Post Session: Quick Review

Indian equity markets ended lower for second consecutive session on Thursday ahead of US inflation data. Bourses made gap down opening, as traders were cautious after private report said that India's GDP growth will slow down to 5.5 per cent in FY24 from the 6.9 per cent expected in the current fiscal 2022-23. The slowdown was attributed to slowing global growth and tightening of monetary policies. It said India will be among the lesser affected economies in the world, but made it clear that the world's fifth largest economy is not immune from global headwinds. Besides, Rupee depreciated against the US dollar also dampened the sentiments. Markets continued their sluggish trade afternoon session even after private report stated that that Indian consumer price inflation is likely to slow down in October to 6.73% on weaker food price rises and a strong base one year ago but remained stubbornly well above the 6% upper limit of the Reserve Bank of India's tolerance band.

In late afternoon session, indices touched their day’s low points. Traders failed to get any sense of relief with private report stating that with an average gross domestic product growth of 5.5 per cent in the past decade, India is already the fastest-growing economy in the world. It added that India is expected to overtake Japan and Germany to become the world’s third-largest economy by 2027. India is also gaining power in the world order. But, markets pared most of their losses in last leg of trade as traders found some solace after India-US CEO forum discussed ways to further strengthen economic ties between the two countries. It was chaired jointly by Commerce and Industry Minister Piyush Goyal and Gina Raimondo, US Secretary of Commerce. In the meeting, Goyal highlighted the significant growth of the India-US economic relations, driven by the common interest of promoting sustainability, emerging technologies, globally resilient supply chains and small businesses.

On the global front, European markets were trading lower as investors fretted about inconclusive U.S. midterm election results and tightening COVID-19 curbs in China. Asian markets ended mostly in red, as a surge in COVID-19 cases spurred lockdowns in the southern Chinese manufacturing hub of Guangzhou and uncertainty continued over the outcome of the U.S. midterm elections. Back home, sector wise, auto industry remained in limelight after Federation of Automobile Dealers Associations (FADA) in its latest data has said that the overall retail sales of electric vehicles (EVs), including passenger vehicles, in the country surged nearly 185 per cent year-on-year to 1,11,971 units in October 2022. EV sales stood at 39,329 units in October 2021. 

The BSE Sensex ended at 60,613.70, down by 419.85 points or 0.69% after trading in a range of 60,425.47 and 60,848.73. There were 7 stocks advancing against 23 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 1.02%, while Small cap index was down by 1.05%. (Provisional)

The losing sectoral indices on the BSE were Auto down by 2.06%, Consumer Durables down by 1.36%, PSU down by 1.14%, Metal down by 0.94%, Industrials down by 0.85%, while there were no gaining sectoral indices on the BSE.  (Provisional)

The top gainers on the Sensex were HDFC Bank up by 1.29%, Bharti Airtel up by 1.09%, Kotak Mahindra Bank up by 0.83%, Dr. Reddy's Lab up by 0.23% and Hindustan Unilever up by 0.11%. On the flip side, Axis Bank down by 3.71%, Mahindra & Mahindra down by 2.98%, Bajaj Finserv down by 2.97%, Titan Company down by 2.54% and Bajaj Finance down by 2.12% were the top losers. (Provisional)

Meanwhile, the Government has allowed international trade settlements in the Indian rupee for export promotion schemes under foreign trade policy (FTP).  The Government of India has made suitable amendments in the Foreign Trade Policy and Handbook of Procedures to allow for international trade settlement in Indian rupees (INR) i.e. invoicing, payment, and settlement of exports/imports in Indian rupees.

It stated that given the rise in interest in internationalisation of Indian Rupee, the given Policy amendments have been undertaken to facilitate and to bring ease in international trade transactions in Indian Rupees. It also mentioned that changes have been notified for imports for exports, export performance for recognition as Status Holders, realisation of export proceeds under advance authorisation and Duty-Free Import Authorisation schemes, and realisation of export proceeds under export promotion capital goods scheme.

The Directorate General of Foreign Trade (DGFT), under the commerce ministry, has already allowed invoicing, payment and settlement of exports and imports in Indian rupee, a move aimed at facilitating trade in the domestic currency. In July, the Reserve Bank of India (RBI) had asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency.

The CNX Nifty ended at 18,028.20, down by 128.80 points or 0.71% after trading in a range of 17,969.40 and 18,103.10. There were 11 stocks advancing against 39 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hero MotoCorp up by 2.30%, HDFC Bank up by 1.09%, Kotak Mahindra Bank up by 0.99%, ONGC up by 0.87% and Bharti Airtel up by 0.82%. On the flip side, Tata Motors down by 4.84%, Axis Bank down by 3.43%, Bajaj Finserv down by 2.99%, Mahindra & Mahindra down by 2.94% and Titan Company down by 2.84% were the top losers. (Provisional) 

European markets were trading lower, UK’s FTSE 100 decreased 12.29 points or 0.17% to 7,283.96, France’s CAC decreased 27.91 points or 0.43% to 6,402.66 and Germany’s DAX was down by 3.41 points or 0.02% to 13,662.91.

Asian markets settled mostly down on Thursday, tracking fall in Wall Street overnight ahead of the release of key US inflation data later in the day that is expected to set the tone for monetary policy in the coming months. Market sentiments weakened further amid uncertainty stemming from US midterm elections. Meanwhile, ongoing volatility in the cryptocurrency markets also dented investors' risk appetite. Chinese shares slipped amid growing concerns over economic slowdown as a surge in covid-19 cases spurred lockdowns in the southern Chinese manufacturing hub of Guangzhou.