Post Session: Quick Review

In a volatile trading session, Indian equity benchmarks witnessed stagnation and ended lower with cut of over 0.70 percent each amid overwhelming anxiety regarding prolonged period of interest rate hikes. After making gap down opening, markets soon hit green terrain but failed to protect, as sentiments dampened after report stated that Bank of England raised its key interest rate to 3.5% from 3%, its ninth rate rise in a row as it tries to speed inflation's return to target after price growth hit a 41-year high in October. Traders overlooked Icra Ratings’ report stating that led by retail-focused players, non-banking financial companies (NBFCs) are likely to close the current fiscal and the next with a loan growth of 10-12 per cent and see around 50 basis points improvement in profitability.

Markets fell sharply in late morning session, as sentiment on the street weakened after government data showed that India's exports recorded a flat growth of 0.59 per cent to $31.99 billion in November, even as trade deficit widened to $23.89 billion during the month. Exports stood at $31.8 billion in November last year. Imports rose by 5.37 per cent to $55.88 billion in November as compared to $53.03 billion in the corresponding month a year ago. However, during afternoon session, markets pared losses and touched neutral lines as traders got some solace amid a private report stating that India is growing faster than what is captured by the country's official data, and it presents a case for an upgrade of equities outlook. But, in late afternoon session, indices witnessed more selling pressures as traders remain concerned about global economic slowdown due to surging interest rates, and further imminent increases from central banks.

On the global front, European markets were trading lower after major central banks pledged further rate hikes to combat runaway inflation, spurring concerns about a global economic downturn next year. Asian markets ended mostly in red amid concern the resolve of central banks to continue their fight against inflation will tip the economy into a recession. Back home, oil and aviation sectors stocks remained in limelight with report stating that government has slashed the windfall profit tax levied on domestically-produced crude oil as well as on export of diesel and ATF following a drop in global oil prices. The windfall tax on aviation fuel ATF has been reduced to Rs 1.5 per litre from Rs 5 per litre.

The BSE Sensex ended at 61,337.81, down by 461.22 points or 0.75% after trading in a range of 61,292.53 and 61,893.22. There were 3 stocks advancing against 27 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 1.44%, while Small cap index was down by 0.96%. (Provisional)

The top losing sectoral indices on the BSE were PSU down by 1.86%, Realty down by 1.57%, Healthcare down by 1.33%, Industrials down by 1.32% and Capital Goods was down by 1.26%, while there were no gaining sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Hindustan Unilever up by 0.61%, HDFC Bank up by 0.42% and Nestle up by 0.19%. On the flip side, Mahindra & Mahindra down by 2.44%, Asian Paints down by 2.19%, Dr. Reddy's Lab down by 2.17%, TCS down by 2.04% and SBI down by 1.79% were the top losers. (Provisional)

Meanwhile, the commerce ministry in its latest data has showed that India’s merchandise exports recorded a flat growth of 0.59 per cent to $31.99 billion in November 2022 as compared to $31.80 billion in November 2021. Merchandise imports rose by 5.37 per cent to $55.88 billion in November 2022 as compared to $53.03 billion in the corresponding month a year ago. Besides, trade deficit widened to $23.89 billion in November 2022.

As per the data, merchandise exports for the period April-November 2022 were $295.26 billion as against $265.77 billion during the period April-November 2021. Merchandise imports for the period April-November 2022 were $493.61 billion as against $381.17 billion during the period April-November 2021. The merchandise trade deficit for April-November 2022 was estimated at $198.35 billion as against $115.39 billion in April-November 2021

The data further showed that Non-petroleum and non-gems & jewellery exports in November 2022 were $24.09 billion, compared to $23.91 billion in November 2021. Non-petroleum and non-gems & jewellery exports during April-November 2022 were $206.16 billion, as compared to $200.43 billion in April-November 2021. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports were $34.45 billion in November 2022, compared to $32.33 billion in November 2021. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports were $293.83 billion in April-November 2022 as compared to $230.91 billion in April-November 2021.

The CNX Nifty ended at 18,269.00, down by 145.90 points or 0.79% after trading in a range of 18,255.15 and 18,440.95. There were 6 stocks advancing against 44 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Motors up by 1.18%, HDFC Bank up by 0.48%, Hindustan Unilever up by 0.30%, Tata Steel up by 0.09% and JSW Steel up by 0.01%. On the flip side, Dr. Reddy's Lab down by 3.58%, Mahindra & Mahindra down by 2.75%, Adani Ports down by 2.66%, Asian Paints down by 2.39% and BPCL down by 2.12% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 29.33 points or 0.39% to 7,396.84, France’s CAC decreased 51.48 points or 0.79% to 6,471.29 and Germany’s DAX was down by 94.00 points or 0.67% to 13,892.23.

Asian markets settled mostly lower on Friday followed the fall in Wall Street overnight on fears of a recession stemming from the Fed's aggressive interest rate hiking cycle. Moreover, hawkish commentaries by global central banks dampened investor sentiments. Japanese shares declined after a survey of manufacturers showed a further contraction in output. Data showed the Jibun Bank Manufacturing PMI Flash fell to 48.8 in early December from 49 in November. The services PMI reading however increased to 51.7 in early December from 50.3 in November. Meanwhile, Chinese shares ended almost flat after the US government slapped restrictions on Chinese companies over their efforts to use advanced technologies to help modernize China’s military.