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Indian equity benchmarks closed on a flat note after a volatile trade on Friday amid a largely negative trend in global stocks. Markets made positive start, as traders took some support with the Confederation of Indian Industry (CII) urged the government to provide a fiscal stimulus worth Rs 3 trillion along with direct cash transfers to perk up domestic demand. The industry body also sought expansion in the Reserve Bank of India (RBI) balance sheet to meet the demand exigencies of the pandemic. Also, India maintained 43rd rank on an annual World Competitiveness Index compiled by the Institute for Management Development (IMD) that examined the impact of COVID-19 on economies around the world this year. However, key indices soon erased initial gains and slipped over half a percent in morning trades, as sentiments turned pessimistic with a private report stated that lockdowns imposed by the states in April and May to contain the second wave of the deadly COVID-19 pandemic has likely led to the economy contracting 12 per cent in the June quarter as against 23.9 per cent contraction in the same quarter in 2020.

Markets remained weak in late afternoon deals, as assessment made by the Reserve Bank stating that the devastating second wave of the coronavirus pandemic in April-May is estimated to have cost the nation Rs 2 lakh crore in terms of output. It also said the second wave's toll is mainly in terms of the hit to domestic demand on account of regional and specific containment rather than a nation-wide lockdown. But markets recovered lost ground in fag end of a trading session as buying emerge in Telecom and FMCG stocks. Traders took note of report that Union Minister of State for Labour & Employment (Independent Charge) Santosh Gangwar has said that India is committed to improve employment outcomes for all youth in India, including women and vulnerable section of the people, through an enduring, long-term commitment for better opportunities. He said that the government is making all-out efforts to improve the bridge between education and employment, and to prepare young people for the future of work.

On the global front, Asian markets ended mixed on Friday, while European markets were trading lower, following the mixed cues from Wall Street. The markets were also dragged after crude oil and bullion prices tumbled on the US dollar's surge. The markets also remain tense amid the continuing high number of infections in most markets. Back home, on the sectoral front, Information and broadcasting industry stocks were in focus as the Centre amended the Cable Television Network Rules to provide for a three-layer statutory mechanism for the redressal of complaints relating to content broadcast by television channels. IT sector’s stocks were in watch as Nasscom said the sector continues to be a net hirer of skilled talent, and that the top 5 Indian IT companies are planning to add over 96,000 employees in 2021-22.

Finally, the BSE Sensex rose 21.12 points or 0.04% to 52,344.45, while the CNX Nifty was down by 8.05 points or 0.05% to 15,683.35. 

The BSE Sensex touched high and low of 52,586.41 and 51,601.11, respectively and there were 12 stocks advancing against 18 stocks declining on the index.     

The broader indices ended in red; the BSE Mid cap index fell 0.70%, while Small cap index was down by 0.89%.

The top gaining sectoral indices on the BSE were Telecom up by 1.47%, FMCG up by 0.20% and Consumer Durables up by 0.12%, while Power down by 2.77%, Utilities down by 2.54%, PSU down by 2.10%, Metal down by 2.01% and Oil & Gas down by 1.75% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.64%, Bajaj Auto up by 2.61%, Bharti Airtel up by 1.93%, Bajaj Finserv up by 1.51% and Indusind Bank up by 1.08%. On the flip side, ONGC down by 3.72%, NTPC down by 3.16%, Power Grid down by 2.80%, Mahindra & Mahindra down by 2.56% and Nestle down by 2.08% were the top losers.

Meanwhile, the Confederation of Indian Industry (CII) has said that the Indian economy requires a Rs 3 lakh crore fiscal stimulus, including cash transfer to households through Jan Dhan accounts to spur economic growth amid the pandemic. It also pitched for appointment of a 'Vaccine Czar' for speedy vaccination coverage. It also expects GDP to grow at 9.5 percent in 2021-22 as the strong growth in the second half of the fiscal year will be supported by robust external demand and large-scale coverage of vaccination, allowing resumption of economic activity.

CII has stated that the suitable fiscal measures to alleviate the stress of people impacted by the second wave of COVID-19 are the need of the hour. It said the Indian economy is a consumption-led economy and the pandemic has impacted the consumer demand. Due to this, the chamber has called for measures such as cash transfer as a number of actions are needed to deal with this demand shock.

Measures suggested by it include enhanced MNREGA allocations from the budgeted amount; short-term and focused GST cuts to boost demand; time bound tax relief/interest subvention/stamp duty concession for home buyers; LTC cash voucher scheme like last year; and extension of the Aatmanirbhar Bharat Rozgar Yojana till March 31, 2022. It also asked for ensuring timely payment to companies including MSMEs; accelerating public works programmes to ensure implementation of NIP; hiking ECLGS (Emergency Credit Line Guarantee Scheme) amount to Rs 5 lakh crore, reduction in excise duty on fuel and inclusion of ATF (aviation turbine fuel) and other fuel products in GST (Goods and Services Tax).

The CNX Nifty traded in a range of 15,761.50 and 15,450.90 and there were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Adani Ports & SEZ up by 7.15%, Bajaj Auto up by 3.04%, Hindustan Unilever up by 3.00%, Bharti Airtel up by 2.25% and Grasim Industries up by 1.98%. On the flip side, ONGC down by 3.48%, Coal India down by 3.38%, JSW Steel down by 3.30%, NTPC down by 3.15% and UPL down by 2.92% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 60.61 points or 0.85% to 7,092.82, France’s CAC fell 15.10 points or 0.23% to 6,651.16 and Germany’s DAX was down by 102.66 points or 0.65% to 15,625.01.

Asian markets ended mixed on Friday after the US Federal Reserve meet. Hong Kong shares posted weekly losses after the US Federal Reserve projected higher interest rates in 2023. Japanese shares ended lower as the Bank of Japan (BoJ) kept its ultra-lax monetary policy intact, as investors had expected. BoJ also maintained its massive monetary stimulus to support the economy and extended a September deadline for its pandemic-relief programme to help pandemic-hit firms. Meanwhile, Chinese stocks dropped on worries over lofty valuations and Sino-West tensions.

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