Post Session: Quick Review

Bulls came back in action on first trading session of 2023 and ended day’s trade above half a percent as investors braced for a myriad of worries for 2023 with economic growth. Tracking outshine metal stocks, key indices made slightly positive start. Some support also came with Finance Ministry’s statement that gross GST revenue receipts in December 2022 totalled nearly Rs 1.5 lakh crore, up 15% year-on-year. It mentioned monthly GST revenues more than Rs 1.4 lakh crore for 10 straight months in a row. Soon, markets got traction to trade higher, as sentiments got boost after data showed that the output of eight core industries increased by 5.4 per cent in November 2022 as against a 3.2 per cent growth in the same month last year on a better show by coal, fertiliser, steel, cement and electricity segments.

Indices continued to trade with stability in afternoon session as market participants got some encouragement with Labour Bureau's statement that retail inflation for industrial workers eased to 5.41 per cent in November 2022 as compared to 6.08 per cent in October 2022 and 4.84 per cent in November 2021 mainly due lower prices of certain food items. Food inflation stood at 4.30 per cent in November 2022 against 6.52 per cent of the previous month and 3.40 per cent during the corresponding month a year ago. However, in late afternoon session, markets pared some of their gains for little time on accounts of some selling in blue-chip companies. But during last hour of trade, indices spiked up to touch day’s high points, as traders went for value buying.

On the global front, European markets were trading in green, underlying sentiment was boosted after a survey showed the intensity of the eurozone manufacturing sector downturn eased in the final month of 2022. Asian markets ended mixed on Monday, with most markets closed for New Year holidays. Back home, India's petrol and diesel demand soared in December as increased consumption in agriculture sector helped build on the momentum generated by the festive season. Petrol sales soared 8.6 per cent to 2.76 million tonnes in December, as compared to 2.54 million tonnes of consumption in the same month last year.

 The BSE Sensex ended at 61,167.79, up by 327.05 points or 0.54% after trading in a range of 60,764.63 and 61,222.79. There were 23 stocks advancing against 7 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.57%, while Small cap index was up by 0.84%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 2.83%, Telecom up by 1.32%, PSU up by 1.00%, Realty up by 0.99% and Industrials was up by 0.76%, while Consumer Durables down by 0.55%, Healthcare down by 0.27% and Power was down by 0.12% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 5.81%, Tata Motors up by 1.83%, ICICI Bank up by 1.46%, Axis Bank up by 1.16% and Mahindra & Mahindra up by 1.14%. On the flip side, Asian Paints down by 1.38%, Titan Company down by 1.15%, Tech Mahindra down by 0.66%, Sun Pharma down by 0.55% and Nestle down by 0.14% were the top losers.

Meanwhile, India's manufacturing sector finished 2022 on a solid note with PMI of 57.8 in December, as business conditions improved to the greatest extent in over two years. Hiring activity was stretched to December, while more inputs were acquired as firms sought to supplement production and add to their inventories. Input cost inflation was contained, but there was a solid and quicker increase in selling prices.

According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) increased to 57.8 in December from 55.7 in November. It further noted that demand resilience boosted sales growth in December, with the rate of increase picking up to the quickest since February 2021. International demand for Indian goods also improved, but did so to a lesser extent than in November. Overall, new orders from abroad rose at the slowest pace in five months as several companies reportedly struggled to secure new work from key export markets.

The report further said that with overall demand remaining conducive of growth, manufacturers scaled up production at the end of 2022. The upturn in output was sharp and the best seen since November 2021. It also pointed to a further increase in buying levels among goods producers. Moreover, the rate of expansion was historically sharp and the strongest since May 2022.

Besides, the report noted that suppliers to the Indian manufacturing sector were comfortably able to accommodate for the uptick in input demand, with average lead times unchanged from November. Manufacturers themselves faced mild pressures on their operating capacities as signalled by a further, albeit slower, increase in outstanding business. To address backlogged work, Indian goods producers hired additional staff at the end of the year. The latest increase in employment was the tenth in consecutive months but the slowest since September.

The CNX Nifty ended at 18,197.45, up by 92.15 points or 0.51% after trading in a range of 18,086.50 and 18,215.15. There were 31 stocks advancing against 19 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Steel up by 5.86%, Hindalco up by 2.89%, ONGC up by 2.52%, Tata Motors up by 1.77% and ICICI Bank up by 1.30%. On the flip side, Asian Paints down by 1.32%, Titan Company down by 1.22%, Divi's Lab down by 1.19%, Bajaj Auto down by 1.16% and Hero MotoCorp down by 0.84% were the top losers. (Provisional)

European markets were trading in green, France’s CAC increased 100.31 points or 1.55% to 6,574.07 and Germany’s DAX was up by 128.36 points or 0.92% to 14,051.95.

Asian markets ended mixed on the first trading day of 2023 with most markets, including Japan and China, were closed for New Year holidays. Seoul shares declined on institutional selling pressure and weakness in Wall Street indices last Friday. Meanwhile, South Korea reported a trade deficit of $47.2 billion in 2022, marking the first annual trade deficit since 2008. Indonesian shares finished flat after the country's inflation rose slightly in December and remained above the central bank's target range for the seventh straight month.