Post Session: Quick Review

Indian equity benchmarks ended on a flat note on Friday. Markets made a positive start of the trading session, as the Confederation of Indian Industry (CII) urged the government to provide a fiscal stimulus worth Rs 3 trillion along with direct cash transfers to perk up domestic demand. The industry body also sought expansion in the Reserve Bank of India (RBI) balance sheet to meet the demand exigencies of the pandemic. Also, India maintained 43rd rank on an annual World Competitiveness Index compiled by the Institute for Management Development (IMD) that examined the impact of COVID-19 on economies around the world this year.

But soon, key indices turned negative, as an assessment made by the Reserve Bank of India (RBI) has revealed that the devastating second wave of the coronavirus pandemic in April-May is estimated to have cost the nation Rs 2 lakh crore in terms of output. It said the second wave's toll is mainly in terms of the hit to domestic demand on account of regional and specific containment rather than a nation-wide lockdown. Sentiments were pessimistic with a private report stated that lockdowns imposed by the states in April and May to contain the second wave of the deadly COVID-19 pandemic has likely led to the economy contracting 12 per cent in the June quarter as against 23.9 per cent contraction in the same quarter in 2020.

Weak trade continued over the Dalal Street for the most part of the trading session but in the last hour of trade, markets cut losses to end flat. Support came after Union Minister of State for Labour & Employment (Independent Charge) Santosh Gangwar has said that India is committed to improve employment outcomes for all youth in India, including women and vulnerable section of the people, through an enduring, long-term commitment for better opportunities. He said that the government is making all-out efforts to improve the bridge between education and employment, and to prepare young people for the future of work.

On the global front, European markets were trading mostly in red, as investors continued to absorb a hawkish turn by the Federal Reserve. Banks and energy companies led the decliners. Asian markets ended mixed on Friday, even after overall consumer prices in Japan were down 0.1 percent on year in May, the Ministry of Internal Affairs and Communications said on Friday - following the 0.4 percent contraction in April. On a monthly basis, inflation was up 0.3 percent after sinking 0.4 percent in the previous month. Individually, prices were higher annually for housing, furniture, clothing, education and recreation; they were lower for food, fuel, medical care and communications.

The BSE Sensex ended at 52344.45, up by 21.12 points or 0.04% after trading in a range of 51601.11 and 52586.41. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.70%, while Small cap index was down by 0.89%. (Provisional)

The only gaining sectoral indices on the BSE were Telecom up by 1.47%, FMCG up by 0.20% and Consumer Durables up by 0.12%, while Power down by 2.77%, Utilities down by 2.54%, PSU down by 2.10%, Metal down by 2.01% and Oil & Gas down by 1.75% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindustan Unilever up by 2.64%, Bajaj Auto up by 2.61%, Bharti Airtel up by 1.93%, Bajaj Finserv up by 1.51% and Indusind Bank up by 1.08%. On the flip side, NTPC down by 3.16%, Power Grid down by 2.80%, Mahindra & Mahindra down by 2.56%, Nestle down by 2.08% and SBI down by 1.76% were the top losers. (Provisional)

Meanwhile, underlining the various initiatives being taken for upliftment of the youth, Union Minister of State for Labour & Employment (Independent Charge) Santosh Gangwar has said that India is committed to improve employment outcomes for all youth in India, including women and vulnerable section of the people, through an enduring, long-term commitment for better opportunities.

He said that the Government is making all-out efforts to improve the bridge between education and employment, and to prepare young people for the future of work. A number of policies and schemes have been undertaken for upliftment of the youth through skills development, employment generation, and entrepreneurship programs.

Appreciating the idea of partnership between the Ministry and UNICEF for empowering youths to gain relevant skills and guidance, Gangwar said that the collaboration is a starting point to facilitate direct dialogue and feedback mechanism between youth and other stakeholders including policy makers.

The CNX Nifty ended at 15683.35, down by 8.05 points or 0.05% after trading in a range of 15450.90 and 15761.50. There were 17 stocks advancing against 33 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Ports & SEZ up by 7.33%, Bajaj Auto up by 2.79%, Hindustan Unilever up by 2.70%, Bharti Airtel up by 1.91% and Grasim Industries up by 1.55%. On the flip side, ONGC down by 3.88%, Coal India down by 3.78%, JSW Steel down by 3.70%, NTPC down by 3.28% and UPL down by 3.24% were the top losers. (Provisional)

European markets were trading mostly in red, UK’s FTSE 100 decreased 25.62 points or 0.36% to 7,127.81 and Germany’s DAX was down by 36.10 points or 0.23% to 15,691.57. On the flip side, France’s CAC was up by 8.70 points or 0.13% to 6,674.96.

Asian markets ended mixed on Friday after the US Federal Reserve meet. Hong Kong shares posted weekly losses after the US Federal Reserve projected higher interest rates in 2023. Japanese shares ended lower as the Bank of Japan (BoJ) kept its ultra-lax monetary policy intact, as investors had expected. BoJ also maintained its massive monetary stimulus to support the economy and extended a September deadline for its pandemic-relief programme to help pandemic-hit firms. Meanwhile, Chinese stocks dropped on worries over lofty valuations and Sino-West tensions.