Post Session: Quick Review

The last day of 2021 remained cheerful for the Indian equity benchmarks, as bulls held a tight grip over the Dalal Street. After a positive start, markets remained strong during trading session, as India Ratings and Research (Ind-Ra) said that higher tax and non-tax revenue collections this fiscal are expected to more than offset the shortfall in disinvestment revenue, leading to the fiscal deficit coming in at 6.6 per cent of GDP in FY22, or 20 basis points lower than the budgeted target.

Traders remained positive during the day, as markets regulator Sebi extended the deadline till September 30 next year for the applicability of the tweaked reporting requirements for alternative investment funds (AIFs). Earlier, the deadline was December 31, 2021. Besides, a High-Level Committee chaired by Union Home Minister Amit Shah has approved Rs 3,063.21 crore of additional central assistance to six states under the National Disaster Response Fund.

Key indices maintained gains in the second half of the trading session, as sentiments remained upbeat after India’s agricultural and processed food exports have grown at a steady pace in the last decade notwithstanding several logistical challenges faced in the global trade of the commodities. Exports of agricultural and processed food products under Agricultural and Processed Food Products Export Development Authority (APEDA) basket rose to $20,674 million (Rs 15,30,50 crore) during 2020-21, from $17,321 million (Rs 83,484 crore) in 2011-12.

On the global front, European markets were trading in red. Asian markets ended mostly higher on Friday, after industrial output in South Korea advanced a seasonally adjusted 5.1 percent on month in November. The Statistics Korea said that easily beat expectations for an increase or 2.5 percent following the upwardly revised 2.9 percent contraction in October (originally -3.0 percent). On a yearly basis, industrial production advanced 5.9 percent - again exceeding forecasts for 3.2 percent and accelerating from 4.5 percent in the previous month.

The BSE Sensex ended at 58253.82, up by 459.50 points or 0.80% after trading in a range of 57846.52 and 58409.30. There were 26 stocks advancing against 4 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.38%, while Small cap index up by 1.16%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 2.10%, Consumer Durables up by 1.99%, Basic Materials up by 1.92%, Auto up by 1.73% and Telecom up by 1.72%, while there were no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Titan Co up by 3.50%, Ultratech Cement up by 2.62%, Kotak Mahindra Bank up by 2.36%, SBI up by 1.91% and Maruti Suzuki up by 1.86%. On the flip side, NTPC down by 1.97%, Tech Mahindra down by 0.56%, Power Grid Corp down by 0.41% and Infosys down by 0.16% were the top losers. (Provisional)

Meanwhile, credit rating agency India Ratings and Research (Ind-Ra) in its latest report has showed that the all-India energy demand increased just 1.7% yoy to 99.6 billion units (BU) in November 2021, due to the onset of the winter season, impacting the demand from the northern region (up 2% yoy) and southern region (down 5% yoy).

According to the report, the reduction in the energy demand in November 2021 is also attributable to lower generation, as reflected in an increase in the power outages at thermal power plants due to coal shortages. Additionally, the all-India energy demand for the first 25 days of December improved 3.5% yoy to 88.7BU.

The report further noted that the total all-India generation increased marginally by 2% to 99.4BU in November 2021. The overall increase in generation was however supported by a 16.4% yoy increase in the generation from renewable sources and a 16% yoy rise in generation from hydro power sources, whereas the generation from coal-based thermal power plants reduced by 0.3% yoy.

The CNX Nifty ended at 17354.05, up by 150.10 points or 0.87% after trading in a range of 17238.50 and 17400.80. There were 44 stocks advancing against 6 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindalco up by 5.76%, Titan Co up by 3.49%, Ultratech Cement up by 2.62%, Tata Motors up by 2.55% and Kotak Mahindra Bank up by 2.33%. On the flip side, NTPC down by 1.97%, Cipla down by 0.91%, Tech Mahindra down by 0.52%, Power Grid Corp down by 0.46% and Infosys down by 0.27% were the top losers. (Provisional)

European markets were trading in red, UK’s FTSE 100 decreased 25.40 points or 0.34% to 7,377.61 and France’s CAC was down by 13.61 points or 0.19% to 7,159.62.

Asian markets ended mostly higher on Friday in thin trade ahead of the New Year, while markets in Japan, South Korea, Indonesia, and Taiwan closed for holidays. Market sentiments improved further even as US stocks finished slightly lower overnight. Investor concerns about the omicron variant of corona-virus have eased in recent weeks after reports said it appears to cause less severe symptoms. Economic data from United States showing shat the number of Americans applying for unemployment benefits fell below 200,000, more evidence that the job market remains strong in the aftermath of last year’s coronavirus recession. Hong Kong shares led gains among major Asia-Pacific markets, with Chinese technology stocks in Hong Kong soaring. Moreover, Chinese shares gained after Chinese companies listed in the US posted biggest one-day surge since 2008. China’s factory activity saw an acceleration in growth during December, with the official manufacturing Purchasing Managers’ Index (PMI) coming in at 50.3 in December, up from 50.1 in November, data from the National Bureau of Statistics showed.