Post Session: Quick Review

Indian equity benchmarks ended deeply in red on Monday tracking weak global cues. Indices made a negative start, as traders were cautious as government data showed that the output of eight core infrastructure sectors grew 3.3 per cent in August -- the lowest in nine months -- as against 12.2 per cent in the year-ago period. Markets added more losses as foreign investors turned sellers again in September and pulled out over Rs 7,600 crore from the Indian equity markets amid hawkish stance by the US Fed and sharp depreciation in rupee.

However, in late morning session, key indices cut some of their losses, as traders found some solace as gross Goods and Services Tax (GST) collections surged 26% in the month of September 2022 at Rs 1,47,686 crore over the same month last year. Out of total, CGST is Rs 25,271 crore, SGST is Rs 31,813 crore, IGST is Rs 80,464 crore (including Rs 41,215 crore collected on import of goods) and Cess is Rs 10,137 crore (including Rs 856 crore collected on import of goods). But, in late afternoon session, markets once again suffered with huge losses to touch day’s low points, as oil prices spiked on speculation over OPEC+ cutting production substantially this week. Traders ignored report that Centre for Monitoring Indian Economy (CMIE) has stated that India's unemployment rate drastically dropped to 6.43% in September due to an increase in labour participation in the rural and urban areas. During August, India's unemployment rate surged to a one-year high of 8.3% as employment sequentially fell by 2 million to 394.6 million.

On the global front, European markets were trading lower led by technology and financial stocks, as investors fretted about the economic health of the continent due to rampant inflation and subsequent aggressive interest rate hikes to tame it. Asian markets ended mostly in red as inflation and interest-rate worries lingered, and oil prices spiked on speculation over OPEC+ cutting production substantially this week. Back home, sector wise, Oil and gas sector remained in focus as the government slashed windfall tax on production and diesel exports.

The BSE Sensex ended at 56,788.81, down by 638.11 points or 1.11% after trading in a range of 56,683.40 and 57,454.84. There were 3 stocks advancing against 27 stocks declining on the index (Provisional).

The broader indices were ended in red; the BSE Mid cap index declined 1.24%, while Small cap index was down by 0.54% (Provisional).

The only gaining sectoral indices on the BSE were Healthcare up by 0.81% and Telecom was up by 0.43% while, Power down by 3.24%, Utilities down by 3.14%, Auto down by 2.11%, FMCG down by 2.05% and Bankex was down by 1.69% were the top losing indices on BSE (Provisional).

The only gainers on the Sensex were Dr. Reddy's Lab up by 1.55%, NTPC up by 0.41% and Bharti Airtel up by 0.21%. On the flip side, Maruti Suzuki down by 3.04%, Hindustan Unilever down by 2.74%, Indusind Bank down by 2.48%, Bajaj Finance down by 2.35% and SBI down by 2.23% were the top losers (Provisional).

Meanwhile, the output of eight core industries grew 3.3 per cent in August 2022 -- the lowest in nine months -- as against 12.2 per cent in the year-ago period. The previous low was in November 2021 at 3.2 per cent. It stood at 4.5 per cent in July 2022. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity - comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP). The production growth of eight infrastructure sectors was 9.8 per cent during April-August this fiscal, compared to 19.4 per cent a year ago.

Coal production having 10.33 per cent weight increased by 7.6 per cent in August, 2022 over August, 2021. Its cumulative index increased by 22.7 per cent during April to August, 2022-23 over corresponding period of the previous year. Petroleum Refinery Products–Petroleum Refinery production having 28.04 per cent weight increased by 7.0 per cent in August, 2022 over August, 2021. Its cumulative index increased by 10.8 per cent during April to August, 2022-23 over the corresponding period of previous year. Fertilizers production having 2.63 per cent weight increased by 11.9 per cent in August, 2022 over August, 2021. Its cumulative index increased by 11.4 per cent during April to August, 2022-23 over the corresponding period of previous year.

Steel production having 17.92 per cent weight increased by 2.2 per cent in August, 2022 over August, 2021. Its cumulative index increased by 5.8 per cent during April to August, 2022-23 over the corresponding period of previous year. Cement production having 5.37 per cent weight increased by 1.8 per cent in August, 2022 over August, 2021. Its cumulative index increased by 10.6 per cent during April to August, 2022-23 over the corresponding period of previous year. Electricity generation having 19.85 per cent weight increased by 0.9 per cent in August, 2022 over August, 2021. Its cumulative index increased by 10.5 per cent during April to August, 2022-23 over the corresponding period of previous year.

However, Crude Oil production having 8.98 per cent weight declined by 3.3 per cent in August, 2022 over August, 2021. Its cumulative index declined by 1.1 per cent during April to August, 2022-23 over the corresponding period of previous year. Natural Gas production having 6.88 per cent weight declined by 0.9 per cent in August, 2022 over August, 2021. Its cumulative index increased by 2.6 per cent during April to August, 2022-23 over the corresponding period of previous year.

The CNX Nifty ended at 16,887.35, down by 207.00 points or 1.21% after trading in a range of 16,855.55 and 17,114.65. There were 9 stocks advancing against 41 stocks declining on the index (Provisional).

The top gainers on Nifty were ONGC up by 4.42%, Dr. Reddy's Lab up by 1.94%, Cipla up by 1.42%, BPCL up by 1.31% and Coal India up by 1.27%. On the flip side, Adani Enterprises down by 8.64%, Eicher Motors down by 5.67%, Adani Ports down by 4.42%, Maruti Suzuki down by 3.18% and Tata Consumer down by 3.10% were the top losers (Provisional).

European markets were trading lower, UK’s FTSE 100 decreased 45.31 points or 0.66% to 6,848.50, France’s CAC decreased 68.41 points or 1.19% to 5,693.93 and Germany’s DAX was down by 107.41 points or 0.89% to 12,006.95.

Asian markets ended mostly lower on Monday as inflation and interest-rate worries lingered, and oil prices spiked on speculation over OPEC+ cutting production substantially this week. Hong Kong’s Hang Seng index ended lower on fears of tightening US monetary policy. Trading volumes were thin as Chinese markets kicked off the Golden Week holiday. South Korean market was also shut. However, Japanese stocks bucked the weak trend, with chip-related firms and energy companies leading the surge. Sentiment was buoyed by the Bank of Japan's tankan survey results showing that corporate capital expenditure plans for the current fiscal year remains strong.