Key gauges make smart recovery to snap 4-day losing streak on Friday

Snapping the four-day losing streak, Indian equity benchmarks rebounded from early lows to close higher on Friday, on heavy value buying in Banking, Metal and Consumer Durables shares. The markets opened lower and remained in muted move in first half, as traders were cautious with provisional data from the NSE showing that foreign institutional investors (FIIs) net sold shares worth Rs 4,260.33 crore on April 18, 2024. Sentiments remained pessimistic with a report stating that India's trade deficit with the Association of Southeast Asian Nations (ASEAN) has surged, more than doubling since the implementation of the Free Trade Agreement (FTA) in 2010. According to figures released by the Ministry of Commerce and Industry, India's exports to ASEAN member countries stood at $25,627.89 million in the year 2010-11, while imports from these nations amounted to $30,607.96 million. But, the report said the situation has deteriorated significantly over the past decade, with the deficit expanding at an alarming rate. 

However, benchmark indices wiped off early losses in afternoon deals and edged higher towards the end of trading session as traders found support with report that the International Monetary Fund has applauded India for maintaining fiscal discipline in an election year, saying that the Indian economy is doing well and continues to be the world's bright spot. Krishna Srinivasan, Director, Asia and Pacific Department, at the IMF said ‘At this point in time, India's economy is doing well. Growth at 6.8 per cent is very good. Inflation's coming down. We have to make sure that inflation comes down to target and it is there on a durable basis. Macro fundamentals look pretty good.’ Some support also came as India's Economic Affairs Secretary Ajay Seth to World Bank stated that despite a challenging global scenario, India's economy has shown robust growth over the past year backed by sustained consumption and investment demand.

On the global front, Asian markets ended mostly in red on Friday on ongoing concerns over the tensions in the middle-east with reports of Israel retaliating to last weekend's attacks. Interest rates continued to weigh on markets as the US Fed is now widely expected to hold off on cutting rates until at least July.  European markets were trading lower as tensions soared in the Middle East in the aftermath of Israel's retaliatory strikes against Iran. 

Finally, the BSE Sensex rose 599.34 points or 0.83% to 73,088.33 and the CNX Nifty was up by 151.15 points or 0.69% points to 22,147.00.   

The BSE Sensex touched high and low of 73,210.17 and 71,816.46 respectively. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.39%, while Small cap index was down by 0.04%.

The top gaining sectoral indices on the BSE were Bankex up by 1.02%, Metal up by 0.85%, Consumer Durables up by 0.78%, Basic Materials up by 0.54% and FMCG up by 0.45%, while Realty down by 0.67%, IT down by 0.56%, Healthcare down by 0.44%, Power down by 0.36% and Utilities down by 0.25% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 3.16%, Mahindra & Mahindra up by 2.90%, HDFC Bank up by 2.46%, JSW Steel up by 2.39% and Maruti Suzuki up by 2.20%. On the flip side, HCL Technologies down by 1.20%, Nestle down by 1.04%, TCS down by 0.93%, Larsen & Toubro down by 0.89% and Tata Motors down by 0.84% were the top losers.

Meanwhile, India's Economic Affairs Secretary Ajay Seth to World Bank has said that despite a challenging global scenario, India's economy has shown robust growth over the past year backed by sustained consumption and investment demand. He said the gross domestic product (GDP) growth estimate for the fiscal 2023-24, which has been revised upwards from 7.3 per cent to 7.6 per cent in the second advance estimates, highlights the enduring strength and resilience of the Indian economy. India grew above 8 per cent for three consecutive quarters of FY24, reaffirming its position as a standout performer amidst sluggish global growth trends. 

He said that similar sentiments have been echoed by various agencies who have revised India's FY24 growth estimate closer to 8 per cent. India's proactive stance on reform and investment in sustainable growth avenues sets a benchmark for emerging economies. He also said that India's thrust on capex continued to crowd in private investment resulting in enhanced Gross Fixed Capital Formation (GFCF) at constant prices registering a growth above 10 per cent in FY24.

He further said India's inflation outlook appears positive with headline and core inflation trending downwards, indicating a broad-based moderation in price pressures. He said that on the external front, the narrowing merchandise trade deficit and the rising net services receipts are expected to improve the current account balance in fiscal 2024. Observing that the manufacturing sector registered double-digit growth in Q3 of FY24, driven by a surge in investment, improved investor confidence, and strong domestic demand conditions, he said the year also saw continued strong growth in services, led by non-contact-intensive services sectors.  

The CNX Nifty traded in a range of 22,179.55 and 21,777.65. There were 30 stocks advancing against 19 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Bajaj Finance up by 3.15%, Mahindra & Mahindra up by 2.92%, HDFC Bank up by 2.64%, Maruti Suzuki up by 2.30% and JSW Steel up by 2.27%. On the flip side, Bajaj Auto down by 2.48%, Nestle down by 1.32%, Divi's Lab down by 1.32%, HCL Technologies down by 1.16% and Larsen & Toubro down by 1.07% were the top losers. 

European markets were trading lower; UK’s FTSE 100 decreased 43.89 points or 0.56% to 7,833.16, France’s CAC fell 19.82 points or 0.25% to 8,003.44 and Germany’s DAX lost 106.7 points or 0.6% to 17,730.70.