Post Session: Quick Review

Indian equity benchmarks ended near their day’s high points on Monday. After a negative start, markets remained volatile during the first half of the trading session, as several states such as Delhi, Karnataka, and Maharashtra enforced new restrictions in view of rising Covid-19 cases. Traders were concerned with a private report as it has penciled in an 8.2 per cent GDP growth next fiscal, with more downside risks to the projection, warning that the New Year will be riskier than the previous two in terms of growth, inflation and the perils of monetary policy normalisation on consumption demand in particular, along with other external risks.

However, in the second half of the trading session, markets staged recovery to turn positive, as a member of the Monetary Policy Committee (MPC) of the Reserve Bank, Jayanth R Varma expressed hope that in a few quarters from now, capital investment would begin to pick up even in the old economy, and said the next fiscal year is also expected to witness a decent growth. Traders took note of report that the GST regime will see a host of tax rate and procedural changes coming into effect from January 1, including liability on e-commerce operators to pay tax on services provided through them by way of passenger transport or restaurant services.

Indices maintained their gains till the end, amid reports that Indian companies have mopped up more than Rs 9 lakh crore through equity and debt routes in 2021 to meet their renewed thirst for business expansion in a buoyant stock market brimming with liquidity and helped by recovering macroeconomic indicators after pandemic-ravaged first few months. Adding more relief, rating agency ICRA has said that the recent improvement in recovery of the non-performing assets (NPAs) and decline in provisioning of loans in the banking sector are expected to improve further in the coming year.

On the global front, European markets were trading higher, as traders shrugged off concern that Omicron variant of COVID-19 driving up infections around the world. Asian markets settled mostly lower on Monday, after Singapore's manufacturing output logged a double-digit growth in November but the pace of expansion eased. The data from the Economic Development Board showed that manufacturing output rose 14.6 percent year-on-year in November, following a 17.0 percent rise in October.

The BSE Sensex ended at 57420.24, up by 295.93 points or 0.52% after trading in a range of 56543.08 and 57512.01. There were 24 stocks advancing against 6 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.27%, while Small cap index up by 0.52%. (Provisional)

The top gaining sectoral indices on the BSE were Healthcare up by 1.37%, Consumer Durables up by 0.85%, Bankex up by 0.74%, Realty up by 0.49% and IT up by 0.48%, while Metal down by 0.36%, FMCG down by 0.03%, Telecom down by 0.02% and Energy down by 0.01% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tech Mahindra up by 3.40%, Dr. Reddy's Lab up by 1.95%, Power Grid up by 1.60%, Kotak Mahindra Bank up by 1.56% and Sun Pharma up by 1.17%. On the flip side, Indusind Bank down by 0.55%, Asian Paints down by 0.44%, Maruti Suzuki down by 0.32%, Bharti Airtel down by 0.23% and ITC down by 0.21% were the top losers. (Provisional)

Meanwhile, with an aim to guard local manufacturers from cheap imports from the neighboring country, Government of India has imposed anti-dumping duties on five Chinese products, including certain aluminum goods and some chemicals, for five years.

The duties have been imposed on certain flat-rolled products of aluminum; sodium hydrosulfite (used in dye industry); silicone sealant (used in the manufacturing of solar photovoltaic modules, and thermal power applications); hydrofluorocarbon (HFC) component R-32; and hydrofluorocarbon blends (both have used in refrigeration industry).

These duties were imposed following recommendations of the commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR). The DGTR in separate probes has concluded that these products have been exported at a price below normal value in Indian markets, which has resulted in dumping.

The CNX Nifty ended at 17086.25, up by 82.50 points or 0.49% after trading in a range of 16833.20 and 17112.05. There were 38 stocks advancing against 12 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tech Mahindra up by 3.55%, Cipla up by 2.42%, Dr. Reddy's Lab up by 2.12%, Kotak Mahindra Bank up by 1.43% and UPL up by 1.31%. On the flip side, Hindalco down by 1.33%, ONGC down by 0.83%, Britannia down by 0.79%, Indusind Bank down by 0.69% and Grasim Industries down by 0.52% were the top losers. (Provisional)

European markets were trading higher; France’s CAC gained 9.85 points or 0.14% to 7,096.43 and Germany’s DAX was up by 29.24 points or 0.19% to 15,785.55.

Asian markets settled mostly lower on Monday in holiday-thinned trading as anxiety around the spread of the Omicron corona-virus variant weighed on investors' sentiments. Airlines across the world cancelled just under 8,000 flights over the three-day Christmas weekend over a shortage of staff due to the spread of the Omicron variant and bad weather condition. Chinese shares declined after China reported its highest daily rise in local Covid-19 cases in 21 months over the weekend, with most new infections reported in the north-western city of Xian as it entered a fifth day of a lockdown. While, official data showed that profits at China's industrial firms grew at a much slower pace in November. However, China's central bank, People's Bank of China, pledged greater support for the real economy, and said it will make monetary policy more forward-looking and targeted. Moreover, South Korean shares dropped due to year-end profit taking. Meanwhile, Hong Kong markets were closed for Christmas holidays.