Post Session: Quick Review

Indian equity benchmarks ended near intraday highs on November month's F&O expiry session led by rally in Reliance Industries and Infosys. Markets started the session on pessimistic note as outflow of foreign institutional investors coupled with rising coronavirus cases globally continue to dent market sentiments. However, traders soon turned optimistic taking support with a private report stating that Official data print on the GDP will show a 7.8 per cent expansion on a year-on-year basis for the September 2021 quarter. Also, Moody’s expects India's economic growth to rebound strongly, pegging GDP growth of 9.3% and 7.9% in fiscal year 2022 (ending on 31 March 2022) and fiscal 2023, respectively. It also said growing government spending on infrastructure will support demand for steel and cement. It added rising consumption, India’s push for domestic manufacturing and benign funding conditions will support new investments.

Markets extended gains to end near intraday highs as traders took encouragement with foreign secretary Harsh Vardhan Shringla’s statement that India has set an ambitious target of $400 billion of exports for the year 2021-22. Some support also came with the Finance Ministry’s statement that India and the United States have agreed for a transitional approach on equalisation levy or digital tax on e-commerce supplies beginning April 1, 2021. In a major reform of the international tax system, on October 8, 2021, 136 countries, including India, have agreed to an overhaul of global tax norms to ensure that multinationals pay taxes wherever they operate and at a minimum 15% rate. Meanwhile, the Income Tax Department said it has issued refunds of over Rs 1.23 lakh crore so far this fiscal year.

Positive opening in European counters too aided sentiments. All the major European indices were trading in green despite rising Covid crisis in the region this week. Moreover, investors are digesting the latest news out of Germany where a new coalition government deal between the Social Democrats, Greens and Free Democrats. Asian markets ended mixed as investors bet on interest rates rising more quickly in the United States than in other major economies such as Japan and the euro zone.

Back home, aviation stocks remained in focus as Civil Aviation Secretary Rajiv Bansal said international passenger flights are expected to regularise possibly by the end of the year. Rubber industry’s stocks remained in focus as the Automotive Tyre Manufacturers Association (ATMA) asked the government to allow free imports of natural rubber to the extent of a projected demand-supply gap of 4.4 lakh tonnes. In scrip specific development, RIL shares gained over six percent after its Board decided to implement a scheme of arrangement to transfer Gasification Undertaking into a wholly-owned subsidiary.

The BSE Sensex ended at 58835.31, up by 494.32 points or 0.85% after trading in a range of 58143.86 and 58901.58. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.80%, while Small cap index was up by 0.99%. (Provisional)

The top gaining sectoral indices on the BSE were Energy up by 4.61%, Realty up by 1.71%, Healthcare up by 1.65%, Telecom up by 1.64% and Utilities up by 1.41%, while Capital Goods down by 0.27%, Auto down by 0.25%, Bankex down by 0.13% and PSU down by 0.03% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Reliance Industries up by 6.30%, ITC up by 1.65%, Infosys up by 1.50%, Tech Mahindra up by 1.32% and Titan Company up by 0.94%. On the flip side, Indusind Bank down by 1.20%, Hindustan Unilever down by 1.13%, Maruti Suzuki down by 1.12%, ICICI Bank down by 0.96% and Bajaj Auto down by 0.83% were the top losers. (Provisional)

Meanwhile, industry body -- the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has said that the Reserve Bank of India (RBI) should continue with an accommodative interest rate stance as long as necessary to sustain and further push the pace of economic growth. It said that while concerns over inflation, especially in the Wholesale Price Index (WPI), need to be addressed, measures other than reversal of the accommodative stance should be encouraged.

It said ‘The RBI and its Monetary Policy Committee (MPC) have done a commendable job to retain the present policy rates’. However, central banks in some of the developed economies are moving towards tapering the accommodative policies. The chamber said ‘We are sure and as we have been maintaining that the RBI would not follow this template and continue with the low interest rates’.

It also said the global initiative by the crude oil-importing and major consuming nations, including the US and India, should lead to a rise in global supplies and soften prices. It added ‘It is true that banks are flush with liquidity but the credit demand is yet to pick up especially for private investment. We see this too happening but any reversal of the accommodative interest rate stance may dampen faster revival in investment’.

The CNX Nifty ended at 17547.00, up by 131.95 points or 0.76% after trading in a range of 17351.70 and 17564.35. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Reliance Industries up by 6.28%, Divi's Lab up by 2.40%, ITC up by 1.78%, Infosys up by 1.56% and Tech Mahindra up by 1.42%. On the flip side, Maruti Suzuki down by 1.29%, Indusind Bank down by 1.22%, Britannia down by 1.20%, Indian Oil Corporation down by 1.14% and Hindustan Unilever down by 1.11% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 12.42 points or 0.17% to 7,298.74, France’s CAC increased 19.77 points or 0.28% to 7,062.00 and Germany’s DAX was up by 47.65 points or 0.30% to 15,926.04.

Asian markets ended mixed on Thursday due to inflation concerns and some US policymakers suggesting that they were ready to speed up the taper if inflation continues to stay high. Worries about fresh lockdowns in Europe outweighed raising optimism over strength in the world's top economy after a batch of strong economic data which included an upwards revision to third-quarter GDP. Seoul shares ended lower as the Bank of Korea raised its key interest rates for the second time since August to fight inflation and fast-rising household debt. Chinese shares declined marginally after Kaisa Group Holdings said it wants to extend the maturity of a $400 million bond by a year-and-a-half as part of efforts to avoid a default and resolve a liquidity crisis. Meanwhile, Japanese shares gained by tracking mostly positive cues from Wall Street overnight.