The BSE Sensex and the NSE Nifty are set to bell the day in negative terrain on Tuesday, following weak cues from global peers. Shares in the Asia-Pacific region were flashing in red, tracking weakness in Wall Street overnight amid growing concerns about a looming recession. Back home, the negative trends on SGX Nifty also indicated a bearish opening for the domestic bourses, with SGX Nifty futures trading 92 points, or 0.53%, lower at 17,300 levels on the Singapore Stock Exchange at 8:15 AM. Investors will keep a close eye on earnings reports by Adani Green Energy, Bank of India, Bosch, Godrej Properties, Voltas, Indus Towers, and Siemens.

On Tuesday, the domestic bourses extended their winning streak for the fourth consecutive session, with the benchmark Sensex reclaiming the psychological level of 58,000-mark for the first time since April 13 this year. The market sentiment was boosted by firm global cues and strong manufacturing PMI data which showed that manufacturing sector activity hit the highest level in eight months in July on the back of strong business orders. The 30-share Sensex surged 545 points, or 0.95%, to settle at 58,115, while the broader NSE Nifty climbed 182 points, or 1.06%, to close at 17,340. The top gainers on the Sensex pack were Maruti Suzuki, Kotak Mahindra Bank, NTPC, PowerGrid, and UltraTech Cement. Among sectors, all indices ended in the green, while power, utilities, auto, and telecom gained the most.

Stocks to watch

ITC: The FMCG major has reported a 34% growth in consolidated net profit at ₹4,389.76 crore during the April-June quarter of 2022-23, compared to ₹3,277 crore during the same quarter last year. The revenue from operations rose 37.2% to ₹20,152 crore in April-June 2022, from ₹14,687.80 crore in the year-ago period.

Zomato: The food delivery company’s consolidated net loss narrowed to ₹185.7 crore during the June quarter of 2022, compared to a loss of ₹356.2 crore a year ago and ₹359.7 crore in the previous quarter. The Deepinder Goyal-led aggregator registered a 67.44% jump in revenue from operations at ₹1,413.9 crore at the end of Q1 FY23, up from ₹844.4 crore seen in the year-ago period.

Arvind: The textile manufacturer has reported a consolidated net profit of ₹101.62 crore for the first quarter that ended on June 30, 2022, compared to a net loss of ₹11.42 crore during the same period in the previous fiscal. The revenue from operations jumped 65% to ₹2,352.12 crore, from ₹1,434.79 crore in the corresponding period of the previous fiscal.

Mastek: Smallcap World Fund Inc on Monday acquired 5.54 lakh shares of the IT company for ₹117 crore through an open market transaction. The shares were purchased at an average price of ₹2,109.96 apiece, valuing the transaction size at ₹117.07 crore.

Reliance Industries: The telecom arm of the company, Reliance Jio, has emerged as top bidder in the 5G spectrum auction, with Mukesh Ambani's firm securing nearly half of all the airwaves sold with a cumulative bid of ₹88,078 crore for 24,740 MHz of airwaves across five bands.

Eveready Industries India: The battery and flashlights maker has posted a drop of 27.48% in its consolidated net profit at ₹21.85 crore for the quarter ended June 30, 2022, compared to ₹30.13 crore in the same period a year ago. Its revenue from operations rose 18.87% YoY to ₹335.38 crore during the quarter under review.

Bajaj Consumer Care: The FMCG firm on Monday reported a 30.7% YoY fall in its consolidated net profit at ₹33.89 crore for the first quarter ended June 30, 2022. The Bajaj group of companies, operating in the beauty care category, posted a 15.1% growth in revenue from operations to ₹249.44 crore during the period under review, as against ₹216.71 crore in the corresponding quarter a year ago.

Barbeque-Nation Hospitality: The casual dining chain registered a net profit of ₹16.02 crore for the first quarter ended June 30, 2022, as against a net loss of ₹43.85 crore in the April-June period a year ago. The revenue from operations jumped three-fold to ₹314.86 crore during the quarter under review as against a low base of the corresponding quarter, when sales were impacted.

Here are the key things investors should know before the market opens today:

Wall Street falls on recession fear

In the overnight trade, all three major U.S. stocks closed modestly lower in see-saw trade as looming fear of recession curbed the investors’ appetite for riskier assets. The indices ended in red on the first day of August, after the S&P 500 and the Nasdaq notching their biggest monthly percentage gains in July, which was the highest since 2020. The Dow Jones Industrial Average dropped 0.14%, the S&P 500 shed 0.28%, and the tech-heavy Nasdaq Composite fell 0.18%.

Asian shares follow Wall Street lower

Shares in the Asia-Pacific region were trading mostly lower in early trade on Tuesday, tracking a negative finish on Wall Street overnight as weak macroeconomic data raised fear of recession. Investors also turned jittery ahead of U.S. House of Representatives Speaker Nancy Pelosi visit to Taiwan, which is likely to escalate tension between the U.S. and China.

Regional heavyweight Japan’s Nikkei 225 fell 1.6%, South Korea’s Kospi dropped 0.7%, and the Straits Times in Singapore was down 0.2%.

The Hang Seng index in Hong Kong was the biggest laggard in the region with a loss of 2.6%, followed by Taiwan Weighted index, which shed 1.9% on concerns about the U.S.-China tensions.

Australia’s ASX 200 fell 0.5% ahead of the Reserve Bank's widely-expected interest rate hike later today, while the Jakarta Composite in Indonesia dropped 0.3%.

Markets in mainland China were also trading sharply lower, with the Shanghai Composite and the Shenzhen Component falling 1.8% and 2.5%, respectively.

Crude oil prices slip below $100

Brent and U.S. crude traded below $100 per barrel in early trade on Tuesday amid fear of recession after economic data showed that manufacturing activities in the U.S., Europe, China slowed due to inflationary pressure. The weak demand outlook in the backdrop of Covid restriction in China, the world’s largest oil consumer, also dented sentiments.

In Asian trading hours, the Brent oil for September delivery were down 1.36% at $98.68 per barrel, while the U.S. West Texas Intermediate (WTI) crude September futures fell 1.2% to $92.7 a barrel.

FIIs turned net buyers, DIIs net sellers

The foreign institutional investors (FIIs) extended their gaining streak in the Indian equity market on August 1, while domestic institutional investors (DIIs) turned net sellers. As per the exchange data, FIIs net purchased shares worth ₹2,320.61 crore, while DIIs net sold shares worth ₹822.23 crore.

Corporate results

The major companies that will release their June quarter earnings include Adani Green Energy, Bank of India, Godrej Properties, Voltas, RPG Life Sciences, Indus Towers, and Siemens. Among others, Bosch, Brigade Enterprises, Deepak Nitrite, Dhanuka Agritech, Dodla Dairy, Gateway Distriparks, Gati, Gravita India, JM Financial, Jubilant Pharmova, Lemon Tree Hotels, MOIL, Paradeep Phosphates, Schneider Electric Infrastructure, Shyam Metalics and Energy, Thermax, Tube Investments of India, and Vaibhav Global will also be in focus today.

GST collection rises 28% to ₹1.49 lakh cr in July

The gross GST (Goods and Services Tax) revenue collection hit a record high of ₹1,48,995 crore in July 2022 on better compliance, reporting, and steady economic recovery. The GST revenue collection for July is the 2nd highest ever and 28% higher than the revenues in the same month last year when the GST revenue stood at ₹1,16,393 crore. The GST revenue in June 2022 was ₹1,44,616 crore. The finance ministry data shows that of the entire collection of ₹1.48 lakh crore in July, ₹25,751 crore is CGST (Central Goods and Services Tax), ₹32,807 crore is SGST (State Goods and Services Tax), and ₹75887 crore (including ₹79,518 crore collected on import of goods) is IGST (Integrated Goods and Services Tax) and ₹995 crore was collected on the import of goods.

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