Post Session: Quick Review

Indian markets witnessed massive losses in Wednesday’s trade with Nifty and Sensex settled below the psychological 22,000 and 72,800 levels respectively. Traders were cautious with mixed macro-economic data. Besides, Wholesale Price Index (WPI) data, is slated to be released on March 14. As for broader indices, the BSE Mid cap index ended with cut of over four percent, while Small cap index concluded with cut of over five percent. All the sectoral indices on the BSE ended in red.

After making positive start, markets failed to hold their gains and entered into red trend, as some concern came after growth in factory output, based on the Index of Industrial Production (IIP), slowed to 3.8 per cent in January 2024, mainly due to poor performance of manufacturing, mining and power sectors. It was 5.8 in January 2023. The IIP figures for December 2023 was revised upward to 4.2 per cent from 3.8 per cent earlier estimate. Investors overlooked that India’s retail inflation eased to a four-month low of 5.09 per cent in February 2024. The inflation based on Consumer Price Index (CPI) was almost unchanged compared to the January number of 5.10 per cent, though prices of certain items in the food basket firmed up. Markets added more losses in afternoon session, as sentiments were downbeat with a report of economic think tank GTRI stating that with escalating everyday attacks and no end in sight, the Red Sea crisis will adversely impact trade volumes in substantial ways in 2024. The Global Trade Research Initiative (GTRI) said that rising shipping, and insurance costs and delayed arrival of shipments will continue to disrupt global value chains, squeeze margins, and make exports of many low-margin products unviable from current locations. Markets continued to trade deep in red to end near intraday low, as investors preferred to sell their riskier assets.

On the global front, European markets were trading mostly in green as upbeat corporate updates encouraged market sentiment, while investors awaited industrial production data from the region. Asian markets ended mixed as hopes faded for an early rate cut by the U.S. Federal Reserve and investors monitored the early headlines on Japan's spring wage negotiations for clues on a possible shift in BOJ policy. Back home, Society of Indian Automobile Manufacturers (SIAM) in its latest data has showed that passenger vehicle wholesales in India rose 11 per cent year-on-year in February 2024, as sports utility vehicles continued to steer demand in the market.

The BSE Sensex ended at 72,761.89, down by 906.07 points or 1.23% after trading in a range of 72,515.71 and 74,052.75. There were 7 stocks advancing against 23 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 4.20%, while Small cap index was down by 5.11%. (Provisional)

The top losing sectoral indices on the BSE were Utilities down by 7.21%, Power down by 6.35%, PSU down by 5.99%, Metal down by 5.75% and Telecom was down by 5.45%, while there were no gaining sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were ITC up by 4.39%, ICICI Bank up by 0.47%, Nestle up by 0.33%, Kotak Mahindra Bank up by 0.27% and Bajaj Finance up by 0.15%. On the flip side, Power Grid down by 7.03%, NTPC down by 6.68%, Tata Steel down by 5.90%, Tata Motors down by 4.25% and JSW Steel down by 3.32% were the top losers. (Provisional)

Meanwhile, remaining within the Reserve Bank of India’s (RBI) comfort zone of 6 per cent for the sixth month in a row, India’s retail inflation eased to a four-month low of 5.09 per cent in February 2024. The inflation based on Consumer Price Index (CPI) was almost unchanged compared to the January number of 5.10 per cent, though prices of certain items in the food basket firmed up. The RBI has been tasked by the government to ensure retail inflation remains at 4 per cent with a margin of 2 per cent on either side.

National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) in its data has showed that Rural CPI (General) in February 2024 stood at 5.34 per cent same as 5.34 per cent in January 2024. The Urban CPI (General) stood at 4.78 per cent in February as against 4.92 per cent in January. The index value for Rural, Urban and Combined CPI (General) stood at 187.4, 184.0 and 185.8 respectively, in February 2024. The price data are collected from selected 1114 urban Markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. 

The food basked has nearly 50 per cent weight in the CPI. The inflation in the food basket rose marginally to 8.66 per cent in February from 8.30 per cent in the preceding month. Inflation in Vegetables was 30.25 per cent, Pulses and products 18.90 per cent, Fruits 4.83 per cent, Cereals and products 7.60 per cent, Spices 13.51 per cent. However, Oils and fats recorded negative inflation at 13.97 per cent.

The CNX Nifty ended at 21,997.70, down by 338.00 points or 1.51% after trading in a range of 21,905.65 and 22,446.75. There were 7 stocks advancing against 43 stocks declining on the index. (Provisional)

The top gainers on Nifty were ITC up by 4.45%, ICICI Bank up by 0.66%, Kotak Mahindra Bank up by 0.53%, Cipla up by 0.38% and Bajaj Finance up by 0.31%. On the flip side, Power Grid down by 7.31%, Coal India down by 7.18%, Adani Ports down by 7.05%, Adani Enterprises down by 6.93% and NTPC down by 6.45% were the top losers. (Provisional)

European markets were trading mostly in green; UK’s FTSE 100 increased 14.86 points or 0.19% to 7,762.67 and France’s CAC was down by 33.7 points or 0.41% to 8,121.18. On the flip side, Germany’s DAX was down by 4.31 points or 0.02% to 17,960.80.

Asian markets settled mixed on Wednesday as hotter than expected US inflation report diminished hopes for an early interest rate cut by the US Federal Reserve. Data showed that US CPI increased 0.4% for the month and 3.2% year-on-year in February, while the core CPI rose 0.4% on the month and was up 3.8% on the year. Chinese shares dropped due to lingering worries over the country's beleaguered property sector. Country Garden's onshore bondholders said they have not received a coupon payment due on Tuesday. The payment totalling 96 million yuan ($13 million) has a 30-day grace period. Japanese shares declined, while the yen strengthened amid more signs that the Bank of Japan will raise interest rates soon. Seoul shares gained tracking overnight Wall Street gains followed by megacap tech stocks. Meanwhile, South Korea’s unemployment rate in the country fell to 2.6% in February from 3% in the prior month.