Post Session: Quick Review

Despite highly volatile day, Indian equity benchmarks ended Thursday’s trade in green territory on firm cues from global markets. However, in first half of trade, markets witnessed cautious trade, as geopolitical tensions continued in the Middle East and eastern Europe. Traders were seen piling up positions in Metal, Oil & Gas and IT sector’s stocks. The broader indices, the BSE Mid cap index and Small cap index ended in green.

After making positive start, soon markets turned volatile amid foreign fund outflows. Foreign institutional investors (FIIs) net sold shares worth Rs 3,929.60 crore on February 14, provisional data from the NSE showed. Further, markets continued to trade flat till afternoon session as sentiments were cautious after the Reserve Bank of India (RBI) Governor, Shaktikanta Das has said that there is no scope for any complacency and banks should continue to maintain their vigil around build-up of risks, if any. In the meeting with banks’ MDs & CEOs, Das highlighted the issues relating to Business Model viability; outlier growth in personal loans; adherence to co-lending guidelines; Bank exposure to NBFC sector; Liquidity Risk Management; IT and Cyber security preparedness, operational resilience, digital frauds; and strengthening of the internal rating framework. However, in late afternoon session, markets gained traction and touched day’s high levels, as private report stated that India's merchandise trade deficit narrowed to $17.49 billion in January as exports edged up by 3.1 percent year-on-year despite the ongoing crisis in the Red Sea disrupting trade as commercial vessels traversing through the Suez Canal face attacks from Yemen-backed Houthi rebels. The merchandise trade deficit stood at $19.80 billion in December 2023.

On the global front, European markets were trading higher as investors digested a slew of better-than-expected corporate earnings and UK's GDP data, while comments by European Central Bank President Christine Lagarde on disinflation process in the euro zone lifted sentiment. Asian markets ended mostly in green as calmer bond markets and robust U.S. corporate earnings lifted chip stocks. Back home, Credit rating agency Crisil in its latest report has said that tailwinds from government grants in the form of viability gap funding (VGF) for battery storage systems and other favourable policy announcements should lead to around 4 gigawatt (GW) of battery storage capacity by fiscal 2028.

The BSE Sensex ended at 72,050.38, up by 227.55 points or 0.32% after trading in a range of 71,644.44 and 72,164.97. There were 16 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.93%, while Small cap index was up by 1.24%. (Provisional)

The top gaining sectoral indices on the BSE were PSU up by 2.95%, Oil & Gas up by 2.61%, Utilities up by 2.59%, Energy up by 2.28% and Power up by 1.99%, while FMCG down by 0.89% and Healthcare down by 0.08% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 6.72%, NTPC up by 3.58%, Power Grid Corp up by 2.79%, SBI up by 2.46% and HDFC Bank up by 2.15%. On the flip side, Axis Bank down by 1.90%, ITC down by 1.85%, Hindustan Unilever down by 1.58%, Nestle down by 1.32% and Sun Pharma down by 0.93% were the top losers. (Provisional)

Meanwhile, Finance Minister Nirmala Sitharaman is reportedly scheduled to review the state of the economy amid global challenges at a meeting of the Financial Stability and Development Council (FSDC) on February 21. This would be the first meeting of the FSDC after the passage of the Rs 47.6 lakh crore Budget for 2024-25, focussing on capital expenditure with an outlay of Rs 11.11 lakh crore.

She is likely to stress key priorities highlighted in the interim Budget, the way forward for various future policies and measures that the government has proposed to take in many sectors. Besides, the council may also review the progress of measures approved earlier for further development of the financial sector, and to achieve inclusive economic growth with macroeconomic stability.

The FSDC meeting will also review activities undertaken by the FSDC sub-committee chaired by the RBI governor and the action taken by members on the past decisions of FSDC.

The CNX Nifty ended at 21,910.75, up by 70.70 points or 0.32% after trading in a range of 21,794.80 and 21,953.85. There were 25 stocks advancing against 24 stocks declining on the index, while 1 stock remained unchanged. (Provisional)

The top gainers on Nifty were Mahindra & Mahindra up by 6.52%, BPCL up by 4.67%, NTPC up by 3.43%, ONGC up by 3.14% and Power Grid up by 2.92%. On the flip side, Axis Bank down by 2.25%, Apollo Hospital down by 1.87%, ITC down by 1.86%, Hindustan Unilever down by 1.55% and Nestle down by 1.34% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 8.8 points or 0.12% to 7,577.20, France’s CAC rose 69.72 points or 0.9% to 7,747.07 and Germany’s DAX was up by 116.71 points or 0.68% to 17,062.19. 

Asian markets ended mostly higher on Thursday tracking dovish comments from Chicago Fed President Austan Goolsbee. Fed's Goolsbee said on Wednesday that the policy-setting Federal Open Market Committee shouldn’t wait until PCE inflation is at the 2% goal for interest-rate cuts. Investors are now awaiting the release of US retail sales and initial jobless claims data due later in the day. Japanese shares rallied to its highest level in 34 years tracking Wall Street’s gains overnight, while weaker yen also boosted market sentiments. The timing of any policy tightening was further complicated by the release of data showing the Japanese economy slipping into a recession. Chinese market remained closed for the Lunar New Year holiday.