Post Session: Quick Review

Bears were holding a tight grip over the Dalal Street on Tuesday with Nifty and Sensex settling below the psychological 18650 and 62700 levels respectively. Key gauges made negative start, as traders remained concerned ahead of RBI Monetary Policy Committee meeting outcome. Some cautiousness also came as exchange data showed Foreign Institutional Investors (FIIs) offloaded shares worth Rs 1,139.07 crore on Monday. Markets were trading in sluggish mood, as traders paid no heed towards private report stating that India’s central bank will probably start slowing the pace of interest-rate increases on Wednesday, signaling it’s near the end of its aggressive tightening cycle.

Tracking weak global cues, bourses continued to show lackluster trade in afternoon session, as traders were cautious after World Bank's India Development Update said India is affected by spillovers from the US, Euro area and China. It however saw the government meeting the fiscal deficit target of 6.4 percent of the GDP in 2022-23. Besides, World Bank expects the inflation at 7.1 percent in current fiscal year. Traders took note of report that India has proposed dovetailing climate action with sustainable development at the first meeting of the G20 Sherpas, making a clear bid to bring issues facing the emerging economies and the global south in sharp focus on the world stage. The discussions focussed on technological transformation in the digital economy, health and education, green development and India's Lifestyle for Environment (LiFE) initiative. However, in last leg of trade, losses got restricted, as traders got some support after World Bank revised upwards its GDP growth forecast for India to 6.9 per cent for 2022-23, saying the economy was showing higher resilience to global shocks. In October, it had cut India’s GDP growth forecast to 6.5 per cent from 7.5 per cent earlier. Now, it has upgraded the projection to 6.9 per cent for 2022-23 (April 2022 -March 2023).

On the global front, European markets were trading mostly in green with stronger than expected German industrial production numbers helping to balance out generally negative global sentiment. Asian markets ended mostly in red with benchmarks in Hong Kong, South Korea, Australia and New Zealand closing below Monday's levels, amidst anxiety over the Fed's stance given the strong service activity readings. Rate hike by Reserve Bank of Australia also added to the negative sentiment. Shanghai Composite as well as the Shenzen Component Index gained as hopes of relaxation in Covid curbs drove sentiment. Japanese Shares benefitted from a weaker yen. Back home, the GST Council in its next meeting is likely to discuss decriminalisation of offences under GST law, along with raising the threshold of launching prosecution to Rs 20 crore, from Rs 5 crore at present.

The BSE Sensex ended at 62,626.36, down by 208.24 points or 0.33% after trading in a range of 62,390.07 and 62,677.84. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.53%, while Small cap index was down by 0.32%. (Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 0.95%, Power up by 0.93%, FMCG up by 0.33%, Energy up by 0.21% and Capital Goods was up by 0.04%, while Metal down by 1.68%, TECK down by 1.37%, IT down by 1.36%, Telecom down by 1.07% and Realty was down by 0.73% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindustan Unilever up by 1.42%, Nestle up by 1.16%, Ultratech Cement up by 0.99%, Power Grid up by 0.81% and Axis Bank up by 0.75%. On the flip side, Tata Steel down by 2.42%, Dr. Reddy's Lab down by 2.35%, Infosys down by 1.56%, SBI down by 1.32% and Bharti Airtel down by 1.27% were the top losers. (Provisional)

Meanwhile, with an aim to solve challenges of the agriculture sector, Union Minister of Agriculture and Farmers Welfare, Narendra Singh Tomar has said that the Government of India is continuously working efficiently under the leadership of Prime Minister. He said that the number of small farmers is more in the country, the government believes that if their strength increases, then the agriculture sector will improve and production will also increase, the government is working in this direction.

The minister also noted that traditional farming methods used to run in the agriculture sector in India, now in the current perspective there is a need for investment in the agriculture sector, in view of which the government has initiated many reforms, incorporated technology in agriculture and to ensure the eligible farmers are provided aid with transparency, the Digital Agriculture Mission has also been started in the country.

Besides, Tomar said that with the aim of further increasing investment in agriculture, the Government of India has allocated a special package of over Rs 1.5 lakh crore for agriculture and allied sectors under the Atmanirbhar Bharat Abhiyan. Work on these provisions has started, including the Rs. 1 lakh crore Agriculture Infrastructure Fund. Once these are implemented, the Indian agriculture sector will be rejuvenated.

The CNX Nifty ended at 18,642.75, down by 58.30 points or 0.31% after trading in a range of 18,577.90 and 18,654.90. There were 23 stocks advancing against 27 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Enterprises up by 2.58%, Hindustan Unilever up by 1.32%, Bajaj Auto up by 0.95%, Nestle up by 0.80% and Power Grid up by 0.72%. On the flip side, BPCL down by 2.91%, Tata Steel down by 2.50%, Dr. Reddy's Lab down by 2.35%, Hindalco down by 2.33% and UPL down by 1.86% were the top losers. (Provisional)

European markets were trading mostly in green, France’s CAC increased 0.39 points or 0.01% to 6,697.35 and Germany’s DAX was up by 10.97 points or 0.08% to 14,458.58. On the flip side, UK’s FTSE 100 was down by 11.87 points or 0.16% to 7,555.67.

Asian markets ended mostly lower on Tuesday, tracking weakness in Wall Street overnight amidst anxiety and uncertainty over US Federal Reserve interest rate hikes. The Reserve Bank of Australia raised rates by 25 basis points also added more pressure on Asian equities. Although, hopes of relaxation in Covid curbs in China capped further fall in Asian equities.