Post Session: Quick Review

Indian equity markets surged to new peak on Friday and finished the day’s trade at all-time high levels amid value buying by investors. Sensex crossed 84,600 mark, while Nifty scaled 25,800 level during the day. Traders continued to take support as Fed cut interest rates by 50 basis points and signalled more cuts ahead. The broader indices, the BSE Mid cap index and Small cap index ended with gains of over a percent. 

Markets made positive start and remained in green following overnight gains on the Wall Street. Investors took support as a report by S&P Global noted that India is set to become the third largest economy and transition to the upper-middle-income category by 2030-31, driven by a projected annual growth rate of 6.7 per cent this fiscal. India posted GDP growth of 8.2 per cent in FY2024, exceeding the government’s earlier estimate of 7.3 per cent, sustained reforms are crucial for India’s economic momentum to continue. Besides, Petroleum Minister Hardeep Singh Puri said that the United States is India's sixth largest energy trade partner and the growing bilateral trade has the potential to cross the $500 billion-mark from $200 billion at present. Indices continued their gaining momentum in afternoon session. Sentiments were positive, amid reports that John Chambers, who heads the India US Strategic Partnership Forum and is Chairman Emeritus of CISCO is highly optimistic about the future of the Indian economy, the current share market situation and the growth of innovation in the country. In late afternoon session, markets came off from day’s high but managed to regain lost ground in dying hours of trade. Investors took note of report that Finance Minister Nirmala Sitharaman has said that the banking sector will have to play a crucial role in driving the agenda of making India a developed nation or Viksit Bharat by 2047.

On the global front, European markets were trading lower after a rally in the previous session spurred by the U.S. Federal Reserve's outsized interest rate cut, while shares of Mercedes were set for their worst day in 15 months after the automaker cut its core profit outlook. Asian markets ended mostly in green, although China retained its benchmark lending rates on Friday even after the US Federal Reserve reduced its rate by a sharper-than-expected half a percentage point this week. Back home, Credit rating agency Crisil in its latest report has said that a fall in the prices of crude oil, which is one of India's top export items, is impacting oil exports, leading to a contraction in the country's overall exports in August.

The BSE Sensex ended at 84,544.31, up by 1359.51 points or 1.63% after trading in a range of 83,187.64 and 84,694.46. There were 26 stocks advancing against 4 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 1.16%, while Small cap index was up by 1.37%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 3.21%, Capital Goods up by 2.32%, Auto up by 2.12%, Industrials up by 2.08% and Power was up by 1.82%, while there were no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 5.57%, JSW Steel up by 3.85%, ICICI Bank up by 3.77%, Larsen & Toubro up by 3.07% and Bharti Airtel up by 2.84%. On the flip side, SBI down by 1.07%, Indusind Bank down by 0.33%, TCS down by 0.27% and Bajaj Finance down by 0.07% were the top losers. (Provisional)

Meanwhile, expressing optimism over India’s growth prospects, S&P Global in a report has said that India is on track to becoming the third-largest economy by 2030-31, driven by a projected annual growth rate of 6.7 per cent this fiscal. The report also said that with 8.2 per cent growth rate in FY2024, continued reforms are crucial to improving business transactions and logistics, boosting private sector investment, and reducing reliance on public capital.

It said equity markets are expected to stay dynamic and competitive due to strong growth prospects and better regulation, and foreign inflows into Indian government bonds have surged since the country joined major emerging market indexes, with further growth anticipated. The first edition of 'India Forward: Emerging Perspectives' report said to maximize trade benefits, India must develop infrastructure and geopolitical strategies, particularly regarding its extensive coastline. It added nearly 90 per cent of India's trade is seaborne, necessitating robust port infrastructure to manage increasing exports and bulk commodity imports.

Noting that India faces rising domestic energy demands and can look to sustainable technologies, including renewables and low-emission fuels, balancing energy security with its energy transition plans, the report stated that agriculture will rely on advanced technologies and new policies to improve infrastructure and productivity. It also said the need is to address critical infrastructure issues such as irrigation, storage, and supply distribution to ensure food security and economic stability.

The CNX Nifty ended at 25,790.95, up by 375.15 points or 1.48% after trading in a range of 25,426.60 and 25,849.25. There were 43 stocks advancing against 6 stocks declining on the index. (Provisional)

The top gainers on Nifty were Mahindra & Mahindra up by 5.48%, ICICI Bank up by 3.60%, JSW Steel up by 3.50%, Larsen & Toubro up by 2.99% and Bharti Airtel up by 2.82%. On the flip side, Grasim Industries down by 2.22%, SBI down by 1.04%, Indusind Bank down by 0.31%, TCS down by 0.26% and Bajaj Finance down by 0.10% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 54.04 points or 0.65% to 8,274.68, France’s CAC fell 62.71 points or 0.83% to 7,552.70 and Germany’s DAX was down by 189.78 points or 1.01% to 18,812.60.

Asian markets settled mostly higher on Friday as investors were continuing to cheer the Federal Reserve’s Wednesday decision to lower interest rates by a half percentage point and digesting the policy moves of the Bank of Japan and the Chinese central bank. Japanese shares gained after the nation's key inflation data in August accelerated for a fourth consecutive month. The core consumer price index in Japan increased by 2.8% year-on-year in August, exceeding the central bank’s 2% target. As widely expected, the Bank of Japan maintained its key short-term interest rates steady at 0.25%. While the Japanese yen eased after Bank of Japan Governor Kazuo Ueda tempered expectations about another possible interest rate hike within the year. Chinese shares end flat as China refrained from further monetary stimulus as the central bank left its main benchmark lending rates unchanged.