Sensex, Nifty end higher for 2nd day in row

Indian equity benchmarks stayed optimistic for major part of the trading session and ended around half a percent higher on Tuesday, marking their second straight day of gains, following a rebound in the US markets and fresh foreign fund inflows. Foreign Institutional Investors (FIIs) bought equities worth Rs 1,176.55 crore on Monday, according to exchange data.  Markets made a positive start but soon turned cautious as traders remained on sidelines ahead of the India’s Consumer Price Index (CPI) inflation and Index of Industrial Production (IIP) data to be out later in the week.

However, a sustainable upmove was seen in the afternoon, as traders took support with private report stating that Indian consumer inflation probably held below the Reserve Bank of India's 4.0 per cent medium-term target for a second month in August thanks to a moderation in food price rises due to last year's high base. Sentiments remained upbeat, as the Goods and Services Tax (GST) Council in its 54th meeting has made various recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST. The GST rate on cancer drugs namely, Trastuzumab Deruxtecan, Osimertinib and Durvalumab is reduced from 12% to 5%. Traders took note of Union Minister of State for Ministry of Commerce and Industry Jitin Prasada’s statement that India is revising FTAs with South Korea, Malaysia and various other ASEAN countries to benefit the domestic industries. He also emphasised the importance of boosting exports, reducing import dependence and ensuring growth. Towards the end of the trading session, the indices pared-off some of gains but managed to close higher, buoyed by strong performances in Telecom, Utilities and Power stocks.

On the global front, European markets were trading mostly in red as a cautious undertone prevailed ahead of the televised U.S. presidential debate later today and U.S. inflation readings due later in the week that could influence expectations for the interest rate outlook. Asian markets settled mostly higher on Tuesday following the positive cues from global markets, as traders looked to pick up stocks at reduced levels following the steep drop seen last week while they await key inflation data from the U.S. that could impact the outlook for rates. Back home, on the sectoral front, jewellery industry stocks were buzzing as a Crisil report stated that revenues of organised gold jewellery retailers are expected to surge by 22-25 per cent this fiscal year, driven by the sharp reduction in import duties on gold in the July Budget.

Finally, the BSE Sensex rose 361.75 points or 0.44% to 81,921.29, and the CNX Nifty was up by 104.70 points or 0.42% to 25,041.10.    

The BSE Sensex touched high and low of 82,196.55 and 81,445.30 respectively. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.53%, while Small cap index was up by 1.53%.

The top gaining sectoral indices on the BSE were Telecom up by 2.00%, Utilities up by 1.76%, Power up by 1.74%, TECK up by 1.62% and IT up by 1.52%, while Oil & Gas down by 0.42% and Energy down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 2.15%, Bharti Airtel up by 2.10%, Tech Mahindra up by 1.78%, NTPC up by 1.73% and Power Grid Corporation up by 1.72%. On the flip side, Bajaj Finserv down by 1.81%, Bajaj Finance down by 1.45%, Hindustan Unilever down by 0.81%, Mahindra & Mahindra down by 0.68% and Tata Motors down by 0.30% were the top losers.

Meanwhile, Commerce Minister Piyush Goyal has expressed confidence that the auto component sector will reach the $100 billion export target by 2030, making the sector one of the largest job creators in the country. Goyal said that as India is progressing to become the third largest economy in the world in terms of Gross Domestic Product (GDP), the auto sector must also strive to become the world leader from currently being the third largest auto market in the world.

Further, he urged the industry leaders to set a roadmap to achieve the target, besides stressing combining organic growth with outreach across the world along with technological improvements. He encouraged the industry members to focus on research and development (R&D). He urged the participants to take advantage of the Rs 1 lakh crore Anusandhan National Research Foundation (ANRF) fund and utilise it to support public-private academia partnerships in the auto sector.

He said that India’s auto sector is well poised to attract investment from abroad, and the industry can explore investment from EFTA countries. He also stated that India should be ready to capture the opportunities in new-age technologies like electric vehicles (EVs) and their related ecosystems, along with other upcoming opportunities like the bicycle sector.

The CNX Nifty traded in a range of 25,130.50 and 24,896.80. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Divi's Lab up by 5.23%, LTIMindtree up by 3.02%, NTPC up by 2.39%, Bharti Airtel up by 2.23% and Wipro up by 2.02%. On the flip side, HDFC Life Insurance down by 4.40%, SBI Life Insurance down by 2.46%, Shriram Finance down by 1.80%, Bajaj Finserv down by 1.75% and Bajaj Finance down by 1.41% were the top losers. 

European markets were trading mostly in red; UK’s FTSE 100 decreased 42.58 points or 0.51% to 8,228.26 and Germany’s DAX lost 43.98 points or 0.24% to 18,399.58, while France’s CAC rose 18.4 points or 0.25% to 7,443.66.

Asian markets settled mostly higher on Tuesday tracking Wall Street gains overnight ahead of key US inflation data due this week for additional cues on the size of potential rate cuts by the Federal Reserve at its meeting next week. Investor were also focusing on the first US Presidential debate between Kamala Harris and Donald Trump later today. Hong Kong and Chinese shares gained after the latest customs data showed China’s exports unexpectedly accelerated in August. Although, the US House of Representatives passed legislation to cut off US government funding for Chinese biotech firms deemed national security risks. Japanese shares extended losses ahead to upcoming BoJ policy meetings later this month.