Post Session: Quick Review

Friday turned out to be a wonderful day for Indian equity benchmarks, with both Sensex and Nifty ending on a strong note. The start of the day was in red, as the RBI said India’s current account deficit (CAD) in April-June was at $23.9 billion, or 2.8 per cent of gross domestic product (GDP), much higher than the $13.4 billion, or 1.5 per cent of GDP, in January-March 2022. Besides, foreign institutional investors sold a net Rs 35.99 billion ($441.7 million) worth of equities on Thursday, as per provisional data available with the National Stock Exchange.

But soon, indices turned positive, after S&P Global Ratings said rising rates and increased European energy insecurity are hitting growth in almost every country, but India with an estimated 7.3 per cent growth this fiscal, would be the star among emerging market economies. Further, the Reserve Bank of India (RBI) raised the benchmark lending rate by 50 basis points to 5.90 percent in a bid to check inflation, which has remained above its tolerance level for the past 8 months. This is the fourth consecutive rate hike after a 40 basis points increase in May and a 50 basis point hike each in June and August.

Markets gained traction in afternoon deals to end the trading day with huge gains. Traders found support with Union Minister Piyush Goyal’s statement that India will be the pillar of the global economic revival as it exhibited steady growth and emerged as the fastest-growing country among large economies of the world. Some optimism also came as Economic Affairs Secretary Ajay Seth said India’s economic recovery remains on course, supported by key structural reforms, despite exogenous shocks and challenges.

Domestic sentiments also got a boost, after RBI Governor said that Indian economy continues to be resilient in midst of global turmoil. Investors were positive, as India climbed six notches to 40th position in the Global Innovation Index 2022 on account of improvement in several parameters. According to a report by the Geneva-based World Intellectual Property Organization (WIPO), Switzerland, the United States, Sweden, the United Kingdom and the Netherlands are the world's most-innovative economies.

On the global front, European markets were trading higher as government bond yields pulled back from recent highs and new data showed the U.K. economy has not yet fallen into a recession. Asian markets ended mostly lower, after the manufacturing sector in China continued to contract in September, and at a faster pace, the latest survey from Caixin showed on Friday with a manufacturing PMI score of 48.1. That's down from 49.5 in August and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.

The BSE Sensex ended at 57426.92, up by 1016.96 points or 1.80% after trading in a range of 56147.23 and 57722.63. There were 25 stocks advancing against 5 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.39%, while Small cap index up by 1.45%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 3.49%, Metal up by 2.66%, Bankex up by 2.63%, Consumer Durables up by 1.96% and Power up by 1.94%, while Oil & Gas down by 0.01% was the only losing index on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 4.49%, Indusind Bank up by 3.78%, Bajaj Finance up by 3.28%, Titan Co up by 2.95% and HDFC Bank up by 2.93%. On the flip side, Asian Paints down by 1.26%, Dr. Reddy's Lab down by 0.61%, ITC down by 0.32%, Tech Mahindra down by 0.23% and Hindustan Unilever down by 0.18% were the top losers. (Provisional)

Meanwhile, climbing six notches, India stood at 40th position in the Global Innovation Index 2022 on account of improvement in several parameters. According to a report by the Geneva-based World Intellectual Property Organization (WIPO), India's innovation performance is above average for the upper middle-income group in almost every innovation pillar, with the exception of infrastructure, where it scores below average.

Talking on the development, Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal said that India had come a long way in the Global Innovation Index (GII) from the 81st spot in 2015 to the 40th spot in 2022 today. He also said ‘We were 46 last time the ranking was done. We have also maintained 1st rank in ICT services exports over the years’.

The Minister said that GII has established itself as a tool for Governments across the world to reflect upon policies and their impact. He further added that GII has over the years recognized India’s continuous rise due to the progressive measures taken by the government and industry working hand in hand.

The CNX Nifty ended at 17094.35, up by 276.25 points or 1.64% after trading in a range of 16747.70 and 17187.10. There were 41 stocks advancing against 9 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindalco up by 5.21%, Bharti Airtel up by 4.61%, Indusind Bank up by 3.76%, Bajaj Finance up by 3.25% and Kotak Mahindra Bank up by 3.05%. On the flip side, Asian Paints down by 1.25%, Coal India down by 0.77%, Dr. Reddy's Lab down by 0.57%, Britannia down by 0.56% and Adani Enterprises down by 0.43% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 44.54 points or 0.65% to 6,926.13, France’s CAC increased 57.39 points or 1.01% to 5,734.26 and Germany’s DAX was up by 121.54 points or 1.01% to 12,097.09.

Asian markets settled mostly lower on Friday as Wall Street shares suffered heavy losses overnight on heightened fears of a recession. Growing worries about the United Kingdom's fiscal policy, Europe's energy crisis, hawkish Federal Reserve commentary and the prospect of bigger rate hikes have also weighing on markets. Chinese shares fell, despite the official Chinese PMI showed that the country’s manufacturing sector unexpectedly expanded in September. Japanese shares declined even as Japan's Prime Minister Kishida Fumio planned to spend nearly 7 billion dollars over five years in an economic stimulus package to be announced next week. Data showed that Japan's industrial production and retail sales figures for August beat expectations, and the jobless rate fell to 2.5% in the month. South Korea's factory output contracted for a second month in August, but retail sales jumped 4.3%, marking the fastest gain since May 2020.