Post Session: Quick Review

Key benchmark indices managed to end the Wednesday’s trade in green amid volatility. Markets witnessed volatility throughout the day ahead of RBI interest rate decision. The decision of the rate-setting panel will be announced on December 6 by Governor Shaktikanta Das. Most part of the time, markets traded in green amid FII inflows. As for broader indices, the BSE Mid cap index and Small cap index ended with gains.

Markets made positive start and remained in green as traders took support after foreign institutional investors (FIIs) slowly returning to buying ways, or at least slowing down their continuous selling of Indian equities. Foreign institutional investors (FIIs) purchased equities of more than Rs 3,600 crore on December 3. Meanwhile, the Lok Sabha has passed the Banking Laws (Amendment) Bill, 2024, which allows bank account holders to have up to four nominees in their accounts. Another proposed change relates to redefining 'substantial interest' for directorships, which could increase to Rs 2 crore instead of the current limit of Rs 5 lakh, which was fixed almost six decades ago. The Bill piloted by Finance Minister Nirmala Sitharaman was approved by a voice vote. In afternoon session, indices come off from high levels and turned volatile amid India’s services activity slowed to 58.4 in November compared with 58.5 in the previous month, as total sales rose at a softer pace and prices rose faster owing to building cost pressures. Markets traded with limited gains in late afternoon session, as traders avoided to take risk. 

On the global front, European markets were trading mostly in green as investors braced for an upcoming no-confidence vote in France’s parliament, the National Assembly. Asian markets settled mostly higher despite South Korea plunged into political chaos and data showed China's services activity expansion eased in November. Back home, Commerce and Industry Minister Piyush Goyal said that the long voyage time due to ships taking longer routes through Cape of Good Hope has impacted global trade, including Indian exports. This has resulted in increased time for goods to reach international markets.

The BSE Sensex ended at 80,956.33, up by 110.58 points or 0.14% after trading in a range of 80,630.53 and 81,245.39. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.83%, while Small cap index was up by 0.68%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 2.13%, Bankex up by 0.91%, Consumer Durables up by 0.69%, PSU up by 0.67% and Industrials was up by 0.59% while, Auto down by 0.67%, FMCG down by 0.61%, Telecom down by 0.51%, Energy down by 0.42%, Metal down by 0.27% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were HDFC Bank up by 1.82%, NTPC up by 1.41%, Bajaj Finserv up by 1.41%, Titan Company up by 1.01% and TCS up by 0.93%. On the flip side, Bharti Airtel down by 2.17%, Tata Motors down by 1.61%, Adani Ports down by 1.53%, Power Grid down by 1.44% and Maruti Suzuki down by 1.30% were the top losers. (Provisional)

Meanwhile, India and the UK have reviewed their ties with a focus on the early conclusion of a mutually beneficial free trade pact, boosting counter-terror cooperation and enhancing defence ties. Both nations aimed to identify new areas for collaboration, with discussions covering economic ties, technology, and security initiatives and fostering innovation in emerging technologies, clean energy, and cultural linkages.

The Ministry of External Affairs (MEA) said both sides discussed the entire gamut of strategic partnership and emphasised the importance of a sustained high-level engagement to advance the dynamic relations. It said ‘The delegations reviewed progress under the India-UK Roadmap 2030 and agreed on the need to revitalise the partnership by identifying new focus areas of collaboration and work towards a refreshed roadmap’. The two sides unveiled the 10-year roadmap in 2021 to expand ties in the key areas of trade and economy, defence and security, climate change and people-to-people connections among others.

The MEA said the discussions covered key priorities like strengthening economic and trade ties with a focus on the early conclusion of a mutually beneficial FTA and bolstering defence and security ties including in areas of cyber and counter-terrorism. At the 2+2 dialogue, the two sides also discussed ways to foster innovation in critical and emerging technologies, deepen cooperation in clean and green energy and technology, health and enhance cultural, educational and people-to-people linkages. The India-UK talks for the proposed FTA began in January 2022. The two sides have held 14 rounds of negotiations on it so far.

The CNX Nifty ended at 24,467.45, up by 10.30 points or 0.04% after trading in a range of 24,366.30 and 24,573.20. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were HDFC Life Insurance up by 2.56%, HDFC Bank up by 1.85%, Apollo Hospital up by 1.48%, NTPC up by 1.44% and Bajaj Finserv up by 1.31%. On the flip side, Bharti Airtel down by 2.25%, Cipla down by 2.15%, Bajaj Auto down by 1.78%, Tata Motors down by 1.64% and Adani Ports down by 1.48% were the top losers. (Provisional)

European markets were trading mostly in green; France’s CAC rose 22.14 points or 0.3% to 7,277.56 and Germany’s DAX was up by 177.25 points or 0.88% to 20,194.00. On the flip side, UK’s FTSE 100 was down by 32.11 points or 0.39% to 8,327.30.

Asian markets settled mostly higher on Wednesday after US central bankers said they continue to believe inflation is heading down to their 2% target and signalled support for further interest rate cuts ahead, while investors are awaiting US jobs data and remarks from Federal Reserve Chair Jerome Powell for additional clarity on the US rate outlook. Japanese shares gained marginally after data showed Japan's service activity swung back to growth in November. However, Seoul shares declined as President Yoon Suk Yeol declared martial law in a dramatic move and lifted the decree hours later, plunging the country into political chaos. Chinese and Hong Kong shares fell after data showed China's services activity expanded at a slower pace in November, and as traders waited to see whether China will unveil more economic stimulus measures at a key policy meeting later this month.