Post Session: Quick Review

Indian equity benchmarks ended flat with a positive bias on Monday. Markets made an optimistic start, as Union Finance Minister Nirmala Sitharaman said the Indian economy is on a sustained path of revival and cited rise in GST collections and direct taxes to support her assertion. Traders also took encouragement as the Finance Ministry said net direct tax collection grew 74.4 per cent to Rs 5.70 lakh crore between April 1 to September 22 this fiscal. Adding more optimism, Minister of State for Finance Bhagwat K Karad said the government plans to increase public sector undertakings' (PSUs) income and create employment through the disinvestment process.

In late morning deals, markets cut gains and turned volatile to end the trading day on a flat note. Domestic sentiments were negative, as RBI data showed the country's foreign exchange reserves declined by $1.47 billion to $639.642 billion in the week ended September 17. Besides, Union Finance Minister Nirmala Sitharaman said despite the huge thrust on financial inclusion and high economic activity, there are districts in the country not having any banking presence at all. Traders also remain concerned with report stating that as many as 470 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns totalling more than Rs 4.37 lakh crore.

On the global front, European markets cheered surge in crude prices that powered oil stocks. Asian markets ended mostly higher on Monday, after Taiwan's export orders increased more than expected in August. The data from the Ministry of Economic Affairs showed that export orders advanced 17.6 percent year-on-year in August. Orders for mineral products accelerated 112.4 percent annually in August and those of transport equipment gained 42.4 percent. Bookings for chemicals, and plastics and articles thereof; rubber and articles thereof increased by 56.1 percent and 45.3 percent, respectively.

The BSE Sensex ended at 60077.88, up by 29.41 points or 0.05% after trading in a range of 59887.19 and 60412.32. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was up by 0.01%, while Small cap index down by 0.13%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 3.11%, Realty up by 2.88%, Energy up by 1.61%, Oil & Gas up by 1.43% and Consumer Disc up by 1.24%, while IT down by 2.32%, TECK down by 2.04%, Healthcare down by 1.15%, FMCG down by 0.78% and Capital Goods down by 0.58% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 6.53%, Mahindra & Mahindra up by 4.14%, Bajaj Auto up by 2.77%, NTPC up by 2.09% and Reliance Industries up by 1.70%. On the flip side, HCL Tech. down by 4.58%, Tech Mahindra down by 3.30%, Bajaj Finserv down by 2.64%, Infosys down by 2.35% and Bharti Airtel down by 2.21% were the top losers. (Provisional)

Meanwhile, in a major step, the Department of Expenditure, Ministry of Finance, has approved capital projects of Rs. 2,903.80 crore in 8 States under the scheme entitled ‘Special Assistance to States for Capital Expenditure for 2021-22’. The Ministry has also released an amount of Rs. 1,393.83 crore to these States namely Bihar, Chhattisgarh, Himachal Pradesh, Madhya Pradesh, Maharashtra, Punjab, Sikkim and Telangana.

In view of a higher multiplier effect of capital expenditure and to provide the much needed resources to the State in the wake of 2nd wave of the COVID-19 pandemic, the scheme ‘Special Assistance to States for Capital Expenditure for 2021-22' was launched on April 29, 2021.

Under the scheme, special assistance is being provided to the State Governments in the form of 50-year interest free loan up to an overall sum not exceeding Rs. 15,000 crore during the financial year 2021-22.

The CNX Nifty ended at 17855.10, up by 1.90 points or 0.01% after trading in a range of 17802.90 and 17943.50. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Maruti Suzuki up by 6.49%, Tata Motors up by 4.31%, Mahindra & Mahindra up by 4.09%, ONGC up by 2.87% and Hero MotoCorp up by 2.81%. On the flip side, HCL Tech. down by 4.64%, Divi's Lab down by 3.45%, Wipro down by 3.34%, Tech Mahindra down by 3.32% and Bajaj Finserv down by 2.67% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 19.13 points or 0.27% to 7,070.61, France’s CAC increased 39.98 points or 0.6% to 6,678.44 and Germany’s DAX was up by 137.11 points or 0.88% to 15,668.86.

Asian markets ended mostly higher on Monday even as concerns relating to the debt woes of China Evergrande Group still persist. Hong Kong shares closed higher led by energy and consumer staples sectors, while widening power shortages have halted production at numerous factories in mainland China sent heavy industry stocks lower. Meanwhile, investors are awaiting official and private gauges of Chinese manufacturing due out Thursday, with expectations they will add to evidence of sputtering growth. Though, Japanese markets declined as investors awaited a vote on Wednesday that will decide who will be next prime minister of Japan after incumbent Yoshihide Suga.