Post Session: Quick Review

Indian equity markets showed sluggish trend on Tuesday’s trade after hitting life highs in previous two consecutive sessions. Investors preferred to book their profits amid ongoing Q3FY24 earnings. Traders also cautiously await the first monetary policy decisions of the year from major global central banks. Besides, weak macroeconomic data dampened investors’ sentiments. The broader indices, the BSE Mid cap index and Small cap index ended in red. IT sector stocks witnessed profit booking after Yesterday’s rally.

After making negative start, markets traded flat as traders sold their riskier assets. Traders took note of report that India’s trade deficit in December narrowed to a three-month low of $19.8 billion amid an import slowdown due to falling commodity prices. Data released by the commerce department showed that merchandise exports during the month grew 0.97 per cent over a year earlier to $38.45 billion, while merchandise imports grew 8.45 per cent to $58.25 billion. In afternoon session, markets added more losses as sentiments got hit amid reports that the cost of Indian exports has more than doubled due to the Yemeni Houthi militia's attacks on ships in the Red Sea. Investors ignored report that the Centre signed an agreement to acquire five lithium brine blocks for exploration and development in Argentina. Traders remained cautious with the commerce department stating that growing attacks on commercial shipping vessels travelling through the lower Red Sea have resulted in a combined impact of higher freight costs, insurance premiums and longer transit times. He cautioned that it can make imported goods significantly more expensive. Finally, Nifty and Sensex settled above the psychological 22,000 and 73,100 levels respectively. 

On the global front, European markets were trading lower as investors reined in expectations of interest rate cuts following recent comments from European Central Bank officials, while shares of Lindt & Spruengli jumped on upbeat results. Asian markets ended mostly in red in the absence of Wall Street cues and heightened geopolitical tensions. Back home, the Ministry of Power has introduced new rules with an aim to facilitate ease of doing business for industries like Green Hydrogen manufacturers and to facilitate energy transition along with energy security by faster establishment of energy storage capacity.

The BSE Sensex ended at 73,128.77, down by 199.17 points or 0.27% after trading in a range of 72,960.29 and 73,427.59. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.31%, while Small cap index was down by 0.43%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 0.87%, Oil & Gas up by 0.85%, Consumer Durables up by 0.57%, Basic Materials up by 0.35% and FMCG was up by 0.12%, while Realty down by 1.61%, Utilities down by 1.49%, Power down by 1.43%, IT down by 1.20% and TECK was down by 1.12% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 1.70%, Titan Company up by 1.54%, ITC up by 1.49%, Maruti Suzuki up by 1.13% and Larsen & Toubro up by 1.03%. On the flip side, Wipro down by 1.93%, HCL Tech down by 1.87%, NTPC down by 1.78%, Infosys down by 1.59% and Reliance Industries down by 1.43% were the top losers. (Provisional)

Meanwhile, the commerce ministry in its latest data has said that India’s merchandise exports registered marginal growth of 0.97 per cent to $38.45 billion in December 2023 as compared to $38.08 billion in December 2022. Imports declined by 4.85 per cent to $58.25 billion in December 2023 as compared to $61.22 billion in December 2022 due to a dip in crude oil shipments. India’s trade deficit narrowed to a three-month low of $19.8 billion in December 2023 from $23.14 billion in the year-ago period.

According to the data, merchandise exports for the period April-December 2023 were $317.12 billion as against $336.30 billion during April-December 2022. Merchandise imports for the period April-December 2023 were $505.15 billion as against $548.64 billion during April-December 2022. The merchandise trade deficit for April-December 2023 was estimated at $188.02 billion as against $212.34 billion during April-December 2022.

It further stated that non-petroleum and non-gems & jewellery exports in December 2023 were $28.67 billion, compared to $27.19 billion in December 2022. Non-petroleum and non-gems & jewellery exports during April-December 2023 was $230.74 billion, as compared to $233.73 billion in April-December 2022. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in December 2023 were $37.96 billion, compared to $38.04 billion in December 2022. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports were $320.75 billion in April-December 2023 as compared to $333 billion in April-December 2022.

The CNX Nifty ended at 22,032.30, down by 65.15 points or 0.29% after trading in a range of 21,969.80 and 22,124.15. There were 16 stocks advancing against 34 stocks declining on the index. (Provisional)

The top gainers on Nifty were BPCL up by 2.80%, Tata Steel up by 1.74%, Titan Company up by 1.63%, ITC up by 1.01% and Maruti Suzuki up by 0.96%. On the flip side, Divi's Lab down by 2.43%, HCL Tech down by 2.06%, Wipro down by 1.94%, NTPC down by 1.83% and SBI Life down by 1.49% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 36.09 points or 0.48% to 7,558.82, France’s CAC fell 28.89 points or 0.39% to 7,382.79 and Germany’s DAX was down by 90.39 points or 0.55% to 16,531.83.

Asian markets settled mostly down on Tuesday amid escalating geopolitical tensions surrounding the Korean Peninsula. Japanese shares declined amid profit taking at 34-year highs, while the Bank of Japan said that the Producer Price Index was unchanged from the same month a year before. However, Chinese shares gained as major Chinese lender Ping An Bank Co. put 41 Companies on a list of developers eligible for its funding support, marking the latest move aimed at reviving the nation's crisis-hit property sector. Further, China's $1.24 trillion sovereign wealth fund vowed to help with risk mitigation and market stabilization in 2024.