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EQUITY
Post Session: Quick Review
Aug-18-2022

Indian equity benchmarks ended flat with a positive bias on Thursday. After a cautious start, markets traded lackluster during the entire trading session, as former deputy chairman of the erstwhile Planning Commission Montek Singh Ahluwalia has said it would be unrealistic to assume that India would record a sustained growth of 8 per cent, which is needed to become a ‘developed nation’ by 2047. He added India's annual per capita income is around $2,000 and it is unlikely that it would increase to $12,000 by 2047 to become a high-income country as per the World Bank's definition.

Domestic sentiments remained pessimistic, amid a private report stating that India’s economy grew at a slower pace than the monetary policy committee's (MPC’s) projection of 16.2 per cent in the first quarter of financial year 2022-23 (Q1FY23). Their projections range between 14.5 per cent and 16 per cent. The street failed to take any sense of relief with reports that the Union Cabinet approved raising the outlay of the Emergency Credit Line Guarantee Scheme (ECGLS) by Rs 50,000 crore to Rs 5 lakh crore and the additional amount will be earmarked for enterprises in the hospitality and related sectors.

In the last hours of the trade, key indices staged sharp recovery and closed the trading day in green terrain. Traders got some support, as the ministry of statistics and programme implementation in its final Annual Survey of Industries (ASI) said manufacturing sector investments grew 20.9% in 2019-20 over the previous fiscal. Continued foreign fund inflows in domestic markets also aided the market sentiments. As per provisional data available on the NSE, foreign institutional investors (FIIs) have net bought shares worth Rs 2,347.22 crore on August 17.

On the global front, European markets were trading mostly in green. Asian markets settled mostly lower on Thursday, even after Hong Kong's unemployment and underemployment decreased in the May to July period. The labor force statistics from the Census and Statistics Department showed that the unemployment rate fell to a seasonally adjusted 4.3 percent in May to July period from 4.7 percent in April to June period. The underemployment rate also decreased in the three months ended July, to 2.2 percent from 3.0 percent during the April-June period.

The BSE Sensex ended at 60298.00, up by 37.87 points or 0.06% after trading in a range of 59946.44 and 60341.41. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.42%, while Small cap index up by 0.34%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 1.76%, Utilities up by 1.09%, Power up by 0.96%, Capital Goods up by 0.91% and Industrials up by 0.90%, while Oil & Gas down by 0.79%, IT down by 0.75%, TECK down by 0.66%, Energy down by 0.59% and Auto down by 0.38% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Kotak Mahindra Bank up by 3.45%, Larsen & Toubro up by 2.09%, Bharti Airtel up by 1.59%, Ultratech Cement up by 1.53% and Indusind Bank up by 1.50%. On the flip side, Dr. Reddy's Lab down by 2.18%, Wipro down by 1.83%, Infosys down by 1.50%, Mahindra & Mahindra down by 1.04% and Axis Bank down by 0.87% were the top losers. (Provisional)

Meanwhile, Union Minister of Textiles, Commerce & Industry, Consumer Affairs and Food & Public Distribution, Piyush Goyal has said that Textile Industry has a big role to play in making Free Trade Agreements a success. He said that FTAs with Developed Countries is high on the agenda of the Government.

Besides, Goyal said that innovation is going to be the defining feature in India's march towards becoming a Developed Nation. He highlighted the role of innovation across all value chains in the Textile sector and also urged the Textile sector to focus on recycling and digitization.

He said if the industry focuses on innovation, sustainability, digitisation, newer products and utilisation of Free Trade Agreements (FTAs), it can grow fast and compete with the best in the world. Talking about sustainability, Goyal said that textiles sector can reduce the pressure on the environment by using reusable resources as well as reduce its own production costs.

The CNX Nifty ended at 17956.50, up by 12.25 points or 0.07% after trading in a range of 17852.05 and 17968.45. There were 23 stocks advancing against 27 stocks declining on the index. (Provisional)

The top gainers on Nifty were Kotak Mahindra Bank up by 3.52%, Larsen & Toubro up by 2.09%, Tata Consumer Products up by 1.81%, Indusind Bank up by 1.52% and SBI Life Insurance up by 1.44%. On the flip side, ONGC down by 2.94%, Dr. Reddy's Lab down by 2.10%, UPL down by 2.09%, Wipro down by 1.81% and BPCL down by 1.73% were the top losers. (Provisional)

European markets were trading mostly in green, France’s CAC increased 32.90 points or 0.50% to 6,561.22 and Germany’s DAX was up by 23.93 points or 0.18% to 13,650.64. On the flip side, UK’s FTSE 100 was down by 3.00 points or 0.04% to 7,512.75.

Asian markets settled mostly lower on Thursday, tracking weak US stocks overnight after minutes from the Federal Reserve's July meeting pointed to interest rates staying higher for longer to control inflation back to its 2 percent target. Chinese and Hong Kong shares declined, with property developers falling sharply after Country Garden Holdings Company warned that first-half earnings probably tumbled by as much as 70 percent amid a severe real estate downturn. Moreover, Japanese stocks fell, driven by weakness in the technology sector.

Asian Indices

Last Trade               

Change in Points

Change in %   

Shanghai Composite

3,277.54-14.99-0.46

Hang Seng

19,763.91-158.54-0.80

Jakarta Composite

7,186.5653.110.74

KLSE Composite

1,516.62-1.54-0.10

Nikkei 225

28,942.14-280.63-0.96

Straits Times

3,273.4810.720.33

KOSPI Composite

2,508.05-8.42-0.33

Taiwan Weighted

15,396.76-68.69-0.44
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