Post Session: Quick Review

Indian equity benchmarks ended lower on Friday. The start of the trading day was on a negative note, as India's external debt stood at USD 571.3 billion at end-June, recording an increase of USD 1.6 billion over its level at the end of March 2021. Traders overlooked the private survey stating that India’s manufacturing activity recovered slightly in September, from a slowdown in growth in the previous month of August as strengthening demand conditions amid the easing of COVID-19 restrictions boosted sales. According to the monthly IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) survey, manufacturing PMI stood at 53.7 in September, up from 52.3 in August.

Markets remained lower during the trading session, as traders were seen taking a note of report that the Controller General of Accounts (CGA) in its latest data has said that the government's fiscal deficit stood at Rs 4.68 lakh crore or 31.1 per cent of the Budget estimates at the end of August 2021. Besides, Former Reserve Bank of India (RBI) Governor D Subbarao has stressed on the need to accelerate India’s economic growth rate and make sure that this benefit of growth is shared, even as he said that unemployment has taken a form of ‘crisis’ in the country. Subbarao further said the organised sector is shedding jobs and the labour force is moving from high productive sector to the unorganised sector.

Market participants also paid no heed towards veteran banker KV Kamath’s statement that the country's economy is set for a stronger performance going forward, driven by growth in large corporates, agriculture and most importantly digital startup sector. On the global front, European markets were trading lower. Asian markets settled lower on Friday, after Indonesia's consumer prices increased to the highest in four months in September. The data from the statistics bureau showed that consumer prices rose 1.6 percent year-on-year in September, following a 1.59 percent increase in August. The latest inflation was the highest since May, when it was 1.68 percent.

The BSE Sensex ended at 58765.58, down by 360.78 points or 0.61% after trading in a range of 58551.14 and 58890.08. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.11%, while Small cap index up by 0.48%. (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.85%, Metal up by 0.62%, Healthcare up by 0.60%, Basic Materials up by 0.52% and Oil & Gas up by 0.37%, while Realty down by 1.56%, Telecom down by 1.31%, TECK down by 0.77%, IT down by 0.63% and Bankex down by 0.52% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 3.05%, Dr. Reddy's Lab up by 1.38%, Ultratech Cement up by 1.24%, Power Grid up by 1.00% and Sun Pharma up by 1.00%. On the flip side, Bajaj Finserv down by 3.45%, Maruti Suzuki down by 2.39%, Bharti Airtel down by 2.22%, Asian Paints down by 2.02% and Bajaj Finance down by 1.94% were the top losers. (Provisional)

Meanwhile, Indian manufacturing activity improved in the month of September, as companies benefited from strengthening demand conditions amid the easing of COVID-19 restrictions. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - surged to 53.7 in September as against 52.3 in August.

The report said that consumer goods was the brightest spot in September, posting the highest PMI reading of the three monitored market groups amid substantial accelerations in growth of new orders and output. New work intakes continued to expand in September. The rate of increase was solid and quickened from August.

International demand for Indian goods also strengthened in September, although there were mentions among some firms that the pandemic restricted international sales. On the price front, price pressures, which receded in each of the prior two months, intensified in September due to lingering shortages of raw materials as well as higher fuel and transportation costs.

The CNX Nifty ended at 17532.05, down by 86.10 points or 0.49% after trading in a range of 17452.90 and 17557.15. There were 25 stocks advancing against 25 stocks declining on the index. (Provisional)

The top gainers on Nifty were Mahindra & Mahindra up by 3.09%, Coal India up by 1.94%, Indian Oil Corp. up by 1.68%, Dr. Reddy's Lab up by 1.54% and ONGC up by 1.21%. On the flip side, Bajaj Finserv down by 3.42%, Maruti Suzuki down by 2.40%, Asian Paints down by 2.06%, Bajaj Finance down by 1.90% and Bharti Airtel down by 1.80% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 64.80 points or 0.91% to 7,021.62, France’s CAC decreased 56.67 points or 0.87% to 6,463.34 and Germany’s DAX decreased 136.88 points or 0.90% to 15,123.81.

Asian markets settled lower on Friday tracking overnight fall in Wall Street amid concerns that the US central bank might hurry to taper its stimulus, while concerns over inflation following surging energy prices also impacted market sentiments. Even if a government shutdown was avoided, the United States still faces a potential default due to an impasse over raising the debt ceiling. Japanese shares tumbled to one-month low on fears over various supply constraints worldwide, which could keep inflation elevated for longer than expected. Seoul shares declined on concerns about power shortages in China that could hurt global economic growth. Meanwhile, Chinese and Hong Kong markets were closed for holidays.