Bulls took charge on Dalal Street on Tuesday and ended the jubilant day of trade near intraday high levels with Sensex and Nifty settling above their crucial 52,700 and 15,800 levels, respectively. Markets started the day on an optimistic note as traders took encouragement with positive macro-economic data. India’s industrial production grew 29.3 per cent in May over the same period a year ago, as the impact of a favourable base continued for yet another month. Meanwhile, India's retail inflation eased slightly to 6.26 per cent in June, but stayed above the Reserve Bank's tolerance range (2 per cent-6 per cent) for the second straight month. Market participants also took some support with a private report that the Indian economy is at the start of a virtuous cycle and on the path to becoming a $15 trillion economy over the next two decades.
Markets continued to trade northward and not even an iota of profit booking witnessed in today’s trade as traders opted to buy fundamentally strong stocks. Sentiments remained positive with India Ratings and Research’s (Ind-Ra) report that loan collections on securitized portfolios, which had taken a hit because of the second wave of COVID-19 pandemic, are set to recover. It also said the collection efficiency on those loans had dropped to 69.2 per cent in May from 82.8 per cent in March. Some support also came with private report stating that business activity has climbed back to the pre-second wave levels with the seventh consecutive week of surge in levels as new coronavirus infection cases decrease. Traders took note of report that rating agency -- Crisil has said non-banking finance companies (NBFCs) are better placed currently on the liquidity front than they were a year ago, enabling them to service their near debt without much difficulty, despite a fall in collections because of the second wave of Covid-19.
On the global front, European markets were trading mostly in red ahead of a key U.S. inflation reading, but British banks kept UK’s FTSE 100 afloat after a central bank move to scrap curbs on dividends. Asian markets ended mostly in green as optimism about the upcoming earnings season outweighs worries over the fast-spreading Delta virus variant that is forcing leaders to reimpose containment measures. Back home, mining sector remained in focus, as mining sector output rose 23.3 per cent in May while power generation increased 7.5 per cent during the same month. Media and entertainment (ME) industry stocks remained in focus with a private report that the country's ME sector will be the fastest growing globally in terms of both consumer and advertising spends, and will be an over-Rs 4-lakh-crore industry by 2025.
The BSE Sensex ended at 52767.90, up by 395.21 points or 0.75% after trading in a range of 52545.68 and 52806.86. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)
The broader indices ended in green; the BSE Mid cap index rose 0.04%, while Small cap index was up by 0.48%. (Provisional)
The top gaining sectoral indices on the BSE were Bankex up by 1.35%, Oil & Gas up by 0.72%, Metal up by 0.69%, Basic Materials up by 0.68% and Energy was up by 0.65%, while IT down by 0.23%, TECK down by 0.19%, FMCG down by 0.09% and Telecom down by 0.06% were the few losing indices on BSE. (Provisional)
The top gainers on the Sensex were ICICI Bank up by 2.82%, HDFC up by 2.58%, Axis Bank up by 2.30%, Sun Pharma up by 1.96% and NTPC up by 1.87%. On the flip side, Dr. Reddy's Lab down by 1.00%, HCL Tech down by 0.90%, Tech Mahindra down by 0.57%, Maruti Suzuki down by 0.45% and Hindustan Unilever down by 0.36% were the top losers. (Provisional)
Meanwhile, rating agency -- Crisil has said non-banking finance companies (NBFCs) are better placed currently on the liquidity front than they were a year ago, enabling them to service their near debt without much difficulty, despite a fall in collections because of the second wave of Covid-19. However, the pace of improvement in collection efficiency, the third of the wave of the pandemic, and access to funds need to be closely monitored.
It sated collections have once again been affected in the current fiscal by the second wave. The decline has been more pronounced in May (sequentially) because containment measures in most parts of the country kicked in only in the latter part of April. A gradual lifting of restrictions has resulted in an improvement in collections in June, but to a level still lower than March 2021.
Besides, an analysis by the rating agency indicated that under scenario-1, where it was assumed that collection in the next quarter would be 70 per cent of what it was in the past couple of quarters, almost 96 per cent of Crisil-rated NBFCs were found to have liquidity cover for three months of debt repayments. In the second scenario, where it was assumed that collection in the next quarter would be half of what it was in the past few quarters, it was found that almost 95 per cent of the NBFCs rated by the agency would have enough liquidity to cover three months of debt repayments.
The CNX Nifty ended at 15812.35, up by 119.75 points or 0.76% after trading in a range of 15744.60 and 15820.80. There were 36 stocks advancing against 14 stocks declining on the index. (Provisional)
The top gainers on Nifty were ICICI Bank up by 2.89%, HDFC up by 2.74%, Grasim Industries up by 2.64%, Axis Bank up by 2.28% and Sun Pharma up by 2.16%. On the flip side, Adani Ports down by 1.96%, HCL Tech down by 1.17%, Dr. Reddy's Lab down by 1.04%, Tech Mahindra down by 0.61% and Maruti Suzuki down by 0.53% were the top losers. (Provisional)
European markets were trading mostly in red, France’s CAC decreased 17.68 points or 0.27% to 6,541.57 and Germany’s DAX was down by 18.55 points or 0.12% to 15,771.96. On the flip side, UK’s FTSE 100 was up by 5.17 points or 0.07% to 7,130.59.
Asian markets settled mostly higher on Tuesday. Chinese shares ended higher after better-than-expected Chinese trade data. China’s customs data showed that Chinese exports rose 32.2% year-on-year, imports grew 36.7% year-on-year and the trade balance stood at $51.53 billion in June. Market sentiments improved further by tracking wall street gains overnight, while markets awaited the release of US inflation data for further clues about the global economic recovery. Investors also awaited cues from a slew of central bank decisions due this week. Japanese shares also gained on optimism over corporate earnings growth. However, lingering fears about the spread of the highly contagious corona-virus variants limited further gains in Asia.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,566.52 | 18.68 | 0.53 |
Hang Seng | 27,963.41 | 448.17 | 1.63 |
Jakarta Composite | 6,012.03 | -66.54 | -1.09 |
KLSE Composite | 1,519.56 | 6.67 | 0.44 |
Nikkei 225 | 28,718.24 | 149.22 | 0.52 |
Straits Times | 3,166.81 | 19.67 | 0.63 |
KOSPI Composite | 3,271.38 | 24.91 | 0.77 |
Taiwan Weighted | 17,847.52 | 33.19 | 0.19 |