Post Session: Quick Review

Indian equity benchmarks traded with volatility throughout the day and somehow managed to end the sessions in green terrain. After making cautious start, indices struggled to enter into green terrain in early deals on account of lack of directional cues from Wall Street. There were some amount of cautiousness ahead of minutes from the U.S. Federal Reserve's latest policy meeting due this week. But, the local markets recouped from initial lows and continued their fine fettle trade till afternoon deals tracking positive cues from Asian markets despite IMF chief’s statement that one third of the global economy will be in recession this year, and warned that 2023 will be tougher than last year as the US, EU and China will see their economies slow down.

However, the domestic bourses failed to hold their neck in the green for longer period and took U- turn as the marketmen opted to book profit at higher levels, taking the markets lower for a brief period. Buying in late trade helped markets to went home with moderate gain as domestic markets took some strength from better opening in European counterparts, as investors awaited German consumer price data expected to confirm the gradual easing that started last month.

On the global front, European markets were trading higher as investors assessed China’s reopening and awaited key European inflation figures. Asian markets ended mostly in green as investors digested disappointing Chinese data and awaited a slew of U.S. economic data this week for clues on the economic and interest-rate outlook. Back home, some banking stocks remained in limelight after RBI said state-owned SBI, along with private sector lenders ICICI Bank and HDFC Bank continues to be Domestic Systemically Important Banks (D-SIBs) or institutions that are 'too big to fail'. SIBs are perceived as banks that are 'too big to fail (TBTF)'. This perception of TBTF creates an expectation of government support for these lenders in times of distress. Due to this, these banks enjoy certain advantages in the funding markets.

The BSE Sensex ended at 61,294.20, up by 126.41 points or 0.21% after trading in a range of 61,004.04 and 61,343.96. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.22%, while Small cap index was up by 0.18%. (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.56%, Healthcare up by 0.67%, IT up by 0.65%, Bankex up by 0.58% and TECK was up by 0.53%, while Metal down by 0.55%, FMCG down by 0.36% and Auto down by 0.36% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Axis Bank up by 2.18%, Titan Company up by 2.02%, TCS up by 1.63%, Tech Mahindra up by 1.38% and Sun Pharma up by 1.34%. On the flip side, Mahindra & Mahindra down by 0.83%, Reliance Industries down by 0.71%, Hindustan Unilever down by 0.64%, ITC down by 0.53% and Asian Paints down by 0.50% were the top losers. (Provisional)

Meanwhile, the Associated Chambers of Commerce and Industry of India (Assocham) has said India's economy is expected to navigate rough global weather in 2023 due to resilient consumer demand, better corporate performance and abating of inflation, even as the year is likely to be full of challenges and opportunities.

Assocham Secretary General Deepak Sood stated ‘while the global outlook seems rather tough, the Indian economy is set to stay on steady ground, helped by strong domestic demand, a healthy financial sector and improved corporate balance sheets. Early signs of brighter prospects of Rabi crops point towards a robust performance of agriculture, leaving an improved second round effect for several connected industries like FMCG, tractors, two-wheelers, speciality chemicals and fertilisers’.

He added while there is an overwhelming consumer response to contact services like travel, hotels and transport, a positive domino effect is visible in transport, housing, power, electronics, discretionary consumer goods and automobiles. He said ‘Our domestic demand is bound to offset the risk of global demand slowdown...However, we need to be watchful about international currency fluctuations, particularly in Emerging Economies’. He noted as per the recent assessment shared by the Reserve Bank of India, the global economy is projected to grow by a mere 2.7 per cent even as some of the key developed economies face recession, being exasperated by their central banks' policies of monetary tightening.

He said that to an extent, the impact of higher interest would be reflected in the balance sheets of Indian corporates as well. However, he observed that the corporate sector is expected to continue with the policy of deleveraging, taking advantage of a resilient stock market and reversal in commodity prices. He further said ‘Despite global headwinds, including recession, looming large in several economies, unabated geo-political situation, inflation, India is set to register an economic expansion between 6.8-7 per cent in the financial year 2022-23. Going forward, FY-24 should hold steady’.

The CNX Nifty ended at 18,232.55, up by 35.10 points or 0.19% after trading in a range of 18,149.80 and 18,251.95. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were HDFC Life Insurance up by 4.44%, SBI Life Insuran up by 2.29%, Axis Bank up by 2.20%, Titan Company up by 1.86% and TCS up by 1.53%. On the flip side, Hindalco down by 1.47%, Britannia down by 1.17%, Mahindra & Mahindra down by 1.07%, JSW Steel down by 0.95% and Grasim Industries down by 0.82% were the top losers.

European markets were trading higher, UK’s FTSE 100 increased 168.05 points or 2.26% to 7,619.79, France’s CAC increased 92.56 points or 1.4% to 6,687.13 and Germany’s DAX was up by 200.71 points or 1.43% to 14,269.97.

Asian markets ended mostly higher on Tuesday ahead of minutes of the US Federal Reserve's latest meeting, with growing expectations that US interest rates will rise at a slower pace this year. Chinese shares gained despite disappointing Chinese economic data. The Caixin manufacturing Purchasing Managers' Index (PMI) edged down to 49 in December from 49.4 in the previous month, while the official manufacturing PMI fell to 47 in December from 48 in the previous month. However, uncertainty over China’s economic reopening and a warning from the International Monetary Fund on a potential recession limited further gains. Seoul shares declined on institutional selling pressure and as data showed factory activity in the country shrank in December, while overall orders posted its sharpest fall in two-and-a-half years.