Post Session: Quick Review

Indian equity markets continued their bullish trend on Monday with the Sensex and the Nifty ending at record closing highs. Markets spent their day near all-time high levels. Traders overlooked weak macroeconomic data. Investors continued to monitor Q3FY24 earnings of heavyweights during the day. Traders were seen piling up positions in IT and Oil & Gas sectors’ stocks. As for broader indices, the BSE Mid cap index ended with gains of above half a percent, while Small cap index ended with minor gains. 

Markets made optimistic start and extended their gains even after Consumer Price Index (CPI)-based retail inflation rose to 5.69 per cent year-on-year (Y-o-Y) in December from 5.55 per cent in November. Besides, the index of industrial production (IIP) grew by a meagre 2.4 per cent in November compared to 11.7 per cent in October. Sentiments were positive as HCL Tech and Wipro reported better-than-expected results. Meanwhile, commerce and industry minister Piyush Goyal said there is great excitement about India globally and the country stands at a crucial juncture, ready to catapult into a $35-trillion economy in the next 24 years, marking an era of unprecedented growth. Markets continued their gaining momentum in afternoon session despite inflation based on wholesale price index (WPI) surged to a nine-month high of 0.73 percent in December 2023 as against 0.26 percent in November 2023, due to increase in prices of electricity, machinery & equipment, pharmaceuticals, medicinal chemical & botanical products and electrical equipment. In late afternoon session, indices touched fresh high levels as investors continued to hunt for fundamentally strong stocks.

On the global front, European markets were trading lower ahead of this week's busy earnings. Sentiments were weak as German economy contracted 0.3% in 2023. Overall economic development faltered in Germany in 2023 in an environment that continues to be marked by multiple crises. Asian markets ended mostly in green as China's central bank maintained the rate on medium-term lending facility unchanged unexpectedly as any reduction would add downward pressure on the renminbi. The People's Bank of China added CNY 995 billion via the MLF, which is set to mature in one year. 

The BSE Sensex ended at 73,327.94, up by 759.49 points or 1.05% after trading in a range of 72,909.00 and 73,402.16. There were 22 stocks advancing against 8 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.67%, while Small cap index was up by 0.11%. (Provisional)

The top gaining sectoral indices on the BSE were PSU up by 1.84%, TECK up by 1.79%, IT up by 1.79%, Oil & Gas up by 1.70% and Energy was up by 1.66%, while Metal down by 0.23% and Basic Materials down by 0.10% was the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Wipro up by 6.35%, HCL Tech up by 2.87%, HDFC Bank up by 2.41%, Infosys up by 2.34% and Tech Mahindra up by 2.21%. On the flip side, Bajaj Finance down by 2.37%, Bajaj Finserv down by 1.18%, Larsen & Toubro down by 0.56%, Tata Motors down by 0.40% and Tata Steel down by 0.15% were the top losers. (Provisional)

Meanwhile, inflation based on wholesale price index (WPI) surged to a nine-month high of 0.73 percent in December 2023 as against 0.26 percent in November 2023, due to increase in prices of electricity, machinery & equipment, pharmaceuticals, medicinal chemical & botanical products and electrical equipment. 

The Component wise, primary articles index, having weight of 22.62%, declined 2.14% to 182.9 (provisional) in December 2023 from 186.9 (provisional) for the month of November 2023, on the back of fall in Prices of Non-food Articles, Minerals, Food Articles and Crude Petroleum & Natural Gas.

Fuel & Power index, having weight of 13.15%, declined 0.71% to 154.2 (provisional) in December 2023 from 155.3 (provisional) for the month of November 2023, as Prices of Mineral Oils declined in December 2023 as compared to November, 2023. However, Prices of Electricity increased in December 2023 as compared to November 2023. 

Besides, Manufactured Products constituting the major portion of the index with weight of 64.23%, decreased by 0.21% to 140.1 (provisional) in December 2023 from 140.4 (provisional) for the month of November 2023. Meanwhile, for the month of October, 2023 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 152.5 and (-) 0.26% respectively. 

The CNX Nifty ended at 22,097.45, up by 202.90 points or 0.93% after trading in a range of 21,963.55 and 22,115.55. There were 32 stocks advancing against 18 stocks declining on the index. (Provisional)

The top gainers on Nifty were Wipro up by 6.26%, ONGC up by 4.52%, HCL Tech. up by 3.08%, Infosys up by 2.44% and Bharti Airtel up by 2.42%. On the flip side, HDFC Life Insurance down by 3.63%, Bajaj Finance down by 2.39%, Hindalco down by 1.27%, Bajaj Finserv down by 1.18% and Eicher Motors down by 1.00% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 12.44 points or 0.16% to 7,612.49, France’s CAC fell 27.32 points or 0.37% to 7,437.82 and Germany’s DAX was down by 50.91 points or 0.31% to 16,653.65.

Asian markets settled mostly higher on Monday. Japan's Nikkei share average rose to a 34-year peak, with financials and shippers leading the surge. Chinese shares gained marginally after the People's Bank of China boosted liquidity in the banking system through reverse repos and medium-term lending facility. Investors are awaiting Q4 GDP data due this week. However, Hong Kong shares slipped on lingering worries about China’s economy and after the Chinese central bank held off cutting short-term interest rates.