Post Session: Quick Review

Indian equity markets traded in green territory throughout the day but went home only with minor gains as traders booked profit in late trade ahead of Fed meet outcome. Following positive global sentiment, key benchmark indices made strong start, as traders took support with data showing a lower-than-expected increase in U.S. consumer prices helped ease concerns about the outlook for interest rates ahead of the US Fed's rate decision later in the day. Besides, foreign institutional investors (FIIs) net bought shares worth Rs 619.92 crore on December 13, according to the provisional data available on the NSE. However, markets pared some of their initial gains, but holding their green trend, as sentiments remained positive after industry body -- the PHD Chamber of Commerce and Industry (PHDCCI) said that the country can scale up its merchandise exports to G20 nations to $500 billion by 2030 from the current $212 billion in 2021-22 and significantly reduce trade deficit. Market participants overlooked the Asian Development Bank’s report stating that developing Asia's economic expansion next year is expected to be slower than previously projected as a global slowdown and the prolonged war in Ukraine weigh on the region.

Markets maintained their gaining momentum in afternoon session, as traders got encouragement after India’s inflation based on wholesale price index (WPI) eased further to 5.85% in the month of November 2022 as against 8.39% recorded in October 2022, primarily contributed by fall in prices of food articles, basic metals, textiles, chemicals & chemical products and paper & paper products as compared to the corresponding month of the previous year. The wholesale inflation was 10.70% in September 2022. Some support also came as India and the UK agreed to conclude the free trade agreement talks at the earliest. Commerce and industry minister Piyush Goyal met UK's secretary of state for international trade Kemi Badenoch to review the progress of talks for a bilateral free trade agreement and agreed to conclude it at the earliest. But, gains were contained during last hour of trade as investors booked their profit amid outcome of two-day meeting of Federal Open Market Committee (FOMC) which will announce its decision later in the day.

On the global front, European markets were trading lower as investors treaded cautiously ahead of the U.S. Federal Reserve's interest rate decision. Besides, Eurozone industrial production data for October are due later in the session. Asian markets ended mostly in green as investors welcomed softer-than-expected US inflation data that could allow the Federal Reserve to slow down its pace of interest rate hikes. Back home, traders also took a note of report that India and the United Kingdom (UK) have decided to iron out the differences while keeping both nations’ sensitivities in mind, and agreed to conclude the negotiations towards a free trade agreement (FTA) at the earliest.

The BSE Sensex ended at 62,677.91, up by 144.61 points or 0.23% after trading in a range of 62,591.28 and 62,835.11. There were 21 stocks advancing against 9 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.59%, while Small cap index was up by 0.68%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 1.55%, Realty up by 1.44%, PSU up by 1.02%, Capital Goods up by 0.92% and IT was up by 0.89%, while FMCG down by 0.37% and Energy was down by 0.03% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 1.80%, Tech Mahindra up by 1.58%, NTPC up by 1.36%, SBI up by 1.34% and Indusind Bank up by 1.26%. On the flip side, Nestle down by 1.82%, Bharti Airtel down by 1.13%, ICICI Bank down by 1.11%, Asian Paints down by 0.91% and Hindustan Unilever down by 0.88% were the top losers. (Provisional)

Meanwhile, India’s inflation based on wholesale price index (WPI) eased further to 5.85% in the month of November 2022 as against 8.39% recorded in October 2022, primarily contributed by fall in prices of food articles, basic metals, textiles, chemicals & chemical products and paper & paper products as compared to the corresponding month of the previous year. The wholesale inflation was 10.70% in September 2022.

The Component wise, primary articles index, having weight of 22.62%, declined by 1.82% to 177.7 (provisional) in November 2022 from 181.0 (provisional) for the month of October 2022. Prices of Minerals, Crude Petroleum & Natural Gas and Non-food Articles increased in November 2022 as compared to October 2022. But, prices of Food Articles declined in November 2022 as compared to October 2022.

Fuel & Power index, having weight of 13.15%, increased by 2.84% to 159.6 (provisional) in November 2022 from 155.2 (provisional) for the month of October 2022. Prices of Mineral Oils and Electricity increased in November 2022 as compared to October 2022.

Besides, Manufactured Products constituting the major portion of the index with weight of 64.23%, declined by 0.28% to 141.5 (provisional) in November 2022 from 141.9 (provisional) for the month of October 2022. Meanwhile, for the month of September 2022 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011- 12=100) stood at 151.9 and 10.55% respectively.

The CNX Nifty ended at 18,660.30, up by 52.30 points or 0.28% after trading in a range of 18,632.90 and 18,696.10. There were 34 stocks advancing against 16 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindalco up by 2.44%, ONGC up by 2.25%, Tech Mahindra up by 1.85%, JSW Steel up by 1.84% and UPL up by 1.76%. On the flip side, Nestle down by 1.59%, ICICI Bank down by 1.20%, Bharti Airtel down by 1.06%, Asian Paints down by 1.02% and Hindustan Unilever down by 0.95% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 28.55 points or 0.38% to 7,474.34, France’s CAC decreased 35.61 points or 0.53% to 6,709.37 and Germany’s DAX was down by 80.84 points or 0.56% to 14,417.05.

Asian markets settled mostly higher on Wednesday, tracking overnight gains on Wall Street after cooler-than-expected inflation readings in the United States. Meanwhile, lower inflation reading also fuelled expectations that the US Fed will slow the pace of interest rate hikes. Chinese shares settled almost flat followed by the surge in Covid cases in the country. Although, Investors were awaiting central bank decisions on interest rates from the US Federal Reserve due later in the day, and the Bank of England and European Central Bank due on Thursday kept investors cautious and capped further gains.