, membership, governance standards and application process for the recognition of SROs in financial markets. Interested entities seeking recognition as an SRO in financial markets may submit their application through email or to the Chief General Manager, Financial Markets Regulation Department, Reserve Bank of India, Central Office.

RBI said SROs can play a vital role in this direction by proactively developing and ensuring adoption and adherence to industry standards and best practices by its members in the financial markets. An SRO is expected to operate with credibility, objectivity and responsibility under the oversight of the regulator, to maintain integrity, ensure professionalism, promote ethical conduct and improve regulatory compliance for healthy and sustainable development of the financial markets.

The primary responsibility of the SRO towards its members would be to promote best business practices. In general, the SRO is expected to be an ally of the Reserve Bank in ensuring better compliance with regulatory guidelines, the development of the financial markets, the protection of stakeholder interests, fostering innovation and the detection of early warning signals.

The CNX Nifty ended at 24,698.85, up by 126.20 points or 0.51% after trading in a range of 24,607.20 and 24,734.30. There were 39 stocks advancing against 11 stocks declining on the index. (Provisional)

The top gainers on Nifty were SBI Life up by 5.37%, HDFC Life Insurance up by 3.63%, Bajaj Finserv up by 3.29%, Shriram Finance up by 2.74% and Indusind Bank up by 2.50%. On the flip side, ONGC down by 1.55%, Bharti Airtel down by 1.39%, Adani Enterprises down by 1.03%, Cipla down by 0.80% and Apollo Hospital down by 0.77% were the top losers. (Provisional)

European markets were trading mostly in green; France’s CAC rose 9.23 points or 0.12% to 7,511.24 and Germany’s DAX was up by 7.91 points or 0.04% to 18,429.60. On the flip side, UK’s FTSE 100 was down by 56.59 points or 0.68% to 8,300.35. 

Asian markets settled mostly higher on Tuesday tracking Wall Street’s gains overnight on dovish Fed expectations. In recent days, Fed speakers have signalled a potential easing in September. Meanwhile, investors were awaiting minutes of the Federal Reserve's July policy meeting and a speech from Chair Jerome Powell at Jackson Hole for more cues on the possibility of an interest rate cut in the September policy meeting. Japanese shares gained followed by a softer yen and gains in technology shares following US economic optimism. However, Chinese shares declined after the People's Bank of China left its benchmark lending rates unchanged as expected.