Post Session: Quick Review

Indian equity markets ended near the day’s low on Thursday as crude oil prices surged above the $100-per-barrel mark, while U.S. bond yields climbed to their highest levels in nearly two decades. Further, renewed concerns over inflation increased expectations that the U.S. Federal Reserve could deliver another interest-rate hike later this year.

Both the Sensex and Nifty closed more than 1.5% lower on Thursday, extending losses through the session as broad-based selling weighed on the benchmarks. Banking and financial stocks were among the biggest decliners on the markets.

Some of the important factors in trade:

OECD raises India's FY27 GDP growth forecast to 7.1%: Traders paid no heed to reports that the Organisation for Economic Co-operation and Development (OECD) in its Interim Economic Outlook has raised India's Gross Domestic Product (GDP) growth forecast for the current fiscal year 2026-27 (FY27) by 80 basis points to 7.1%, up from 6.3% projected in June.

RBI Deputy Governor says rupee could appreciate after recent fall: Traders overlooked the Reserve Bank of India’s (RBI) Deputy Governor Poonam Gupta statement that there is a fair case for the rupee to not just stabilise but even appreciate from current levels, as the currency's 13.1% depreciation over the past one-and-a-half years appears to be a temporary phenomenon.

India’s Retail Sector Records 10% Growth in August 2026: Traders took note of a survey by the Retail Association of India (RAI), which said that India’s retail sector maintained a steady trajectory in August 2026, registering 10% year-on-year (Y-o-Y) growth across the country.

On the global front: European stocks were trading mostly in the red, while Asian markets closed mostly lower, amid ongoing tensions in West Asia. Meanwhile, hawkish commentary from the Federal Reserve raised expectations of another Fed rate hike.

The BSE Sensex ended at 73580.54, down by 1247.71 points or 1.67% after trading in a range of 73563.92 and 74362.29. There were 29 stocks declining on the index, while one stock remained unchanged. (Provisional)

The top losing sectoral indices on the BSE were Telecom down by 2.31%, Bankex down by 1.88%, Metal down by 1.65%, Auto down by 1.64% and Industrials down by 1.47%, while there were no gaining sectoral indices. (Provisional)

There were no gainers on the Sensex. On the flip side, Bajaj Finance down by 5.47%, Axis Bank down by 4.67%, Bajaj Finserv down by 4.06%, Interglobe Aviation down by 2.78% and Trent down by 2.75% were the top losers. (Provisional)

Meanwhile, Crisil Ratings in its latest report has said that the domestic packaging paper industry is poised to extend its double-digit growth trajectory in this fiscal (FY27), with revenues expected to expand by 10-11%. Volume growth of 6-7% and 3-4% gains in realisations are expected to drive the expansion. Growing demand from consumption-linked sectors, rising use of recyclable packaging and a richer product mix should further support growth. 

According to the report, efficiency-focused investments are also expected to improve operating margins by 40-50 bps to around 9%. Credit profiles are likely to remain stable as companies largely fund capex through internal accruals. Packaging paper - comprising kraft paper, duplex board and virgin board - is expected to account for nearly two-thirds of domestic paper volumes this fiscal, up from just over half in fiscal 2022, as paper-based formats gain penetration across consumption-linked sectors and the shift towards sustainable packaging gathers pace.

The report further noted that with wastepaper prices - the largest cost component - largely outside manufacturers’ control, investments are increasingly targeting controllable costs such as energy, labour and logistics. Waste-to-energy boilers, renewable power, agro-residue processing and debottlenecking, together with higher realisations, should partly offset input-cost pressures and lift operating profitability by 40-50 bps this fiscal. It further said that a rise in cheaper imports could pressure domestic realisations, while supply-chain disruptions and geopolitical tensions could raise wastepaper, energy and logistics costs. The extent to which efficiency gains offset these pressures will therefore remain a key monitorable.

The CNX Nifty ended at 23063.10, down by 383.70 points or 1.64% after trading in a range of 23046.15 and 23281.95. There were 3 stocks advancing against 47 stocks declining on the index. (Provisional)

The top gainers on Nifty were Cipla up by 1.16%, ONGC up by 0.89% and NTPC up by 0.18%. On the flip side, HDFC Life Insurance down by 6.16%, Bajaj Finance down by 5.87%, Axis Bank down by 4.56%, Bajaj Finserv down by 4.56% and Adani Enterprises down by 3.11% were the top losers. (Provisional)

European markets were trading mostly in red; France’s CAC fell 53.61 points or 0.66% to 8,069.80 and Germany’s DAX lost 112.13 points or 0.44% to 25,298.50, while UK’s FTSE 100 increased 3.54 points or 0.03% to 10,708.80.

Asian markets settled mostly lower on Thursday tracking Wall Street’s fall overnight, even as Japan's Nikkei gained as Japanese markets reopened after an extended holiday. Moreover, a rebound in crude oil prices and robust US economic data fuelled inflation concerns and reinforced expectations for further Federal Reserve rate hikes, while multi-decade high US Treasury yields also weighed on market sentiments. Further, Chinese markets declined, despite reports that the United States and China had agreed to extend their trade truce through January 10, 2027. Trading in South Korea’s Kospi index was closed in observation of the Chuseok (Autumn Harvest Festival) holiday.