Markets reverse losses to end significantly higher

Indian equity benchmarks staged recovery to close sharply higher on Tuesday on late buying in Metal, Banking and Basic Materials shares amid firm trends in global equities. Markets opened on a weak note and traded in a range with a negative bias in the first half amid constant foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,329.79 crore on Monday, according to exchange data. Besides, rising crude oil prices weighed on the domestic sentiments. Oil prices climbed as the Organization of the Petroleum Exporting Countries and allies, collectively known as OPEC+, decided to push back its December production increase by at least a month. Traders remained cautious due to persisting Middle East tensions, and ahead of the US presidential elections. Traders took a note of report that corporate affairs ministry underscored the need for a ‘continuous refinement’ in the Insolvency and Bankruptcy Code (IBC) to address future challenges in corporate recast effectively. 

However, value buying in the afternoon session helped indices recover losses and closed in the green. Traders took note of private report that Finance Minister Nirmala Sitharaman chaired a meeting on November 4 to conduct a comprehensive review of the Income Tax Act 1961, in line with the announcement made during the last Union Budget. Separately, the Securities and Exchange Board of India (Sebi) has allowed mutual funds (MFs) to invest in overseas funds and unit trusts (UTs) that have up to 25 per cent exposure to Indian equities. The decision opens scope for domestic funds to invest in prominent global schemes, especially passive ones, which provide exposure to markets across the globe. 

On the global front, European markets were trading higher as investors reacted to mixed earnings updates and awaited interest-rate decisions from the Bank of England and the Federal Reserve later this week. Asian markets settled mostly higher on Tuesday after Chinese Premier Li Qiang expressed confidence that his government can pull off an economic recovery. Additionally, a private survey showed China's services activity expanded at the fastest pace in three months in October.

Back home, on the sectoral front, renewable energy stocks were in focus after Minister of New and Renewable Energy, Pralhad Joshi said India is on its way to achieving the target of 500 gigawatts of renewable energy by 2030. Joshi said India’s solar rooftop initiative is one of the best schemes to encourage renewable energy usage. There was some reaction in coal stocks as Union Minister G Kishan Reddy said state-owned CIL's priorities should be to ramp up production of coal and scale up supplies to reduce imports. Coal India accounts for over 80 per cent of domestic coal output.

Finally, the BSE Sensex rose 694.39 points or 0.88% to 79,476.63, and the CNX Nifty was up by 217.95 points or 0.91% to 24,213.30. 

The BSE Sensex touched high and low of 79,523.13 and 78,296.70 respectively. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.48%, while Small cap index was up by 0.41%.

The top gaining sectoral indices on the BSE were Metal up by 2.38%, Bankex up by 2.09%, Basic Materials up by 1.84%, PSU up by 1.11% and Oil & Gas up by 1.08%, while FMCG down by 0.17%, TECK down by 0.17% and IT down by 0.05% were the few losing indices on BSE.

The top gainers on the Sensex were JSW Steel up by 4.72%, Tata Steel up by 3.64%, Axis Bank up by 2.73%, HDFC Bank up by 2.56% and Indusind Bank up by 2.49%. On the flip side, Adani Ports &SEZ down by 1.46%, ITC down by 0.96%, Asian Paints down by 0.91%, Bharti Airtel down by 0.80% and Infosys down by 0.63% were the top losers.

Meanwhile, expressing optimism over solar investments, Union Minister Pralhad Joshi has asserted that global solar investments will touch $500 billion this year from the $393 billion level in 2023 and said it is the most affordable energy source in many regions, surpassing coal and gas. He added these investments are not only adding new capacity but also driving down the cost of energy from solar worldwide.

Joshi, who is also President of International Solar Alliance (ISA), said ‘This rapid growth is fuelled by record-breaking investments. Global solar investments have grown from $144 billion in 2018 to $393 billion in 2023 and are expected to reach $500 billion by the end of 2024.’ He stated today solar power has become the most affordable source of electricity in many regions, surpassing coal and gas. 

He also informed that ISA is guided by the 'Towards 1000' strategy which aims to mobilise $1,000 billion of investments in solar energy solutions by 2030. He added ‘This is our strategy: to deliver energy access to 1,000 million people; installation of 1,000 GW of solar energy capacity; and mitigate emissions to the tune of 1,000 MT of carbon dioxide every year’. He stated that under Prime Minister Narendra Modi's leadership, India has set ambitious renewable energy targets, and achieved remarkable milestones.

The CNX Nifty traded in a range of 24,229.05 and 23,842.75. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 4.57%, Tata Steel up by 3.74%, Hindalco up by 3.51%, Bajaj Auto up by 3.35% and Axis Bank up by 2.71%. On the flip side, Trent down by 1.71%, Adani Ports &SEZ down by 1.50%, Asian Paints down by 0.87%, ITC down by 0.75% and Infosys down by 0.60% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 19.71 points or 0.24% to 8,203.95, France’s CAC rose 3.84 points or 0.05% to 7,375.55 and Germany’s DAX gained 9.48 points or 0.05% to 19,157.33. 

Asian markets settled mostly higher on Tuesday, even after Wall Street drifted lower overnight ahead of the presidential election and the Federal Reserve's interest-rate decision due later this week. Japanese shares rose as trading resumed after a long holiday weekend with the US central bank widely expected to cut its main interest rate for a second straight time. Moreover, Chinese and Hong Kong shares gained on prospects of additional stimulus measures from China's major economic meeting this week and after reports showed China's service activity expanded at the fastest pace since July. Chinese Premier Li Qiang said he was fully confident of meeting this year's growth target and that there was room for more stimulus.