Benchmarks end lower for fourth straight session

In a volatile session, Indian equity benchmarks failed to hold on the opening gains and ended lower for the fourth straight session on Thursday, as concerns over fading rate cut hopes and geopolitical tensions in the Middle East dampened investors' sentiment.  Markets made a positive start, as traders got support after the 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. Some support also came with UN Trade and Development’s (UNCTAD) report stating 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, markets soon erased their initial gains to trade flat in morning deals, as traders got anxious with provisional data from the NSE showing that foreign institutional investors (FIIs) net sold shares worth Rs 4,468.09 crore on April 16, 2024. 

But, markets gained traction in early afternoon deals, taking support from industry body PHDCCI’s statement 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. But, a sharp selloff occurred during the last hours of the trade and the markets closed in the red as some pessimism remained among traders with former Reserve Bank of India (RBI) Governor Raghuram Rajan expressing 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.  

On the global front, European markets were trading higher as soft eurozone inflation data for March booted hopes for an ECB rate cut in June. Asian markets settled higher on Thursday despite heightened tensions in the Middle East and concerns about the outlook for U.S interest rates. Geopolitical tensions persisted and there are fears that the conflict could worsen and spread beyond Gaza if Israel responds brutally to Iran.

Finally, the BSE Sensex fell 454.69 points or 0.62% to 72,488.99 and the CNX Nifty was down by 152.05 points or 0.69% points to 21,995.85.   

The BSE Sensex touched high and low of 73,473.05 and 72,365.67 respectively. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices ended mixed; the BSE Mid cap index fell 0.39%, while Small cap index was up by 0.06%.

The few gaining sectoral indices on the BSE were Telecom up by 1.62% and TECK up by 0.70%, while Consumer Durables down by 1.52%, Energy down by 1.28%, Healthcare down by 1.23%, Bankex down by 1.09% and FMCG down by 1.00% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 4.15%, Power Grid Corporation up by 2.13%, Infosys up by 0.41% and Larsen & Toubro up by 0.28%. On the flip side, Nestle down by 3.31%, Titan Company down by 3.31%, Axis Bank down by 2.72%, NTPC down by 2.19% and Tata Motors down by 2.12% were the top losers.

Meanwhile, the PHD Chamber of Commerce and Industry (PHDCCI) has said that India's Gross domestic product (GDP) is estimated to grow at 8-8.3 per cent in the current fiscal (FY25). It also said 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.

The chamber has suggested 10 key enablers for the country to become a developed economy by 2047 in a report. It has recommended reducing the cost of doing business and enhancing the global scalability of promising sectors like fintech, information technology, automobile and renewable energy to boost the economy. It has suggested a special focus on the development of the semiconductor industry.

The industry body has called for continued handholding to the startup ecosystem to become the second largest in the world by 2030. The recommendation also includes capacity building for exports -- with a potential 75 products to be focused on to enhance export volumes in global trade. It has suggested reform measures for the agriculture and food processing sector, besides filling the vacant positions at the national and state levels, including the judiciary, police, medical and para-medicals, military and paramilitary and education, among others. 

It has also pitched for a greater push to digital transformation to be among the top five countries in the Government AI Readiness Index by 2047. The 10-pronged approach also suggests bolstering the renewable energy segment to enhance its installed capacity to 1,500 GW by 2047. Physical infrastructure, including road, rail, port, airport, education intuitions and hospitals, should be focused along with targeted outcomes annually.

The CNX Nifty traded in a range of 22,326.50 and 21,961.70. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 4.03%, Power Grid Corporation up by 2.57%, Bajaj Auto up by 1.61%, Hindalco up by 1.20% and Infosys up by 1.06%. On the flip side, Apollo Hospital down by 3.71%, Nestle down by 2.95%, Titan Company down by 2.94%, ONGC down by 2.88% and Axis Bank down by 2.48% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 11.45 points or 0.15% to 7,859.44, France’s CAC rose 30.43 points or 0.38% to 8,011.94 and Germany’s DAX gained 6.03 points or 0.03% to 17,776.05.

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.