Post Session: Quick Review

Indian equity benchmarks ended lower on Monday. The start of the day was on a strong note, as domestic sentiments got a boost with the government data showing that India's industrial production rose 3.2 per cent in October 2021. As per the Index of Industrial Production (IIP) data by the National Statistical Office (NSO), the manufacturing sector's output grew 2 per cent in October. Some support also came in as the finance ministry said India's economic recovery is expected to strengthen in the remaining quarters of the current fiscal year with the investment cycle kicking off, and projected 7% annual growth until the end of the decade.

Markets remained higher in the first half of the trading session, taking some support with Union minister Amit Shah’s statement that policies were framed after hours of brainstorming and studying all the aspects in order to bring back pre-pandemic levels of economic growth. He also said the policies which became hurdles in bringing industry, affected 'Make In India' or obstructed 'Atmanirbhar Bharat' were changed during the coronavirus period.  Some solace came with Reserve Bank of India Governor Shaktikanta Das’ statement that the country can become a ‘gross driver’ of the world economy if all stakeholders in the banking sector work together.

However, key indices cut all of their gains and turned negative in the second half of the trading session to end in red terrain. Gains got cut in the markets, as Reserve Bank of India (RBI) Governor Shaktikanta Das cautioned depositors to be careful while chasing high returns as it comes with greater risk. Traders also got cautious, amid reports that the government is unlikely to announce capital infusion for public sector banks (PSBs) in the upcoming Budget, as their financial health has improved on the back of a reduction in bad loans.

On the global front, European markets were trading higher as investors shrug off concerns over the new COVID-19 Omicron variant and keep their eyes peeled for the meetings of central banks around the world, including those of the US Federal Reserve, the Bank of England, and the European Central Bank (ECB). Asian markets settled on a mixed note, even after the value of core machine orders in Japan was up a seasonally adjusted 3.8 percent on month in October, the Cabinet Office said on Monday - coming in at 879.8 billion yen. That beat expectations for an increase of 2.1 percent following the flat reading in September.

The BSE Sensex ended at 58283.42, down by 503.25 points or 0.86% after trading in a range of 58242.80 and 59203.37. There were 8 stocks advancing against 22 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.53%, while Small cap index up by 0.24%. (Provisional)

The only gaining sectoral index on the BSE was Consumer Durables up by 0.01%, while Energy down by 1.75%, Realty down by 1.24%, Oil & Gas down by 1.23%, FMCG down by 0.86% and PSU down by 0.72% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Axis Bank up by 2.45%, Tech Mahindra up by 2.40%, Power Grid up by 1.73%, Maruti Suzuki up by 1.03% and Titan Co up by 0.37%. On the flip side, Bajaj Finance down by 2.97%, Bajaj Finserv down by 2.14%, Reliance Industries down by 1.89%, Mahindra & Mahindra down by 1.74% and Nestle down by 1.51% were the top losers. (Provisional)

Meanwhile, with an aim to encourage Startup ecosystem in India, the Centre is all set to organize the first of its kind innovation week. As a part of Azadi ka Amrit Mahotsav, a week-long event, 'Celebrating Innovation Ecosystem', to be hosted by Department for Promotion of Industry and Internal Trade (DPIIT), is proposed to be held in January 2022.

The key objectives of the Innovation Week will be to bring together the country’s key Startups, entrepreneurs, investors, policy makers and other national/ international stakeholders for a specially curated event on innovation and entrepreneurship and to exchange knowledge on best practices on nurturing Startup ecosystems.

The initiative aspires to encourage and inspire the youth for innovation and entrepreneurship and develop capacities of entrepreneurial ecosystem. Innovation week would help provide market access opportunities to Startups and aid and abet the mobilization of global and domestic capital for investments into Startups. The event is also set to showcase high-quality, high technology and frugal innovations from India.

The CNX Nifty ended at 17368.25, down by 143.05 points or 0.82% after trading in a range of 17355.95 and 17639.50. There were 14 stocks advancing against 36 stocks declining on the index. (Provisional)

The top gainers on Nifty were Axis Bank up by 2.32%, Tech Mahindra up by 2.22%, Maruti Suzuki up by 1.22%, Wipro up by 1.12% and SBI Life Insurance up by 0.94%. On the flip side, Bajaj Finance down by 3.14%, Bajaj Finserv down by 2.19%, Tata Consumer Products down by 2.02%, Reliance Industries down by 2.00% and Mahindra & Mahindra down by 1.93% were the top losers. (Provisional)
 
European markets were trading higher, UK’s FTSE 100 increased 15.75 points or 0.22% to 7,307.53, France’s CAC increased 13.61 points or 0.19% to 7,005.29 and Germany’s DAX was up by 100.13 points or 0.64% to 15,723.44.

Asian markets settled on a mixed note on Monday as investors are in cautious mood ahead of a Federal Reserve policy meeting later this week. Data showed US consumer inflation rose 6.8% year-over-year in November, reflecting the biggest jump since June of 1982 amid supply chain snarls and shortages. Another big rise in US inflation fuelled fears that the Federal Reserve would accelerate the pace of tapering its asset purchases this week. Chinese shares gained, while the yuan currency advanced after the nation's top decision makers signalled policies may become more pro-growth next year. Japanese shares rose with growing hopes of an economic recovery and after data showed the country's core machinery orders rose in October for the first time in three months.