Post Session: Quick Review

Indian equity markets ended Tuesday’s volatile trading session on flat note as traders were cautious about upcoming inflation numbers. Initially, indices traded in green as traders were hoping that the new governor, Sanjay Malhotra who begins his three-year innings at the Mint Street on December 11, could cut rates sooner-than-expected. However, in second half of the session, markets lost their ground. As for broader indices, the BSE Mid cap index and Small cap index ended in green.

Markets made positive start and remained in green amid positive cues from the other Asian markets. Some support came in as foreign institutional investors (FIIs) bought equities worth Rs 724.27 crore on December 9. Further, there were some encouragement in markets as private report said India retail inflation likely fell to 5.53% in November after breaching the central bank’s 6% upper tolerance band in October as the arrival of fresh produce to markets moderated soaring vegetable prices. However, in afternoon session, markets failed to hold gains and turned negative. Sentiments got hit amid report that GST officers have detected cases of ITC evasion of Rs 35,132 crore by 17,818 fake firms between April-October and arrested 69 persons. Investors overlooked the Ministry of Labour & Employment in its latest release has showed that retail inflation for farm workers and rural labourers witnessed a notable decline in the month of October 2024, easing to 5.96% and 6%, respectively as compared to 7.08% and 6.92% in October 2023. In late afternoon session, markets came off from day’s low points and ended flat as traders avoided to take risk.

On the global front, European markets were trading lower hurt by losses in miners, as the rally sparked by China stimulus pledges tapered off after its weak trade data, while the focus is now on U.S. inflation data. Asian markets ended mostly in green ahead of key U.S. consumer and producer inflation readings due this week that will help shape the outlook for Federal Reserve monetary policy. Back home, Federation of Automobile Dealers Associations (FADA) has said that retail sales of vehicles across categories in India grew by 11.21 per cent at 32,08,719 units in November 2024, as compared to 28,85,317 units in the same month last year riding on two-wheeler demand.

The BSE Sensex ended at 81,510.05, up by 1.59 points after trading in a range of 81,182.69 and 81,726.34. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.30%, while Small cap index was up by 0.33%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 1.22%, IT up by 0.70%, Metal up by 0.41%, Basic Materials up by 0.36% and TECK was up by 0.28%, while Telecom down by 1.18%, Utilities down by 0.93%, Power down by 0.59%, Capital Goods down by 0.35% and Oil & Gas was down by 0.23% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finserv up by 1.59%, HCL Tech up by 1.31%, SBI up by 1.14%, Infosys up by 1.09% and Bajaj Finance up by 0.94%. On the flip side, Bharti Airtel down by 1.42%, Adani Ports down by 1.39%, Tech Mahindra down by 0.90%, Reliance Industries down by 0.79% and Axis Bank down by 0.73% were the top losers. (Provisional)

Meanwhile, Union Minister of State Kirti Vardhan Singh has said that the Digital India initiative has laid the foundation for a developed India by 2047. He stated over the past 11 years, the government has brought about a digital revolution, inspiring citizens to work digitally, which has had an unprecedented impact on 1.4 billion people.

Further, he mentioned that during his travels, foreign government representatives and citizens have praised India’s digital revolution. He said it is encouraging that the vision of Digital India has helped India earn a distinct place on the global map. Digital services have also helped curb corruption. Initiatives like UPI, DigiLocker, DigiYatra, CoWIN, Aarogya Setu, e-Sanjeevani, UMANG, GeM, DIKSHA, e-Hospital, and e-Court are impacting millions of lives and making tasks simpler.

Besides, he said that under the leadership of Prime Minister Narendra Modi, the world is now recognizing India’s digital revolution. The Digital India program, launched by the Government on July 1, 2015, envisions transforming India into a knowledge-based economy and digitally empowered society by ensuring digital services, accessibility, inclusion, and empowerment.

He highlighted India’s digital payment revolution, which is gaining global recognition. Currently, UPI (Unified Payments Interface) is used for payments in seven countries: UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. UPI's launch in France is especially significant as it marks the first use of UPI in Europe.

The CNX Nifty ended at 24,610.05, down by 8.95 points or 0.04% after trading in a range of 24,510.65 and 24,677.80. There were 21 stocks advancing against 29 stocks declining on the index. (Provisional)

The top gainers on Nifty were Shriram Finance up by 2.56%, Bajaj Finserv up by 1.61%, Wipro up by 1.43%, HCL Tech up by 1.38% and Infosys up by 1.29%. On the flip side, Bharti Airtel down by 1.49%, Adani Ports down by 1.43%, HDFC Life Insurance down by 1.32%, Dr. Reddy's Lab down by 1.18% and Adani Enterprises down by 1.15% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 46.34 points or 0.56% to 8,305.74, France’s CAC fell 44.61 points or 0.6% to 7,435.53 and Germany’s DAX was down by 28.88 points or 0.14% to 20,317.08.

Asian markets ended mostly higher on Tuesday ahead of key US inflation readings due this week that will help shape the outlook for Federal Reserve monetary policy. Chinese shares gained on announcement of more proactive fiscal measures and moderately looser monetary policy next year as part of efforts to boost domestic consumption. Meanwhile, disappointing readings on exports and imports also suggesting that China needs to do more to shore up a faltering economy that is only likely to face further challenges next year. Japanese shares rose as the yen weakened against its American counterpart for the second consecutive day. Seoul shares recovered after a fourth consecutive days of drops caused by political turmoil from President Yoon Suk Yeol's botched martial law declaration last week.