Post Session: Quick Review

Indian equity benchmarks ended flat with a positive bias on Monday. Markets made a strong start of the day, as Commerce and Industry Minister Piyush Goyal said Indian economy is back in action and it is clear from several indicators such as rising exports and increasing foreign direct investment (FDI) inflows into the country. Adding more optimism, outgoing chief economic advisor K V Subramanian said that Indian economy is expected to see a double-digit growth in 2021-22 and between 6.5-7 per cent in the next financial year. He said that he does not expect commodity inflation will taper the V-shaped recovery going forward.

However, during late morning deals, key indices cut gains and turned volatile, amid weak macro-economic data. Industrial production growth slipped to 3.1% in September, mainly due to the waning low base effect while mining and manufacturing sectors performed well. Additionally, retail inflation after remaining on downtrend for four months moved a tad up in October to 4.48% due to an uptick in food prices and higher cost of motor fuel. Besides, foreign portfolio investors (FPIs) were net sellers in the Indian markets to the tune of Rs 949 crore in the first half of November.

Volatility continued over the Dalal Street in the second half of the trading session, after India’s inflation based on wholesale price index (WPI) jumped to 12.54% in the month of October as against 10.66% in September. The annual rate of inflation is 12.54% (Provisional) for the month of October 2021 as compared to 1.31% in October 2020. But, markets managed to end in green terrain, as traders got support, after Sebi chief Ajay Tyagi has said that the decision to implement a shorter settlement system in a phased manner beginning February 2022 will go a long way in protecting investors' interest.

On the global front, European markets were trading mostly in green with investors sitting tight before key inflation updates out of the eurozone and UK this week. Asian markets ended mostly higher on Monday, after industrial production in China was up 3.5 percent on year in October, the National Bureau of Statistics said on Monday - exceeding estimates for 3.0 percent and up from 3.1 percent in September. The bureau also said that retail sales jumped an annual 4.9 percent - again beating expectations for 3.5 percent and up from 4.4 percent in the previous month.

The BSE Sensex ended at 60718.71, up by 32.02 points or 0.05% after trading in a range of 60597.36 and 61036.56. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was up by 0.41%, while Small cap index down by 0.19%. (Provisional)

The top gaining sectoral indices on the BSE were Healthcare up by 2.09%, FMCG up by 0.80%, Consumer Durables up by 0.55%, IT up by 0.33% and Power up by 0.31%, while Metal down by 2.35%, Basic Materials down by 0.94%, Telecom down by 0.70%, Energy down by 0.49% and Capital Goods down by 0.38% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid up by 3.46%, ITC up by 2.12%, Asian Paints up by 1.41%, Nestle up by 1.24% and Kotak Mahindra Bank up by 1.04%. On the flip side, Tata Steel down by 3.24%, Mahindra & Mahindra down by 1.19%, SBI down by 0.89%, Bajaj Auto down by 0.89% and Bharti Airtel down by 0.77% were the top losers. (Provisional)

Meanwhile, India’s inflation based on wholesale price index (WPI) jumped to 12.54% in the month of October as against 10.66% in September. The annual rate of inflation is 12.54% (Provisional) for the month of October 2021 as compared to 1.31% in October 2020. The high rate of inflation in October 2021 is primarily due to rise in prices of mineral oils, basic metals, food products, crude petroleum & natural gas, chemicals and chemical products etc. as compared the corresponding month of the previous year.

Component wise, primary articles index, having weight of 22.62%, increased by (3.10%) to 159.7 (provisional) in October 2021 from 154.9 (provisional) for the month of September 2021. Prices of Crude Petroleum & Natural Gas and Food Articles increased in October 2021 as compared to September 2021. Prices of Non-food Articles and Minerals declined in October 2021 as compared to September 2021.

Fuel & Power index, having weight of 13.15%, increased by (8.72%) to 124.7 (provisional) in October 2021 from 114.7 (provisional) for the month of September 2021. Prices of Electricity, Mineral Oils and Coal increased in October 2021 as compared to September 2021. Besides, Manufactured Products constituting the major portion of the index with weight of 64.23%, increased by (0.82%) to 134.9 (provisional) in October 2021 from 133.8 (provisional) for the month of September 2021.

The CNX Nifty ended at 18109.45, up by 6.70 points or 0.04% after trading in a range of 18071.30 and 18210.15. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were Power Grid up by 3.46%, Cipla up by 2.42%, ITC up by 2.23%, ONGC up by 2.04% and UPL up by 1.88%. On the flip side, Coal India down by 4.31%, Tata Steel down by 3.25%, Hindalco down by 2.70%, JSW Steel down by 1.47% and Eicher Motors down by 1.42% were the top losers. (Provisional)

European markets were trading mostly in green, UK’s FTSE 100 increased 7.05 points or 0.1% to 7,354.96 and France’s CAC was up by 9.44 points or 0.13% to 7,100.84. On the flip side, Germany’s DAX was down by 6.45 points or 0.04% to 16,087.62.

Asian markets ended mostly higher on Monday tracking Wall Street gains overnight despite worries around inflation, while investors are awaiting speeches of Federal Reserve officials this week for further clues on interest rates and monetary policy. Further, better-than-expected data from the world’s second largest economy China too kept the market sentiments bullish. Data showed Industrial output and retail sales in China grew at a surprisingly faster pace in October and beat expectations, with industrial output growing 3.5 percent from a 3.1 percent increase in September, and retail sales rising 4.9 percent year-on-year. Japanese shares advanced as worse-than-expected contraction of Japanese economy in the third quarter fuelled expectations of economic stimulus package from Prime Minister Fumio Kishida. However, Chinese shares ended tad lower ahead of the virtual summit of the leaders of the United States and China set for today evening.