Post Session: Quick Review

Indian equity benchmarks ended flat with a positive bias on Wednesday. After a negative start, markets witnessed volatility during the trading session, as Standard and Poor’s (S&P) said credit profiles could deteriorate for up to $114 billion of debt in the books of Indian companies tackling rising interest rates and inflation. Adding some worries among traders, Securities and Exchange Board of India (Sebi) in its latest data showed that investment through participatory notes (P-notes) in the domestic capital market declined to Rs 75,725 crore at the end of July, the lowest level in nearly two years, mainly in the wake of aggressive rate hikes by the US Fed. This also marks the third consecutive monthly decline in investment numbers.

Indices altered between green and red terrain again and again and finally ended in green,  as traders took some support after ICRA in its latest report projected India’s Gross Domestic Product (GDP) growth at 13.0% for first quarter (April-June) of current fiscal year (FY23) a sharp jump from the 4.1% in Q4 FY22. It has also projected the year-on-year (YoY) growth of the gross value added (GVA) at basic prices (at constant 2011-12 prices) in Q1 FY23 at 12.6%, a jump from 3.9% recorded in Q4 FY22. Besides, Commerce Secretary BVR Subrahmanyam said India's merchandise exports are likely to be around $470-480 billion in the current fiscal against $420 billion in 2021-22.

Some support came with SBI Ecowrap report stating that India's GDP is expected to be much higher in Q1FY23 and growth is expected around 15.7 per cent with a large possibility of an upward bias because several indicators have shown good progress in the Indian economy. Traders got some support as Governor Shaktikanta Das said that the Reserve Bank of India (RBI) aims to reduce inflation to its medium-term target of 4 per cent in the next two years and its rate actions will be data-dependent. Besides, to set up a future-ready administration geared towards the target of $2 trillion exports by 2030, the Department of Commerce has decided to set up a dedicated trade promotion body to drive overall promotion strategy, export targets, and execution as part of a restructuring exercise.

On the global front, European markets were trading lower with fresh hawkish comments from a Federal Reserve official prompting caution. Asian markets settled mostly lower on Wednesday, after Indonesia's central bank unexpectedly raised its policy rate at its August meeting to curtail soaring inflation and strengthen the rupiah exchange rate. The Board of Governors decided to raise the seven-day reverse repo rate by 25 bps to 3.75 percent. This was the first rate hike since 2018. The previous change in the BI rate was a quarter-point reduction in February 2020.

The BSE Sensex ended at 59085.43, up by 54.13 points or 0.09% after trading in a range of 58760.09 and 59170.87. 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 0.80%, while Small cap index up by 0.73%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 1.74%, Industrials up by 0.92%, Telecom up by 0.91%, Capital Goods up by 0.80% and Bankex up by 0.67%, while IT down by 0.18%, TECK down by 0.15%, Consumer Durables down by 0.13%, Oil & Gas down by 0.10% and Auto down by 0.09% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Indusind Bank up by 2.86%, NTPC up by 1.29%, Larsen & Toubro up by 0.92%, ICICI Bank up by 0.91% and Power Grid up by 0.90%. On the flip side, Tata Steel down by 0.93%, TCS down by 0.86%, Titan Co down by 0.80%, Sun Pharma down by 0.69% and SBI down by 0.56% were the top losers. (Provisional)

Meanwhile, highlighting the government’s sustained efforts to attract more private entrepreneurs into mineral exploration, Union Minister of Coal, Mines and Parliamentary Affairs Pralhad Joshi has said that mineral exploration will be carried out without adverse environmental impact through enhanced use of drones and other latest technologies.

Union Minister further highlighted that National Mineral Exploration Trust (NMET) has been made an autonomous body, in order to give further fillip to mineral exploration. He also said that as result of recent innovative initiatives and amendments in Acts and rules, 190 major mineral blocks have been auctioned during the last seven years.

Pointing out that commercial coal mine auction is a big success, the minister urged the PSUs to start production from allotted coal blocks at the earliest or else the same may be a surrendered to the ministry for re-auctioning. Further, the Minister called upon Geological Survey of India (GSI) to focus on new age minerals’ exploration.

The CNX Nifty ended at 17604.95, up by 27.45 points or 0.16% after trading in a range of 17499.25 and 17623.65. There were 29 stocks advancing against 21 stocks declining on the index. (Provisional)

The top gainers on Nifty were Apollo Hospital Ent. up by 3.43%, Indusind Bank up by 2.88%, ONGC up by 1.68%, NTPC up by 1.36% and ICICI Bank up by 1.09%. On the flip side, BPCL down by 1.24%, Divi's Lab down by 1.01%, Tata Steel down by 0.98%, TCS down by 0.89% and Sun Pharma down by 0.83% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 25.38 points or 0.34% to 7,462.73, France’s CAC decreased 5.93 points or 0.09% to 6,356.09 and Germany’s DAX was down by 14.85 points or 0.11% to 13,179.38.

Asian markets settled mostly lower on Wednesday, tracking weak US stocks overnight and as a slew of disappointing economic readings added to concerns about economic slowdown and tighter monetary policy. Data showed that private-sector business activity in the United States contracted for a second straight month in August, factory activity in the US central Atlantic region contracted in August, and sales of new single-family homes plunged to a 6-1/2-year low in July. Further, persisting recession worries along with power crisis in Europe and China also kept investors nervous. Meanwhile, investors are waiting for US Fed Chair Jerome Powell’s address to the Jackson Hole Symposium this Friday for further cues on how aggressively the Fed is likely to be with future interest rate rises. Chinese property developer Logan Group’s shares dropped in Hong Kong after resuming trading following a three-month halt for failing to report audited earnings on time.