Post Session: Quick Review

Indian equity markets took break from five-day losses and ended with gains of over half a percent on Monday buoyed by buying interest in key sectors such as banking, metals. Traders preferred to buy stock at lowest levels ahead of Diwali. As for broader indices, the BSE Mid cap index and Small cap index also witnessed healthy performance.

After making positive start, soon markets trimmed some of their gains amid foreign fund outflows. Foreign investors have continued selling in the Indian market, pulling out a massive Rs 85,790 crore (around $10.2 billion) from equities this month due to Chinese stimulus measures, attractive stock valuations, and the elevated pricing of domestic equities. October is turning into the worst-ever month in terms of foreign fund outflows. However, markets managed to gain traction. Traders took support with report stating that with the finance ministry seeking ‘justification’ for continuing the Interest Equalisation Scheme (IES) for exporters, the commerce department is exploring ways to revamp it to ensure the scheme meets the objectives outlined during its launch nine years ago. The scheme is currently set to expire on December 31. Some support also came as the income tax department has extended the deadline for filing income tax returns by corporates by 15 days till November 15 for assessment year 2024-25. Traders took a note of report that Reserve Bank of India (RBI) Governor Shaktikanta Das pointed out that institutions like the International Monetary Fund (IMF) and the World Bank need to extend greater access to resources and provide emerging economies with a more prominent role in decision-making processes. In afternoon session, indices touched their day’s high levels, as sentiments were positive, after the Reserve Bank of India (RBI) in its latest survey on ‘International Trade in Banking Services, 2023-24’ has showed that Indian banks increased their overseas presence during 2023-24 both in terms of balance sheet size as well as in terms of number of branches and employees. Markets remained in green till end of the session. 

On the global front, European markets were trading mostly in red ahead of a busy week for earnings and economic data releases. German consumer price inflation data, flash GDP numbers and employment data are due later in the week. Asian markets ended mixed amid lingering concerns the US Fed will lower interest rates slower than previously anticipated after revised data showed US consumer sentiment unexpectedly improved in the month of October. Back home, finance ministry has said that the government has doubled the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) to Rs 20 lakh to promote entrepreneurship in the country.

The BSE Sensex ended at 80,005.04, up by 602.75 points or 0.76% after trading in a range of 79,418.82 and 80,539.81. There were 23 stocks advancing against 7 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.69%, while Small cap index was up by 1.11%. (Provisional)

The top gaining sectoral indices on the BSE were Basic Materials up by 1.79%, Realty up by 1.40%, Telecom up by 1.37%, Healthcare up by 1.36% and PSU was up by 1.35%, while Energy down by 0.38%, Capital Goods was down by 0.01% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were ICICI Bank up by 2.96%, Adani Ports &Special up by 2.80%, JSW Steel up by 2.68%, Tata Steel up by 2.50% and Mahindra & Mahindra up by 2.36%. On the flip side, Axis Bank down by 1.43%, Kotak Mahindra Bank down by 1.08%, Tech Mahindra down by 0.72%, HDFC Bank down by 0.48% and Maruti Suzuki down by 0.12% were the top losers. (Provisional)

Meanwhile, expressing optimism over turnover, the Confederation of All India Traders (CAIT) has said that as preparations for Diwali and related festivities are in full swing across Delhi and other parts of the country, traders are expecting a turnover of around Rs 4.25 lakh crore nationwide during this Diwali season. The traders’ body noted that Delhi alone could see business worth around Rs 75,000 crore.

Chandni Chowk MP and CAIT Secretary General Praveen Khandelwal stated that grand preparations are underway in markets across Delhi and nationwide for Diwali and the festive season. Khandelwal shared that shops in metropolitan cities, as well as Tier 2 and Tier 3 cities, towns, and villages, will be decorated in line with the Diwali theme.

Emphasis will be placed on colourful lights, rangolis, and other decorations to create a festive atmosphere and attract more people to the markets.
He mentioned that anticipating a sharp increase in demand, traders have already begun stocking various items such as gift items, clothing, jewellery, electronics, mobile phones, furnishings, decor, puja materials, rangolis, deity idols and pictures, ready-made garments, toys, food items, confectionery, electrical goods, consumer durables, and more.

CAIT National President B.C. Bhartia added that traders are also considering discounts and promotional offers to attract customers. Offers like ‘Buy One-Get One’ or special Diwali discounts are likely to entice shoppers. Given the heavy crowds expected during Diwali, traders have requested special arrangements from the police and local administration for security and traffic control, while trade associations are also planning to deploy additional private security guards.

The CNX Nifty ended at 24,339.15, up by 158.35 points or 0.65% after trading in a range of 24,134.90 and 24,492.60. There were 36 stocks advancing against 14 stocks declining on the index. (Provisional)

The top gainers on Nifty were Shriram Finance up by 5.39%, Adani Enterprises up by 3.91%, ICICI Bank up by 2.98%, Eicher Motors up by 2.81% and Wipro up by 2.79%. On the flip side, Coal India down by 4.22%, Bajaj Auto down by 1.91%, Axis Bank down by 1.49%, Kotak Mahindra Bank down by 1.07% and Hero MotoCorp down by 0.91% were the top losers. (Provisional)

European markets were trading mostly in red; UK’s FTSE 100 decreased 5.28 points or 0.06% to 8,243.56 and Germany’s DAX was down by 3.01 points or 0.02% to 19,460.58. On the flip side, France’s CAC was up by 33.04 points or 0.44% to 7,530.58.

Asian markets settled mixed on Monday ahead of key US inflation, GDP prints and labor market data due later in the week to gauge the possibility of further interest rate cuts by the US Federal Reserve. Japanese shares rallied after the country's ruling Liberal Democratic Party lost its majority in Parliament's lower house in weekend elections and as a weaker yen lifted exporters. Chinese shares gained, despite data showed that China's industrial profits in September dropped at its fastest pace since the pandemic. Meanwhile, Seoul shares rose on the back of gains in the technology sector.