Post Session: Quick Review

Local equity markets went through choppy trade on Monday with Sensex and Nifty ending below their crucial 66,200 and 19,750 marks, respectively as the ongoing war between Israel and Hamas raised concerns among global market investors about its impact on the Middle East, and the subsequent rise in oil prices. Traders failed to take support from some positive macro-economic data. Sector wise, metal counters ended with gains over a percent. The broader indices, the BSE Mid cap index and Small cap index concluded the session in green. 

After making negative start, markets turned volatile tracking other Asian peers. Traders remained concerned as India's merchandise exports saw a fall of 2.6 percent year on year, contracting to $34.47 billion in September. The fall was also significantly reflected in imports, which contracted by 15 percent to $53.84 billion in September 2023 against September 2022. Markets hovered between red and green in afternoon session. Traders took note of report that India’s inflation based on wholesale price index (WPI) remained in the deflationary zone for the sixth straight month at (-) 0.26% for the month of September 2023 as against (-) 0.52% recorded in August 2023. Deflation in the reported month is primarily due to fall in prices of coal, minerals, textiles, basic metals and food products as compared to the corresponding month of previous year. Indices continued their dull trade till the end as investors maintained risk-averse approach with rising geopolitical tension. 

On the global front, European markets were trading mostly in red with escalating Israel-Gaza tensions and reports suggesting that the U.S. is considering tightening curbs to restrict China's access to advanced semiconductors and chipmaking gear. All Asian markets ended lower as traders remain cautious on renewed concerns about the outlook for interest rates after US data showed hotter-than-expected consumer price inflation and a slump in consumer sentiment. Back home, the Global Trade Research Initiative (GTRI) has said that India's high-quality labour-intensive goods such as apparel, footwear, carpets and cars will benefit from the removal of import duties by the UK, under the proposed free trade agreement (FTA) between the two countries.

The BSE Sensex ended at 66,166.93, down by 115.81 points or 0.17% after trading in a range of 66,039.38 and 66,342.75. 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 0.25%, while Small cap index was up by 0.34%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 1.37%, Consumer Durables up by 0.68%, PSU up by 0.57%, Industrials up by 0.50% and Auto was up by 0.45%, while Telecom down by 0.74%, Healthcare down by 0.47%, Realty down by 0.39%, TECK down by 0.32% and FMCG was down by 0.28% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 1.60%, JSW Steel up by 1.51%, HCL Tech up by 1.20%, Axis Bank up by 1.13% and Power Grid up by 0.79%. On the flip side, Nestle down by 1.94%, TCS down by 1.29%, Asian Paints down by 1.15%, Indusind Bank down by 1.14% and Bharti Airtel down by 0.97% were the top losers. (Provisional)

Meanwhile, India’s inflation based on wholesale price index (WPI) remained in the deflationary zone for the sixth straight month at (-) 0.26% for the month of September 2023 as against (-) 0.52% recorded in August 2023. Deflation in the reported month is primarily due to fall in prices of coal, minerals, textiles, basic metals and food products as compared to the corresponding month of previous year.

The Component wise, primary articles index, having weight of 22.62%, declined 3.80% to 182.4 (provisional) in September 2023 from 189.6 (provisional) in August 2023. Prices of Crude Petroleum & Natural Gas and Non-food Articles increased in September 2023 as compared to August, 2023. Prices of Minerals and Food Articles declined in September 2023 as compared to August 2023.

Fuel & Power index, having weight of 13.15%, increased 2.34% to 153.1 (provisional) in September 2023 from 149.6 (provisional) in August 2023. Prices of Mineral Oils and Electricity increased in September 2023 as compared to August 2023, while prices of Coal declined in September 2023 as compared to August 2023.

Besides, Manufactured Products constituting the major portion of the index with weight of 64.23%, increased by 0.36% to 140.3 (provisional) in September 2023 from 139.8 (provisional) in August 2023. Meanwhile, for the month of July, 2023, the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 152.1 and (-) 1.23% respectively.

The CNX Nifty ended at 19,731.75, down by 19.30 points or 0.10% after trading in a range of 19,691.85 and 19,781.30. There were 25 stocks advancing against 25 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hero MotoCorp up by 2.02%, JSW Steel up by 1.73%, Tata Steel up by 1.56%, Coal India up by 1.32% and LTIMindtree up by 1.32%. On the flip side, Divi's Lab down by 2.15%, Nestle down by 1.89%, TCS down by 1.31%, Indusind Bank down by 1.18% and Asian Paints down by 1.17% were the top losers. (Provisional)

European markets were trading mostly in red; France’s CAC fell 3.22 points or 0.05% to 7,000.31 and Germany’s DAX was down by 11.98 points or 0.08% to 15,174.68. On the flip side, UK’s FTSE 100 was up by 23.93 points or 0.31% to 7,623.53.

Asian markets settled down on Monday amid fears over an escalating war in the Middle East. Israeli Prime Minister Benjamin Netanyahu's office denied reports of any temporary Gaza ceasefire to allow foreign nationals to flee the enclave to neighboring Egypt. Chinese shares declined even after China’s central bank ramped up liquidity support to shore up a wobbly economy. Japanese shares led losses ahead to the release of inflation data this week for directional cues. Meanwhile, investors are also awaiting key economic data in China and the US Federal Reserve Chairman Jerome Powell's speech due this week.