Post Session: Quick Review

Bears held tight grip over Dalal Street on Tuesday’s trading session, with both Sensex and Nifty ending in red. Markets made a negative start of the trading day, as traders were concerned with a private report that investments by private equity and venture capital funds declined by 22 per cent to $5.4 billion in June, as compared to the $6.9 billion in the year-ago period. Some cautiousness also came in as ratings agency Crisil said the lull in monsoon over the past 15 days up to July 12 has impacted pace of sowing of kharif crops in 2021-22 crop year (July-June).

Weak trade continued over the street for the whole trading session, after the Asian Development Bank has downgraded India's economic growth forecast for the current financial year to 10 percent from 11 percent projected in April, on account of the adverse impact of the coronavirus pandemic. India's GDP growth recovered to 1.6 percent in the last quarter of the fiscal year ended March 2021, narrowing contraction in the whole fiscal year from 8 percent estimated in April to a revised 7.3 percent, the multilateral funding agency said in the Asian Development Outlook (ADO) Supplement.

On the global front, European markets were trading higher after sharp losses the previous day suffered on resurgent coronavirus fears. Asian markets ended lower on Tuesday, after overall consumer prices in Japan were up 0.2 percent on year in June. The Ministry of Internal Affairs and Communications said that was in line with expectations following the 0.1 percent decline in May. Core consumer prices, which exclude volatile food prices, also gained an annual 0.2 percent. That too matched estimates following the 0.1 percent increase in the previous month.

The BSE Sensex ended at 52198.51, down by 354.89 points or 0.68% after trading in a range of 52013.51 and 52465.03. There were 9 stocks advancing against 21 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 1.28%, while Small cap index down by 1.44%. (Provisional)

The top losing sectoral indices on the BSE were Realty down by 2.41%, Metal down by 2.39%, Power down by 2.29%, Telecom down by 2.15% and Utilities down by 1.99%, while there were no gaining sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Asian Paints up by 6.04%, Ultratech Cement up by 1.52%, Hindustan Unilever up by 0.97%, Nestle up by 0.82% and Maruti Suzuki up by 0.68%. On the flip side, Indusind Bank down by 3.32%, Tata Steel down by 2.65%, NTPC down by 2.39%, Bharti Airtel down by 2.31% and HCL Tech. down by 2.29% were the top losers. (Provisional)

Meanwhile, amid the adverse impact of the coronavirus pandemic, Asian Development Bank (ADB) in its latest report has downgraded India's economic growth forecast for the current financial year to 10 percent, from 11 percent projected in April.

The multilateral funding agency said that India's GDP growth recovered to 1.6 percent in the last quarter of the fiscal year ended March 2021, narrowing contraction in the whole fiscal year from 8 percent estimated in April to a revised 7.3 percent.

As per the report, the projection for FY2022 (ending in March 2023), by which time much of India's population is expected to be vaccinated, is upgraded from 7 percent to 7.5 percent as economic activity normalizes.

The CNX Nifty ended at 15632.10, down by 120.30 points or 0.76% after trading in a range of 15578.55 and 15728.45. There were 10 stocks advancing against 40 stocks declining on the index. (Provisional)

The top gainers on Nifty were Asian Paints up by 5.94%, Ultratech Cement up by 1.54%, Hindustan Unilever up by 1.09%, Grasim Industries up by 0.98% and Maruti Suzuki up by 0.94%. On the flip side, Hindalco down by 3.51%, Indusind Bank down by 3.38%, Tata Steel down by 2.61%, NTPC down by 2.43% and Bharti Airtel down by 2.36% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 71.46 points or 1.04% to 6,915.85, France’s CAC increased 76.24 points or 1.21% to 6,372.21 and Germany’s DAX was up by 134.36 points or 0.89% to 15,267.56.

Asian markets ended lower on Tuesday tracking Wall Street’s overnight losses and concerns over surging of the Delta coronavirus variant that could threaten the outlook for economic recovery. Further, rising tensions between China and the West also dented market sentiment. Chinese shares ended marginally lower after Chinese central bank PBoC kept its July loan prime rate (LPR) unchanged. Japanese shares ended lower as concerns grew over the corona-virus surge ahead of a four-day weekend from Thursday, with the Tokyo Olympics opening on Friday. Markets in Malaysia, Singapore and Indonesia are closed on account of Eid-ul-Adha.