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Indian equity benchmarks recovered from afternoon blip and ended on a positive note on Monday led by gains in Mahindra & Mahindra, Axis Bank and Tech Mahindra among others. Markets made optimistic start, as traders took some support with the Services Export Promotion Council (SEPC) said services exports have been recording healthy growth rate consistently and are expected to grow by 28 per cent in 2021-22 to take the exports to nearly $ 266 billion. Sentiments remained positive as India Inc said that the Reserve Bank of India's decision to keep key interest rates unchanged and maintain an accommodative monetary policy stance will boost the confidence of businesses and consumers. Besides, referring to Prime Minister Narendra Modi's target of $400 billion in exports this year, the Confederation of Indian Industry (CII) called it attainable, given the current global situation of post-pandemic economic recovery and rising competitiveness of Indian goods.

However, benchmarks cut all of their initial gains in afternoon session but got back on the winning track, after the Ministry of Health said that more than 51.66 crore vaccine doses have been provided to states and union territories so far, through all sources and a further 55,52,070 doses are in the pipeline. Out of the 51.66 crore doses, over 2.29 crore balance and unutilised Covid-19 vaccine doses are still available with the states and union territories and private hospitals to be administered. Traders also took some solace as foreign portfolio investors (FPI) have made a comeback to India's equities segment and made a net investment of Rs 975 crore in the first week of August. Besides, after taking the bold decision to scrap all retrospective tax demands and refund money collected, Prime Minister Narendra Modi said the move shows his government's commitment to providing businesses stability of investment climate and policy consistency.

On the flip side, Asian markets ended mixed on Monday after an upbeat U.S. jobs report lifted bond yields and the dollar. Investors now await the July (inflation) indicators and the Jackson Hole meeting for additional clues to the Fed's thinking on inflation, employment and the interest-rate outlook. European markets were trading mostly lower as concerns about new COVID-related curbs in Asia, especially in China, dented optimism over economic revival. Back home, on the sectoral front, power stocks were in focus as according to power ministry data India's power consumption grew 9.3 per cent in the first week of August to 28.08 billion units (BU) due to improved economic activities after easing of lockdown curbs by states. Stocks related to textiles sector was in action as Minister of State for Textiles Darshana Jardosh said India has received $298.67 million foreign direct investment (FDI) in the textiles sector in FY21, as against $323.52 million in FY20.

Finally, the BSE Sensex rose 125.13 points or 0.23% to 54,402.85, while the CNX Nifty was up by 20.05 points or 0.12% to 16,258.25.  

The BSE Sensex touched high and low of 54,584.73 and 54,124.27, respectively and there were 19 stocks advancing against 11 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 1.07%, while Small cap index was down by 0.72%.

The few gaining sectoral indices on the BSE were Bankex up by 0.64%, IT up by 0.39% and TECK up by 0.27%, while Metal down by 1.54%, Telecom down by 1.34%, Oil & Gas down by 1.25%, PSU down by 1.15% and Utilities down by 1.06% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.18%, Axis Bank up by 1.87%, Tech Mahindra up by 1.74%, Bajaj Finserv up by 1.68% and Indusind Bank up by 1.31%. On the flip side, Bharti Airtel down by 1.61%, Tata Steel down by 1.17%, NTPC down by 0.76%, Larsen & Toubro down by 0.74% and Reliance Industries down by 0.56% were the top losers.

Meanwhile, referring to Prime Minister Narendra Modi's target of $400 billion in exports this year, the Confederation of Indian Industry (CII) has called it 'attainable', given the current global situation of post-pandemic economic recovery and rising competitiveness of Indian goods. CII said the strategy for exports along with taking all players on board would yield notable outcomes with the comprehensive policy announcements and will help India take a winning leap forward as a $5 trillion economy in the near future.

Director-General of CII -- Chandrajit Banerjee said the PM has set an aspirational, but very much attainable target of $400 billion in exports for the year. At the current juncture when global value chains are in flux, the multifold strategies to promote exports coupled with a whole-of-government approach make this a moment for India to seize. The draft National Logistic Policy, boost for project exports and enhancing export insurance cover offer significant encouragement to catalyse exports to new peaks.

Besides, lauding the Central government for its efforts to foster globally competitive firms, he said ‘Over the recent few years, the Government of India has been at the forefront in creating a conducive regulatory environment that fosters globally competitive firms. Several reform initiatives have been introduced in the domain of trade and investment which have been the key to enhance the export potential of the Indian economy. The Government has been very proactive during the lockdown period and has extended all possible help and support to the industry as a whole and exporters in particular. Industry concerns were resolved on an almost real-time basis.’

The CNX Nifty traded in a range of 16,320.75 and 16,179.05 and there were 23 stocks advancing against 27 stocks declining on the index.     

The top gainers on Nifty were Mahindra & Mahindra up by 2.23%, Tech Mahindra up by 1.93%, Axis Bank up by 1.86%, Bajaj Finserv up by 1.57% and Indusind Bank up by 1.31%. On the flip side, Tata Consumer Product down by 1.98%, Coal India down by 1.85%, Adani Ports &SEZ down by 1.67%, Bharti Airtel down by 1.63% and SBI Life Insurance down by 1.63% were the top losers.

European markets were trading mostly lower; UK’s FTSE 100 decreased 25.76 points or 0.36% to 7,097.19 and Germany’s DAX decreased 21.94 points or 0.14% to 15,739.51, while France’s CAC increased 0.21 points or 0% to 6,817.17.

Asian markets ended mixed on Monday after an upbeat US jobs report fuelled concerns about an early tapering of the Federal Reserve's monetary stimulus. Investors are now awaiting the key US inflation data scheduled for release this week. The US consumer price index and the producer price index are scheduled to come out Wednesday and Thursday, respectively. Chinese shares ended higher with expectations of an easing of monetary policy in China. China reported that consumer inflation slowed slightly in July, but factory gate inflation in July rose at a faster clip from the previous month and exceeded market expectations. Meanwhile, Markets in Japan and Singapore are closed for public holidays.

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