Post Session: Quick Review

Indian equity markets hit fresh record high levels and ended with minor gains as investors braced for the Federal Reserve's most anticipated meeting in years. It is widely anticipated that US Federal Reserve is likely to cut interest rate. Overlooking initial losses, most part of the day markets held their gains amid positive data of wholesale price index (WPI). As for broader indices, BSE Mid cap index and Small cap index ended in red. 

After making cautious start, markets turned volatile amid foreign fund outflows. As per NSE data, Foreign Institutional Investors (FII) were net sellers of Indian equities worth Rs 1,634.98 crore. Some cautiousness also came in as Reserve Bank of India Governor Shaktikanta Das said the benchmark interest rate in the country will hinge on the future trajectory of inflation. Further, as the session progress markets managed to hold their grip in green territory. Traders took some support with Prime Minister Narendra Modi’s statement that India is becoming a major stakeholder in the global supply chain and this growing capacity is the foundation of the country’s economic growth. He added innovation and collaboration are India’s greatest strengths on its development journey. Markets remained in green in afternoon session as inflation based on wholesale price index (WPI) in India slowed down in the month of August 2024 to 1.31% from 2.04% in July, amid easing prices of crude petroleum, natural gas and food articles. Some relief came as Finance Minister Nirmala Sitharaman said that the Union Government has kept the interests of the middle class in mind while formulating tax rates, and is constantly trying to keep it simpler while giving more options to them via the new tax regime. Finally, Nifty and Sensex settled above the psychological 25,400 and 83,000 levels respectively.

On the global front, European markets were trading higher ahead of the U.S. retail sales report due later in the day and the Federal Reserve's interest-rate decision on Wednesday. Asian markets were trading mostly in green after Japan's tertiary activity index increased more-than-expected in July after falling in the previous month. According to data from the Ministry of Economy, Trade, and Industry, the seasonally adjusted tertiary activity index climbed 1.4 percent month-on-month in July, reversing a 1.2 percent fall in June.

The BSE Sensex ended at 83,079.66, up by 90.88 points or 0.11% after trading in a range of 82,866.68 and 83,152.41. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.08%, while Small cap index was down by 0.13%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 0.64%, Telecom up by 0.46%, Consumer Durables up by 0.45%, Utilities up by 0.44% and TECK was up by 0.34% while, PSU down by 0.69%, Metal down by 0.55%, Basic Materials down by 0.27%, Industrials down by 0.26% and Capital Goods was down by 0.19% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 1.63%, NTPC up by 1.27%, Mahindra & Mahindra up by 1.14%, Titan Company up by 0.86% and Larsen & Toubro up by 0.83%. On the flip side, Tata Motors down by 1.33%, Adani Ports down by 0.93%, JSW Steel down by 0.92%, ITC down by 0.91% and Tata Steel down by 0.91% were the top losers. (Provisional)

Meanwhile, amid easing prices of crude petroleum, natural gas and food articles, inflation based on wholesale price index (WPI) in India slowed down in the month of August 2024 to 1.31% from 2.04% in July. Mineral oils prices also decreased in the reported month.

The Component wise, primary articles index, having weight of 22.62%, declined 1.37% to 194.9 (provisional) in August 2024 from 197.6 (provisional) for the month of July 2024. Fuel & Power index, having weight of 13.15%, increased by 0.14% to 148.1 (provisional) in August 2024 from 147.9 (provisional) for the month of July 2024, as price of electricity increased. However, the price of coal witnessed no change in August 2024 as compared to July.

Further, Manufactured Products constituting the major portion of the index with weight of 64.23%, declined by 0.07% to 141.6 (provisional) in August 2024 from 141.7 (provisional) for the month of July 2024, as there was a decrease in prices of chemicals and chemical products, textiles etc. Meanwhile, for the month of June 2024 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 154.0 and 3.43% respectively.

The CNX Nifty ended at 25,418.55, up by 34.80 points or 0.14% after trading in a range of 25,352.25 and 25,441.65. There were 24 stocks advancing against 25 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hero MotoCorp up by 3.14%, Bajaj Auto up by 2.24%, Bharti Airtel up by 1.61%, NTPC up by 1.26% and Mahindra & Mahindra up by 1.10%. On the flip side, Tata Motors down by 1.36%, Eicher Motors down by 1.00%, Adani Ports down by 0.98%, Coal India down by 0.96% and Tata Steel down by 0.90% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 60.65 points or 0.73% to 8,339.09, France’s CAC rose 55.87 points or 0.74% to 7,505.31 and Germany’s DAX was up by 123.26 points or 0.66% to 18,756.37.

Asian markets settled mostly higher on Tuesday as investors were awaiting the US retail sales data for August due later in the day. Market sentiments improved further as the US central bank is likely to announce the first interest rate cut after more than four years. Hong Kong shares rallied as hopes of fiscal stimulus measures to bolster the Chinese economy lifted real estate and technology shares. However, Japanese markets declined as a stronger yen hurt export-related shares. Markets in mainland China, Taiwan, and South Korea were closed for public holidays.