Post Session: Quick Review

Indian equity markets ended near day’s low levels on Thursday with Nifty and Sensex settling below the psychological 24,550 and 81,300 levels, respectively ahead of India's inflation (CPI) and industrial production (IIP) data, set to be released later today. The expiry of weekly derivatives contracts also kept markets sentiments downbeat. However, losses were limited throughout the day following the release of the closely watched US inflation data that came in line with estimates. As for broader indices, the BSE Mid cap index and Small cap index ended in red.

Markets made cautious start and extended their losses amid FII outflows. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday, as they offloaded shares worth Rs 1,012.24 crore. The street failed to get any sense of relief with a report by the PHD Chamber of Commerce and Industry (PHDCCI) stating that India's states have demonstrated remarkable economic resilience in the aftermath of the COVID-19 pandemic, with 25 states achieving over 7 per cent growth in their Gross State Domestic Product (GSDP) during FY22 and FY23. Among these, 17 states surpassed an impressive 9 per cent growth rate, with Gujarat, Kerala, Telangana, Rajasthan, West Bengal, Bihar, Karnataka, Uttar Pradesh, Haryana, and Odisha standing out for their robust economic performance during 2021-22 and 2022-23. In afternoon session, markets continued to trade lower. Traders took note of report that Chief Economic Advisor (CEA) V Anantha Nageswaran underlined the need to be cautious about energy transition and said that it should be done without compromising growth. In late afternoon session, indices touched their day’s low levels, as traders sold out their riskier assets. 

On the global front, European markets were trading higher as the Swiss National Bank cut its interest rate by 50 basis points, its biggest reduction in almost 10 years amid an ongoing tussle with depressed inflation and a strong Swiss franc. Asian markets ended mostly in green amid investors awaited the outcome of a key policy meeting in China, where leaders are expected to map out next year's economic priorities. Back home, Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Amardeep Singh Bhatia has said that India has reduced its tariffs significantly over the years, bringing them down to the world average level, yet the domestic industries continue to suggest increasing the duties.

The BSE Sensex ended at 81,289.96, down by 236.18 points or 0.29% after trading in a range of 81,211.64 and 81,680.97. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.56%, while Small cap index was down by 1.00%. (Provisional)

The few gaining sectoral indices on the BSE were TECK up by 0.78%, IT up by 0.64% and Utilities was up by 0.07%, while FMCG down by 1.15%, Energy down by 1.03%, PSU down by 1.03%, Industrials down by 0.83% and Consumer Discretionary was down by 0.81% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tech Mahindra up by 1.67%, Bharti Airtel up by 1.56%, Indusind Bank up by 1.29%, Infosys up by 0.93% and Adani Ports up by 0.90%. On the flip side, NTPC down by 2.76%, Hindustan Unilever down by 2.42%, Tata Motors down by 1.59%, Maruti Suzuki down by 1.42% and Larsen & Toubro down by 1.26% were the top losers. (Provisional)

Meanwhile, Finance Minister Nirmala Sitharaman has stressed that India Inc’s commercial considerations should blend with the economy, nation’s priorities and strategic needs. Asking the industry to “realign and reset” itself based on the lessons learnt in the last decade, Sitharaman said the supply chains should be widespread lest geopolitical risks disrupt it. Outlining the priorities of the economy for the next decade, she said the industry should work with small and medium enterprises to explore how they can support large units, while equally contributing to job creation.

She said ‘When we talk about restoring supply chains to frictionless supply chains, let’s not forget it’s not just economics, it’s more than that… We have to build in our own decision making not just in economic sense but also in a political and strategic sense. Supply chains will have to be restored but you would have to reset it, realign it, you will have to make sure that it is spread so much that no geopolitical or strategic risks will threaten our wellbeing’.

Learning from the last decade are that the country will have to now realign, and industry will have to realign itself not just on economic principles. Sitharaman said the attempt of both industry and governments everywhere should be to restore global calm and normalcy. There can nowhere be enough justifiable reason for skirmishes or war. She added ‘The global priority for this decade should be to restore normalcy. They are the main cause for disruptions in supply chain, inflation and other global challenges’.

Stating that the benefits of economic success will be spread properly only through technology. India’s Digital Public Infrastructure (DPI), ONDC (Open Network for Digital Commerce) and technology stack for agriculture have democratised access. She also said ‘Farmers are now able to access the global markets due to the advantage of technology. I’m sure that ‘Agri Stack’ will be the next big thing you will hear coming out of India’. She added ‘The world is facing challenges which are reflected in the economy’. She said industry will have to look at ways to adapt with newer challenges, and added that scale cannot be the only criteria.

The CNX Nifty ended at 24,548.70, down by 93.10 points or 0.38% after trading in a range of 24,527.95 and 24,675.25. There were 16 stocks advancing against 34 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Enterprises up by 1.91%, Bharti Airtel up by 1.55%, Tech Mahindra up by 1.52%, Indusind Bank up by 1.33% and Adani Ports up by 0.83%. On the flip side, NTPC down by 2.71%, Hindustan Unilever down by 2.35%, Hero MotoCorp down by 2.01%, Coal India down by 1.88% and BPCL down by 1.72% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 18.59 points or 0.22% to 8,320.21, France’s CAC rose 4.68 points or 0.06% to 7,428.08 and Germany’s DAX was up by 30.77 points or 0.15% to 20,429.93.

Asian markets settled mostly higher on Thursday tracking Wall Street's tech-led rally overnight after in-line US inflation data cementing expectations that the Federal Reserve will cut interest rates by another quarter point next week. Japanese shares gained with Nikkei index topped 40,000 for the first time since mid-October followed by advances in chip-sector shares, while the yen languished near two-week low against the dollar as traders pared bets for a Bank of Japan interest rate hike next week. Moreover, Chinese shares climbed ahead the outcome of a key policy meeting in China, where leaders are expected to map out next year's economic priorities. Sentiments rose further after reports that China's leaders and policymakers are considering allowing the yuan to weaken next year in response to the threat of a trade war with the United States.