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Post Session: Quick Review
May-06-2024

The volatility witnessed over Dalal Street on Monday with Sensex and Nifty ending flat, amid slower India’s services sector activity. Key indices made an optimistic start of the trading session, as the data from National Securities Depository (NSDL) showed that foreign portfolio investors (FPIs) have again returned as net buyers in the Indian stock market in May. Till May 3, they bought equities worth Rs 1,156 crore in India. In April, FPIs turned net sellers in Indian stocks, as the ongoing geopolitical crisis in the Middle East then likely pushed investors to take money off their portfolios.

However, markets turned volatile, after India’s services sector activity growth eased during the month of April. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index fell to 60.8 in April from 61.2 in March. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also eased to 61.5 in April as against 61.8 in March. There was some cautiousness as the Reserve Bank of India (RBI) said India’s forex reserves dropped $2.412 billion to $637.922 billion as on April 26, in the third consecutive weekly decline in the reserves. 

On the global front, European markets were trading higher, as weaker-than-expected April U.S. jobs report released on Friday boosted the case for rate cuts by the third quarter. Asian markets ended in green, after the private sector in Hong Kong continued to expand in April, although at a slower pace, with a services PMI score of 50.6. That's down from 50.9 in March, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. The growth in output was supported by businesses working through their existing orders, which led to a seventh successive monthly reduction in the level of outstanding work.

Back home, the banking stocks remained in focus as the Reserve Bank of India's weekly statistical supplement showed Indian banks' loans rose 19% in the two weeks to April 19 from a year earlier, while deposits rose 13.3%. As per the data, outstanding loans fell Rs 98,700 crore ($11.84 billion) to Rs 16,400,000 crore in the two weeks to April 19. Besides, the Reserve Bank of India (RBI) has proposed tighter rules to govern lending to projects under implementation. The central bank's draft rules include a classification of the projects as per their phase and higher provisioning of up to 5 per cent during the construction phase, even if the asset is standard.

The BSE Sensex ended at 73895.54, up by 17.39 points or 0.02% after trading in a range of 73786.29 and 74359.69. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index fell by 0.95%, while Small cap index was down by 1.06%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 2.71%, TECK up by 0.77%, IT up by 0.65%, Healthcare up by 0.51% and FMCG up by 0.50%, while Consumer Durables down by 3.85%, PSU down by 2.91%, Oil & Gas down by 2.07%, Energy down by 1.93% and Utilities down by 1.76% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Kotak Mahindra Bank up by 5.01%, TCS up by 2.13%, Hindustan Unilever up by 1.80%, Mahindra & Mahindra up by 1.47% and Sun Pharma up by 1.40%. On the flip side, Titan down by 7.18%, SBI down by 2.86%, NTPC down by 2.31%, Power Grid down by 1.22% and Larsen & Toubro down by 1.06% were the top losers. (Provisional)

Meanwhile, India has urged the Asian Development Bank (ADB) not to overlook its focus on reduction of remaining poverty while promoting sustainable growth for the member nations in the Asia Pacific region. Making intervention at the Board of Governors Business Session at the 57th Annual Meeting of ADB, India's Temporary Alternate Governor Vikas Sheel said the bank has played a critical role in facilitating measures of faster economic development, reducing poverty and promoting regional cooperation while effectively addressing the challenges and delivery of global public goods. He said ‘We note with concern that economic growth and dealing with the remaining poverty do not find a place in the enhanced focus areas of the ADB in the review of its Strategy 2030. We urge ADB not to overlook the ADB's charter mandate on growth and shared prosperity’.

He assured India's continued support to work towards accelerated inclusive and sustainable growth in Asia and the Pacific. Observing that ADB is expected to grow bigger, better and bolder in line with the New Delhi declaration of the G20, Sheel said it can thus play a much bigger role in addressing the ambitious climate agenda. He said ‘Based on the detailed recommendations made by the Independent Expert Group, appointed under India's G20 presidency, we are happy to note that ADB is proactively implementing recommendations of IEG to live up to the aspirations of being the trusted development partner of the fast-growing economies of Asia and of transforming itself into a climate bank’.

He added ADB shall have to not only continue to pursue these reform measures but would also have to assist members in catalyzing significant private sector investments, especially for climate finance in addition to concessional financing, coupled with technology transfer in line with the global challenges funding mechanism recommended by the G 20. In line with the commitment to support the smaller economies in the region, he said, India has increased its contribution to the Asian Development Fund (ADF) 14 through $58.17 million.

The CNX Nifty ended at 22442.70, down by 33.15 points or 0.15% after trading in a range of 22409.45 and 22588.80. There were 24 stocks advancing against 26 stocks declining on the index. (Provisional)

The top gainers on Nifty were Britannia up by 6.68%, Kotak Mahindra Bank up by 5.02%, TCS up by 2.02%, Hindustan Unilever up by 1.77% and Mahindra & Mahindra up by 1.46%. On the flip side, Titan down by 7.18%, Adani Enterprises down by 3.96%, BPCL down by 3.11%, Coal India down by 2.95% and SBI down by 2.84% were the top losers. (Provisional)

European markets were trading higher; France’s CAC rose 46.73 points or 0.58% to 8,004.30 and Germany’s DAX gained 129.6 points or 0.71% to 18,131.20.

Asian markets finished in green on Monday, supported by weaker dollar, dipping bond yield notes, and rally in tech sector stocks. Shanghai stocks soared with optimism over continued jump in April manufacturing and service activity of China followed by the report of a private survey. Moreover, investor sentiments got kindled with the combination of earnings recovery, cheap valuations, and signs of new policy support from Beijing to ease a prolonged property crisis. Stock markets of Japan and South Korea were closed for holidays.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,140.72

35.90

1.14

Hang Seng

18,578.30

102.38

0.55

Jakarta Composite

7,135.89

1.17

0.02

KLSE Composite

1,597.39

7.80

0.49

Nikkei 225

--

--

--

Straits Times

3,303.19

10.26

0.31

KOSPI Composite

--

--

--

Taiwan Weighted

20,523.31

192.99

0.94
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