Post Session: Quick Review

Local equity markets ended first day of trading week in red zone amid volatility. Domestic markets made cautious start, as traders were worried after central bank showed that the Reserve Bank of India’s (RBI’s) foreign exchange reserves declined by $1.1 billion to $529.99 billion in the week ended November 4. Soon, markets traded in red territory, as traders failed to draw any sense of relief, as Reserve Bank Governor Shaktikanta Das exuded confidence that India will continue to be the fastest growing major economy with a likely growth rate of 7% in 2022-23 on the back of strong macroeconomic fundamentals and financial sector stability. Besides, India’s industrial production, measured in terms of the Index of Industrial Production (IIP), expanded by 3.1 per cent in September 2022, boosted by manufacturing, mining and power sectors. It had expanded by 4.4 per cent in September 2021.

Indices continued their downward move in afternoon session, as sentiments remained down-beat after private report stated that asset management companies mobilised Rs 17,805 crore through 67 new fund offerings (NFOs) in the September 2022 quarter, a 64 per cent decline from the year-ago period, on expensive valuations and high volatility in equity markets. However, losses got restricted to trade near neutral line, as traders took some support after India’s inflation based on wholesale price index (WPI) eased further 8.39% in the month of October 2022 as against 10.70% recorded in September 2022, primarily contributed by fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products; minerals etc. But, markets failed to erase all losses and once again extended their losses in last leg of trade, as traders were cautious ahead of October CPI data released to be later in day.

On the global front, European markets were trading higher continuing the previous week’s positive tone although gains are limited amid caution over the strength of the region's economic recovery. Asian markets ended mostly in red amid varied sentiments about coronavirus restrictions easing in China and global interest rate increases. Bach home, in scrip specific, Life Insurance Corporation of India (LIC) ended higher on the back of strong quarterly earnings that the insurance behemoth posted for the July-September period. The company posted a standalone net profit of Rs 15,952 crore for the quarter ended September (Q2), which is sharply higher than the Rs 1433 crore quarterly net profit a year ago.

The BSE Sensex ended at 61,624.15, down by 170.89 points or 0.28% after trading in a range of 61,572.03 and 61,916.24. There were 16 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.05%, while Small cap index was up by 0.25%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 1.48%, Realty up by 1.05%, IT up by 0.77%, Healthcare up by 0.56% and TECK was up by 0.46%, while FMCG down by 1.29%, PSU down by 0.72%, Power down by 0.69%, Capital Goods down by 0.66%, Utilities down by 0.49% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Kotak Mahindra Bank up by 1.26%, Indusind Bank up by 1.04%, Tata Steel up by 1.02%, Maruti Suzuki up by 0.73% and Infosys up by 0.72%. On the flip side, Dr. Reddy's Lab down by 3.65%, ITC down by 2.43%, Hindustan Unilever down by 1.78%, SBI down by 1.40% and ICICI Bank down by 1.36% were the top losers. (Provisional)

Meanwhile, India’s inflation based on wholesale price index (WPI) eased further 8.39% in the month of October 2022 as against 10.70% recorded in September 2022, primarily contributed by fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products; minerals etc.

Component wise, primary articles index, having weight of 22.62%, increased by 2.72% to 181 (provisional) in October 2022 from 176.2 (provisional) for the month of September 2022, as prices of Crude Petroleum & Natural Gas and Food Articles increased in October 2022 as compared to September 2022. However, prices of Non-food Articles and Minerals declined in October 2022 as compared to September 2022.

Fuel & Power index, having weight of 13.15%, declined by 1.65% to 155.2 (provisional) in October 2022 from 157.8 (provisional) for the month of September 2022. Prices of Coal increased in October 2022 as compared to September 2022. Prices of Mineral Oils declined in October 2022 as compared to September 2022. Prices of electricity remain unchanged.

Besides, Manufactured Products constituting the major portion of the index with weight of 64.23%, declined by 0.42% to 141.9 (provisional) in October 2022 from 142.5 (provisional) for the month of October 2022. Meanwhile, for the month of August 2022 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011- 12=100) stood at 153.2 and 12.48% respectively.

The CNX Nifty ended at 18,329.15, down by 20.55 points or 0.11% after trading in a range of 18,311.40 and 18,399.45. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindalco up by 5.98%, Apollo Hospital up by 3.06%, Tata Motors up by 2.41%, Grasim Industries up by 2.34% and Kotak Mahindra Bank up by 1.25%. On the flip side, Dr. Reddy's Lab down by 3.87%, ITC down by 2.57%, Coal India down by 2.39%, Hindustan Unilever down by 1.81% and SBI down by 1.46% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 28.31 points or 0.39% to 7,346.35, France’s CAC increased 18.03 points or 0.27% to 6,612.65 and Germany’s DAX was up by 22.09 points or 0.16% to 14,246.95.

Most of the Asian markets finished in red on Monday, as the hawkish comments by Federal Reserve Chairman and rising Covid cases in China raised concerns over global economic growth, and profit booking after previous sessional huge gains. However, some losses were capped in the session amid news that China lifted some of its covid curbs and as the government affirmed some plans for financial institutions to rescue the property sector. Japan’s Nikkei retreated from its two-month high-rate mirroring negative cues in the global market. Hang Seng and Shanghai were also in negative trend as China’s policy shifts began to fade and caution ahead to Tuesday’s slew of Chinese economic data for October.