Post Session: Quick Review

After spending most of the day in negative territory, indices made successful attempt to wipe out all losses in last leg of trade and ended first day of week in positive territory. Indian markets saw considerable volatility over the course of the trading session on Monday. Mounting uncertainties ahead of the Union Budget on February 01, 2023 and a slew of central bank policy meetings due this week dampened sentiments during the day. The markets continued to watch Adani Group Companies developments. Strong performance on Wall Street did not helped the Indian markets to make positive start, as interest rate decisions from the Federal Reserve, Union Budget presentation, and the January automobile sales data determined the mood of the markets.

Further, markets added losses in afternoon session, as sentiments were downbeat after continued selling by foreign investors. Foreign institutional investors (FII) sold shares worth a net Rs 5,977.86 crore on January 27, 2023, according to the data available on NSE. Traders ignored latest data showing that the Reserve Bank of India’s (RBI’s) foreign exchange reserves climbed $1.7 billion to $573.73 billion in the week ended January 20.  The rise was on account of an increase in the RBI’s foreign currency assets as well as its gold holdings. However, in last leg of trade, markets recovered from losses as traders went for value buying.

On the global front, European markets were trading lower as investors focused on the next U.S. Federal Reserve meeting that begins Tuesday. The two-day meeting will conclude with the central bank’s Federal Open Market Committee announcing its latest interest rate decision. Asian markets ended mixed as traders struggled to maintain momentum from last week’s rally, though Shanghai advanced as mainland Chinese markets reopened after a week-long Lunar New Year break. Back home, Bajaj Finserv has reported rise of 41.90% in its consolidated net profit at Rs 1,782.02 crore for Q3FY23 as compared to Rs 1,255.79 crore for the same quarter in the previous year.

The BSE Sensex ended at 59,500.41, up by 169.51 points or 0.29% after trading in a range of 58,699.20 and 59,644.24. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.22%, while Small cap index was down by 0.10%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 1.00%, TECK up by 0.91%, Telecom up by 0.69%, Consumer Durables up by 0.50% and Bankex was up by 0.09%, while Utilities down by 5.74%, Power down by 5.30%, Oil & Gas down by 4.06%, Energy down by 3.12% and Capital Goods was down by 1.30% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finance up by 4.67%, Bajaj Finserv up by 2.35%, Ultratech Cement up by 2.10%, NTPC up by 1.86% and HCL Tech up by 1.85%. On the flip side, Power Grid down by 3.08%, Indusind Bank down by 2.33%, Larsen & Toubro down by 1.86%, Tata Steel down by 1.66% and Hindustan Unilever down by 1.45% were the top losers. (Provisional)

Meanwhile, pitching for the introduction of technologies in farming and rural and tribal areas, Union minister Nitin Gadkari has said that India will find it difficult to realise the ‘AtmaNirbhar Bharat’ (self-reliant) vision till the share of the agriculture and allied sectors in the Gross Domestic Product (GDP) crosses 24 per cent.

He said ‘Our agriculture and allied sector income is 12 per cent of the GDP, manufacturing sector income is 22 to 24 per cent, and service sector is 52 to 54 per cent’. He stressed the need for the introduction of technology in rural and tribal regions saying it will alleviate poverty and hunger and elevate the areas from an economic perspective and create job opportunities.

He added ‘Till the time, we do not augment water, transportation and communication facilities in certain areas, industries won’t come’. He noted that industries come with capital investment, which has the potential to create jobs.

The CNX Nifty ended at 17,648.95, up by 44.60 points or 0.25% after trading in a range of 17,405.55 and 17,709.15. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Enterprises up by 4.76%, Bajaj Finance up by 4.53%, Ultratech Cement up by 2.56%, Bajaj Finserv up by 2.26% and HCL Tech up by 1.72%. On the flip side, Power Grid down by 3.38%, JSW Steel down by 2.72%, Indusind Bank down by 2.45%, Bajaj Auto down by 2.43% and Larsen & Toubro down by 2.17% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 8.45 points or 0.11% to 7,756.70, France’s CAC fell 32.48 points or 0.46% to 7,064.73 and Germany’s DAX was down by 68.54 points or 0.45% to 15,081.49.

Asian markets ended mixed on Monday as investors’ caution ahead of policy meetings from the US Fed, the European Central Bank and the Bank of England later this week. Japanese shares gained slightly tracking last week's gains on Wall Street, while the earnings season reaches its peak this week. Chinese shares rose marginally as investors returned to their desks following Lunar New Year week-long holiday. Meanwhile, China's cabinet pledged to boost consumption this year as to help drive the economy's recovery.