Post Session: Quick Review

Indian equity benchmarks hit fresh record closing highs on Monday’s trading session. The start of the trading day was on a strong note. Domestic sentiments got boost as Minister of State for External Affairs V Muraleedharan said the Indian economy is bouncing back strongly, domestic consumption is increasing and industrial production is at pre-COVID level, he also emphasized that the reforms implemented by the government has provided fillip to the business ecosystem in the country.

Key indices maintained gaining rally during the trading session, as traders were positive with Union Finance Minister Nirmala Sitharaman’s statement that the Indian government remains committed to bring the economy on the path of fiscal consolidation in the near-to-medium term, setting the target to reduce fiscal deficit to 4.5 per cent by 2025-26. She also said the government is ready to provide additional capital to Public Sector Banks (PSBs) as and when needed and the trajectory of inflation is also shifting down more favourably than anticipated.

Bulls held a tight grip over the Dalal Street, as domestic sentiments remained positive, after the country's foreign exchange reserves rose by USD 2.039 billion to USD 639.516 billion in the week ended October 8, according to RBI data. Besides, describing the Indian government's response to the COVID-19 situation as ''swift and substantial'', the International Monetary Fund (IMF) has said the country continued with labour reforms and privatization despite the pandemic.

On the global front, European markets were trading lower, as Eurozone visible trade surplus for August decreased from a year ago, defying expectations for an improvement. Asian markets ended mostly lower on Monday, after China's gross domestic product expanded 4.9 percent on year in the third quarter of 2021, the National Bureau of Statistics said - missing forecasts for 5.2 percent and down sharply from 7.9 percent in the three months prior. On a seasonally adjusted quarterly basis, GDP rose just 0.2 percent - again missing expectations for 0.5 percent and down from the downwardly revised 1.2 percent growth in the previous three months (originally 1.3 percent).

The BSE Sensex ended at 61765.59, up by 459.64 points or 0.75% after trading in a range of 61624.65 and 61963.07. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.95%, while Small cap index up by 0.69%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 4.31%, Utilities up by 2.82%, Power up by 2.60%, Basic Materials up by 2.16% and PSU up by 2.01%, while Healthcare down by 0.81%, Telecom down by 0.63% and Consumer Disc down by 0.39% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Infosys up by 4.80%, Tech Mahindra up by 3.49%, Tata Steel up by 2.47%, ICICI Bank up by 2.19% and Maruti Suzuki up by 2.09%. On the flip side, Mahindra & Mahindra down by 2.23%, HCL Tech. down by 2.05%, Dr. Reddy's Lab down by 1.75%, Asian Paints down by 1.62% and Bajaj Auto down by 1.16% were the top losers. (Provisional)

Meanwhile, the International Monetary Fund (IMF) in its latest report has described the Indian government's response to the COVID-19 situation as 'swift and substantial', adding that the country continued with labour reforms and privatization despite the pandemic.

The IMF in its report based on 'consultations' among members, however, sounded a note of caution saying that the economic outlook remains 'clouded' due to pandemic-related uncertainties, contributing to both downside and upside risks.

IMF further said that a persistent negative impact of COVID-19 on investment and other growth drivers could prolong the economic recovery. Besides, the IMF has projected India's economic growth at 9.5 percent in FY2021-22 and 8.5 percent in 2022-23. Headline inflation is projected at 5.6 percent in 2021-22, amid elevated price pressures.

The CNX Nifty ended at 18477.05, up by 138.50 points or 0.76% after trading in a range of 18445.30 and 18543.15. There were 32 stocks advancing against 18 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindalco up by 5.17%, Infosys up by 4.45%, Tech Mahindra up by 3.41%, JSW Steel up by 3.31% and Tata Steel up by 2.62%. On the flip side, HCL Tech. down by 2.38%, Mahindra & Mahindra down by 2.20%, Asian Paints down by 1.71%, Dr. Reddy's Lab down by 1.64% and Britannia Inds down by 1.48% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 13.08 points or 0.18% to 7,220.95, France’s CAC decreased 48.46 points or 0.72% to 6,679.06 and Germany’s DAX was down by 70.95 points or 0.46% to 15,516.41.

Asian markets ended mostly lower on Monday on worries over inflation and disappointing Chinese growth data, while uncertainty over the fate of heavily indebted Chinese property company Evergrande Group also kept the market sentiments cautious. Data showed China's economic growth in the third quarter expanded 4.9 percent year-on-year, missed forecasts for 5.2 percent and down sharply from 7.9 percent in the three months prior. Meanwhile, Chinese industrial production gained an annual 3.1 percent in September, missing forecasts for 4.5 percent and slowing from 5.1 percent in August. Japanese shares declined as investors booked profits following a recent rally. Shares of Japanese automakers advanced after Toyota Motor cut its planned global output for November by as much as 15% due to ongoing chip shortages but sticking to its latest full-year production target.