Post Session: Quick Review

Indian equity benchmarks end on higher note on Thursday. Markets made a cautious start of the trading session, amid weak macroeconomic data. With the waning low base effect, India’s industrial production growth remained subdued for the third straight month and expanded by 1.4 per cent in November. The IIP had contracted by 1.6 per cent in November 2020.  Besides, with rising prices of essential kitchen items, the India’s retail inflation jumped to a six-month high of 5.59 per cent in December 2021, close to the Reserve Bank of India’s (RBI’s) upper tolerance limit of 6 per cent.

Key indices remained volatile during the trading session, after a private report revised downwards its India's growth forecast for the current financial year to 9.1 per cent from 9.5 per cent earlier, citing the massive surge in Omicron infections and the resultant impact on overall economic activities in the March quarter. But, markets managed to end in green terrain, as the World Bank said Narendra Modi government’s Production-Linked Incentive (PLI) Scheme will likely help India’s economy grow at 8.7% in the next financial year 2022-23, beating emerging market peers including China.

Traders got support, as Commerce and Industry Minister Piyush Goyal said startups of the country will help India transition from an assembly economy to a knowledge-based economy. He said that Indian startups are the agents of change as well as the pillars for making India aatma nirbhar (self reliant). Adding more relief, a private report stated that digital platforms help unlock up to 30 per cent more value for microentrepreneurs who are associated with them by helping overcome challenges like market access and credit.

On the global front, European markets were trading lower weighed down by defensive and travel stocks, on a continuing surge in COVID-19 cases globally due to the Omicron variant and as worries persisted about a tighter monetary policy environment. Asian markets settled mostly higher, even after China's bank lending declined more than expected in December, data from the People's Bank of China showed on Wednesday. In December, banks extended CNY 1.13 trillion in new loans compared to CNY 1.27 trillion lending in November.

The BSE Sensex ended at 61235.30, up by 85.26 points or 0.14% after trading in a range of 60949.81 and 61348.57. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.38%, while Small cap index up by 0.49%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 3.86%, Capital Goods up by 1.56%, Power up by 1.52%, Basic Materials up by 1.40% and Utilities up by 1.32%, while Realty down by 0.72%, Bankex down by 0.67%, Consumer Disc down by 0.30%, Consumer Durables down by 0.15% and Telecom down by 0.06% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 6.40%, Sun Pharma up by 3.53%, Larsen & Toubro up by 2.30%, Mahindra & Mahindra up by 1.66% and Power Grid up by 1.49%. On the flip side, Wipro down by 6.00%, Asian Paints down by 2.47%, HDFC Bank down by 1.81%, Indusind Bank down by 1.55% and Maruti Suzuki down by 1.32% were the top losers. (Provisional)

Meanwhile, seeking suggestions and inputs to ensure continuation of fast rebound of economic activities, the Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution Piyush Goyal has asked Industry Bodies to prepay MSMEs to safeguard their viability and to boost employment and growth. Goyal congratulated Indian Industry for bouncing back after taking a hit due to the pandemic and for the resilience displayed while grappling with the pandemic, especially in the field of exports.

Highlighting the progress made in FTA negotiations, Goyal said that the Government was striving to conclude several Early Harvest Agreements so that their benefits could reach industry soon. He said that an FTA with UAE was nearing conclusion, negotiations were at an advanced stage with Australia and that discussions with Israel were ongoing.

Underscoring Government’s commitment towards infrastructure development and capital expenditure, Goyal said that the Centre would always support businesses activities. He also asked industry to use initiatives like the PM GatiShakti National Master Plan and India Industrial Land Bank to the best possible extent to expand and grow. The Minister observed that by and large economic, activities had not being impacted by the current Covid surge.

The CNX Nifty ended at 18257.80, up by 45.45 points or 0.25% after trading in a range of 18163.80 and 18272.25. There were 36 stocks advancing against 14 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Steel up by 6.45%, JSW Steel up by 4.69%, Sun Pharma up by 3.50%, Coal India up by 3.39% and UPL up by 2.26%. On the flip side, Wipro down by 6.02%, Asian Paints down by 2.47%, HDFC Bank down by 1.84%, Kotak Mahindra Bank down by 1.55% and Indusind Bank down by 1.53% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 10.46 points or 0.14% to 7,541.26, France’s CAC decreased 22.35 points or 0.31% to 7,214.84 and Germany’s DAX was down by 14.56 points or 0.09% to 15,995.76.

Asian markets settled mostly higher on Thursday as the keenly awaited December inflation number from the United Stated largely came in line with market expectations, which was not enough to force faster monetary tightening by the US Federal Reserve. Data from the US Labour Department showed its consumer price index increased 0.5% last month after rising 0.8% in November, while in the 12 months through December, the CPI surged 7% to its highest year-on-year rise in nearly four decades. However, surging coronavirus cases in Asia have raised uncertainty about the pace of recovery from the pandemic and capped further gain in Asian stocks.  Chinese shares dragged lower after new bank lending in China fell more than expected in December from the previous month, led by property developers and consumption stocks, while growing concerns over the coronavirus situation, the strict lockdowns and the resultant impact on the economy also adding pressure on sentiments.