Post Session: Quick Review

Key benchmark indices ended lower on last trading day of week amid some profit booking by investors. Besides, mixed India’s retail inflation and Index of Industrial Production (IIP) data dampened investors’ sentiments. Markets went through volatility during the day. Traders were seen piling up positions in IT and Metal sectors’ stocks, while selling was witnessed in Energy and Oil & Gas sectors’ stocks. The broader indices, the BSE Mid cap index and Small cap index ended in green.

Markets made cautious start and remained lower on account of profit booking following a strong rally to all-time highs in the previous session. Besides, India's Consumer Price Index (CPI)-based retail inflation rose marginally in August to 3.65 per cent from 3.6 per cent in July, yet remained below the Reserve Bank of India (RBI)’s medium-term target of 4 per cent for the second time in nearly five years, mainly because of a high base during the same period a year ago. Separately, the Index of Industrial Production (IIP) also rose slightly to 4.83 per cent in July from 4.72 per cent in June. In afternoon session, markets traded near neutral lines. Traders took note of report that Reserve Bank of India Governor Shaktikanta Das said that India has a growth potential of at least 7.5 per cent. This projection is slightly above the Reserve Bank of India’s estimate of 7.2 per cent growth for the current financial year, FY25. In late afternoon session, markets added some more losses amid concerned over Fed interest rate outcome.  

On the global front, European markets were trading higher as bond yields eased amid bets of an interest-rate cut at next week's Federal Reserve meeting. The U.S. central bank is almost certain to start its rate-cutting cycle next week, but market participants are looking for clues on the size of cuts over the next few months. Asian markets ended mostly in green ahead of a widely expected interest-rate cut by the U.S. Federal Reserve next week. Back home, credit rating agency ICRA in its latest report has said that domestic steel consumption is likely to witness 9-10 per cent growth this financial year (FY25).

The BSE Sensex ended at 82,890.94, down by 71.77 points or 0.09% after trading in a range of 82,653.22 and 83,092.93. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.48%, while Small cap index was up by 0.95%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 1.78%, Consumer Durables up by 1.01%, Metal up by 0.74%, Basic Materials up by 0.72% and IT was up by 0.49%, while Energy down by 0.64%, FMCG down by 0.55%, Oil & Gas down by 0.55%, Utilities down by 0.36% and Power was down by 0.28% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finance up by 2.31%, Bajaj Finserv up by 2.17%, Axis Bank up by 1.19%, Indusind Bank up by 1.18% and Tata Steel up by 1.09%. On the flip side, Adani Ports down by 1.37%, ITC down by 1.01%, Bharti Airtel down by 0.88%, NTPC down by 0.78% and Maruti Suzuki down by 0.75% were the top losers.

Meanwhile, retail inflation based on the Consumer Price Index (CPI) inched up to 3.65 per cent in August 2024, though vegetables and pulses witnessed price rise in double digits. However, the retail inflation remained below the Reserve Bank of India’s (RBI) median target of 4 per cent for the second month in a row. It was at a five-year low of 3.6 per cent in July. The headline inflation was 6.83 per cent in August 2023. Year-on-year inflation rate (3.65 per cent) based on All India Consumer Price Index (CPI) for the month of August, 2024, is second lowest in the last five years. Inflation in the food basket was 5.66 per cent in August, marginally up from 5.42 per cent in July.

The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) in its data has showed that Rural CPI (General) in August 2024 stood at 4.16 per cent over 4.10 per cent in July 2024. The Urban CPI (General) stood at 3.14 per cent in August as against 3.03 per cent in July. The index value for Rural, Urban and Combined CPI (General) stood at 195.4, 190.3 and 193.0 respectively, in August 2024. The price data are collected from selected 1114 urban Markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of August 2024, NSO collected prices from 100.0% villages and 98.6% urban markets while the market-wise prices reported therein were 88.3% for rural and 92.4% for urban.

According the data, the inflation rate for vegetables grew 10.71 per cent in August as against 6.83 per cent in the previous month. This can be attributed to concerns over erratic monsoon rains that could impact crop yields and push prices higher in the future. For pulses and cereals, the inflation rate stood at 13.60 per cent and 7.31 per cent, respectively. The inflation rate for fruits came in at 6.45 per cent. For milk and milk products, the inflation rate was 2.98 per cent in August. The inflation rate for meat and fish, egg segments were recorded at 4.30 per cent and 7.14 per cent, respectively. The Fuel and light inflation rate for August stood at (-)5.31 per cent as against a (-)3.66 per cent in July. For clothing & footwear and housing sectors, the inflation rates were 2.72 per cent and 2.66 per cent, respectively.

The CNX Nifty ended at 25,356.50, down by 32.40 points or 0.13% after trading in a range of 25,292.45 and 25,430.50. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were Wipro up by 3.88%, Bajaj Finance up by 2.29%, Bajaj Finserv up by 2.13%, Indusind Bank up by 1.43% and Axis Bank up by 1.17%. On the flip side, SBI Life down by 1.57%, Adani Ports down by 1.39%, HDFC Life Insurance down by 1.28%, ITC down by 1.09% and Coal India down by 1.09% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 17.15 points or 0.21% to 8,258.12, France’s CAC rose 21 points or 0.28% to 7,456.07 and Germany’s DAX was up by 91.05 points or 0.49% to 18,609.44. 

Asian markets finished mostly in green on Friday. Decline in US producer prices braced softer inflation and bolstered 50 bps interest rate cut by Federal Reserve in its next week monetary policy meeting kindling investor sentiments. Hang Seng advanced to a one-week high level on China mortgage rate cut bets. Real estate stocks got boosted with the anticipations on dip in borrowing costs. Rally in technological sector stocks also whetted the local indices. However, Japan's Nikkei slipped in the session with the rally in local currency yen and hawkish tone by BoJ.