Post Session; Quick Review

Indian equity benchmarks witnessed jubilation on Wednesday and settled above their crucial 57,600 (Sensex) and 17,150 (Nifty) levels as traders cheered better than expected macro-economic data. Markets started the session on an optimistic note as sentiments got a boost after India's gross domestic product (GDP) in the second quarter of the fiscal year 2021-22 grew at 8.4 percent. The numbers mark a significant increase as compared to the COVID-19-hit second quarter of last fiscal year, when the GDP had declined by 7.4 percent. Adding optimism, industry chamber PHDCCI said the country's economic growth may be in double-digit in current financial year (FY22). Some support came in with government data showing that the combined output of eight core industries has surged by 7.5 percent in October, as compared to the same period last year.

Markets extended their gains as sentiments remained upbeat with a private survey showing India’s manufacturing activity grew at the fastest pace in 10 months in November, buoyed by a strong pick-up in demand, but higher inflationary pressure left factories worried about their future prospects. Compiled by IHS Markit, the Purchasing Managers’ Index rose to 57.6 in November from 55.9 in October. The reading was the highest since January and the fifth straight month above the 50-mark that separates growth from contraction. Markets witnessed some profit booking in later part of the day but, buying in last leg of the trade ensure key gauges to end above their respective crucial levels as traders took support with data showing that the central government's fiscal deficit at end-October worked out to be 36.3 percent of the annual budget target for 2021-22 due to an improvement in the revenue collection. Adding to the optimism, Chief Economic Adviser (CEA) K V Subramanian has exuded confidence that India would achieve double-digit growth in the current financial year on the back of policy initiatives and continuing reforms. He also said the country is well poised to meet the fiscal deficit target of 6.8 per cent of GDP.

Firm opening in European counters too supported sentiments with all the European indices trading in green as markets oscillate between overwhelming fear and bouts of optimism that this recent selloff could prove the perfect pre-cursor to a Santa rally. Asian markets ended mostly in green after the Japanese government stepped up virus containment measures on confirming the country's first Omicron variant case. Besides, the manufacturing sector in Japan continued to expand in November, and at a faster pace, the latest survey from Jibun Bank showed on Wednesday with a seasonally adjusted manufacturing PMI score of 54.5.

Back home, the finance ministry has said that Goods and Services Tax (GST) collections jumped to over Rs 1.31 lakh crore in November, the second highest since its implementation in July 2017. The Ministry said the gross GST revenue collected in the month of November 2021 is Rs 1,31,526 crore of which CGST is Rs 23,978 crore, SGST is Rs 31,127 crore, IGST is Rs 66,815 crore (including Rs 32,165 crore collected on import of goods) and Cess is Rs 9,606 crore (including Rs 653 crore collected on import of goods). On the sectoral front, auto stocks remained in action reacting to their sales numbers for the month of November. Fertiliser industry’s stocks jumped after report stated that the government plans to increase fertiliser subsidies to a record of more than 1.55 trillion rupees ($20.67 billion) in 2021-2022 to avoid shortages amid a sharp rise in global prices.

The BSE Sensex ended at 57684.79, up by 619.92 points or 1.09% after trading in a range of 57346.78 and 57846.45. There were 23 stocks advancing against 7 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 1.00%, while Small cap index was up by 0.27%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 2.40%, Energy up by 1.97%, Bankex up by 1.76%, Auto up by 1.47% and PSU up by 1.45%, while Healthcare down by 1.43%, Consumer Durables down by 0.51% and Telecom down by 0.29% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Indusind Bank up by 5.66%, Axis Bank up by 3.54%, SBI up by 3.32%, Maruti Suzuki up by 3.19% and Tech Mahindra up by 3.04%. On the flip side, Dr. Reddy's Lab down by 1.56%, Ultratech Cement down by 1.45%, Sun Pharma down by 0.96%, Bharti Airtel down by 0.87% and Titan Company down by 0.57% were the top losers. (Provisional)

Meanwhile, India's Gross Domestic Product (GDP) has grown by 8.4 per cent in the second quarter (July-September) of 2021-22, mainly due to waning low base effect and as coronavirus related disruptions eased significantly in the aftermath of a devastating second wave. Data released by the National Statistical Office (NSO) showed that the GDP had contracted by 7.4 per cent in the corresponding July-September quarter of 2020-21. Meanwhile, Indian economy had expanded at a record rate of 20.1% in the first quarter, mainly on account of the low base of last year.

GDP at Constant (2011-12) Prices in Q2 2021-22 is estimated at Rs 35.73 lakh crore, as against Rs 32.97 lakh crore in Q2 2020-21, showing a growth of 8.4 percent as compared to 7.4 percent contraction in Q2 2020-21.  Quarterly GVA at Basic Prices at Constant (2011-12) Prices in Q2 2021-22 is estimated at Rs 32.89 lakh crore, as against Rs 30.32 lakh crore in Q2 2020-21, showing a growth of 8.5 percent. GDP at Current Prices in Q2 2021-22 is estimated at Rs 55.54 lakh crore, as against Rs 47.26 lakh crore in Q2 2020-21, showing a growth of 17.5 percent as compared to 4.4 percent contraction in Q2 2020-21. GVA at Basic Prices at Current Prices in Q2 2021-22 is estimated at Rs 49.70 lakh crore, as against Rs 42.54 lakh crore in Q2 2020-21, showing a growth of 16.8 percent.

GDP at Constant (2011-12) Prices in April-September 2021-22 (H1 2021-22) is estimated at Rs 68.11 lakh crore as against Rs 59.92 lakh crore during the corresponding period of previous year, showing a growth of 13.7 percent in H1 2021-22 as against contraction of 15.9 percent during the same period last year. GDP at Current Prices in H1 2021-22 is estimated at Rs 106.77 lakh crore as against Rs 86.15 lakh crores during the corresponding period of previous year, showing a growth of 23.9 percent in H1 2021-22 as against contraction of 13.4 percent during the same period last year.

Meanwhile, manufacturing output increased at a pace of 5.5% during the quarter under review, while construction segment grew 7.5%. Gross fixed capital formation, which is a measure for investments in the economy, surged 11% for the period under review. Private consumption, which is a major contributor to the economy and as measured by Private Final Consumption Expenditure (PFCE) increased by 8.6% in the September quarter. Mining and Quarrying during the quarter surged 15.4%, while electricity, gas, water supply and other utility services output rose 8.9%.

The CNX Nifty ended at 17166.90, up by 183.70 points or 1.08% after trading in a range of 17064.25 and 17213.05. There were 33 stocks advancing against 17 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indusind Bank up by 5.74%, JSW Steel up by 4.73%, Axis Bank up by 3.65%, Tata Motors up by 3.63% and Adani Ports up by 3.52%. On the flip side, Cipla down by 4.44%, Divi's Lab down by 2.59%, Ultratech Cement down by 1.50%, Dr. Reddy's Lab down by 1.49% and Sun Pharma down by 1.09% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 jumped 97.90 points or 1.39% to 7,157.35, France’s CAC surged 87.94 points or 1.31% to 6,809.10 and Germany’s DAX was up by 219.78 points or 1.46% to 15,319.91.

Asian markets ended mostly higher on Wednesday, despite growing concerns about the omicron corona-virus variant with US Fed's faster tapering and early rate hike bets. US based drug maker Moderna’s CEO said that existing Covid-19 vaccines would be much less effective at combating omicron compared with previous variants of the virus. Meanwhile, slew of positive regional data helped market sentiment to finish higher. Japanese shares gained after data showing the country's factory activity grew in November at the fastest pace since 2018. The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) in November rose to 54.5 against prior month’s 53.2 and a 54.2 flash reading. Seoul shares rose after a survey showed the country's factory activity expanded further in November. Moreover. Chinese shares improved on economic optimism after Vice Premier Liu He pledged enhanced support for businesses and said he's fully confident about the Chinese economy’s outlook next year. However, a survey showed the manufacturing sector in China slipped into contraction territory in November.