Post Session: Quick Review

Indian equity benchmarks traded with volatility throughout the day and somehow managed to end the sessions slightly in green terrain on Friday. Key indices made cautious start, as traders were concerned with Commerce and Industry Minister Piyush Goyal’s statement that the ongoing global uncertainty and recessionary trends could have some implications on India's exports. Traders failed to take support from finance ministry in its latest report stated that India is well placed to grow at a ‘moderately brisk rate’ in the coming years on the back of macroeconomic stability, despite global monetary tightening. It further said inflationary pressures will ease in the coming months with the arrival of kharif crops and at the same time job opportunities will increase with improvement in business prospects. Markets continued their choppy trade even after latest Periodic Labour Force Survey (PLFS) released by the National Statistical Office (NSO) showed that India’s urban unemployment rate for persons aged 15 years and above in urban areas dropped for the fifth consecutive quarter in the July-September period of 2022-23 (FY23) to 7.2% from 9.8% a year ago.

Mirroring weak Asian markets cues, domestic markets continued to show a sluggish trend in afternoon session, as traders were also concerned about the surge in COVID cases in China weighing on global growth. However, in late afternoon session, indices trimmed most of their losses, as traders found some solace after Chief Economic Advisor V Anantha Nageswaran expressed hope that the economy will maintain the trend growth rate of 6.5 per cent and above for the rest of the years in the current decade. He added the economy will close the current fiscal logging in a growth of 6.5-7%. Some additional support also came with Moody’s statement that recession is unlikely in the APAC region in the coming year, although the area will face headwinds from higher interest rates and slower global trade growth.

On the global front, European markets were trading mostly in red after a European Central Bank official warned that further aggressive interest rate rises in the eurozone may be needed to combat persistent inflation. Asian markets ended mostly in red amid concerns over record-high domestic daily COVID-19 cases in China. Back home, Foreign Institutional Investors (FIIs) turned buyers as they bought shares worth Rs 1,231.98 crore on Thursday, as per exchange data showed. Sector wise, hotel industry remained in limelight after Crisil Ratings in its latest report has said that the Indian hotel industry is likely to witness 23 per cent growth in revenue this fiscal (FY23) over the pre-pandemic level, driven by a strong recovery in business travel and continued traction in leisure travel.

The BSE Sensex ended at 62,293.64, up by 20.96 points or 0.03% after trading in a range of 62,115.66 and 62,447.73. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.77%, while Small cap index was up by 0.69%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 1.08%, Auto up by 0.87%, Energy up by 0.84%, Oil & Gas up by 0.69% and PSU was up by 0.61%, while Bankex down by 0.33%, Power down by 0.31%, FMCG down by 0.19% and Utilities was down by 0.07% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Reliance Industries up by 1.21%, Wipro up by 1.12%, Axis Bank up by 1.02%, Indusind Bank up by 0.86% and Tech Mahindra up by 0.84%. On the flip side, Nestle down by 1.30%, Kotak Mahindra Bank down by 0.97%, ICICI Bank down by 0.87%, Bajaj Finance down by 0.69% and Titan Company down by 0.68% were the top losers. (Provisional)

Meanwhile, the finance ministry in its latest report 'Monthly Economic Review for October 2022'  has said that India is well placed to grow at a ‘moderately brisk rate’ in the coming years on the back of macroeconomic stability, despite global monetary tightening. It further said inflationary pressures will ease in the coming months with the arrival of kharif crops and at the same time job opportunities will increase with improvement in business prospects.

The report also cautioned that the US monetary tightening is a ‘future risk’ which could lead to dip in stock prices, weaker currencies and higher bond yields, resulting in higher borrowing costs for many governments around the world. It said a rapid deterioration in global growth prospects, high inflation, and worsening financial conditions have increased fears of an impending global recession. The spillovers of the global slowdown may dampen India's exports businesses outlook. However, resilient domestic demand, a re-invigorated investment cycle along with strengthened financial system and structural reforms will provide impetus to economic growth going forward.

The ministry said, so far in current year, India's food security concerns have been addressed and will continue to receive the utmost priority from the government. It added that easing international commodity prices and new kharif arrival are also set to dampen inflationary pressures in the coming months. India's wholesale and retail price inflation fell in October after remaining high for most part of the year mainly due to supply chain disruptions following outbreak of the Russia-Ukraine war in February. Retail or CPI inflation fell to 3-month low of 6.7 per cent, while wholesale or WPI inflation was at 19-month low of 8.39 per cent.

The CNX Nifty ended at 18,512.75, up by 28.65 points or 0.15% after trading in a range of 18,445.10 and 18,534.90. There were 29 stocks advancing against 21 stocks declining on the index. (Provisional)

The top gainers on Nifty were HDFC Life Insurance up by 2.45%, Tata Motors up by 2.31%, Reliance Industries up by 1.49%, Hero MotoCorp up by 1.31% and Coal India up by 1.27%. On the flip side, Nestle down by 1.04%, ICICI Bank down by 0.91%, Kotak Mahindra Bank down by 0.85%, Titan Company down by 0.57% and Apollo Hospital down by 0.53% were the top losers. (Provisional)

European markets were trading mostly in red, France’s CAC decreased 8.59 points or 0.13% to 6,698.73 and Germany’s DAX was down by 19.16 points or 0.13% to 14,520.40. On the flip side, UK’s FTSE 100 was up by 15.15 points or 0.2% to 7,481.75.

Asian markets settled mostly lower on Friday on account of concerns over worsening Covid-19 situation in China along with subdued trading after the Thanksgiving holiday in the United States. Japanese shares fell after data showed inflation in Tokyo picked up more speed to hit its fastest pace in 40 years. But Japan’s Nikkei average gained for the week after the minutes of the Federal Reserve’s November meeting indicated that the central bank was considering a slower pace of interest rate hikes in the coming months. Chinese shares rose, boosted by property developers after China's biggest commercial banks pledged at least $162 billion in fresh credit to the beleaguered sector.