Post Session: Quick Review

Indian equity benchmarks ended Wednesday’s trading session in red. The start of the day was on a lower note, as domestic ratings agency Icra said India's current account deficit (CAD) will widen to 5 per cent of the GDP in the September quarter due to higher merchandise trade deficit. The trade deficit has doubled to $28.7 billion for August due to a 36.8 per cent expansion in imports and a 1.2 per cent decline in export earnings. Markets remained lower for the entire trading session, as domestic sentiments remained pessimistic, amid a private report estimating that India's consumer price index (CPI) firmed to 6.9% year-on-year in August, while core inflation likely stood at 6%.

However, in the afternoon deals, key indices staged some recovery, as some losses got trimmed, amid reports that India’s urban unemployment rate improved remarkably in the April-June quarter. The National Statistical Office revealed that it dipped to 7.6 per cent during the April-June quarter from 12.6 per cent during the corresponding quarter a year ago. It is a clear indication that the country's economy is coming out the grip of Covid-induced slowdown. Sentiments got some support with Finance Minister Nirmala Sitharaman’s statement that the country's economic growth remains a priority for the government, as inflation has come down to a manageable level. She stated Job creation and equitable distribution of wealth remain the other focus areas

On the global front, European markets were trading in red as investors continued to dwell on the recessionary outlook in the region and as inflationary pressures continue to grow. Asian markets were trading in red, as China's exports grew less than expected in August. The figures published by the General Administration of Customs revealed that Exports increased 7.1 percent on a yearly basis in August. At the same time, the annual increase in imports slowed to 0.3 percent from 2.3 percent in July. Imports were forecast to grow 1.1 percent. Back home, traders overlooked Commerce and Industry Minister Piyush Goyal’s statement that India's goods and services exports have already crossed $675 billion in the last fiscal year and the country is now aspiring to take international trade to $ 2 trillion by 2030.

The BSE Sensex ended at 59028.91, down by 168.08 points or 0.28% after trading in a range of 58722.89 and 59166.46. 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 0.46%, while Small cap index up by 0.73%. (Provisional)

The top gaining sectoral indices on the BSE were Basic Materials up by 0.94%, Telecom up by 0.87%, Healthcare up by 0.69%, Consumer Durables up by 0.59% and Industrials up by 0.43%, while Auto down by 1.12%, Power down by 0.91%, Utilities down by 0.75% and Bankex down by 0.51% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Ultratech Cement up by 4.13%, TCS up by 0.71%, Sun Pharma up by 0.71%, Wipro up by 0.69% and Bajaj Finance up by 0.56%. On the flip side, Indusind Bank down by 1.69%, Mahindra & Mahindra down by 1.32%, Maruti Suzuki down by 1.15%, Bharti Airtel down by 1.08% and SBI down by 0.95% were the top losers. (Provisional)

Meanwhile, exuding confidence that the Reserve Bank would manage the volatility emerging from the aggressive rate hike stance by the US Fed and the European Central Bank, Finance Minister Nirmala Sitharaman has said that the country's economic growth remains a priority for the government, as inflation has come down to a manageable level.

Finance Minister also underlined the other focus areas such as job creation and equitable distribution of wealth. Talking about fiscal management during the COVID-19 period, she said that India with a targeted fiscal policy managed through a challenging time without printing money.

Referring to the global energy crisis triggered by the ongoing Russia-Ukraine war, she further noted that uncertainty over the availability of crude, and natural gas continues. She also urged for deepening of ties between India and the US in all respects including on payment technology.

The CNX Nifty ended at 17624.40, down by 31.20 points or 0.18% after trading in a range of 17484.30 and 17650.75. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Shree Cement up by 7.05%, Ultratech Cement up by 4.24%, Adani Ports & SEZ up by 2.89%, Coal India up by 2.64% and Britannia up by 1.64%. On the flip side, Tata Motors down by 2.60%, Bajaj Auto down by 2.13%, Indusind Bank down by 1.70%, Mahindra & Mahindra down by 1.28% and Maruti Suzuki down by 1.17% were the top losers. (Provisional)

European markets were trading in red, UK’s FTSE 100 fell 52.12 points or 0.71% to 7,248.32, Germany’s DAX dropped 47.18 points or 0.37% to 12,826.11 and France’s CAC was down by 25.42 points or 0.42% to 6,079.19.

Asian markets settled mostly lower on Wednesday as strong services activity data released overnight reinforced expectations for a more aggressive pace of FOMC interest rate hikes. Japanese shares declined despite exporters' boost from weak yen. Chinese shares traded almost flat with positive momentum, even as trade data missed expectations that added to concerns over the health of the global economy. Data showed that China’s exports grew 7.1% in August from a year earlier, but missed forecast growth of 12.8%.