Post Session: Quick Review

Indian equity markets come off from day’s high levels in last leg of trade and ended flat with positive bias on Wednesday ahead of monthly F&O expiry due on tomorrow. Besides, investors were eyeing the Infrastructure Output and Gross Domestic Product (GDP) data later in the week. During the day, Nifty hit new all-time high amid buying at IT stocks. As for broader indices, the BSE Mid cap index ended with minor gains, while Small cap index settled in red.

Markets made slightly positive start amid foreign fund inflows. Foreign institutional investors (FIIs) purchased shares worth Rs 1,503.76 crore on August 27. Soon, markets turned volatile, as traders avoided to take long position. But in late morning session, indices gained traction to trade higher. Traders took support with Indian Ambassador to Oman Amit Narang’s statement that discussions for the proposed free trade agreement (FTA) between India and Oman are at an advanced stage and both sides hope to conclude the pact early. He said the pact, officially known as the Comprehensive Economic Partnership Agreement (CEPA), will give a significant push to bilateral trade and investment ties between the two countries. Also, the pact is expected to boost Indian exports to the west Asian country by eliminating duties, especially on petroleum products, textiles, electronics, pharmaceuticals, machinery, and iron and steel. Meanwhile, Finance Minister Nirmala Sitharaman has said that the GST council next month will discuss rationalisation of tax rates but a final decision on tweaking taxes and slabs will be taken later. She also said that compensation cess on luxury and sin goods are also going to be discussed and can come up in the September 9 meeting or later.  

Indices traded fine fettle in afternoon session as sentiments were positive amid a private report stating that the government is finalising changes in various debt recovery laws to empower banks and other lenders to quickly resolve non-performing loans. The measures include enabling special Debt Recovery Tribunals (DRTs) to handle high-value cases and granting legal validity to e-notices sent by banks. However, in last leg of trade, markets witnessed sharp selling amid profit taking but managed keep head above water.

On the global front, European markets were trading higher as investors awaited the release of the Federal Reserve's preferred inflation gauge later this week for signals on U.S. interest-rate reductions. Asian markets settled mostly higher as investors eagerly awaited earnings from market darling Nvidia, which could affect shares of artificial intelligence and other prominent technology stocks. Back home, rating agency Crisil has said that revenue growth of road engineering, procurement and construction (EPC) companies is expected to moderate to 5-7 per cent next fiscal, as lower national highway awarding weighs on their order books.

The BSE Sensex ended at 81,785.56, up by 73.80 points or 0.09% after trading in a range of 81,578.32 and 82,039.26. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index gained 0.04%, while Small cap index was down by 0.12%. (Provisional)

The top gaining sectoral indices on the BSE were TECK up by 1.31%, IT up by 1.24%, Healthcare up by 0.91% and Telecom was up by 0.48%, while Utilities down by 0.44%, Basic Materials down by 0.40%, FMCG down by 0.38%, Bankex down by 0.32% and Capital Goods was down by 0.31% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 2.20%, Indusind Bank up by 2.17%, Infosys up by 2.06%, Sun Pharma up by 1.39% and Mahindra & Mahindra up by 0.58%. On the flip side, Asian Paints down by 1.24%, Maruti Suzuki down by 1.11%, Nestle down by 1.02%, Axis Bank down by 0.82% and Ultratech Cement down by 0.76% were the top losers. (Provisional)

Meanwhile, expressing optimism over India’s growth story, Moody's said over the last ten years, the government has escalated its capital spending on infrastructure from Rs 1.97 trillion (1.6 per cent of GDP) in FY2014-15 to Rs 11.1 trillion (3.4 per cent of GDP) in FY2024-25. This leap reflects a broader strategy to enhance physical and digital infrastructure, supporting an average annual Gross Domestic Product (GDP) growth rate of 6 per cent and encouraging private sector participation through public-private partnerships (PPPs). The increase in government capital expenditure and private sector investments has catalysed India's infrastructure overhaul. India's infrastructure development has seen unprecedented progress over the past decade, driven by substantial capital spending from both government and private sectors. This transformation spans physical infrastructure, such as railways, roads, airports, and digital advancements, positioning India as a leader among emerging markets.

Recent developments have not only bolstered connectivity and logistics but also significantly improved the country's ranking on the World Bank's Logistics Performance Index (LPI), which has risen from 54 out of 160 countries a decade ago to 38 out of 139 countries. The infrastructure component of the LPI has similarly improved, moving from 58 to 47 in the same period. The government's continued focus on infrastructure development is evidenced by the Rs 11.1 trillion capital expenditure allocated for FY2024-25, a 16.9 per cent increase from the previous fiscal year. This investment is expected to drive further improvements in logistics, connectivity, and overall economic growth.

India's physical infrastructure has expanded dramatically. The country now boasts the second-largest road network globally, trailing only the United States. Airport passenger handling capacity has surged, with India recently surpassing Brazil and Indonesia to become the third-largest domestic aviation market, following China and the US. This growth is largely attributed to the government's Ude Desh ka Aam Naagrik (UDAN) scheme, which has enhanced regional aviation connectivity. Despite these achievements, per capita travel and consumption statistics remain lower compared to many emerging market peers. However, India's infrastructure density, including road and railway network lengths per 1,000 kilometres, surpasses that of countries like China.

The CNX Nifty ended at 25,052.35, up by 34.60 points or 0.14% after trading in a range of 24,964.65 and 25,129.60. There were 21 stocks advancing against 29 stocks declining on the index. (Provisional)

The top gainers on Nifty were LTIMindtree up by 6.54%, Wipro up by 3.37%, Divi's Lab up by 2.61%, Indusind Bank up by 2.35% and Bharti Airtel up by 2.21%. On the flip side, Asian Paints down by 1.29%, Adani Enterprises down by 1.27%, Nestle down by 1.15%, Maruti Suzuki down by 1.12% and Britannia down by 1.06% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 0.73 points or 0.01% to 8,346.19, France’s CAC rose 31.21 points or 0.41% to 7,596.99 and Germany’s DAX was up by 137 points or 0.73% to 18,818.81.

Asian markets settled mostly higher on Wednesday ahead the release of the Federal Reserve's preferred inflation gauge later this week for signals on US interest-rate cuts, while Nvidia's earnings also in focus. Market sentiments improved further by the broadly positive cues from Wall Street overnight and after a measure of US consumer confidence rose to a six-month high in August. Seoul shares gained marginally after North Korea said it test-fired a 240mm multiple rocket launcher with a new guiding system. Japanese shares rose as the yen dropped further following cautious remarks from BoJ policymaker Himino, who said that BoJ will adjust the degree of monetary accommodation if it has growing confidence that its outlook for economic activity and prices will be realized. However, Chinese shares dipped by weak corporate earnings and concerns over a renewed trade war between China and the west.