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Key gauges end at record closing high on Tuesday
Aug-03-2021

Gaining for the second straight session, Indian equity benchmarks ended at a record closing high on Tuesday, on hopes of faster pace of economic recovery as various macro-economic indicators pointed towards demand revival in the economy. Markets made positive start, 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. Adding more optimism, Finance Minister Nirmala Sitharaman states that the government’s net tax revenues grew 5 per cent in the fiscal year ended March 31, 2021 (FY21). The net tax (sum of direct and indirect taxes) revenue in 2020-21 was over Rs 14.24 lakh crore, a nearly 5 per cent growth from Rs 13.56 lakh crore in the previous financial year.

Benchmarks continued their upward rally in late afternoon session, as better than expected corporate earnings in June quarter added to the bullish investors' sentiment. Adding the optimism among the market participants, 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. Investors didn’t give any heed to the National Statistical Office’s (NSO) periodic labour force survey stated that unemployment rate rose to 13.3 percent in July-September 2020 as compared to 8.4 percent in the year-ago period. Joblessness or unemployment rate (UR) is defined as the percentage of unemployed persons in the labour force. The UR was 20.9 per cent in April-June 2020.

On the global front, 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. European markets were trading higher as a set of upbeat earnings results helped offset concerns about spiking COVID-19 cases in Asia and Chinese regulation uncertainties. Back home, on the sectoral front, metal stocks ended lower as the country's steel output took a hit during the April-June period of 2021 due to the emergence of the second wave of Covid-19 pandemic.

Finally, the BSE Sensex rose 872.73 points or 1.65% to 53,823.36, while the CNX Nifty was up by 245.60 points or 1.55% to 16,130.75.   

The BSE Sensex touched high and low of 53,887.98 and 53,088.35, respectively and there were 27 stocks advancing against 3 stocks declining on the index.

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

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.

The top gainers on the Sensex were Titan Company 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.

Meanwhile, Finance Minister Nirmala Sitharaman has said the government’s net tax revenues grew 5 per cent in the fiscal year ended March 31, 2021 (FY21). The net tax (sum of direct and indirect taxes) revenue in 2020-21 was over Rs 14.24 lakh crore, a nearly 5 per cent growth from Rs 13.56 lakh crore in the previous financial year. However, non-tax revenue collection dipped 36 per cent to Rs 2.08 lakh crore in 2020-21 from over Rs 3.27 lakh crore in 2019-20. The government’s net revenue (tax+non-tax) collection in the last financial year declined 3.09 per cent to Rs 16.32 lakh crore.

Sitharaman said the government has taken many steps to boost both direct and indirect tax revenue collection, through curbing tax evasion, widening/deepening tax base, promoting voluntary compliance, reducing litigation and promoting digital transactions.

Besides, the total cess and surcharge collection under indirect taxes (GST+non-GST) increased 53 per cent to over Rs 4.39 lakh crore in 2020-21 as compared to the previous year. In 2018-19 and 2017-18, the cess collection under indirect taxes was Rs 2.67 lakh crore and Rs 2.17 lakh crore, respectively.

The CNX Nifty traded in a range of 16,146.90 and 15,914.35 and there were 44 stocks advancing against 6 stocks declining on the index.       

The top gainers on Nifty were Titan Company 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.

European markets were trading higher; UK’s FTSE 100 increased 25.20 points or 0.36% to 7,106.92, France’s CAC rose 62.10 points or 0.93% to 6,738.00 and Germany’s DAX was up by 20.65 points or 0.13% to 15,589.38.

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
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