Post Session: Quick Review

Indian equity benchmarks ended Friday’s trade in green terrain amid optimism about interest rate cuts by some major central banks in the second quarter of the year. Data showing a much bigger than expected increase in U.S. jobless claims, has added to optimism that the Federal Reserve will lower interest rates in the coming months. Key gauges made a positive start and traded firmly in first half of the day as sentiments got boost as the Export-Import Bank of India forecast India’s merchandise exports to grow 12.3% on-year at $116.7 billion in the April-June quarter of FY25, on strong economic fundamentals and sustained manufacturing and services activity. Besides, a recent report by the Ministry of Commerce said India's exports have surged to as many as 115 countries out of the total 238 destinations during 2023-24 despite the global economic uncertainties.

However, gains remain capped as some concern came with report that as India's general election reaches halfway, declining voter turnout sparks concerns about disengagement in the world's largest poll. The decrease raises questions about the ruling Bharatiya Janata Party's support, causing uncertainty in financial markets. Meanwhile, Foreign institutional investors (FIIs) offloaded shares worth Rs 6,994.86 crore on May 9. Despite some dizziness markets managed to end the day in green terrain as traders took note of report that the United Nations migration agency has said India received over $111 billion in remittances in 2022, the largest in the world, becoming the first country to reach and even surpass the $100 billion mark. Global cues too remained supportive as Asian markets ended mostly in green after data showed that US Initial Jobless Claims for the week ended May 4 rose to 231000 from the previous week of 209000, higher than the market consensus of 210000. European markets traded in green after the U.K. economy emerged from a recession, first-quarter gross domestic product data released Friday showed. GDP rose 0.6% on the previous three months - above the 0.4% estimate. The U.K. had entered a shallow recession in the second half of 2023.

Back home, the commerce ministry in its latest data has showed that India's exports have increased to as many as 115 countries out of the total 238 destinations during 2023-24 despite the global economic uncertainties. These 115 export destinations, which account for 46.5 per cent of India's export basket, include the US, UAE, Netherland, China, UK, Saudi Arabia, Singapore, Bangladesh, Germany and Italy. On the sectoral front, Tyre industry stocks remained in focus as ratings agency Icra said domestic tyre sale volumes are expected to see a moderate growth of 4-6 per cent this fiscal after witnessing an estimated pace of 6-8 per cent in the previous financial year. It added this growth in the last fiscal was driven by factors such as elevated base and subdued growth in the commercial vehicle (CV) segment.

The BSE Sensex ended at 72664.47, up by 260.30 points or 0.36% after trading in a range of 72366.29 and 72946.54. There were 21 stocks advancing against 9 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.81%, while Small cap index was up by 0.80%. (Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 1.61%, Power up by 1.53%, Oil & Gas up by 1.38%, Basic Materials up by 1.32% and Metal up by 1.31%, while IT down by 0.87%, Realty down by 0.58%, TECK down by 0.26% and Bankex down by 0.16% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid up by 2.55%, NTPC up by 2.51%, JSW Steel up by 2.45%, Asian Paints up by 2.22% and ITC up by 2.03%. On the flip side, TCS down by 1.68%, Kotak Mahindra Bank down by 1.17%, Infosys down by 0.89%, Wipro down by 0.79% and Mahindra & Mahindra down by 0.73% were the top losers. (Provisional)

Meanwhile, expressing optimism over India’s exports growth, the Export-Import Bank of India (Exim) has said India's merchandise exports would grow by 12.3 per cent year-on-year to $116.7 billion in the April-June quarter this fiscal (Q1FY25). It said these positive growth rates are expected to be witnessed in continuation of the positive growth witnessed during the last two quarters of the previous financial year.

It added that the positive growth in India's exports could be the result of the country's Gross Domestic Product (GDP) growth fundamentals and outlook, and sustained momentum in the manufacturing and services sector.

It further said that the growth in exports is expected to continue to witness a positive momentum in the forthcoming quarters. However, it cautioned that the outlook is subject to risks of uncertain prospects for advanced economies, geopolitical shocks, and the Middle East crisis, leading to the intensification of the Red Sea crisis and deepening geoeconomic fragmentation, among other factors.

The CNX Nifty is currently trading at 22054.00, up by 96.50 points or 0.44% after trading in a range of 21950.30 and 22131.30. There were 37 stocks advancing against 13 stocks declining on the index. (Provisional)

The top gainers on Nifty were BPCL up by 4.49%, Power Grid up by 2.45%, NTPC up by 2.41%, Hero MotoCorp up by 2.39% and Eicher Motors up by 2.23%. On the flip side, TCS down by 1.65%, Cipla down by 1.38%, LTIMindtree down by 1.27%, Kotak Mahindra Bank down by 1.26% and Infosys down by 0.94% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 67.48 points or 0.81% to 8,448.83, France’s CAC rose 66.09 points or 0.81% to 8,253.74 and Germany’s DAX gained 127.63 points or 0.68% to 18,814.23.

Asian markets settled mostly higher on Friday as cooling US labour market revived hopes for US interest rate cuts this year. Data showed that US Initial Jobless Claims for the week ended May 4 rose to 231000 from the previous week of 209000, higher than the market consensus of 210000. Investors were awaiting next week's crucial US inflation data that could provide cues on the Fed's interest rate trajectory. Japanese shares gained by tracking Wall Streets’ gains overnight. Hong Kong shares gained after reports that regulators are considering a proposal to exempt individual investors from paying taxes on dividends earned from Hong Kong shares bought via Stock Connect. Chinese shares ended on a flat note amid optimism around economic recovery and after reports that US President Joe Biden’s administration is poised to unveil a sweeping decision on China tariffs as soon as next week.