Post Session: Quick Review

Indian equity benchmarks lost their ground in last leg of trade and ended last trading day of 2022 in red terrain as investors preferred to play safe and watch for the behavior of the markets ahead of macroeconomic data in first week of New Year. Buying in Metal and Power sectors’ stocks helped the key indices to make positive start. Besides, traders got engorgement with Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that the Indian economy is resilient with financial stability maintained with a well-capitalised banking sector, amid global uncertainties and shocks. Positive cues from global markets also supported domestic sentiments. Sentiments remained positive, as Union Commerce Minister Piyush Goyal said he expects at least two more free trade agreements to be signed up in 2023. He said negotiations are scheduled with the UK, European Union and Canada.

Markets maintained their gains above neutral lines in afternoon session, as some comfort also came with report stating that after remaining above the Reserve Bank's comfort level of 6 per cent for most part of this year, retail inflation is slowly easing, and efforts are likely to continue to further reduce it in the coming months amid global uncertainties. Moreover, the finance ministry said that India's external debt stood at $610.5 billion in the second quarter of 2022-23, down by $2.3 billion from end-June 2022. The external debt to GDP ratio stood at 19.2 per cent as at end-September 2022 as compared to 19.3 per cent at end-June. However, in late afternoon session, local markets turned volatile, as traders maintained cautiousness approach with data released by the Reserve Bank showing that the country's current account deficit widened to 4.4 per cent of the GDP in the quarter ended September, from 2.2 per cent GDP during the April-June period, due to higher trade gap. But in last leg of trade, markets witnessed a sharp sell-off, as investors maintained risk-averse approach.

On the global front, European markets were trading lower on the last trading day of the year as doubts over official Chinese COVID numbers and new regulations for travelers from China curbed investor optimism surrounding China's reopening. Asian markets ended mostly in green on their last trading session of the year despite lingering inflation concerns and soaring COVID-19 cases in China. Back home, in scrip specific develoment, Elin Electronics has debuted at Rs 243.00 on the BSE, down by 4 points or 1.62% from its issue price of Rs 247. The offering, which was open for subscription between December 20, 2022 and December 22, 2022 was subscribed 3.09 times. The issue price was fixed at Rs 247 per share i.e. at upper end of price band of Rs 234-247 apiece.

 The BSE Sensex ended at 60,840.74, down by 293.14 points or 0.48% after trading in a range of 60,743.71 and 61,392.68. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.37%, while Small cap index was up by 0.76%. (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.85%, Realty up by 0.78%, PSU up by 0.78%, Metal up by 0.38% and Oil & Gas was up by 0.13%, while FMCG down by 0.59%, Bankex down by 0.55%, Utilities down by 0.52%, Power down by 0.46% and TECK was down by 0.43% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finserv up by 2.18%, Titan Company up by 1.62%, Tata Steel up by 1.03%, Bajaj Finance up by 1.03% and Tata Motors up by 0.52%. On the flip side, ICICI Bank down by 1.62%, Bharti Airtel down by 1.40%, HDFC down by 1.30%, ITC down by 1.22% and Nestle down by 1.12% were the top losers. (Provisional)

Meanwhile, expressing optimism over India’s economic situation, the Reserve Bank of India (RBI) Governor Shaktikanta Das has said amid global shocks and challenges, the Indian economy presents a picture of resilience and the regulators are ready to take appropriate actions to preserve financial stability. In his foreword to the 26th Financial Stability Report (FSR), he said the international economic order stands challenged and financial markets are in turmoil due to monetary tightening in most parts of the world.

He also said food and energy supplies and prices are under strain, debt distress is staring at many emerging market and developing economies, and every economy is grappling with multiple challenges. He said ‘Domestic financial markets have remained stable and fully functional. The banking system is sound and well-capitalised’. In spite of formidable global headwinds, he said that India’s external accounts remain well-cushioned and viable.

Das said that core issues of management of climate change, dealing with unanticipated and fresh shocks, if any, further strengthening the buffers of financial system, harnessing fintech innovations and deepening financial inclusion will continue to receive priority attention from regulators and policy makers. He added that in 2023, India is well positioned to play a leading role in the world stage as part of its G20 presidency. He noted that the biggest challenge for G20 as a group is to re-ignite the efficacy of multilateralism.

He further said the central bank recognises the destabilising potential of global risks even as it draw strength from the robust macroeconomic fundamentals of the Indian economy. He said ‘the Reserve Bank and the other financial regulators remain vigilant and in readiness to ensure the stability and soundness of our financial system through appropriate interventions, whenever necessary, in the best interest of the Indian economy’.

The CNX Nifty ended at 18,105.30, down by 85.70 points or 0.47% after trading in a range of 18,080.30 and 18,265.25. There were 19 stocks advancing against 31 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bajaj Finserv up by 2.39%, Titan Company up by 1.73%, Coal India up by 1.53%, ONGC up by 1.45% and Bajaj Auto up by 1.32%. On the flip side, SBI Life down by 2.17%, ICICI Bank down by 1.89%, Bharti Airtel down by 1.78%, Grasim Industries down by 1.67% and Eicher Motors down by 1.63% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 16.80 points or 0.22% to 7,495.92, France’s CAC decreased 48.86 points or 0.74% to 6,524.61 and Germany’s DAX was down by 98.94 points or 0.7% to 13,972.78. 

Asian markets settled mostly higher on Friday tracking overnight gains in Wall Street, despite lingering concerns over recession and soaring Covid-19 cases in China. Japanese shares ended almost unchanged, while the yen extended its rebound as the Bank of Japan (BoJ) announced another round of unscheduled bond purchases to limit selling pressure on sovereign debt. Meanwhile, Seoul market was closed for New Year’s holiday.