Post Session: Quick Review

Indian equity benchmarks ended in red on Tuesday. After a cautious start, markets remained higher for the most part of the session, as India recorded 34,067 new infections, lowest since March 18. The total caseload has surged to 30,618,939, while 29,744,831 have recovered. Some support also came in as data from the Reserve Bank of India showed the government's Emergency Credit Line Guarantee Scheme (ECLGS) significantly boosted credit growth for the micro, small and medium enterprises (MSMEs) in the financial year ending March 2021 even as concerns about asset quality of this segment grew.

In afternoon deals, indices added gains, as the Ministry of Finance informed that the Central Board of Direct Taxes (CBDT) has granted further relaxation in the electronic filing of Income Tax Forms 15CA/15CB. Besides, with an aim to digitize the entire value chain, standardize operations, promote inclusion of suppliers, derive efficiencies in logistics and enhance value for consumers, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry has initiated a project on Open Network for Digital Commerce (ONDC).

But, in the last hour of the trade, markets turned negative and ended the trading day on a lower note. Traders got cautious, after SBI Research in its latest report said that household debt has sharply jumped to 37.3 per cent of the Gross domestic product (GDP) in the pandemic year (FY21) from 32.5 per cent in FY20, confirming the deeper financial impact of COVID-19. It also warned that the ratio may rise further this fiscal due to the second wave of the pandemic.

On the global front, European markets were trading lower after three sessions of gains as gloomy trading in Asia and an unexpected drop in German industrial orders offset a jump in commodity stocks. Asian markets ended mixed on Tuesday, after the average of household spending in Japan was up 11.6 percent on year in May, the Ministry of Internal Affairs and Communications said on Tuesday - coming in at 281,063 yen. That beat forecasts for an increase of 10.9 percent following the 13.0 percent spike in April. On a monthly basis, household spending was down 2.1 percent - but that beat expectations for a decline of 3.7 percent following the 0.1 percent gain in the previous month.

The BSE Sensex ended at 52861.18, down by 18.82 points or 0.04% after trading in a range of 52804.18 and 53129.37. There were 10 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was up by 0.19%, while Small cap index was down by 0.26%. (Provisional)

The top gaining sectoral indices on the BSE were Bankex up by 0.96%, Power up by 0.51%, Basic Materials up by 0.38%, Capital Goods up by 0.23% and Oil & Gas up by 0.02%, while Auto down by 1.85%, IT down by 1.22%, TECK down by 1.03%, Energy down by 0.74% and Industrials down by 0.68% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Ultratech Cement up by 3.00%, HDFC Bank up by 2.63%, Bajaj Finance up by 2.17%, Bajaj Finserv up by 1.42% and Kotak Mahindra Bank up by 1.34%. On the flip side, Tech Mahindra down by 2.30%, TCS down by 1.78%, Maruti Suzuki down by 1.13%, Reliance Industries down by 1.11% and Sun Pharma down by 1.09% were the top losers. (Provisional)

Meanwhile, with an aim to digitize the entire value chain, standardize operations, promote inclusion of suppliers, derive efficiencies in logistics and enhance value for consumers, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry has initiated a project on Open Network for Digital Commerce (ONDC).

The task has been assigned to Quality Council of India (QCI). ONDC aims at promoting open networks developed on open sourced methodology, using open specifications and open network protocols independent of any specific platform.

As per the notification released by Ministry of Commerce & Industry, an advisory council has been constituted to advise the Government on measures needed to design and accelerate adoption of ONDC.

The CNX Nifty ended at 15818.25, down by 16.10 points or 0.10% after trading in a range of 15801.00 and 15914.20. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were Ultratech Cement up by 3.17%, Shree Cement up by 2.90%, HDFC Bank up by 2.62%, Bajaj Finance up by 2.14% and Bajaj Finserv up by 1.41%. On the flip side, Tata Motors down by 8.44%, Tech Mahindra down by 2.34%, TCS down by 1.77%, Coal India down by 1.60% and Mahindra & Mahindra down by 1.24% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 13.62 points or 0.19% to 7,151.29, France’s CAC decreased 25.41 points or 0.39% to 6,542.13 and Germany’s DAX was down by 70.26 points or 0.45% to 15,591.71.

Asian markets ended mixed on Tuesday as investors await minutes from the US Federal Reserve's latest policy meeting for more clues on tapering. Chinese shares ended down as China is widening its crackdown on the country's tech platforms through tighter regulations on data security and targeting more US listed companies. Hong Kong shares declined as healthcare firms slumped on worries over lofty valuations, while a survey showed the private sector in Hong Kong expanded at a slower pace in June. Meanwhile, Japanese shares ended slightly higher, despite worries over potential spike in coronavirus infections during the Olympics.