Post Session: Quick Review

In choppy trading session, Indian equity benchmarks ended Wednesday’s trade near day’s high levels amid buying in IT and banking sector’s stocks. Markets made positive start and till afternoon session trimmed most of their gains. However, markets managed to add gains in late afternoon session. Finally, markets ended with gains of over half a percent on Wednesday.

Some of the important factors in today’s trade:

Uncertainties regarding President Trump’s potential trade measures: U.S. President Donald Trump repeating his threat to impose tariffs on EU goods entering the States. Trump reiterated his administration's plans to discuss a potential 10 percent tariff on goods imported from China starting February 1 to curb the flow of deadly drug fentanyl that is being sent from China to the U.S. via Mexico and Canada.

HDFC bank’s result helps markets to end near intra day high: HDFC Bank has reported 2.31% rise in its consolidated net profit at Rs 17656.61 crore for the quarter ended December 31, 2024 as compared to Rs 17257.87 crore for the same quarter in the previous year.

EPFO adds 14.63 lakh net members during November 2024: Employees' Provident Fund Organisation (EPFO) in its latest ‘Provisional payroll data’ report has showed that 14.63 lakh net members have been added in the month of November 2024, an increase of 9.07% as compared to the previous month of October 2024.

Global front: European markets were trading higher amid UK budget deficit more than doubled in December from the last year as increases in spending were much larger than increases in receipts. Asian markets ended mostly in green, after South Korea's consumer sentiment increased for the first time in three months in January. The survey results from the Bank of Korea showed that the consumer confidence index rose to 91.2 in January from 88.2 in December.

The BSE Sensex ended at 76,404.99, up by 566.63 points or 0.75% after trading in a range of 75,816.50 and 76,463.13. There were 21 stocks advancing against 9 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 1.20%, while Small cap index was down by 1.56%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 1.88%, TECK up by 1.65%, Bankex up by 0.26% and Healthcare was up by 0.06%, while Realty down by 4.53%, Industrials down by 1.88%, Capital Goods down by 1.82%, Power down by 1.57% and PSU was down by 1.45% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Infosys up by 3.16%, TCS up by 2.97%, Tech Mahindra up by 2.28%, Sun Pharma up by 1.78% and Bajaj Finserv up by 1.63%. On the flip side, Tata Motors down by 2.24%, Power Grid down by 1.24%, Axis Bank down by 1.14%, SBI down by 0.76% and NTPC down by 0.62% were the top losers. (Provisional)

Meanwhile, the government has disbursed Rs 1,596 crore under Production-Linked Incentive (PLI) schemes for six sectors, including electronics and pharma, during the April-September this fiscal. The government in 2021 announced PLI schemes for 14 sectors such as telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones, and pharma with an outlay of Rs 1.97 lakh crore.

Out of the total Rs 1,596 crore, the maximum amount of Rs 964 crore was disbursed under the PLI scheme for large-scale electronics manufacturing. It was followed by pharma (Rs 604 crore), food products (Rs 11 crore), telecom (Rs 9 crore), bulk drugs (Rs 6 crore) and drones (Rs 2 crore). Incentives disbursed till 2023-24 stood at Rs 9,721 crore. The scheme is having a cascading effect on the country's MSME ecosystem. The anchor units that will be built in every sector will require a new supplier base in the entire value chain. Most of these ancillary units will be built in the MSME sector.

Further as of August 2024, across 14 sectors, investment of Rs 1.46 lakh crore have been realised, which has resulted in incremental production/sales of over Rs 12.50 lakh crore, employment generation of over 9.5 lakhs, and exports surpassing Rs 4 lakh crore. Over 760 applications have been approved under PLI schemes. The departments implementing their respective schemes are responsible for the disbursals. The schemes aim is to attract investments in key sectors and cutting-edge technology; ensure efficiency, bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive.

The CNX Nifty ended at 23155.35, up by 130.70 points or 0.57% after trading in a range of 22981.30 and 23169.55. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Wipro up by 3.60%, Infosys up by 3.10%, TCS up by 2.99%, Tech Mahindra up by 2.65% and Sun Pharma up by 2.06%. On the flip side, Bharat Electronics down by 3.10%, Tata Motors down by 2.37%, Trent down by 1.93%, Power Grid down by 1.59% and Axis Bank down by 1.12% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 30.6 points or 0.36% to 8,578.89, France’s CAC rose 54.4 points or 0.7% to 7,825.35 and Germany’s DAX was up by 212.71 points or 1% to 21,254.71.

Asian markets settled mostly higher on Wednesday, tracking Wall Street’s gains overnight and as US bond yields dipped ahead of FOMC meeting and US PCE data and digested US President Donald Trump’s latest comments. Japanese markets gained as Donald Trump announced a major $500 billion AI infrastructure project in US in collaboration with SoftBank, Oracle, and OpenAI, while yen slipped after reports suggested the Bank of Japan remains on track to raise interest rates on Friday. However, Chinese and Hong Kong shares fell on signs of rising tensions between the world's largest economies after US President Donald Trump threatened tariffs on the EU and China to address trade imbalances and combat fentanyl trafficking.