Post Session: Quick Review

Indian equity benchmarks witnessed bloodbath on Friday, with both Sensex and Nifty ending near their intraday low points, amid concerns over the rising COVID cases in China. After a negative start, markets remained lower during the whole trading session, impacted by heavy selling at Utilities and Power counters. Sentiments remained negative as RBI Monetary Policy Committee (MPC) member Jayanth R Varma said that India's economic growth is now 'extremely fragile' and needs all the support that it can get, as private consumption and capital investment are yet to pick up. Varma further said out of the four engines of growth for the economy, exports and government spending supported the Indian economy through the pandemic, but other engines need to pick up the baton now.

Indices extended their losses in late afternoon session, as selling continued over the Dalal Street despite positive cues from European markets. Traders took note of a private report that amid a slowdown in demand for Indian goods in developed countries, India can focus on 18 products, such as insecticides, construction material, chemicals, and iron and steel, to boost its exports to developing countries where the country meets only 2.5 per cent of the demand at present. On the sectoral front, defence industry stocks were in focus as seeking to deepen US-India military ties, the defence chiefs of the two countries have shared their assessments of the regional and global security environment and discussed ways to deepen bilateral cooperation and interoperability.

On the global front, European markets were trading higher. Asian markets ended mostly lower, as Singapore's industrial production declined for the second straight month in November, and at a faster-than-expected pace. The data from the Economic Development Board revealed that industrial production dropped 3.2 percent year-on-year in November, faster than the 0.9 percent fall in October. Excluding biomedical manufacturing, industrial production decreased 4.8 percent annually in November, reversing a 2.2 percent gain in the previous month.

The BSE Sensex ended at 59845.29, down by 980.93 points or 1.61% after trading in a range of 59765.56 and 60546.88. The 29 stocks were declining, while 1 stock remained unchanged on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 3.40%, while Small cap index down by 4.11%. (Provisional)

The Utilities down by 5.17%, Power down by 4.89%, Metal down by 3.93%, Energy down by 3.82% and Oil & Gas down by 3.71% were the top losing indices on BSE, while there were no gaining sectoral indices on the BSE. (Provisional)

The top losers on the Sensex were Tata Steel down by 4.97%, Tata Motors down by 3.88%, SBI down by 3.27%, Bajaj Finserv down by 3.07% and Reliance Industries down by 2.96%, while there were no gainers. (Provisional)

Meanwhile, India and Bangladesh have held comprehensive discussions to further strengthen bilateral economic relations. A Joint feasibility study on a Comprehensive Economic Partnership Agreement (CEPA) has been carried out after the two countries agreed for exploring a bilateral FTA. The study confirmed the CEPA would provide a sound basis for substantial enhancement of trade and commercial partnership between the two countries.

Further, both sides agreed that CEPA will create new jobs, raise living standards, and provide wider social and economic opportunities in India and Bangladesh. In addition, the partnership would establish reliable and sustainable Regional Value Chains (RVCs).

Both sides agreed to starting the CEPA discussions at an early date. Various issues of mutual interest were discussed including removal of non-tariff barriers and port restrictions, re-opening of border haats, harmonization and mutual recognition of Standards and procedures on both sides, settlement of trade in Indian rupees, strengthening connectivity and trade infrastructure, among others, to realise the full potential of India-Bangladesh economic ties.

The CNX Nifty ended at 17806.80, down by 320.55 points or 1.77% after trading in a range of 17779.50 and 18050.45. There were 2 stocks advancing against 48 stocks declining on the index. (Provisional)

The only gainer on Nifty was Divi's Lab up by 0.07%. On the flip side, Adani Ports & SEZ down by 7.33%, Adani Enterprises down by 5.85%, Hindalco down by 5.70%, Tata Steel down by 5.02% and Tata Motors down by 4.08% were the top losers. (Provisional)

European  markets  were  trading  higher;  UK’s  FTSE  100  increased  15.03  points  or  0.2%  to  7,484.31, France’s  CAC  increased  6.38  points  or  0.1%  to  6,524.35 and Germany’s  DAX  increased  44.57  points  or  0.32%  to  13,958.64.

Asian markets settled mostly lower on Friday tracking steep falls on Wall Street overnight amid concerns that the US Federal Reserve would stick to its aggressive tightening path for longer to cool off inflation, while forecasts of a recession in 2023 also weighed on the market. Chinese shares slipped as the country battled a wave of Covid-19 cases. China is reporting over a million new infections and at least 5,000 deaths every day. Japanese shares declined sharply as data showed Japan's core consumer inflation hit a fresh 40-year high in November. Meanwhile, minutes of the Bank of Japan's October policy meeting showed that some policymakers called for the need to continue checking how a future exit from ultra-low interest rates could affect markets and households' mortgage rates.