Post Session: Quick Review

Indian equity markets witnessed smart recovery in final hour of the trade with Nifty and Sensex settling above the psychological 85,100 and 26,000 levels respectively. Nifty ended above 26000 for the first time ever. During the day, markets wavered between red and green ahead of monthly F&O expiry due on tomorrow. As for broader indices, the BSE Mid cap index and Small cap index ended in red.

Markets made negative start and turned volatile amid mixed Asian cues and foreign fund outflows. As per NSE data, Foreign Institutional Investors (FII) were net sellers of Indian equities worth Rs 2,784.14 crore. Investors overlooked report that the Asian Development Bank (ADB) in its Asian Development Outlook (ADO) update of September retained India's growth forecast for the current fiscal at 7 per cent and said that the economy is expected to accelerate in the coming quarters on improved farm output, and higher Government spending. In afternoon session, markets trade near neutral lines. Investors took note of report that India surpassed Japan to become the third-largest power in the Asia Power Index, reflecting its increasing geopolitical stature. This achievement is driven by India's dynamic growth, youthful population, and expanding economy, solidifying its position as a leading force in the region. Further, in last leg of trade, markets spiked up to hit record high levels amid value buying by investors.

On the global front, European markets were trading mostly in red after posting strong gains in the previous session on China's announcement of aggressive stimulus. Asian markets ended mixed even as Chinese and Hong Kong markets posted strong gains to extend the previous session's rally after China's central bank slashed its medium-term lending facility from 2.3 percent to 2.0 percent, marking the largest reduction of interest rates for one-year loans to financial institutions in history. Back home, domestic rating agency ICRA in its latest report has said that the slower deposit growth will push banks to mop-up up to Rs 1.3 lakh crore from bond issuances in FY25.

The BSE Sensex ended at 85,169.87, up by 255.83 points or 0.30% after trading in a range of 84,743.04 and 85,247.42. There were 20 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index fell 0.53%, while Small cap index was down by 0.35%. (Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 0.99%, Power up by 0.87%, Realty up by 0.71%, Metal up by 0.40%, Bankex up by 0.34%, while Consumer Durables down by 0.67%, IT down by 0.59%, FMCG down by 0.47%, Consumer Disc down by 0.34%, Industrials down by 0.32% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid up by 3.91%, Axis Bank up by 2.18%, NTPC up by 1.94%, Bajaj Finserv up by 1.10% and Bajaj Finance up by 0.91%. On the flip side, Tech Mahindra down by 2.21%, Tata Motors down by 1.39%, Titan Company down by 0.93%, Kotak Mahindra Bank down by 0.92% and SBI down by 0.68% were the top losers. (Provisional)

Meanwhile, the Asian Development Bank (ADB) has retained India's Gross domestic product (GDP) growth forecast for the current fiscal (FY25) at 7 per cent and said that the economy is expected to accelerate in the coming quarters on improved farm output, and higher Government spending. It said exports in the current fiscal will be higher than earlier projected, led by larger services exports. However, merchandise export growth will be relatively muted through the next fiscal. The Indian economy grew 8.2 per cent in the last fiscal (2023-24). The RBI projects growth to be 7.2 per cent in the current fiscal.

ADB said while GDP growth slowed to 6.7 per cent in the first quarter (April-June) of FY2024, it is expected to accelerate in the coming quarters with improvement in agriculture and a largely robust outlook for industry and services. Private consumption is expected to improve, driven by rural consumption fuelled by stronger agriculture and by already robust urban consumption. The outlook for private investment is upbeat, but growth in public capital expenditure, heretofore high, will moderate in FY2025. Efforts toward fiscal consolidation are expected to drive down the fiscal deficit to a level last seen before COVID-19, reflecting robust revenue collection and restrained current expenditure. A recent policy announcement offering workers and firms employment-linked incentives could boost labour demand and bolster job creation starting in FY2025.

It further said the Budget 2024-25 has announced three employment-linked incentive schemes and said the government would allocate Rs 2 lakh crore to implement them. Growth slowed year-on-year (yoy) in the first quarter (Q1) of FY2024 but is expected to rise in the coming months on improved agricultural performance and higher government spending. Industry and services are expected to continue performing robustly. The current account deficit will remain moderate, helped by strong service exports and remittances. Elevated food prices will likely mean higher inflation in the current fiscal than previously forecast, but inflation should moderate in the next fiscal. 

The CNX Nifty ended at 26,004.15, up by 63.75 points or 0.25% after trading in a range of 25,871.35 and 26,032.80. There were 30 stocks advancing against 20 stocks declining on the index. (Provisional)

The top gainers on Nifty were Power Grid up by 3.91%, Axis Bank up by 2.30%, NTPC up by 1.87%, Grasim Industries up by 1.63% and Bajaj Finserv up by 1.25%. On the flip side, LTIMindtree down by 3.81%, Tech Mahindra down by 2.10%, Tata Consumer down by 1.82%, Tata Motors down by 1.40% and Titan Company down by 1.26% were the top losers. (Provisional)

European markets were trading mostly in red; France’s CAC fell 29.17 points or 0.39% to 7,574.84 and Germany’s DAX was down by 96.54 points or 0.51% to 18,900.09. On the flip side, UK’s FTSE 100 was up by 9.73 points or 0.12% to 8,292.49. 

Asian markets ended mixed on Wednesday amid increased expectations of another super-sized interest rate cut at the US Federal Reserve's November meeting. Chinese and Hong Kong shares gained by new measures from China's central bank - PBoC. The PBoC has slashed its medium term lending facility from 2.3% to 2%, marking the largest reduction of interest rates for one-year loans to financial institutions in history. Meanwhile, Seoul shares declined sharply as investors were disappointed with a new stock index to be launched next week. Japanese markets fell, even after the Bank of Japan Governor Kazuo Ueda indicated that the central bank has time to evaluate market and economic conditions before making any policy adjustments and signalling that there is no urgency to raise interest rates again.