Post Session: Quick Review

Indian equity markets dominated by bulls on Wednesday and concluded with gains of over a percent as former President Donald Trump claimed victory in US election 2024. Besides, globally investors were braced for U.S. Fed meeting due on tomorrow. The Federal Reserve is widely expected to cut its key interest rate by a quarter percentage point. Positive HSBC India Services PMI Business Activity Index data also offered some support to the markets. The broader indices, the BSE Mid cap index and Small cap index end with hefty gains.

Markets made positive start and extended their gains tracing firm cues from the global markets. Traders got encouragement with the report that total production of main kharif crops-rice, pulses and maize-in the 2024-25 crop season is expected to surpass last year mainly because of good monsoons and gains from a larger area under cultivation. While kharif rice output is expected to increase nearly 6% to 119.93 million tonnes from 113.25 million tonnes last year, tur production is expected to rise about 3% to 3.5 million tonnes from 3.4 million tonnes. Meanwhile, Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri stated that oil prices in India are expected to remain stable amid the rising geopolitical tensions as the country has several options to buy crude oil. Talking concerns over potential supply chain disruptions, Puri emphasized that India has strategically positioned itself to manage such situations effectively, with access to a diverse range of crude oil suppliers. 

In afternoon session, indices continued their gaining momentum after India’s services sector activity gained traction in the month of October, aided by healthy customer demand domestically and from abroad. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index rose to 58.5 in October from 57.7 in September. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 59.1 in October as against 58.3 in September. In last leg of trade, markets touched their day’s high levels amid value buying by investors.

On the global front, European markets were trading higher as data showed that Germany's factory orders rebounded in September on strong growth in aircraft and other transport equipment orders. Asian markets ended mixed as U.S. Republican candidate Donald Trump won two crucial swing states, North Carolina and Georgia, and tightened his hold on key battlegrounds in the race for the White House. Back home, Financial Intelligence Units (FIU) of India and Qatar have discussed methods of effective information exchange and possible areas of future collaboration between the two organisations in the areas of anti-money laundering and countering the financing of terrorism (AML/CFT) between the two countries.

The BSE Sensex ended at 80,378.13, up by 901.50 points or 1.13% after trading in a range of 79,459.12 and 80,569.73. There were 25 stocks advancing against 5 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 2.28%, while Small cap index was up by 1.96%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 4.04%, TECK up by 3.37%, Oil & Gas up by 2.81%, Realty up by 2.68% and Capital Goods was up by 2.68%, while there were no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were TCS up by 4.21%, Infosys up by 4.06%, Tech Mahindra up by 3.85%, HCL Tech up by 3.71% and Adani Ports &Special up by 3.21%. On the flip side, Titan Company down by 1.72%, Indusind Bank down by 1.14%, Hindustan Unilever down by 0.79%, Axis Bank down by 0.35% and HDFC Bank down by 0.22% were the top losers.

Meanwhile, recovering from September's ten-month low, India’s services sector activity gained traction in the month of October, aided by healthy customer demand domestically and from abroad. In response to positive sales developments, and optimism regarding near-term prospects, firms recruited extra workers to the greatest degree in just over two years.

According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index rose to 58.5 in October from 57.7 in September. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 59.1 in October as against 58.3 in September. 
On the price front, input price inflation accelerated to a three-month high in October, with services companies mainly reporting greater food and wage costs. However, the overall rate of inflation remained below its long-run average. The cost pressures were highest in Consumer Services.

Companies shared part of their additional cost burdens with clients by continuing to lift selling prices. The rate of charge inflation picked up to the strongest since July and outpaced the series trend. Business sentiment remained positive in October, despite receding a little from September.

The CNX Nifty ended at 24,484.05, up by 270.75 points or 1.12% after trading in a range of 24,204.05 and 24,537.60. There were 40 stocks advancing against 10 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bharat Electronics up by 5.41%, Adani Enterprises up by 4.48%, TCS up by 4.24%, Infosys up by 3.96% and Tech Mahindra up by 3.73%. On the flip side, SBI Life down by 1.79%, Titan Company down by 1.65%, HDFC Life Insurance down by 1.19%, Indusind Bank down by 1.14% and Hindustan Unilever down by 0.82% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 101.6 points or 1.23% to 8,273.99, France’s CAC rose 91.9 points or 1.23% to 7,499.05 and Germany’s DAX was up by 144.85 points or 0.75% to 19,401.12.

Asian markets ended mixed on Wednesday on bets that US Republican candidate Donald Trump would win the US presidential election. Japanese shares gained by tracking Wall Street’s rally overnight after data showed the US services sector accelerated to a more than two-year high in October. Meanwhile, a weaker yen boosted export-related shares as Trump is leading Kamala Harris in the US election. Meanwhile, Chinese and Hong Kong shares declined on concerns that Trump's tariff plans could reignite US-China trade tensions. But the meeting of the National People's Congress Standing Committee in China is widely expected to approve additional stimulus measures.