Post Session: Quick Review

Indian equity benchmarks ended with marginal losses on Wednesday. The start of the day was on a negative note, as some cautiousness came in with Revenue Secretary Tarun Bajaj’s statement that excise duty cut on diesel and petrol prices will burden the government's coffers, but it has no plans to increase the borrowing immediately. Foreign fund outflow also weighted down on the domestic sentiments. Foreign institutional investors (FIIs) net sold shares worth Rs 2,445.25 crore on November 9, as per provisional data available on the NSE.

Markets remained lower for the most part of the trading session, as traders were cautious with private report stating that hiring demand witnessed a dip of three per cent in October sequentially, mainly due to a decline in recruitment of professionals in purchase, logistics and supply chain after festive hiring hikes in September. The street took a note of reports that India underlined that efforts to drive low carbon development pathways in the industry sector are critical for achieving the goals of the Paris Agreement.

In the last hours of the trading session, key indices cut most of their losses to end marginally lower, after credit rating agency, India Ratings and Research (Ind-Ra) in the second edition of its quarterly Commercial Paper (CP) Market Dossier ‘CP Market 2QFY22’ has said that the market has shown resilience during 2QFY22 amid the uncertain period of the second wave of COVID-19. The overall rising number of issuances in the primary CP market coupled with healthy volumes has been the trend.

On the global front, European markets were trading mostly in red. Asian markets settled mostly lower on Wednesday, after consumer prices in China were up 1.5 percent on year in October, the National Bureau of Statistics said on Wednesday. That exceeded expectations for an increase of 1.4 percent following the 0.7 percent gain in September. On a monthly basis, consumer prices rose 0.7 percent - in line with forecasts and up from the flat reading in the previous month.

The BSE Sensex ended at 60352.82, down by 80.63 points or 0.13% after trading in a range of 59967.45 and 60506.50. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.50%, while Small cap index down by 0.01%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 2.16%, Energy up by 0.93%, Oil & Gas up by 0.80%, Auto up by 0.51% and Healthcare up by 0.17%, while Metal down by 2.07%, Realty down by 1.64%, PSU down by 0.85%, Consumer Durables down by 0.84% and Basic Materials down by 0.84% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 3.16%, Mahindra & Mahindra up by 3.00%, Reliance Industries up by 1.16%, Sun Pharma up by 1.14% and ITC up by 0.90%. On the flip side, Indusind Bank down by 3.38%, Tata Steel down by 2.77%, Hindustan Unilever down by 1.23%, Asian Paints down by 1.14% and Titan Co down by 1.13% were the top losers. (Provisional)

Meanwhile, credit rating agency, India Ratings and Research (Ind-Ra) in the second edition of its quarterly Commercial Paper (CP) Market Dossier ‘CP Market 2QFY22’ has said that the market has shown resilience during 2QFY22 amid the uncertain period of the second wave of COVID-19. The overall rising number of issuances in the primary CP market coupled with healthy volumes has been the trend. Moreover, it said that the rising number of issuers in a month suggests broadening of the market; although, there is a concentration risk pertaining to the tenor of borrowings.

As per the report, the short-term financing market has been showing strong momentum backed by conducive financing conditions.  Moreover, a resilient corporate performance amid the fading fear of pandemic has aided the overall sentiments in the money market. As a result of the favourable environment and assurance from the RBI regarding loose policy stance, the money market rates have remained historically low, although modest hardening was visible in October 2021.

Ind-Ra further noted that corporates are emerging from the second wave of Covid-19 and are tapping the CP market positively in anticipation of higher working capital requirement, owing to the high commodity prices coupled with a recovery in capacity utilization.

The CNX Nifty ended at 18017.20, down by 27.05 points or 0.15% after trading in a range of 17915.00 and 18061.25. There were 25 stocks advancing against 25 stocks declining on the index. (Provisional)

The top gainers on Nifty were UPL up by 3.34%, Bharti Airtel up by 3.12%, Mahindra & Mahindra up by 3.08%, Britannia up by 2.12% and Sun Pharma up by 1.22%. On the flip side, Indusind Bank down by 3.37%, Hindalco down by 3.20%, Tata Steel down by 2.80%, Coal India down by 2.23% and JSW Steel down by 2.11% were the top losers. (Provisional)

European markets were trading mostly in red; Germany’s DAX was down by 48.04 points or 0.30% to 15,992.43 and France’s CAC was down by 24.23 points or 0.34% to 7,019.04. On the flip side, UK’s FTSE 100 increased 21.52 points or 0.30% to 7,295.56.

Asian markets settled mostly lower on Wednesday tracking weakness in US stocks overnight after data showed producer prices increased solidly in October, suggesting high inflation could persist for a while. Meanwhile, latest data from China showed that the country's factory gate inflation hit a 26-year high in October and consumer price rises also quickened. Investors are awaiting highly anticipated US consumer inflation data due out later in the day. Chinese shares ended lower after Chinese property developer Fantasia Holdings said that it has received notices from certain lenders seeking repayment of loans that aren't due. Seoul shares declined amid concerns that rising price pressures may force the US Federal reserve to raise interest rates sooner than expected. Japanese shares fell despite hopes that Kishida's government will launch a fresh round of stimulus measures to prop up the economy.