Post Session: Quick Review

Indian equity markets witnessed strong selling pressure on Monday, with both the Nifty and the Sensex closing over a percent lower amid concerns over escalating tensions in the Strait of Hormuz. Heavyweight stocks in the IT and banking sectors were among the major laggards, weighing on overall investor sentiment. Cautiousness also prevailed ahead of the expiry of Nifty weekly derivatives contracts. Additionally, traders avoided risky bids ahead of holiday tomorrow on account of Dussehra.

Some of the important factors in trade:

India's forex kitty dropped by $8.57 billion to $726.02 billion: Traders remained cautious as the RBI said India's forex kitty dropped by $8.57 billion to $726.02 billion during the week ended October 9. In the previous reporting week, the reserves had dropped by $12.95 billion to $734.60 billion.

India's merchandise exports record significant growth across regions like Africa, ASEAN: Traders overlooked the Commerce Ministry’s data showed that India's merchandise exports recorded healthy growth across regions, including Africa, ASEAN and North-East Asia, in April-August this fiscal, reflecting the impact of market diversification initiatives. 

Sitharaman, JBIC Governor discuss expanding cooperation in clean energy, critical minerals and supply chains: Traders took note of report that Finance Minister Nirmala Sitharaman has met Japan Bank for International Cooperation (JBIC) Governor Kazuhiko Amakawa and discussed expanding cooperation in clean energy, energy transition, advanced manufacturing, semiconductors, critical minerals, electric mobility and resilient supply chains.

On the global front: European stocks were trading lower amid concerns over high energy prices and France’s political instability. Asian stock markets are trading mostly lower, following broadly negative cues from Wall Street on Friday, amid a sharp rise in crude oil prices and a sell-off in technology and semiconductor stocks.

The BSE Sensex ended at 73852.90, down by 876.37 points or 1.17% after trading in a range of 73708.54 and 74849.75. There were 5 stocks advancing against 25 stocks declining on the index. (Provisional)

The top losing sectoral indices on the BSE were FMCG down by 1.51%, IT down by 1.38%, TECK down by 1.30%, Basic Materials down by 1.28% and Realty down by 1.23%. (Provisional)

The top gainers on the Sensex were State Bank of India up by 1.12%, Adani Ports and Special Economic Zone up by 1.07%, Larsen & Toubro up by 0.61%, and Interglobe Aviation up by 0.24%. On the flip side, Axis Bank down by 3.85%, Ultratech Cement down by 2.82%, Infosys down by 2.72%, Bajaj Finance down by 2.54% and Trent down by 2.43% were the top losers. (Provisional)

Meanwhile, expressing optimism about India’s growth prospects, NITI Aayog Vice Chairman Ashok Kumar Lahiri has said that India needs rapid economic reforms and structural changes to become a developed nation by 2047. He said a high-income economy is defined as one in which the gross national income (GNI) per capita exceeds a specified threshold. For instance, he noted that the threshold for 2027 is $14,375 for a country to qualify as a high-income economy.

Lahiri said “You factor in some inflation, and one estimate puts the target for per capita income at around $18,000 to $20,000 for India to become a high-income country by 2047.” He pointed out that India’s per capita income currently stands at $2,813. To reach $18,000 by 2047, India’s per capita income would need to increase around six-and-a-half times, growing at an annual nominal rate of around 9.25 per cent over the next 21 years.

He emphasised that education, healthcare and infrastructure are the three critical areas for achieving rapid economic growth. He noted “You will not find any country where the people are educated and poor. Neither will you find any country where the people are uneducated and rich.” Similarly, he said, “You will find it difficult to find countries where the people are healthy and poor, or where the people are rich and sickly.” He stressed that human capital is essential for economic growth and overall well-being. 

The CNX Nifty ended at 22888.95, down by 257.20 points or 1.11% after trading in a range of 22845.00 and 23175.25. There were 9 stocks advancing against 41 stocks declining on the index. (Provisional)

The top gainers on Nifty were JSW Steel up by 2.06%, ONGC up by 1.35%, State Bank of India up by 1.15%, Larsen & Toubro up by 0.96% and Eicher Motors up by 0.89%. On the flip side, Axis Bank down by 4.19%, Tata Motors Passenger down by 3.09%, Infosys down by 2.63%, Bajaj Finance down by 2.52% and Apollo Hospital down by 2.41% were the top losers. (Provisional)

European markets were trading lower; France’s CAC fell 112.3 points or 1.41% to 7,844.40, Germany’s DAX lost 300.51 points or 1.19% to 25,322.10 and UK’s FTSE 100 decreased 102.11 points or 0.94% to 10,779.79.

Asian markets settled mostly lower on Monday following a sharp, tech-led sell-off on Wall Street last Friday, which was fuelled by mounting investor anxiety over the massive funding needs and valuation sustainability of the artificial intelligence boom. Indonesian market extended severe market rout, with the benchmark Jakarta Composite Index dropping below the critical 5,000 psychological level to hit a fresh six-year low. Meanwhile, Federal Reserve Chairman Kevin Warsh’s strong optimism regarding US and global economic resilience during the IMF and World Bank annual meetings in Bangkok, better-than-expected China's Q3 GDP growth, and a drop in crude oil prices boosted some investor confidence. China’s economic growth accelerated to 4.5% in the third quarter, picking up from a three-year low of 4.3% in the prior quarter. Meanwhile, the Hong Kong Stock Exchange remained closed today in observance of the Double Ninth Festival (Chung Yeung Festival).