Post Session: Quick Review

Last trading day of the week ended on a higher note, with both Sensex and Nifty closing in green terrain.  After a strong start, markets remained higher for the most part of the session, taking support with Finance Minister Nirmala Sitharaman's statement that India has ramped up the import of crude oil from Russia at discounted prices amid sanctions on Moscow as part of the country's inflation management. Adding more optimism, foreign institutional investors (FIIs) have net bought shares worth Rs 2,913.09 crore on September 8, as per provisional data available on the NSE.

Sentiments were positive, after Prime Minister Narendra Modi highlighted the efforts of the Central government for the welfare of the citizens, including the ones toward agriculture and rural households and said that it is the government's priority to support crores of farmers all across the nation at every step. Besides, the joint study conducted by both countries for the proposed Comprehensive Economic Partnership Agreement (CEPA) said that India’s exports to Bangladesh may increase by additional $10 billion in a time span of five years if both countries sign a free trade agreement (FTA).

However, in the second half of the trading session, markets cut gains, as the Centre for Monitoring Indian Economy said consumer sentiments in India deteriorated in August 2022 and in the first week of September, after having improved substantially in the previous month, with significant dip in urban sentiments. According to CMIE, the Index of Consumer Sentiments (ICS) shrunk by 0.5% in August, after having risen by an impressive 6.7% in July, and further by a 3.1% in the first week of September. Besides, India Ratings in its latest report has said that falling wage growth is emerging as a bigger worry in India as it leads to tepid demand and results in under-utilisation of capacity, further widening the output gap.

On the global front, European markets were trading higher, as investors digest the European Central Bank’s jumbo rate hike ahead of a key EU meeting to discuss plans to tackle the region’s energy crisis. Asian markets settled higher on Friday, after consumer prices in China were up 2.5 percent on year in August. That was shy of forecasts for 2.8 percent and down from 2.7 percent in July. On a monthly basis, inflation fell 0.1 percent versus expectations for an increase of 0.2 percent and slowing from a 0.5 percent gain in the previous month.

The BSE Sensex ended at 59793.14, up by 104.92 points or 0.18% after trading in a range of 59634.39 and 60119.80. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.16%, while Small cap index up by 0.18%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 2.06%, TECK up by 1.59%, Bankex up by 0.51%, Metal up by 0.50% and Auto up by 0.44%, while Telecom down by 0.71%, Utilities down by 0.62%, Realty down by 0.49%, Power down by 0.49% and Capital Goods down by 0.34% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tech Mahindra up by 3.32%, Indusind Bank up by 2.60%, Infosys up by 2.43%, HCL Tech. up by 1.90% and Maruti Suzuki up by 1.83%. On the flip side, Ultratech Cement down by 1.94%, Mahindra & Mahindra down by 1.41%, Larsen & Toubro down by 1.26%, Bajaj Finance down by 1.03% and Titan Co down by 0.95% were the top losers. (Provisional)

Meanwhile, assuring that India will take decisions on different aspects of the frameworks of the India-Pacific Economic Forum (IPEF) based on national interest, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal has expressed hope that in a day’s time, IPEF would finalize a framework within which member nations could interact on different areas of mutual interest.

Goyal further noted that in this day and age of work from home, new opportunities have opened up for youngsters, especially the young people in tier 2 and 3 cities and remote areas to provide cost-effective solutions to US companies and it has been received with a great deal of excitement by US businesses.

Talking on the upskilling initiative he launched in San Francisco, SETU, the Minister said that India would be its beneficiaries too with youngsters, especially girls, who have tremendous potential standing to gain from the training and upskilling being offered by the reputed firms who are part of the initiative.

The CNX Nifty ended at 17833.35, up by 34.60 points or 0.19% after trading in a range of 17786.00 and 17925.95. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tech Mahindra up by 3.40%, Indusind Bank up by 2.60%, Adani Ports & SEZ up by 2.46%, Infosys up by 2.42% and HCL Tech. up by 1.87%. On the flip side, Ultratech Cement down by 1.97%, Mahindra & Mahindra down by 1.56%, SBI Life Insurance down by 1.54%, HDFC Life Insurance down by 1.44% and Larsen & Toubro down by 1.25% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 109.03 points or 1.5% to 7,371.09, France’s CAC increased 88.53 points or 1.45% to 6,214.43 and Germany’s DAX was up by 194.25 points or 1.51% to 13,098.57.

Asian markets settled higher on Friday, tracking Wall Street gains overnight as investors digested US Federal Reserve Chair Jerome Powell’s hawkish comments on interest rate hikes to combat runaway inflation. Chinese shares ended up after data showed China’s consumer inflation came in at 2.5% in August, lower than the 2.7% recorded in July. Japanese shares gained even as the supersized interest rate hike by the European Central Bank and its commitment to hike rates aggressively to fight inflation. Meanwhile, South Korean markets were closed for Chuseok fall harvest holiday and Taiwan markets were closed for Mid-Autumn festival holiday.