Post Session: Quick Review

Indian equity benchmarks ended in red terrain on Tuesday’s trading session. The start of the day was on a lower note, as the data released by the Ministry of Statistics and Programme Implementation (MoSPI) showed that the country's retail inflation rate, which is measured by the Consumer Price Index (CPI), rose to 4.91 percent during the month of November 2021. The inflation has increased sequentially, as it was recorded at 4.48 percent in October 2021. The uptick on sequential basis was led by an increase in food prices, particularly vegetables.

Markets remained volatile during the trading session, as India’s inflation based on wholesale price index (WPI) jumped to 14.23% in the month of November as against 12.54% in October. The annual rate of inflation is 14.23% (Provisional) for the month of November 2021 as compared to 2.29% in November 2020. The high rate of inflation in November 2021 is primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, chemicals and chemical products, food products etc as compared to the corresponding month of the previous year.

Finally, indices ended in red but managed to stage some recovery in the last hour of the trade. Losses got cut, as NITI Aayog CEO Amitabh Kant has said that the government will continue to push for greater reforms across sectors. Kant stated ‘India is determined to carry out reforms. We need more and more reforms and the government will push for greater levels of reforms across sectors and make things easy and simple.’ Besides, the Union Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles, Piyush Goyal called for Partnerships among countries for achieving Sustainable Growth.

On the global front, European markets were trading higher as investors focussed on crucial central bank meetings this week, while keeping a wary eye on developments around the Omicron coronavirus variant. Most of the Asian markets ended lower, even after export prices in South Korea were up 25.5 percent on year in November, the Bank of Korea said on Tuesday - up slightly from 25.3 percent in October. Import prices surged an annual 35.5 percent, easing from 38.8 percent in the previous month. On a monthly basis, export prices fell 1.0 percent and import prices dipped 0.6 percent.

The BSE Sensex ended at 58117.09, down by 166.33 points or 0.29% after trading in a range of 57803.87 and 58322.42. There were 16 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.37%, while Small cap index up by 0.05%. (Provisional)

The top gaining sectoral indices on the BSE were Power up by 1.39%, Utilities up by 1.16%, Oil & Gas up by 0.71%, Healthcare up by 0.63% and Capital Goods up by 0.59%, while Telecom down by 1.37%, Auto down by 0.87%, Energy down by 0.71%, FMCG down by 0.60% and Consumer Durables down by 0.40% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid up by 3.84%, Axis Bank up by 0.94%, Nestle up by 0.88%, Dr. Reddy's Lab up by 0.78% and Titan Co up by 0.72%. On the flip side, ITC down by 2.73%, Bajaj Finance down by 2.10%, Kotak Mahindra Bank down by 1.75%, Bharti Airtel down by 1.61% and Reliance Industries down by 1.22% were the top losers. (Provisional)

Meanwhile, India’s inflation based on wholesale price index (WPI) jumped to 14.23% in the month of November as against 12.54% in October. The annual rate of inflation is 14.23% (Provisional) for the month of November 2021 as compared to 2.29% in November 2020. The high rate of inflation in November 2021 is primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, chemicals and chemical products, food products etc as compared to the corresponding month of the previous year.

Component wise, primary articles index, having weight of 22.62%, increased by (5.57%) to 168.6 (provisional) in November 2021 from 159.7 (provisional) for the month of October 2021. Prices of Crude Petroleum & Natural Gas, Minerals, Food Articles and Non-food Articles increased in November 2021 as compared to October 2021.

Fuel & Power index, having weight of 13.15%, increased by (5.61%) to 131.7 (provisional) in November 2021 from 124.7 (provisional) for the month of October 2021. Prices of Mineral Oils and Coal increased in November 2021 as compared to October 2021. Prices of electricity remain unchanged. Besides, Manufactured Products constituting the major portion of the index with weight of 64.23%, increased by (0.89%) to 136.1 (provisional) in November 2021 from 134.9 (provisional) for the month of October 2021.

The CNX Nifty ended at 17324.90, down by 43.35 points or 0.25% after trading in a range of 17225.80 and 17376.20. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Power Grid up by 3.84%, Divi's Lab up by 2.74%, Nestle up by 1.35%, Dr. Reddy's Lab up by 1.02% and Axis Bank up by 0.98%. On the flip side, ITC down by 2.56%, Bajaj Finance down by 2.12%, Tata Consumer Products down by 1.94%, Kotak Mahindra Bank down by 1.75% and Bharti Airtel down by 1.64% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 40.25 points or 0.56% to 7,271.69, France’s CAC increased 34.23 points or 0.49% to 6,977.14 and Germany’s DAX was up by 51.15 points or 0.33% to 15,672.87.

Most of the Asian markets ended lower on Tuesday, saddled by the caution ahead to this year’s last Federal Reserve’s policy meeting coupled with the looming worries over surging inflation and accelerated Omicron virus infections around the globe. Shanghai retreated amid woes over debt risks faced by property developers and as Omicron cases been reported in some of its major cities and as virus-hit areas suspending business operations. The blue-chip CSI300 index was down 0.67%, with its financial sector sub-index losing 1.17%, the resources sector falling 2.3%, the real-estate index down 2.47% and consumer discretionary firms ending 2% lower. Additionally, many companies in one of China's biggest manufacturing hubs suspended operations amid attempts to contain a COVID-19 outbreak.