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Snapping a six-day losing run, Indian equity benchmarks settled in green after a highly volatile session on Monday, helped by emergence of value buying in shares like HDFC, Hindustan Unilever and Ultratech Cement amid positive cues from European markets. Key indices made a cautious start and fluctuated between gains and losses throughout the day, on the back of recession fears coupled with aggravated foreign outflows from Indian equities. Foreign portfolio investors (FPIs) pulled out 31,430 crore equities so far in June. With this, the net foreign outflows from equities reached Rs 1.98 lakh crore in 2022 till now. Some concern also came with the latest data released by the Reserve Bank of India (RBI) showed India’s foreign exchange reserves declined $4.6 billion to $596 billion for the week ended June 10. The fall in total reserves was mainly because of a decline in foreign currency assets worth $4.5 billion. Adding more pessimism, a report stated that as many as 428 infrastructure projects, each entailing an investment of Rs 150 crore or more, have been hit by cost overruns of more than Rs 4.98 lakh crore.

However, in the late afternoon trade, the indices made smart recovery as traders found support as the Income Tax department stated that the net direct tax collections till mid-June this fiscal increased 45 per cent to over Rs 3.39 lakh crore, buoyed by decent advance tax mop-up. Sentiments remained positive as Member of the economic advisory council to the prime minister -- Sanjeev Sanyal said that the country's internal market is in a good position and its macroeconomic stability is in a comfortable zone despite the ravage by the pandemic. He said that there has been an unprecedented crisis during the two-year-long pandemic and the Indian economy has emerged stronger after that. Some optimism also came with a private report stating that a combination of normal rainfalls aiding bumper agriculture output and the Reserve Bank of India (RBI) further hiking interest rates to cut easy money in the system hold key to bringing down multi-year high inflation triggered by surging food and fuel prices.

On the global front, European markets were trading higher despite inflation worries and global growth concerns. ECB President Christine Lagarde is scheduled to address the European Parliament in Brussels later today, with investors awaiting more clues on the new crisis tool that would help prevent a disorderly blowout in borrowing costs in weaker eurozone countries. Asian markets settled mostly lower on Monday, as traders remain concerned that aggressive monetary tightening by major central banks to cool inflation could lead to a slowdown in global growth.

Back home, jewellery industry stocks remained in focus as the Gem and Jewellery Export Promotion Council (GJEPC) said India’s gems and jewellery exports during May witnessed a year-on-year growth of 20 per cent to Rs 25,365.35 crore ($3.28 billion), amid strong demand from key markets, including the US. The textile industry stocks were in watch as Cotton Association of India (CAI) reduced its estimate for the cotton crop output for the current season beginning October 2021 to 315.32 lakh bales of 170 kg each, 8.31 lakh bales lower from its previous projection. Coal industry stocks were in limelight as the total domestic coal production in 2022-23, as of May 31, 2022, is 137.85 MT, which is 28.6 per cent more as compared to the production of 104.83 MT in the same period of last year.

Finally, the BSE Sensex rose 237.42 points or 0.46% to 51,597.84 and the CNX Nifty was up by 56.65 points or 0.37% to 15,350.15.

The BSE Sensex touched high and low of 51,714.61 and 51,062.93, respectively. There were 17 stock advancing against 13 stocks declining on the index.  

The broader indices ended in red; the BSE Mid cap index fell 1.39%, while Small cap index was down by 2.95%.

The top gaining sectoral indices on the BSE were FMCG up by 1.21%, TECK up by 0.58%, IT up by 0.42%, Consumer Durables up by 0.41% and Finance up by 0.32%, while Metal down by 4.46%, Oil & Gas down by 3.48%, Energy down by 3.26%, PSU down by 2.81% and Basic Materials down by 2.30% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC up by 3.97%, Hindustan Unilever up by 3.95%, Ultratech Cement up by 2.96%, Asian Paints up by 2.96% and HDFC Bank up by 2.47%. On the flip side, Tata Steel down by 5.03%, Indusind Bank down by 2.92%, NTPC down by 2.17%, Reliance Industries down by 1.80% and Mahindra & Mahindra down by 1.54% were the top losers.

Meanwhile, the Central Board of Direct Taxes (CBDT) said net direct tax collections for the Financial Year 2022-23, as on June 16, 2022 (mid-June) increased 45 per cent at Rs 3,39,225 crore as compared to Rs 2,33,651 crore over the corresponding period of the preceding year. The rise in tax collection buoyed by decent advance tax mop-up.

The net direct tax collection of over Rs 3.39 lakh crore includes Corporation Tax (CIT) at over Rs 1.70 lakh crore and Personal Income Tax (PIT), including Security Transaction Tax (STT), at over Rs 1.67 lakh crore.

The advance tax collections for the first quarter this fiscal stand at over Rs 1.01 lakh crore against Rs 75,783 crore in the corresponding period last fiscal, a growth of more than 33 per cent. This comprises CIT at Rs 78,842 crore and PIT at Rs 22,175 crore.

The CNX Nifty traded in a range of 15,382.50 and 15,191.10. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were HDFC up by 3.93%, Hindustan Unilever up by 3.80%, Britannia Industries up by 3.13%, Wipro up by 3.12% and Asian Paints up by 3.01%. On the flip side, ONGC down by 4.84%, Tata Steel down by 4.60%, UPL down by 3.63%, Hindalco down by 3.06% and Indusind Bank down by 2.66% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 66.40 points or 0.95% to 7,082.65, France’s CAC increased 17.86 points or 0.3% to 5,900.51 and Germany’s DAX increased 64.58 points or 0.49% to 13,190.84.

Asian markets settled mostly lower on Monday amid growing inflation and global recession worries. Market sentiments weakened further by disappointing reports on US industrial production and leading economic indicators that added to signs of economic slowdown in the world's largest economy. Chinese shares ended marginally lower after the People's Bank of China stood pat on its benchmark lending rates for corporate and household loans in a widely expected move, and concerns that global central banks’ interest rate hikes making it tough for Beijing to stimulate a weak domestic economy by lowering rates. Japanese shares declined as investors struggled to find market moving cues due to federal holiday in the US.

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