Post Session: Quick Review

Selling pressure in last leg of trade forced Indian equity markets to end Thursday’s trade with cut of around half a percent. Markets ended the session near day’s low points amid profit booking by investors. Traders kept closed eye on Q4FY24 earnings. Markets failed to take support from Asian counterparts. As for broader indices, the BSE Mid cap index ended in red, while Small cap index ended in green. Energy and banking sector’s stocks witnessed selling pressure.

Markets made slightly positive start and maintained their gains as traders took support after International Monetary Fund raised India’s FY25 GDP growth forecast by 30 bps to 6.8 percent from its January forecast of 6.5 percent, citing bullish domestic demand conditions and a rising working-age population. With this, India continues to be the fastest growing economy of the world, ahead of China's growth projection of 4.6 percent during the same period. Investors ignored report that former Reserve Bank of India (RBI) Governor Raghuram Rajan expressed concerns regarding India's employment situation, despite the economy displaying signs of growth. He highlighted the necessity of tackling the scarcity of private sector jobs, noting the rising trend of individuals opting for government employment as a significant indicator. In afternoon session, indices widened their gains to touched high levels, as sentiments were improved with industry body PHDCCI stating that India's economy is estimated to grow at 8-8.3 per cent in the current fiscal. It added that the country's GDP will grow at an average of 6.7 per cent over the next 23 years to become a $34.7 trillion economy by 2047, with a per capita income of $21,000. Besides, UN Trade and Development (UNCTAD) in its report said that India grew by 6.7 per cent in 2023 and is expected to expand by 6.5 per cent in 2024, continuing to be the fastest-growing major economy in the world. However, in late afternoon session, markets erased all their gains and turned negative, as traders opted to book profit. 

On the global front, European markets were trading mostly in green as investors kept a close eye on developments in the Middle East and awaited comments later today from Bank of England policymaker Megan Greene for further clues on when the central might lower interest rates. All Asian markets ended higher after Japan's tertiary activity index increased at a faster-than-expected pace in February. According to data from the Ministry of Economy, Trade, and Industry, the seasonally adjusted tertiary activity index rose 1.5 percent month-on-month in February, reversing a 0.5 percent decrease in January. Back home, the space sector stocks remained in focus, as the government amended the foreign direct investment (FDI) policy in the space sector, with an aim to attract offshore investors in satellite manufacturing and satellite launch vehicles segments.

The BSE Sensex ended at 72,611.45, down by 332.23 points or 0.46% after trading in a range of 72,365.67 and 73,473.05. There were 7 stocks advancing against 23 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index declined 0.03%, while Small cap index was up by 0.27%. (Provisional)

The gaining sectoral indices on the BSE were Telecom up by 1.80%, TECK up by 1.02%, Capital Goods up by 0.27%, Industrials up by 0.23%, IT up by 0.22% while, Consumer Durables down by 1.23%, Bankex down by 0.96%, Energy down by 0.94%, Healthcare down by 0.92%, FMCG down by 0.80% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 3.97%, Power Grid up by 2.59%, Infosys up by 1.07%, Tata Steel up by 0.66% and Larsen & Toubro up by 0.28%. On the flip side, Nestle down by 3.05%, Titan Company down by 2.94%, Axis Bank down by 2.52%, NTPC down by 1.67% and Tata Motors down by 1.46% were the top losers. (Provisional)

Meanwhile, citing bullish domestic demand conditions and a rising working-age population, the International Monetary Fund (IMF) in its latest edition of the World Economic Outlook has raised India's growth projection to 6.8 per cent for 2024. IMF in its January update had projected 6.5 per cent growth for India in 2024. With this, India continues to be the fastest growing economy of the world, ahead of China's growth projection of 4.6 per cent during the same period. It said ‘Growth in India is projected to remain strong at 6.8 per cent in 2024 and 6.5 per cent in 2025, with the robustness reflecting continuing strength in domestic demand and a rising working-age population’. At the same time, growth in emerging and developing Asia is expected to fall from an estimated 5.6 per cent in 2023 to 5.2 per cent in 2024 and 4.9 per cent in 2025, a slight upward revision compared with the January 2024 WEO Update.

As per the IMF outlook, ‘Growth in China is projected to slow from 5.2 per cent in 2023 to 4.6 per cent in 2024 and 4.1 per cent in 2025, as the positive effects of one-off factors - including the post pandemic boost to consumption and fiscal stimulus - ease and weakness in the property sector persists’. Global growth, estimated at 3.2 per cent in 2023, is projected to continue at the same pace in 2024 and 2025. Pierre-Olivier Gourinchas, chief economist of the IMF said ‘Despite gloomy predictions, the global economy remains remarkably resilient, with steady growth and inflation slowing almost as quickly as it rose. The journey has been eventful, starting with supply-chain disruptions in the aftermath of the pandemic, an energy and food crisis triggered by Russia's war on Ukraine, a considerable surge in inflation, followed by a globally synchronized monetary policy tightening’.

He said global growth bottomed out at the end of 2022, at 2.3 per cent, shortly after median headline inflation peaked at 9.4 per cent. He observed growth this year and next will hold steady at 3.2 per cent, with median headline inflation declining from 2.8 per cent at the end of 2024 to 2.4 per cent at the end of 2025. Most indicators continue to point to a soft landing. China's economy remains affected by the downturn in its property sector. Credit booms and busts never resolve themselves quickly, and this one is no exception.

The CNX Nifty ended at 21,995.85, down by 152.05 points or 0.69% after trading in a range of 21,961.70 and 22,326.50. There were 8 stocks advancing against 41 stocks declining on the index, while 1 stock remained unchanged. (Provisional)

The top gainers on Nifty were Bharti Airtel up by 4.05%, Power Grid up by 2.13%, Bajaj Auto up by 1.15%, LTIMindtree up by 0.74% and Hindalco up by 0.65%. On the flip side, Apollo Hospital down by 4.11%, Titan Company down by 3.31%, Nestle down by 3.28%, Coal India down by 3.22% and ONGC down by 3.18% were the top losers. (Provisional)

European markets were trading mostly in green; UK’s FTSE 100 increased 19.18 points or 0.24% to 7,867.17 and France’s CAC was up by 30.71 points or 0.38% to 8,012.22. On the flip side, Germany’s DAX was down by 3.8 points or 0.02% to 17,766.22.

Asian markets settled higher on Thursday as the dollar and US Treasury yields retreated from recent highs. Meanwhile, Taiwan Semiconductor Manufacturing Corp clocked a stronger-than-expected first-quarter profit as the world’s largest contract chipmaker benefited from increased demand in the rapidly-growing AI industry. Chinese shares gained as private report said that valuations call for a substantial rally in Chinese shares, while Hong Kong shares rose by insurers, banks and casino operators. Japanese shares settled up after an unusual trilateral agreement between the United States, Japan and Korea to consult closely on foreign exchange markets. Although, rising Middle East tensions, Wall street’s overnight fall and Fed’s hawkish stance on rate outlook have kept market sentiments cautious.