Post Session: Quick Review

Positive retail inflation data helped Indian benchmarks to end Tuesday’s session with gains of over half a percent. Meanwhile, investors continued to assess corporate earnings. Now, traders turned their focused towards U.S. consumer price data. Most part of the day markets traded in green, as investors continued to hunt for fundamentally strong stocks. The broader indices, the BSE Mid cap index and Small cap index ended in green. Buying were witnessed in Banking and Energy sectors’ stocks.

Markets made positive start and extended their gains, as traders got support after Ministry of Statistics and Programme Implementation data showed that India's headline retail inflation rate decelerated to a three-month low of 5.10 percent in January due to easing food prices. Foreign fund inflows also supported domestic sentiments. Foreign institutional investors (FIIs) net bought shares worth Rs 126.60 crore on February 12, provisional data from the NSE showed. Sentiments remained up-beat as the Periodic Labour Force Survey (PLFS) data, released by the National Statistical Office showed that the jobless rate in urban India marginally declined further in Q3 (October-December) of FY24 to 6.5 per cent from 6.6 per cent in the preceding quarter, thus reflecting continued improvement in the labour markets. Investors overlooked report that India’s industrial production growth slowed to 3.8 per cent in December 2023, mainly due to poor performance of mining and power generation segments. The factory output growth measured in terms of the Index of Industrial Production (IIP) was at 5.1 per cent in December 2022. Markets continued to trade in green in afternoon session, as some support also came in with Reserve Bank Governor Shaktikanta Das’ statement that lower government borrowings than the market estimates will free more capital for the private sector resulting in easing of inflation and bolstering growth. Indices added more points in last leg of trade, as investors braced for U.S. consumer price data.

On the global front, European markets were trading lower as investors assessed incoming corporate earnings reports and awaited a key U.S. inflation print. Asian markets ended mostly in green as many regional markets resumed trading after a long holiday weekend. Back home, Federation of Automobile Dealers Associations (FADA) said that retail sales of automobiles in January 2024 witnessed a 15 per cent increase to 2.13 million units, compared to 1.85 million units during the corresponding period in 2023.

The BSE Sensex ended at 71,555.19, up by 482.70 points or 0.68% after trading in a range of 70,924.30 and 71,662.74. There were 24 stocks advancing against 6 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.61%, while Small cap index up by 0.18%. (Provisional)

The top gaining sectoral indices on the BSE were Bankex up by 1.44%, PSU up by 1.24%, Energy up by 1.03%, Healthcare up by 0.74% and TECK was up by 0.40%, while Metal down by 1.44%, Basic Materials down by 0.94% and Realty was down by 0.01% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were ICICI Bank up by 2.46%, Axis Bank up by 2.13%, Wipro up by 2.07%, NTPC up by 1.85% and Kotak Mahindra Bank up by 1.58%. On the flip side, Ultratech Cement down by 1.03%, Mahindra & Mahindra down by 0.80%, Titan Company down by 0.60%, Tata Motors down by 0.48% and Nestle down by 0.13% were the top losers. (Provisional)

Meanwhile, a survey conducted by Federation of Indian Chambers of Commerce and Industry (FICCI) has revealed sustained and continued growth for India's manufacturing sector in the last two quarters of 2023-24 (October-March). Compared to the previous quarter, October-December, when 73 per cent of respondents had reported higher production levels, in the current January-March quarter, around 87 per cent of respondents expected either higher or the same level of production.

Responses have been drawn from over 400 manufacturing units from both large and SME segments with a combined annual turnover of over Rs 3.4 lakh crore. This upbeat assessment of Indian manufacturing is also reflected in higher-order books. As per the survey, 85 per cent of the respondents in the current January-March quarter are expecting a higher number of orders compared to the previous quarter. Domestic demand conditions also show optimism. The existing average capacity utilization in manufacturing is around 73 per cent, which reflects sustained economic activity in the sector, which is more or less the same as reported in previous surveys.

It stated the future investment outlook also looks steady, with over 50 per cent of respondents indicating plans for investments and expansions in the next six months. On the contrary, the availability of raw materials and their escalating prices, uncertainty in global demand, shortage of skilled labour, market volatility, increased power costs, unutilized capacities, and high bank interest rates, are some of the major constraints that are affecting expansion plans of the respondents.

The CNX Nifty ended at 21,743.25, up by 127.20 points or 0.59% after trading in a range of 21,543.35 and 21,766.80. There were 36 stocks advancing against 14 stocks declining on the index. (Provisional)

The top gainers on Nifty were UPL up by 4.52%, Coal India up by 4.52%, ICICI Bank up by 2.38%, Axis Bank up by 2.30% and SBI Life up by 2.20%. On the flip side, Hindalco down by 12.42%, Grasim Industries down by 3.87%, Ultratech Cement down by 1.12%, Divi's Lab down by 1.06% and BPCL down by 1.04% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 3.03 points or 0.04% to 7,570.66, France’s CAC fell 24.69 points or 0.32% to 7,665.11 and Germany’s DAX was down by 100.68 points or 0.59% to 16,936.67.

Asian markets ended mostly higher on Tuesday ahead of January's US inflation data due out later in the day that could provide more cues on the timing of interest rate cuts in the United States. Meanwhile, the Federal Reserve Bank New York survey showed consumer expectations for 1-year and 5-year inflation growth were unchanged at 3% and 2.5% in January. Many regional markets were resumed trading after a long holiday weekend. Markets in mainland China remain closed for the Lunar New Year holiday, with trade expected to resume on February 19, Hong Kong market is due to resume trading on February 14. Japanese shares gained after data showed producer prices in the country edged up 0.2% from a year earlier in January, while remaining flat month-on-month.