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Post Session: Quick Review
Jul-25-2024

Indian markets continued to witness downturn on Thursday amid monthly F&O Expiry. Global markets sell off also influenced the investors’ sentiments. Markets managed to pared some of their initial losses in last leg of trade but it was not enough to pull markets in green as government’s recent increase in equity trading taxes continued to hit the trader’s sentiments. Sector wise, Metal and banking sectors’ stocks seen heavy selling pressure during the day. 

Bourses made gap down opening and continued to reel under pressure tracking sell-off in the global markets. Besides, foreign fund outflows dampened the sentiments. Foreign institutional investors (FIIs) net sold stocks worth Rs 5,130.90 crore in the cash market on July 24. Traders overlooked Revenue Secretary Sanjay Malhotra’s statement that the direct tax slabs rejig announced in the Union Budget amounting to savings of Rs 17,500 for the middle class along with an increase in the rebate limit to Rs 7 lakh in the new tax regime last year is ‘sufficient’ relief over a period of two years. Besides, global credit rating agencies have given thumbs up to the FY25 Budget, lauding the government's firm commitment to deficit reduction, with Moody’s Ratings noting that the Budget is credit positive. In afternoon session, markets remained red on account of selling investors. Traders were worried as private report stating that foreign investors sold nearly $1 billion worth of Indian equities in the two days since the government raised taxes on derivatives trades and on capital gains from equity investments in its annual budget. In late afternoon session, indices recouped from day’s low to end flat as traders opted to buy stock at lowest levels.

On the global front, European markets were trading lower after U.S. stock markets suffered their worst losses since 2022 overnight, led by declines in major tech shares. Asian markets ended lower ahead of the release of key US GDP and inflation data later in the week, which could have a significant impact on the outlook for interest rates. Back home, sugar stocks remained in focus as Sugar industry body ISMA has presented a plan to the government to transform sugar mills into bio-refineries, aiming to boost production of sustainable aviation fuel and other green energy sources.

The BSE Sensex ended at 80,039.80, down by 109.08 points or 0.14% after trading in a range of 79,477.83 and 80,143.10. There were 13 stocks advancing against 16 stocks declining on the index, while 1 stock remained unchanged. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.22%, while Small cap index was down by 0.14%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.93%, Energy up by 1.71%, Auto up by 1.23%, Capital Goods up by 1.04% and Power was up by 1.00%, while Metal down by 1.19%, Bankex down by 1.10%, Consumer Durables down by 0.84%, Realty down by 0.80% and Telecom was down by 0.65% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Motors up by 5.68%, Larsen & Toubro up by 2.94%, Sun Pharma Inds. up by 2.36%, Kotak Mahindra Bank up by 1.93% and Bajaj Finance up by 0.79%. On the flip side, Axis Bank down by 5.18%, Nestle down by 2.63%, Titan Company down by 2.07%, ICICI Bank down by 2.06% and Tata Steel down by 1.78% were the top losers. (Provisional)

Meanwhile, with a broader aim to elevate strategic partnership to the next level, India and the UK have firmed up a landmark technology security initiative (TSI) that sets out a bold new approach for collaboration in a range of ‘priority’ sectors including telecom, critical minerals, semiconductors and artificial intelligence. External Affairs Minister S Jaishankar and British counterpart David Lammy have held talks on the UK-India Technology Security Initiative. The Ministry of External Affairs (MEA) said in the discussions, both sides appreciated the ‘substantial’ progress made in the India-UK FTA negotiations and looked forward to its ‘early conclusion’ to achieve a mutually beneficial deal.

The Indian side flagged its concerns over activities of pro-Khalistan elements in the UK while the British side raised the issue of Christian Michel, the key accused in the AgustaWestland VVIP chopper case, who is languishing in a jail in India. In the talks, the two sides agreed to deepen defence and security cooperation, in the Indo-Pacific and beyond, and to enhance capacities to address growing threats from ‘non-state actors’.

The collaboration under TSI will include government, private sector, academia and research and development institutions. The initiative was ‘spearheaded and agreed’ by the NSAs of the two countries. The TSI seeks to build upon the ambitious cooperation agenda set out in the India-UK Roadmap 2030. Jaishankar and Lammy also discussed the migration and mobility partnership between the two countries with a view to strengthen people-to-people ties. They also discussed India-UK collaboration in the field of climate and green economy. 

The two sides deliberated on regional and global issues of mutual interest, including the Russia-Ukraine conflict, the situation in West Asia and the Red Sea. In their talks, Jaishankar and Lammy also reviewed the implementation of the India-UK roadmap that seeks to broad-base the ties in a range of areas. In 2021, India and the UK adopted the 10-year roadmap to expand ties in the key areas of trade and economy, defence and security, climate change and people-to-people connections among others.

The CNX Nifty ended at 24,406.10, down by 7.40 points or 0.03% after trading in a range of 24,210.80 and 24,426.15. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Motors up by 6.15%, ONGC up by 5.09%, SBI Life up by 3.82%, BPCL up by 3.56% and Sun Pharma up by 2.86%. On the flip side, Axis Bank down by 5.11%, Nestle down by 2.39%, Titan Company down by 2.09%, ICICI Bank down by 2.05% and Tata Steel down by 1.82% were the top losers. (Provisional)

European markets were trading lower; France’s CAC fell 141.37 points or 1.88% to 7,372.32 and Germany’s DAX was down by 244.08 points or 1.35% to 18,143.38, UK’s FTSE 100 decreased 71.70 points or 0.88% to 8,081.99.

Asian markets settled down on Thursday ahead of the release of US GDP and PCE price index data, which could offer more clues on when the US central bank will cut interest rates this year and by how much. Market sentiments weakened further on Wall Street’s overnight fall as disappointing earnings from Tesla and Alphabet prompted investors to pull back on the artificial-intelligence frenzy. Japanese shares led regional losses as the yen rose to its strongest level against the dollar in 2-1/2 months ahead of a Bank of Japan policy meeting next week, where a rate hike may be on the table. Seoul shares dropped by tracking sell-off in megacap US technology shares and after data showed South Korea's economy contracted in the second quarter. Chinese shares dipped, even as China’s central bank surprised markets again by cutting another key policy rate to try to offset a weakening economy and a housing market crisis. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

2,886.74

-15.21

-0.53

Hang Seng

17,004.97

-306.08

-1.80

Jakarta Composite

7,240.28

-22.48

-0.31

KLSE Composite

1,615.18

-5.96

-0.37

Nikkei 225

37,869.51

-1,285.34

-3.39

Straits Times

3,430.45

-30.37

-0.89

KOSPI Composite

2,710.65

-48.06

-1.77

Taiwan Weighted

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