Post Session: Quick Review

Indian equity benchmarks ended flat with a negative bias on Friday. After a negative start, markets remained lower during the trading session, impacted with United Nations’ report that India is forecast to grow at 6.5 per cent in fiscal year 2022, a decline from the 8.4 per cent GDP estimate in previous financial year, and while the country's economic recovery is on a solid path amid rapid vaccination progress, coal shortages and high oil prices could put the brakes on economic activity in the near term.

Sentiments were negative, as a domestic rating agency -- Icra said that the upcoming budget is unlikely to make any provision for recapitalisation of state-owned lenders, as over Rs 3.36 lakh crore has been spent on the banks in the last six years. Besides, rating agency Icra revised downwards the revenue growth forecast for the auto components industry in the current fiscal to 15-17 per cent, citing the impact of the Omicron wave, delayed recovery in semiconductors shortage and muted two-wheelers demand.

However, in the second half of the trading session, key indices staged recovery, after India’s inflation based on wholesale price index (WPI) eased to 13.56% in the month of December as against 14.23% in November. Further, as per the data released by the Commerce Ministry, exports in December 2021 were $37.81 billion, as compared to $27.22 billion in December 2020, exhibiting a positive growth of 38.91 per cent. Exports for the period April-December 2021 was $301.38 billion as against $201.38 billion during the period April-December 2020, registering a positive growth of 49.66 per cent.

On the global front, European markets were trading mostly in red with technology bearing the brunt of losses on the heels of heavy losses for that sector on Wall Street amid worries over Federal Reserve action to control inflation. EDF shares slid 20% after pulling guidance. Asian markets settled mostly lower on Friday, after China's exports and imports grew at slower rates at the end of the year. The data from the General Administration of Customs revealed that exports grew 20.9 percent on a yearly basis in December after rising 22.0 percent in November. The annual growth was forecast to slow to 20.0 percent.

The BSE Sensex ended at 61223.03, down by 12.27 points or 0.02% after trading in a range of 60757.03 and 61324.59. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.22%, while Small cap index up by 0.50%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 1.43%, Realty up by 1.10%, Industrials up by 1.00%, IT up by 0.95% and TECK up by 0.73%, while Telecom down by 1.20%, FMCG down by 0.60%, Healthcare down by 0.50%, Auto down by 0.35% and Bankex down by 0.35% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were TCS up by 1.78%, Infosys up by 1.48%, Larsen & Toubro up by 1.18%, HDFC Bank up by 0.97% and Tech Mahindra up by 0.88%. On the flip side, Asian Paints down by 2.65%, Axis Bank down by 2.62%, Hindustan Unilever down by 2.15%, HDFC down by 1.63% and Mahindra & Mahindra down by 1.53% were the top losers. (Provisional)

Meanwhile, India’s inflation based on wholesale price index (WPI) eased to 13.56% in the month of December as against 14.23% in November. The annual rate of inflation is 13.56% (Provisional) for the month of December 2021 as compared to 1.95% in December 2020.

Component wise, primary articles index, having weight of 22.62%, declined by 0.47% to 167.8 (provisional) in December 2021 from 168.6 (provisional) for the month of November, 2021. Prices of Non-food Articles increased in December 2021 as compared to November 2021. Prices of Minerals, Crude Petroleum & Natural Gas and Food Articles declined in December 2021 as compared to November 2021.

Fuel & Power index, having weight of 13.15%, declined by 2.66% to 128.2 (provisional) in December, 2021 from 131.7 (provisional) for the month of November, 2021. Prices of Coal increased in December 2021 as compared to November 2021. Prices of Mineral Oils declined in December 2021 as compared to November 2021. Prices of electricity remain unchanged.

Besides, Manufactured Products constituting the major portion of the index with weight of 64.23%, increased by 0.22% to 136.4 (provisional) in December, 2021 from 136.1 (provisional) for the month of November, 2021.

The CNX Nifty ended at 18255.75, down by 2.05 points or 0.01% after trading in a range of 18119.65 and 18286.95. There were 21 stocks advancing against 28 stocks declining, while 1 stock remained unchanged on the index. (Provisional)

The top gainers on Nifty were Tata Consumer Products up by 4.42%, TCS up by 1.80%, Indian Oil Corp. up by 1.77%, Infosys up by 1.72% and Larsen & Toubro up by 1.31%. On the flip side, Asian Paints down by 2.66%, Axis Bank down by 2.57%, Hindustan Unilever down by 2.09%, UPL down by 1.94% and ONGC down by 1.77% were the top losers. (Provisional)

European markets were trading mostly in red, France’s CAC decreased 36.47 points or 0.51% to 7,164.67 and Germany’s DAX was down by 74.50 points or 0.46% to 15,957.09. On the flip side, UK’s FTSE 100 increased 0.65 points or 0.01% to 7,564.50.

Asian markets settled mostly lower on Friday, as the market sentiments got dulled with the quicker interest rate hike prospects in the wake of surging inflation rates. Anticipation over hawkish measure of Federal Reserve has prompted to shift investments from high growth shares to value stocks. Benchmark interest rate hike by Bank of Korea also accelerated worries over monetary policy tightening. Japan’s Nikkei was the topper loser among Asian indices due to wary over fresh virus concerns. Japanese technology stocks leading the declines. Tokyo recorded a new four-month high in Covid infections on Thursday.