Post Session: Quick Review

Indian equities traded in fine fettle throughout the day and ended the day’s trade with gains of above half a percent, as consumer price index (CPI) inflation data came in lower than expected. It was a positive start for the domestics markets as sentiment got boost after CPI based retail inflation eased to an 11-month low of 5.88 per cent in November 2022, mainly due to softening prices of food items. This is the first time in 11 months that the retail inflation print has come within the RBI’s tolerance band of 4 (+/- 2) per cent. The CPI was 6.77 per cent in October 2022, and 4.91 per cent in November last year. Indices continued to move forward, as investors shrugged off data released by the Ministry of Statistics and Programme Implementation showed that India's industrial output, as per the Index of Industrial Production (IIP), contracted by 4 percent in October. Besides, foreign institutional investors (FIIs) sold shares worth Rs 138.81 crore on December 12, as per provisional data available on the NSE.

Key gauges sustained their upturn in afternoon session, as some support came after Finance Minister Nirmala Sitharaman said the Indian Rupee has been strong against every currency. She said the Reserve Bank of India (RBI) has used foreign exchange reserves that it has to intervene in the market to make sure that the Dollar-Rupee fluctuation does not go too much. Furthermore, Reserve Bank of India (RBI) net sold $33.42 billion in the foreign exchange market in the first six months of current fiscal to defend the rupee from excessive volatility. Markets continued to trade with optimistic mood as private report stated that the November inflation print of 5.88 per cent provides impetus to end the rate hike cycle. Markets gathered more points to touch intraday high points in last leg of trade ahead of U.S. inflation data and hoping for signs of easing inflation.

On the global front, European markets were trading higher as investors hope inflation data from the United States later in the day could allow the Federal Reserve to dial down its aggressive approach to interest rate hikes. Traders overlooked Britain's unemployment rate rose to 3.7% in the three months to October but basic wages increased by the most on record excluding the coronavirus pandemic period. Asian markets ended mixed as uncertainty over rising COVID-19 cases in China weighed on regional sentiment, as the country reversed more movement and quarantine measures. Back home, traders took note of External Affairs Minister S Jaishankar’s statement that India and the UAE which have inked a landmark trade deal have seen a veritable transformation in their ties which are now beginning to have a broader ripple impact and he emphasized that they want to use this relationship to shape the changing world.

The BSE Sensex ended at 62,533.30, up by 402.73 points or 0.65% after trading in a range of 62,129.57 and 62,567.92. There were 24 stocks advancing against 6 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.25%, while Small cap index was up by 0.40%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 1.48%, TECK up by 1.32%, IT up by 1.11%, PSU up by 0.73% and Bankex was up by 0.48%, while Realty down by 0.81%, Oil & Gas down by 0.24%, Consumer Durables down by 0.18%, Metal down by 0.12% and Energy was down by 0.07% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Indusind Bank up by 2.23%, Bajaj Finance up by 2.07%, TCS up by 1.54%, HCL Tech up by 1.53% and Infosys up by 1.48%. On the flip side, Nestle down by 0.57%, Tata Steel down by 0.54%, Maruti Suzuki down by 0.36%, Titan Company down by 0.31% and Dr. Reddy's Lab down by 0.17% were the top losers. (Provisional)

Meanwhile, the consumer price index (CPI) based retail inflation eased to an 11-month low of 5.88 per cent in November 2022, mainly due to softening prices of food items. This is the first time in 11 months that the retail inflation print has come within the RBI’s tolerance band of 4 (+/- 2) per cent. The CPI was 6.77 per cent in October 2022, and 4.91 per cent in November last year. Inflation in the food basket was 4.67 per cent in November, against 7.01 per cent in the previous month.

The National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation in its data has showed that Rural CPI (General) in November 2022 stood at 6.09 per cent as against 6.98 per cent in October. The Urban CPI (General) stood at 5.68 per cent in November as against 6.50 per cent in October. The index value for Rural, Urban and Combined CPI (General) stood at 177.8, 175.0 and 176.5 respectively, in November 2022.

As per the data, prices of spices and cereals, up 19.52 per cent and 12.95 per cent respectively in November, saw the highest appreciation among all the goods tracked by the CPI index. Milk products became dearer by 8.16 per cent, meat and fish by 3.87 per cent, and eggs by 4.96 per cent, while vegetables contracted by 8 per cent during the month in review. Also, inflation in Oils and fats and Sugar and Confectionery contracted by 0.63 per cent and 0.25 per cent, respectively.

The CNX Nifty ended at 18,608.00, up by 110.85 points or 0.60% after trading in a range of 18,490.20 and 18,617.25. There were 35 stocks advancing against 15 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indusind Bank up by 2.34%, Bajaj Finance up by 1.75%, Infosys up by 1.61%, HCL Tech up by 1.58% and Mahindra & Mahindra up by 1.53%. On the flip side, Apollo Hospital down by 1.34%, Hindalco down by 0.83%, BPCL down by 0.82%, UPL down by 0.73% and Nestle down by 0.48% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 12.56 points or 0.17% to 7,458.53, France’s CAC increased 8.39 points or 0.13% to 6,658.94 and Germany’s DAX was up by 32.94 points or 0.23% to 14,339.57.

Asian markets settled mixed on Tuesday amid caution ahead of key US inflation data and a slew of central bank policy meetings due this week. Japanese shares gained in line with Wall Street gains overnight with hopes that the Fed Committee would take a less hawkish stance on interest rate hikes, while an overnight weakening of the yen helped lift exporters. Hong Kong shares jumped on signs of further easing of China's Covid-19 restrictions. Meanwhile, Chinese shares fell marginally after data showed China’s credit expanded at a slightly slower pace than expected in November, despite the PBoC’s efforts to boost lending and ease restrictions on property loans.