HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Post Session: Quick Review
Aug-03-2021

Bulls held a tight grip over dalal Street on Tuesday, with both Sensex and Nifty ending on a strong note. After a positive start, markets remained higher for the whole trading session, as preliminary data released by the commerce and industry ministry showed merchandise exports grew 48 per cent YoY in July to $35.17 billion on account of a rise in global orders in shipments of petroleum products, engineering products, gems and jewellery segments. Addition optimism, Finance Minister Nirmala Sitharaman said the government's net tax revenues grew 5 per cent in the fiscal year ended March 31, 2021.

Sentiments remained up-beat as the Reserve Bank of India said India's services exports increased 24.1 per cent month-on-month to $19.72 billion in June 2021. The exports stood at $17.35 billion in May and $17.54 billion in April. The RBI further said imports in June were valued at $11.14 billion, up 24.8 per cent on sequential basis. Besides, the Centre informed that over 29.55 crore loans amounting to Rs 15.52 lakh crore have been sanctioned under Pradhan Mantri Mudra Yojana (PMMY) across the country since its inception in April 2015.

Markets added more gains in the second half of the trading session to end at record closing highs. Traders got encouragement, after markets regulator Sebi has reduced the minimum application value of REITs and InvITs, and revised trading lot to one unit for these emerging investment instruments to make them attractive for retail investors. The minimum application value has been cut down to the range of Rs 10,000-15,000 for both REITs and InvITs, compared to the earlier requirement of Rs 50,000 for REITs and Rs 1 lakh for InvITs, Sebi said in two separate notifications dated July 30.

On the global front, European markets were trading higher even as concerns lingered over rising Delta variant cases and China’s regulatory moves. Asian markets ended mixed, after consumer prices in South Korea were up a seasonally adjusted 0.2 percent on month in July, Statistics Korea said on Tuesday. That exceeded expectations for a flat reading following the 0.1 percent decline in June. On a yearly basis, inflation climbed 2.6 percent - again beating forecasts for 2.4 percent, which would have been unchanged.

The BSE Sensex ended at 53823.36, up by 872.73 points or 1.65% after trading in a range of 53088.35 and 53887.98. There were 27 stocks advancing against 3 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.19%, while Small cap index up by 0.23%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 1.70%, FMCG up by 1.61%, Auto up by 1.59%, Bankex up by 1.56% and TECK up by 1.39%, while Metal down by 0.08% was the only losing index on BSE. (Provisional)

The top gainers on the Sensex were Titan Co up by 3.89%, HDFC up by 3.72%, Nestle up by 3.44%, Indusind Bank up by 3.39% and Ultratech Cement up by 2.75%. On the flip side, Bajaj Auto down by 0.33%, Tata Steel down by 0.20% and NTPC down by 0.17% were the top losers. (Provisional)

Meanwhile, Union Minister of State for Finance Bhagwat Kisanrao Karad has said that the Government and the Reserve Bank of India (RBI) have taken major initiatives to mitigate the hardship being faced by farmers due to COVID-19. The Minister further stated the efforts made/being made by the Government for the remedy of the problems regarding agriculture loan being faced by the farmers in the country.

To meet the credit needs for post-harvest and kharif sowing requirements of farmers including small and marginal farmers, a front-loaded Special Liquidity Facility (SLF) of Rs. 55,000 crore under SLF-I and SLF-II has been extended by NABARD during COVID-19 pandemic for Regional Rural Banks, Cooperative Banks and Non Banking Financial Company (NBFCs)-Micro Finance Institutions (mFIs). This additional special liquidity facility to the rural financial institutions at concessional rate of interest will ensure enhanced credit flow to the agriculture and the allied sector.

Further, RBI’s extant directions on relief measures to be provided by respective lending institutions in areas affected by natural calamities, such as flood, cyclone, drought, hailstorm, cold wave/frost, etc., inter alia, include, restructuring/rescheduling of existing crop loans and term loans, extending fresh loans, relaxed security and margin norms, moratorium, etc. These directions have been so designed that the moment calamity is declared by the concerned State Governments/District Authorities they are automatically set in motion without any intervention, thus saving precious time. The benchmark for initiating relief measures by banks has also been reduced to 33% crop loss in line with the National Disaster Management Framework.

The CNX Nifty ended at 16130.75, up by 245.60 points or 1.55% after trading in a range of 15914.35 and 16146.90. There were 44 stocks advancing against 6 stocks declining on the index. (Provisional)

The top gainers on Nifty were Titan Co up by 3.88%, HDFC up by 3.76%, Indusind Bank up by 3.45%, Nestle up by 3.21% and SBI up by 2.67%. On the flip side, JSW Steel down by 0.86%, Bajaj Auto down by 0.35%, Shree Cement down by 0.31%, Tata Steel down by 0.20% and NTPC down by 0.08% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 23.45 points or 0.33% to 7,105.17, France’s CAC increased 53.10 points or 0.8% to 6,729.00 and Germany’s DAX was up by 16.59 points or 0.11% to 15,585.32.

Asian markets ended mixed on Tuesday amid lingering concerns over the spread of the Delta virus variant and China's regulatory crackdown over technology companies in dramatic ways. South Korea is struggling to contain a fourth Covid-19 wave, with new cases staying in the 1,200s for the second day in a row. In China, the spread of the Delta variant from the mainland's coast to inland cities prompted authorities to implement strict measures. Japanese shares fell after Prime Minister Yoshihide Suga flagged growing COVID-19 infections among Japanese in their 20s and 30s.

Asian Indices

Last Trade           

Change in Points

Change in %    

Shanghai Composite

3,447.99

-16.30

-0.47

Hang Seng

26,194.82

-40.98

-0.16

Jakarta Composite

6,130.57

34.03

0.56

KLSE Composite

1,500.26

7.26

0.49

Nikkei 225

27,641.83

-139.19

-0.50

Straits Times

3,149.25

-11.97

-0.38

KOSPI Composite

3,237.14

14.10

0.44

Taiwan Weighted

17,553.76

50.48

0.29



  RELATED NEWS >>