Post Session: Quick Review

Last-hour selling dragged Indian equity markets down on Friday’s trading session, with both Sensex and Nifty ending lower. Markets made a strong start, as India’s industrial production inched up 1.9% in March 2022 from 1.7% in February 2022. Factory output measured in terms of Index of Industrial Production (IIP) had recorded a growth of 24.2 per cent in March 2021. For the month of March 2022, the Quick Estimates of IIP with base 2011-12 stood at 148.3. For the full fiscal 2021-22, IIP grew 11.3 per cent as against an 8.4 per cent contraction in 2020-21.

Heavy buying helped key indices to remain strong for the most part of the trading session. Market participants got relief, after the Finance Ministry in its latest monthly economic report said that India’s inflation trajectory in the coming months will be influenced more by the geo-political situation due to the war in Europe and its impact on supply chains and commodity prices. However, the country is better placed than most to “weather the storm” and achieve growth of close to 8 per cent in the current fiscal year.

Traders also got some support after commerce ministry said India's merchandise exports surged 30.7 per cent to $40.19 billion in April on account of healthy performance by sectors like petroleum products, electronic goods and chemicals, even as trade deficit widened to $20.11 billion during the month. However, in the last leg of the trade, markets turned negative, as India’s headline inflation galloped for a seventh straight month to touch an 8-year high of 7.79 per cent in April on rising food and fuel prices, raising the odds of an interest rate hike by the RBI early next month to tame prices.

On the global front, European markets were trading higher after the latest U.S. consumer and producer price inflation data confirmed a slowdown in inflation. There is a broad sense among market participants that larger 75-bps U.S. rate hikes are off the table for now. Asian markets ended mostly higher, after export prices in South Korea advanced 1.0 percent on month in April, the Bank of Korea said on Friday - slowing from the 6.2 percent increase in March. On a yearly basis, export prices jumped 21.4 percent, down from 23.4 percent in the previous month.

The BSE Sensex ended at 52793.62, down by 136.69 points or 0.26% after trading in a range of 52654.89 and 53785.71. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.79%, while Small cap index up by 1.28%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 2.47%, Industrials up by 1.73%, FMCG up by 1.64%, Healthcare up by 1.47% and Consumer Durables up by 1.42%, while Metal down by 2.46%, Utilities down by 2.36%, Telecom down by 2.28%, Power down by 2.20% and Bankex down by 1.29% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Sun Pharma up by 3.76%, Mahindra & Mahindra up by 2.78%, Hindustan Unilever up by 2.49%, ITC up by 2.25% and Titan Co up by 2.08%. On the flip side, SBI down by 3.76%, ICICI Bank down by 2.65%, NTPC down by 2.56%, Bharti Airtel down by 2.32% and Maruti Suzuki down by 2.07% were the top losers. (Provisional)

Meanwhile, highlighting the various initiatives and reforms being undertaken by the Government of India to further improve the ease of doing business, Union Minister of Parliamentary Affairs, Coal and Mines, Prahlad Joshi has said that exports play a crucial role in realizing Atmanirbhar Bharat.

The minister further highlighted the significant milestones achieved in the form of the record high annual exports of goods and services in the current year of around $ 674 billion and finally delineated the immense advantages of the State of Karnataka.

Meanwhile, the Department of Commerce organized a Stakeholders’ Outreach Programme on India-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) and India-Australia Economic Cooperation and Trade Agreement (ECTA).

States outreach programmes are part of series of concerted and coordinated efforts being made by the Department of Commerce, Government of India, to sensitize and create awareness amongst exporters across the country on the conducive platform and the favourable trade ecosystem that is being created with conclusion of these landmark Trade Agreements with partners countries exhibiting significant trade complementarities with India.

The CNX Nifty ended at 15782.15, down by 25.85 points or 0.16% after trading in a range of 15740.85 and 16083.60. There were 25 stocks advancing against 25 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Motors up by 8.60%, Sun Pharma up by 3.82%, Mahindra & Mahindra up by 2.80%, Hindustan Unilever up by 2.59% and ITC up by 2.25%. On the flip side, Hindalco down by 4.40%, JSW Steel down by 3.90%, SBI down by 3.89%, NTPC down by 2.96% and ICICI Bank down by 2.65% were the top losers. (Provisional)
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European markets were trading higher, UK’s FTSE 100 increased 95.94 points or 1.33% to 7,329.28, France’s CAC increased 72.77 points or 1.17% to 6,279.03 and Germany’s DAX was up by 165.55 points or 1.2% to 13,905.19.

Asian markets ended mostly higher on Friday despite concerns about high inflation and the impact of rising interest rates. Data showed US wholesale prices soared 11 percent in April from a year earlier. US Federal Reserve Chair Jerome Powell reaffirmed that the US central bank is likely to raise interest rates by a half point at each of its next two meetings and isn’t actively considering a 75 basis-point move. Chinese shares jumped as Shanghai said it aimed to reach the Zero-Covid level in areas outside its tightly regulated quarantine zones this month, with sentiment aided by authorities’ frequent pledges to support the second largest economy. Japan's Nikkei benchmark stock index rose 2.64% to 26,427.65.