Post Session: Quick Review

Indian equity markets went on roller coaster ride on last trading day of week, as there was an element of uncertainty post FOMC minutes. Investors remained reluctant to build fresh positions in equities because of uncertainty over the future trajectory of the Federal Reserve' rate hikes. Besides, investors awaited the release of the U.S. personal consumption expenditures index, which is a key price gauge for the Fed, later in the day to assess the prospect for further interest-rate hikes from the U.S. central bank. Selling pressure in stocks belonging from Metal counter, mainly pressurized the sentiment at D-street. The broader indices, the BSE Mid cap index and Small cap index also showed volatile trade during the day. Indian equity markets drawing positive leads from Wall Street had commenced the session on an optimistic note. Overnight, US stocks ended higher. Traders took some support as the finance ministry stated that the Indian economy is estimated to grow by 7 per cent year-on-year in the current fiscal despite the global economy operating under an extremely challenging macroeconomic environment.

Further, markets turned volatile but sustained their gains, as investors continued to hunt for fundamentally strong stocks. However, gains fizzled out in afternoon session and dragged lower, as traders abandoning riskier assets. Investors failed to take any sense of relief with the finance ministry’s statement that the measures like increased capex, boosting the green economy and initiatives for strengthening financial markets announced in the Budget 2023-24 are expected to promote job creation and spur economic growth. Indices remained in red till the end, as investors await a report on U.S. personal income and spending.

On the global front, European markets were trading higher as recent strong U.S. data raised hopes a recession can be avoided. Asian markets ended mostly in red, despite Wall Street snapping a four-day losing streak overnight on the back of better-than-expected fourth quarter profits announced by chip maker Nvidia. Back home, the Apparel Export Promotion Council’s (AEPC) Chairman Naren Goenka has expressed confidence that in the coming years, the apparel sector will be able to support the government's efforts to make India a $2 trillion ($1 trillion goods and $1 trillion services) export target by 2030. In scrip specific, Zee Entertainment remained in limelight after the National Company Law Tribunal admitted an Indusind Bank plea for insolvency proceedings against the media firm.

The BSE Sensex ended at 59,463.93, down by 141.87 points or 0.24% after trading in a range of 59,325.34 and 59,908.77. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.17%, while Small cap index was down by 0.15%. (Provisional)

The top gaining sectoral indices on the BSE were Energy up by 0.44%, Oil & Gas up by 0.37%, Consumer Durables up by 0.28%, Healthcare up by 0.24% and PSU was up by 0.04%, while Metal down by 2.39%, Auto down by 0.99%, Realty down by 0.70%, Capital Goods down by 0.69% and Telecom was down by 0.56% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Asian Paints up by 1.24%, Bajaj Finserv up by 0.92%, Reliance Industries up by 0.88%, Power Grid up by 0.82% and NTPC up by 0.77%. On the flip side, Mahindra & Mahindra down by 2.39%, Tata Steel down by 1.83%, Tata Motors down by 1.33%, Maruti Suzuki down by 1.22% and Larsen & Toubro down by 1.10% were the top losers. (Provisional)

Meanwhile, the Finance Ministry in its latest monthly economic review for January 2023 has stated that the Indian economy is estimated to grow by 7 per cent year-on-year in the current fiscal (FY23) despite the global economy operating under an extremely challenging macroeconomic environment like the geopolitical tensions in Europe, spiralling energy, food and fertiliser prices, monetary tightening and inflationary trends having elevated the downside risks to the global economic outlook.

It noted that the measures announced in the union budget like a rise in capital expenditure, increased focus on infrastructure development, boost to the green economy, and initiatives for strengthening financial markets are expected to promote job creation and spur economic growth. It highlighted that measures announced for the MSME sector will likely reduce the cost of funds and aid small enterprises. Revision in tax slabs under the new personal income tax regime is expected to boost consumption, thus providing more impetus to economic growth.

It also said easier KYC norms, expansion of DigiLocker services, and overall impetus on digitisation and last-mile connectivity are predicted to strengthen financial markets. Besides, Predictions of a return of El Nino conditions in the Pacific could presage a weaker monsoon in India, resulting in lower output and higher prices. Similarly, as with prices, external deficits may be a lesser challenge in FY24 than in FY23, but close attention to trends in international trade and capital flows will be warranted.

The CNX Nifty ended at 17,465.80, down by 45.45 points or 0.26% after trading in a range of 17,421.80 and 17,599.75. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were Divi's Lab up by 1.46%, Adani Ports up by 1.28%, Asian Paints up by 1.20%, Coal India up by 1.00% and Dr. Reddy's Lab up by 0.93%. On the flip side, Hindalco down by 4.86%, Adani Enterprises down by 4.85%, Mahindra & Mahindra down by 2.57%, JSW Steel down by 2.32% and Tata Steel down by 2.05% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 21.75 points or 0.27% to 7,929.47, France’s CAC rose 18.98 points or 0.26% to 7,336.41 and Germany’s DAX was up by 10.16 points or 0.07% to 15,485.85.

Asian markets settled mostly lower on Friday due to lingering worries over US interest rates, while many investors are also cautiously awaiting the release of the US personal consumption expenditures price index for January later in the day to gauge the Fed's rate-hike stance. Asian equities weakened further, despite Wall Street gains overnight after better than expected fourth quarter profits announced by chip maker Nvidia. Chinese shares declined as China reiterated its calls for a political settlement to the Ukraine war. However, Japanese shares gained in spite of data that showed Japan's core inflation rate hit a four-decade high of 4.2 percent in January. The incoming head of Japan's central bank said he didn’t think the relatively high inflation rate would last and the central bank should continue its loose monetary policy.