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Post Session: Quick Review
Jul-01-2022

The last trading day of the week ended on a negative note, with both Sensex and Nifty ending marginally lower. The start of the day was in red, as traders were concerned with the latest public debt management report showing that the government’s total liabilities rose 3.74 per cent to Rs 133.22 lakh crore in the March quarter from Rs 128.41 lakh crore in the three months ended December 2021. Some cautiousness also came in as the Reserve Bank said India's external debt increased by $47.1 billion to $620.7 billion in the financial year ended March 2022.

Weak trade continued over the Dalal Street during the entire trading session, after Indian manufacturing activity eased in the month of June, as growth of total sales and production eased amid intense price pressures. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) fell to 53.9 in June from 54.6 in May. Domestic sentiments remained cautious, as the Reserve Bank of India (RBI) said that financial risks associated with the profile of government debt can hamper the functioning of fixed-income markets.

Traders were cautious as rating agency Crisil lowered its real GDP growth forecast for India to 7.3 percent in FY23 from 7.8 percent estimated earlier. It attributed the downward revision to higher oil prices, slowing of export demand, and high inflation. However, in the last hour of the trade, indices cut most of their losses, taking support with a report that the growth of eight core infrastructure industries grew to 13-month high of 18.1 per cent in May 2022, led by healthy growth in coal, crude oil, fertilisers, cement and electricity production.

On the global front, European markets were trading mostly in green after the German manufacturing PMI came in at 52.0 in June, in line with expectations. Asian markets settled mostly lower, after the manufacturing sector in Thailand continued to expand in June, albeit at a slower pace, the latest survey from S&P Global showed with a manufacturing PMI score of 50.7. That's down from 51.9 in May although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

The BSE Sensex ended at 52907.93, down by 111.01 points or 0.21% after trading in a range of 52094.25 and 53053.04. There were 22 stocks advancing against 8 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.67%, while Small cap index up by 0.09%. (Provisional)

The top gaining sectoral indices on the BSE were FMCG up by 2.47%, Realty up by 1.65%, Basic Materials up by 0.96%, Consumer Disc up by 0.80% and IT up by 0.72%, while Energy down by 3.99%, Oil & Gas down by 3.21%, PSU down by 1.32%, Utilities down by 0.86% and Power down by 0.77% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were ITC up by 3.99%, Bajaj Finance up by 3.97%, Bajaj Finserv up by 3.63%, Asian Paints up by 2.80% and Hindustan Unilever up by 2.34%. On the flip side, Reliance Industries down by 7.14%, Power Grid down by 2.53%, NTPC down by 1.82%, Bharti Airtel down by 1.54% and Maruti Suzuki down by 0.87% were the top losers. (Provisional)

Meanwhile, Indian manufacturing activity eased in the month of June, as growth of total sales and production eased amid intense price pressures. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) fell to 53.9 in June from 54.6 in May.

The report noted that factory orders and production rose for the twelfth straight month in June, but in both cases the rates of expansion eased to nine-month lows. Besides, new export orders rose for the third month running in June. The increase was strong by historical standards, despite easing from May's 11-year high.

On the inflation front, rates of purchase price and output charge inflation retreated to three-month lows, but remained above their respective long-run averages. Inflation concerns continued to dampen business confidence, with sentiment slipping to a 27-month low.

As per the report, employment rose for the fourth successive month, albeit at a slight pace that was broadly in line with those seen over this period. Job creation restricted backlog growth, which increased at a marginal pace that was the slowest in three months.

The CNX Nifty ended at 15752.05, down by 28.20 points or 0.18% after trading in a range of 15511.05 and 15793.95. There were 38 stocks advancing against 12 stocks declining on the index. (Provisional)

The top gainers on Nifty were ITC up by 3.97%, Bajaj Finance up by 3.96%, Bajaj Finserv up by 3.57%, Cipla up by 3.50% and Britannia up by 3.40%. On the flip side, ONGC down by 13.53%, Reliance Industries down by 7.20%, Power Grid down by 2.55%, Bajaj Auto down by 2.21% and Bharti Airtel down by 1.68% were the top losers. (Provisional)

European markets were trading mostly in green, France’s CAC increased 20.33 points or 0.34% to 5,943.19 and Germany’s DAX was up by 32.56 points or 0.25% to 12,816.33. On the flip side, UK’s FTSE 100 was down by 6.41 points or 0.09% to 7,162.87.

Asian markets settled mostly lower on Friday tracking weakness in Wall Street overnight after data showed US household spending slowed in May amid historically high inflation and elevated interest rates, which raised the prospect that the US economy has contracted for a second consecutive quarter this year. Meanwhile, a slew of surveys showed that Asia's manufacturing activity slowed in June as many companies were hit by supply disruptions caused by China's strict Covid-19 lockdowns, also fueled recession fears and weighed on market sentiments. Chinese shares declined, despite data showed the Caixin/ Markit manufacturing Purchasing Managers' Index (PMI) for June rose to 51.7 from 48.1 last month. Seoul shares dropped after South Korea posted a record-high trade deficit during the first half of 2022. Moreover, Japanese shares fell as dismal manufacturing and unemployment data stoked concerns about the economic outlook. Meanwhile, market in Hong Kong was closed for a holiday.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,387.64

-10.98

-0.32

Hang Seng

--

--

--

Jakarta Composite

6,794.33

-117.25

-1.70

KLSE Composite

1,449.74

5.52

0.38

Nikkei 225

25,935.62

-457.42

-1.73

Straits Times

3,095.59

-6.62

-0.21

KOSPI Composite

2,305.42

-27.22

-1.17

Taiwan Weighted

14,343.08

-482.65

-3.26
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