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Indian benchmark indices ended the final session of the June series of futures & options (F&O) over half a percent higher, with major contribution from IT, TECK and Banking stocks amid a positive trend in global markets. Key indices made optimistic start, as traders got some support with the commerce and industry ministry in its latest data has showed that foreign direct investment (FDI) equity inflows into India increased by 60 percent to $4.44 billion in April 2021 as against $2.77 billion in the same month last year. Besides, the country has attracted total FDI inflow, including equity, re-invested earnings and capital, of $6.24 billion during April, 2021, which is 38 percent higher as compared to inflow of $4.53 billion in April 2020. Sentiments remained positive after the government has notified the accounting standards for small and medium companies that revise the turnover and borrowing limits as well as help in making disclosure requirements less onerous. Besides, Finance Minister Nirmala Sitharaman said the government will actively pursue cases against economic offenders to bring back defrauded money of banks. Traders overlooked S&P Global Ratings’ report in which it slashed India's Gross domestic product (GDP) growth forecast to 9.5 percent for the current fiscal (FY21), from 11 percent earlier, and warned of risk to the outlook from further waves of COVID pandemic. It lowered the growth outlook saying that a severe second COVID-19 outbreak in April and May led to lockdowns imposed by states and sharp contraction in economic activity. Stating that permanent damage to private and public sector balance sheets will constrain growth over the next couple of years, it projected India's growth at 7.8 percent in the next fiscal ending March 31, 2023.

On the global front, Asian markets ended mostly higher on Thursday though the upside remained limited after two Fed officials said a period of high inflation in the United States could last longer than anticipated. European markets were trading higher after separate reports showed business confidence in Germany and France is improving. Meanwhile, amid conflicting signals from Federal Reserve officials on the rate outlook, traders looked ahead to the Bank of England policy announcement later in the day for further direction. Back home, on the sectoral front, the real estate industry stocks were in limelight with a private report that the housing sales during the April-June 2021 period stood at around 24,570 units across the top 7 cities, increasing by 93 percent annually but dropping by 58 percent QoQ. Tours and travel industry’s stocks were in focus as ratings agency Crisil said the tours and travel industry, which was beginning to recover before the second wave of Covid-19 infections began, will now see revenue this fiscal reaching only 35%-40% of the pre-pandemic levels.

Finally, the BSE Sensex rose 392.92 points or 0.75% to 52,699.00, while the CNX Nifty was up by 103.50 points or 0.66% to 15,790.45. 

The BSE Sensex touched high and low of 52,830.68 and 52,385.05, respectively and there were 21 stocks advancing against 9 stocks declining on the index.    

The broader indices ended in red; the BSE Mid cap index fell 0.51%, while Small cap index was down by 0.22%.

The top gaining sectoral indices on the BSE were IT up by 2.92%, TECK up by 2.52%, Bankex up by 0.76%, Metal up by 0.71% and Capital Goods up by 0.54%, while Energy down by 2.15%, Oil & Gas down by 1.75%, Power down by 1.10%, Utilities down by 1.10% and Telecom down by 0.80% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 3.75%, TCS up by 3.42%, Tech Mahindra up by 2.23%, HCL Technologies up by 1.85% and Asian Paints up by 1.82%. On the flip side, Reliance Industries down by 2.35%, Bharti Airtel down by 0.99%, Power Grid Corp down by 0.43%, SBI down by 0.43% and HDFC down by 0.42% were the top losers.

Meanwhile, Ratings agency Crisil has said the tours and travel industry, which was beginning to recover before the second wave of Covid-19 infections began, will now see revenue this fiscal reaching only 35%-40% of the pre-pandemic levels. While companies have raised capital last fiscal and will continue with cost-control measures to cut cash losses, a significant decline in travel, and continued uncertainty about the pandemic will weigh negatively on their credit profiles.

This is as per Crisil's study of three sector majors that account for over half of the domestic tours and travel industry, with a reported revenue of Rs 11,300 crore in fiscal 2020. Tours and travel operators provide services such as air/bus ticketing, hotels/packages for both leisure and corporate travel within India and overseas. These companies saw their revenues plunge to Rs 2,300 crore last fiscal, which was only 20% of fiscal 2020 levels, after the nationwide lockdown and other restrictions led to a sharp reduction in travel.

The industry was brought to a standstill in the first quarter of last fiscal -- the peak travel season because of summer holidays -- which eroded revenue 95% on-year. However, fortunes started to mend gradually thereafter, with improving air traffic and demand for short domestic holidays lifting revenue to 55% of the pre-pandemic level by the fourth quarter. Then the second wave set in. Under its impact, the first quarter of this fiscal is expected to be almost a washout once again, this time because of state-level lockdowns.

The CNX Nifty traded in a range of 15,821.40 and 15,702.70 and there were 30 stocks advancing against 19 stocks declining, while 1 stock remained unchanged on the index.   

The top gainers on Nifty were Infosys up by 3.52%, TCS up by 3.33%, JSW Steel up by 2.25%, Tech Mahindra up by 2.23% and Larsen & Toubro up by 2.08%. On the flip side, Reliance Industries down by 2.61%, Indian Oil Corporation down by 1.28%, Coal India down by 1.15%, Shree Cement down by 0.92% and Bharti Airtel down by 0.80% were the top losers.

European markets were trading higher;  UK’s FTSE 100 increased 24.92 points or 0.35% to 7,098.98, France’s CAC increased 66.95 points or 1.02% to 6,618.02 and Germany’s DAX increased 112.20 points or 0.73% to 15,568.59.

Asian markets ended mostly higher on Thursday, even after two Fed officials said a period of high inflation in the United States could last longer than anticipated. South Korean shares ended higher, led by chip related heavyweights that tracked a record finish on the Nasdaq overnight. Although, Chinese shares ended flat with losses in healthcare companies on concerns over a plunge in drug prices. The Biden administration on Wednesday ordered a ban on US imports of a key solar panel material from Chinese-based Hoshine Silicon Industry Co over alleged human rights abuses. Japanese shares also settled flat on cautious sentiments due to uncertainty about domestic corporate earnings.

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