Post Session: Quick Review

Indian equity benchmarks ended flat with a negative bias on Thursday. After a cautious start, markets traded higher in early morning deals, taking support with Finance Minister Nirmala Sitharaman’s statement that any increase in GST rates under the rate rationalisation exercise is intended to make up for the ‘inefficiencies’ in the value chain.  Traders also took a note of a report released by Washington-based World Federation of Direct Selling Associations (WFDSA) stated that the Indian direct selling industry has reported retail sales of $3.25 billion in 2021 (around Rs 27,650 crore) and maintained its 12th place in the global rankings.

But soon, key indices cut their gains and remained volatile during the entire trading session, as exchange data showed that foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 851.06 crore on Wednesday. Traders got cautious, amid reports that the Goods and Services Tax (GST) Council’s two-day meeting concluded without any decision on extending compensation to states - for revenue loss on account of the regime’s implementation five years ago - beyond June 30. This was despite at least two dozen states raising the issue.

Some concerns came with a private report that inflationary pressures are likely to continue and force the RBI to further hike interest rates during the course of the current fiscal but the tighter financial conditions can impact growth. The report said there are reasons to be optimistic on the growth front but factors like tighter financial conditions can have an impact on the GDP expansion. On the sectoral front, oil industry stocks were in focus, after Information and Broadcasting Minister Anurag Thakur has said that the government has decided to give marketing freedom to domestic crude oil producers, allowing them to sell oil to whosoever they want.

On the global front, European markets were trading lower after global central bank chiefs said bringing down high inflation around the world will be painful and even dent economic growth. Asian markets ended mostly lower on Thursday, even after China's manufacturing sector returned to the expansion zone in June. The survey results from the National Bureau of Statistics showed that the official manufacturing Purchasing Managers' Index rose to 50.2 from 49.6 in May. A score above 50.0 indicates expansion in the sector.

The BSE Sensex ended at 53018.94, down by 8.03 points or 0.02% after trading in a range of 52883.25 and 53377.54. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.74%, while Small cap index down by 0.54%. (Provisional)

The top gaining sectoral indices on the BSE were Power up by 0.79%, Bankex up by 0.62%, Utilities up by 0.59% and Capital Goods up by 0.18%, while Metal down by 2.18%, Auto down by 1.25%, Basic Materials down by 1.20%, Realty down by 1.17% and Consumer Disc down by 0.90% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Axis Bank up by 1.74%, SBI up by 1.38%, Kotak Mahindra Bank up by 0.92%, NTPC up by 0.88% and Larsen & Toubro up by 0.59%. On the flip side, Tech Mahindra down by 2.09%, Bajaj Finance down by 2.00%, Bajaj Finserv down by 1.74%, Tata Steel down by 1.65% and Indusind Bank down by 1.61% were the top losers. (Provisional)

Meanwhile, NITI Aayog in its latest report titled ‘Harnessing Green Hydrogen: Opportunities for Deep Decarbonisation in India’ has said that the green hydrogen can substantially spur industrial decarbonisation and economic growth for India in the coming decades. The report provides a pathway to accelerate the emergence of a green hydrogen economy, which is critical for India to achieve its net-zero ambitions by 2070.

The report, co-authored by NITI Aayog and RMI, also underscored that green hydrogen will be crucial for achieving decarbonisation of harder-to-abate sectors such as, fertilisers, refining, methanol, maritime shipping, iron & steel and transport.

The report further said that with emerging global momentum on hydrogen, India can situate this decarbonisation opportunity not just within the context of a low-carbon economy but also as an enabler of energy security and economic development for the nation.

According to the report, near-term policy measures can bring down the current costs of green hydrogen to make it competitive with the existing grey hydrogen (hydrogen produced by natural gas) prices. Medium-term price targets should be set to guide the industry towards making green hydrogen the most competitive form of hydrogen.

The CNX Nifty ended at 15780.25, down by 18.85 points or 0.12% after trading in a range of 15728.85 and 15890.00. There were 15 stocks advancing against 35 stocks declining on the index. (Provisional)

The top gainers on Nifty were Britannia up by 1.83%, Axis Bank up by 1.80%, HDFC Life Insurance up by 1.62%, SBI up by 1.48% and Divi's Lab up by 1.31%. On the flip side, Bajaj Auto down by 4.16%, Cipla down by 3.21%, Eicher Motors down by 3.20%, BPCL down by 2.53% and Tech Mahindra down by 2.07% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 115.2 points or 1.55% to 7,199.19, France’s CAC decreased 121.76 points or 2.03% to 5,908.44 and Germany’s DAX was down by 241.19 points or 1.87% to 12,759.93.

Asian markets ended mostly lower on Thursday tracking the mixed finish on Wall Street overnight and as US Federal Chair Jerome Powell reiterated his hawkish stance on fighting inflation and cautioned there's no guarantee the US Fed can engineer a soft landing. Meanwhile, the US economy shrank at an annualized pace of 1.6 percent in the first quarter, reflecting a deeper contraction than the most recent estimate of a 1.5 percent. Japanese shares dropped and the yen weakened to a 24-year low overnight after data showed that Japan's monthly industrial production fell the most in two years, that stoking fears of an economic slowdown in Japan. However, Chinese shares gained after China's official gauges of factory and services activity returned to expansion in June following three months of contraction.

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