Markets end lower for fifth consecutive session

In a highly volatile session, Indian equity benchmarks extended losing streak for the fifth straight session and ended with losses of around a percent each, amid escalating geopolitical tensions. All major sectors, except IT, succumbed to the pressure, with FMCG, Realty and Auto among the top losers. Key gauges made a negative start and soon turned volatile as traders got anxious with exchange data showing that Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, offloading shares worth Rs 15,243.27 crore on a net basis in the cash segment. FIIs have sold shares worth over Rs 30,000 crore since Monday. But, markets recovered in late morning deals, as traders found solace after CareEdge Global IFSC, a subsidiary of CARE Ratings, has assigned a BBB+ rating to India, reflecting the country’s strong post-pandemic recovery and its focus on infrastructure investments. CareEdge Global’s assessment highlights India’s resilient economic performance, projecting GDP growth in the range of 6.5-7 per cent in the coming years. 

However, in the second half, profit booking at higher level dragged the indices to settle near the day’s lows as some pessimism remained among traders with report that India’s services sector activity eased in the month of September, as new business, international sales and output all rose at the slowest rates since late-2023. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index fell to 57.7 in September from 60.9 in August. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also eased to 58.3 in September as against 60.7 in August. Besides, the ongoing geopolitical tensions have driven crude prices higher, dampening hopes for a rate cut by the RBI in the upcoming policy meeting. 

On the global front, Asian markets settled mostly higher on Friday, while European markets were trading mostly in green as investors looked ahead to the all-important U.S. jobs report later in the day that could decide the path of U.S. interest rates.  Back home, Minister of Commerce and Industry Piyush Goyal and US Commerce Secretary Gina Raimondo held the 6th Commercial Dialogue on Thursday during which they reviewed the progress made in semiconductors supply chains, innovation handshake, energy-industry network and the Indo-Pacific Economic Framework for Prosperity. A day earlier, the two leaders signed a new memorandum of understanding (MoU) to expand and diversify critical minerals supply chains, with the aim of leveraging the two countries' complementary strengths to ensure greater resilience in the critical minerals sector.

Finally, the BSE Sensex fell 808.65 points or 0.98% to 81,688.45, and the CNX Nifty was down by 235.50 points or 0.93% to 25,014.60.      

The BSE Sensex touched high and low of 83,368.32 and 81,532.68 respectively. There were 8 stocks advancing against 22 stocks declining on the index. 

The broader indices ended in red; the BSE Mid cap index fell 0.94%, while Small cap index was down by 0.80%.

The lone gaining sectoral index on the BSE was IT up by 0.41%, while FMCG down by 1.67%, Realty down by 1.60%, Auto down by 1.50%, Consumer Durables down by 1.35% and Telecom down by 1.25% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.33%, Tech Mahindra up by 0.83%, Tata Motors up by 0.51%, Axis Bank up by 0.50% and TCS up by 0.42%. On the flip side, Mahindra & Mahindra down by 3.58%, Bajaj Finance down by 3.01%, Nestle down by 2.85%, Asian Paints down by 2.49% and Bharti Airtel down by 2.09% were the top losers.

Meanwhile, CareEdge Global IFSC, a subsidiary of CARE Ratings, has assigned a BBB+ rating to India, reflecting the country’s strong post-pandemic recovery and its focus on infrastructure investments. CareEdge Global’s assessment highlights India’s resilient economic performance, projecting GDP growth in the range of 6.5-7 per cent in the coming years.

According to it, India’s general government debt is expected to gradually decrease to 78 per cent of GDP by FY30 and further to 73.5 per cent by FY35, driven by healthy nominal GDP growth. However, it noted that India’s elevated government debt levels and weak debt affordability remain key credit constraints. Further, CareEdge Global IFSC has launched its Sovereign Ratings for 39 countries, marking its entry into the Global Scale Ratings space. According to it, with this launch, it has become the first Indian credit rating agency to assess global economies, providing long-term foreign currency (LTFC) ratings. 

Mehul Pandya, Managing Director & Group CEO of CareEdge, said, ‘This is a significant milestone for us in our journey towards becoming a global knowledge-based institution. As India’s economic influence grows, it is both timely and appropriate for an Indian company to enter this domain.’ Further, he said, ‘We are convinced that it is very important to have transparency in methodology of sovereign ratings, particularly in assessing the growth potential and investment needs of economies. This reflects in the ratings assigned by us.’

In addition to India, CareEdge Global has assigned ratings to 38 other countries. Top-rated countries include Germany, the Netherlands, Singapore, and Sweden, all rated AAA. Other highly rated nations include Australia, Canada, and the USA with AA+ ratings. Several other major economies like France, Japan, and the UK received AA- ratings, while China was assigned an A rating. The BBB+ rating category, where India stands, also includes countries like Botswana and the Philippines.

The CNX Nifty traded in a range of 25,485.05 and 24,966.80. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Infosys up by 1.51%, ONGC up by 1.18%, HDFC Life Insurance up by 1.00%, Tata Motors up by 0.85% and Wipro up by 0.65%. On the flip side, Mahindra & Mahindra down by 3.54%, Bajaj Finance down by 2.86%, Asian Paints down by 2.40%, Nestle down by 2.33% and BPCL down by 2.31% were the top losers.

European markets were trading mostly in green; France’s CAC rose 38.67 points or 0.52% to 7,516.45 and Germany’s DAX gained 43.66 points or 0.23% to 19,059.07, while UK’s FTSE 100 decreased 35.72 points or 0.43% to 8,246.80.

Asian markets settled mostly higher on Friday ahead to key US jobs report later in the day that could decide the path of US interest rates. Japanese shares gained after Japanese Prime Minister Shigeru Ishiba said he has asked ministers to formulate an economic relief package to ease the bite of inflation. Hong Kong shares rose followed by Chinese stimulus measures announced recently, while Chinese shares were closed for a week-long holiday. Although, some gains were limited as ongoing conflict between Israel and Iran heightened market uncertainty.