Post Session: Quick Review

Indian equity benchmarks ended the last trading day of the week on a flat note. After a positive start of the trading session, markets turned volatile, as chief economist at State Bank of India revised downward the full-year growth forecast to a low 6.8 per cent from 7.5 per cent earlier for FY2023, citing the way below GDP numbers for the first quarter. More pessimism came in as foreign institutional investors (FIIs) have net sold shares worth Rs 2,290.31 crore on September 1. Traders remained cautious as Consumer Pyramid Household Survey of the Centre for Monitoring Indian Economy showed that the employment rate among Indian youth (15-24 years) stood at 10.4% in 2021-22 compared to 10.9% in 2020-21. This is much lower when compared to the World Bank estimates of 23.2% for 2020.

In afternoon deals, markets managed to trade in green, as some support came with the Reserve Bank of India (RBI) in its latest monthly data on India’s International Trade in Services showed that the country’s services exports increased by 20.2 per cent year-on-year to $23.26 billion in July 2022. However, the July exports were lower than $25.29 billion in June this fiscal. But, in the last leg of the trade, indices failed to hold gains and ended near their neutral lines, amid a private report stating that India’s current account deficit (CAD) may hit a nine-year high in the June quarter of FY23 with the net exports ratio touching 5.3 per cent of gross domestic product (GDP) in the first quarter. Some concerns also came after another report stated that though investments as a percentage of gross domestic product (GDP) rose year-on-year in the first quarter of 2022-23 (Q1FY23), they are still below the 30 per cent mark that is required to put the economy on a sustained growth path.

On the global front, European markets were trading higher helped by the likely resumption of Russian gas supplies to Europe, ahead of the release of the key U.S. monthly jobs report. Asian markets were trading mostly in red, as consumer prices in South Korea were up 5.7 percent on year in August. That was shy of expectations for an increase of 6.1 percent and was down from the 24-year high of 6.3 percent in July. On a monthly basis, consumer prices fell 0.1 percent versus forecasts for an increase of 0.3 percent and down from the 0.5 percent gain in the previous month. Back home, the power sector stocks remained in focus, as the power ministry in its latest data has said that India's power consumption grew marginally by nearly 2 per cent year-on-year to 130.35 billion units (BU) in August 2022. Power consumption in August last year was recorded at 127.88 BU, higher than 109.21 BU in the same month of 2020.

The BSE Sensex ended at 58803.33, up by 36.74 points or 0.06% after trading in a range of 58558.64 and 59108.66. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.35%, while Small cap index up by 0.04%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 1.13%, Industrials up by 0.87%, Bankex up by 0.40%, FMCG up by 0.33% and Telecom up by 0.08%, while Oil & Gas down by 0.99%, Energy down by 0.95%, Metal down by 0.93%, Basic Materials down by 0.62% and Auto down by 0.46% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were HDFC up by 1.75%, ITC up by 1.72%, Larsen & Toubro up by 1.49%, HDFC Bank up by 0.95% and Axis Bank up by 0.92%. On the flip side, Maruti Suzuki down by 1.19%, Reliance Industries down by 1.19%, Indusind Bank down by 1.04%, Ultratech Cement down by 0.98% and Nestle down by 0.91% were the top losers. (Provisional)

Meanwhile, the Apparel Export Promotion Council (AEPC) in its latest report has showed that apparel exports rose by about 32 per cent to $4.5 billion during April-June this fiscal as against $3.40 billion in the same period last year. In 2021-22, apparel exports stood at $16.2 billion.

Further, AEPC chairman Naren Goenka said that free trade agreements with countries including UAE, Australia and the UK will help neutralise the advantage which India's competitors use to enjoy in some of the important markets. He said ‘to match the growing global demand, our scale has to be larger and skills have to be matched.’

AEPC chairman also noted that the council is making efforts towards promoting brand India at various global platforms as a trusted supplier by showcasing its strength on sustainability, circularity and ethical sourcing. Meanwhile, the council requested the government to announce new Technology Upgradation Fund Scheme (TUFS) and production-linked incentive scheme for the apparel sector.

The CNX Nifty ended at 17539.45, down by 3.35 points or 0.02% after trading in a range of 17476.45 and 17643.85. There were 15 stocks advancing against 35 stocks declining on the index. (Provisional)

The top gainers on Nifty were ITC up by 1.75%, Adani Ports & SEZ up by 1.69%, HDFC up by 1.67%, Larsen & Toubro up by 1.44% and HDFC Bank up by 0.91%. On the flip side, BPCL down by 2.84%, Shree Cement down by 2.31%, Hero MotoCorp down by 1.79%, Hindalco down by 1.67% and ONGC down by 1.45% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 50.98 points or 0.71% to 7,199.48, France’s CAC increased 41.79 points or 0.69% to 6,076.10 and Germany’s DAX was up by 175.16 points or 1.39% to 12,805.39.

Asian markets settled mostly lower on Friday tracking negative global cues overnight as traders remained cautious and concerned about the outlook for interest rates ahead of US jobs data due later in the day. Japanese shares declined, while the Japanese Yen’s slide to a fresh 24-year low against the US dollar and breaching the key psychological level of 140. Chinese shares ended almost flat as concerns over global growth following fresh lockdowns in the world’s second largest economy dented market sentiments.