Post Session: Quick Review

Indian equity markets ended in red for yet another day on Friday amid monthly F&O expiry. Besides, investors avoided to take risk ahead of long weekend. Traders would be looking forward to HSBC India Manufacturing Purchasing Managers' Index (PMI) data, which is scheduled to be released on November 04. Sectors wise IT sector’s stocks witnessed selling pressure. As for broader indices, the BSE Mid cap index ended in red, while Small cap index ended with healthy gains. 

Markets made negative start and extended their losses. Some cautiousness came as the government data showed that the growth in production of eight key infrastructure sectors slowed down to 2 per cent in September as against 9.5 per cent in the same month last year. However, the output growth is positive against a contraction of 1.6 per cent in August 2024. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity - comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP). In afternoon session, indices continued to trade lower as in a cautious outlook for the upcoming fiscal year, India Ratings and Research (Ind-Ra) projects a decline in inflation for FY25, yet it emphasizes that immediate rate cuts from the Reserve Bank of India (RBI) are unlikely. In late afternoon session, indices remained in red amid weak global cues. 

On the global front, European markets were trading lower as investors assessed the latest batch of earnings and awaited the closely watched preliminary euro zone inflation reading for clues to the European Central Bank 's rate trajectory. Asian markets ended mostly in red as investors reacted to mixed earnings from U.S. technology companies and signals from the Bank of Japan that further rate rises were still on the horizon. Back home, the government data showed the Centre’s fiscal deficit at the end of the first half of financial year FY25 touched 29.4 per cent of the full-year target. In absolute terms, fiscal deficit - the gap between government’s expenditure and revenue - was at Rs 4,74,520 crore at September-end.

The BSE Sensex ended at 79,389.06, down by 553.12 points or 0.69% after trading in a range of 79,287.93 and 80,044.95. There were 4 stocks advancing against 26 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index declined 0.34%, while Small cap index was up by 1.62%. (Provisional)

The top gaining sectoral indices on the BSE were Industrials up by 2.15%, Capital Goods up by 2.14%, Healthcare up by 1.86%, Utilities up by 0.68% and Power was up by 0.17%, while IT down by 2.55%, TECK down by 2.34%, Consumer Durables down by 0.93%, Bankex down by 0.65% and FMCG was down by 0.55% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Larsen & Toubro up by 6.38%, Power Grid up by 0.86%, JSW Steel up by 0.73% and Mahindra & Mahindra up by 0.71%. On the flip side, Tech Mahindra down by 4.54%, HCL Tech down by 3.89%, TCS down by 2.80%, Infosys down by 2.48% and Asian Paints down by 1.97% were the top losers. (Provisional)

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that India is not looking at the ongoing US-China trade tensions as an opportunity for its own benefit and the country stands on its strengths such as democratic institutions, robust rule of law, and talented youth. He said India offers huge opportunities and the world is building stronger ties with the emerging markets.

The US has raised customs duties on a number of goods imported from China. About if the multilateral trade system has failed, Goyal said it has not, but it is going through certain stresses. He said that the World Trade Organization (WTO) is grappling with issues like a dysfunctional appellate body to resolve trade disputes among member countries.

He said ‘We have challenges on certain agendas where the developed world and the emerging markets think differently. We have not been able to reconcile those differences. But I am one who believes that the future is bright and I am very optimistic about these issues only making things better for all’.

He added that India and the US resolved their seven WTO trade disputes bilaterally. He said ‘So we see a great opportunity for diplomacy playing a greater role in resolving the problems of the world and India's approach is that dialogue and diplomacy is the way forward whether it is conflict or economics’.

The CNX Nifty ended at 24,205.35, down by 135.50 points or 0.56% after trading in a range of 24,172.60 and 24,372.45. There were 13 stocks advancing against 37 stocks declining on the index. (Provisional)

The top gainers on Nifty were Cipla up by 9.41%, Larsen & Toubro up by 6.28%, Dr. Reddy's Lab up by 1.95%, ONGC up by 1.72% and Hero MotoCorp up by 1.63%. On the flip side, Tech Mahindra down by 4.53%, HCL Tech down by 3.96%, TCS down by 2.84%, Infosys down by 2.49% and Wipro down by 2.38% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 60.98 points or 0.75% to 8,098.65, France’s CAC fell 61.56 points or 0.84% to 7,366.80 and Germany’s DAX was down by 97.53 points or 0.51% to 19,159.81. 

Asian markets ended mostly down on Thursday as investors awaited US non-farm payrolls figures, inflation data and next week's presidential election for insight into the Federal Reserve’s interest rate stance. Stock markets of Singapore and Malaysia were closed for Diwali holiday and Taiwanese markets were shuttered due to a typhoon. Meanwhile investors are reacted to mixed earnings from US tech companies and economic reports, while the Bank of Japan kept its benchmark rate unchanged at 0.25% as Japan's political instability raised uncertainty. Although, Chinese shares gained ahead of the National People's Congress meeting on November 4-8, where investors awaiting details of stimulus measures. China's manufacturing sector returned to expansion in October after five consecutive months of contraction as the government policy support boosted business activity and bolstered market confidence.