Post Session: Quick Review

In volatile trading session, Indian equity markets ended Monday’s session flat. Most part of time, markets traded in green territory but selling pressure in late afternoon session forced to end lower. Traders were cautious ahead of key macroeconomic data i.e. Index of Industrial Production (IIP) and Consumer price index (CPI), which going to be out on November 12. As for broader indices, the BSE Mid cap index and Small cap index ended deep in red. 

Markets made negative start tracking weakness in Asian counterparts, as traders reacted to the smaller than expected size of China's fresh stimulus measures and the release of weak inflation data over the weekend that spurred new concerns over the recovery in the world's second-largest economy. But soon indices gained traction to trade higher in late morning session. Some support came as Moody’s Ratings said with Donald Trump set to become the next US president after the recently closely contested president polls, India and other Asian countries are expected to benefit due to rising US-China tensions and potential investment restrictions in strategic sectors. Traders took note of Union Commerce and Industry Minister Piyush Goyal’s statement that India's growth story will take the country's $3.5 trillion economy now to $35 trillion in the next 25 years. In afternoon session, indices continued to trade above neutral lines. Sentiments were positive as Union Finance and Corporate Minister, Nirmala Sitharaman said that the Ministry of Micro, Small and Medium Enterprises (MSMEs) will get collateral-free loans of upto Rs 100 crore through a new credit assessment model by PSU banks. However, in late afternoon session, markets took U-turn and ended flat. Investors were concerned as private report stated that India’s retail inflation, based on the Consumer Price Index (CPI), likely rose to a 14-month high of 5.9% in October primarily due to a sharp rise in the prices of vegetables and edible oils.

On the global front, European markets were trading higher as investors digested upbeat earnings and looked ahead to key inflation readings in Germany and the United States due later in the week. Asian markets ended mostly lower as Beijing's latest stimulus fell short of investor expectations and weak inflation data dampened hopes for a significant recovery in the world's second largest economy. Back home, the latest QS World University Rankings: Asia 2025 edition has highlighted India's impressive upward trajectory in higher education across the continent. It showed that India boasts two institutions within the top 50 and seven in the top 100 of the QS Asia Rankings 2025, with the Indian Institute of Technology Delhi (IITD) leading at 44th place.

The BSE Sensex ended at 79,496.15, up by 9.83 points or 0.01% after trading in a range of 79,001.34 and 80,102.14. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined by 0.79%, while Small cap index was down by 1.14%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 1.01%, TECK up by 0.78%, Bankex up by 0.55%, PSU up by 0.33% and Power was up by 0.27%, while Healthcare down by 1.33%, Basic Materials down by 1.25%, Metal down by 0.97%, FMCG down by 0.90% and Oil & Gas was down by 0.79% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid up by 4.33%, HCL Tech up by 1.60%, Infosys up by 1.58%, Tech Mahindra up by 1.16% and TCS up by 1.01%. On the flip side, Asian Paints down by 8.18%, Mahindra & Mahindra down by 1.94%, Bajaj Finance down by 1.73%, JSW Steel down by 1.64% and Tata Steel down by 1.46% were the top losers. (Provisional)

Meanwhile, Moody's Ratings in its report has said that Donald Trump's presidency may see trade and investment flows diverting away from China as the US tightens investments in strategic sectors but this shift might benefit India and ASEAN countries. The November 5 election of Trump as the next US President will likely materially shift its policies from those of the current Joe Biden administration. In a second Trump administration, Moody's expects large fiscal deficits, protectionist trade actions, climate-measure rollbacks, a stricter stance on immigration, and easing regulations. Trump is likely to pursue more aggressive immigration policies, including increased deportations, the construction of additional border barriers, stricter visa regulations, and reduced asylum grants.

Moody's said ‘Although aimed at reducing unauthorised immigration and prioritising legal immigration based on merit, they could lead to labour shortages in sectors that rely heavily on immigrant labour, such as agriculture, retail, hospitality, construction and healthcare’. About Trump's foreign policy, it said in the Asia-Pacific region, trade and investment flows might be further diverted away from China as the US tightens investments in strategic sectors, which would negatively affect China's economy and consequently dampen regional growth. It said continued US-China polarisation risks exacerbating geopolitical divisions in the region, increasing risks of disruption to the global supply of semiconductors.

In Europe, it said the reduced US support for Ukraine might increase European governments' fiscal burdens as governments initially try to compensate for the US support. It added ‘US disengagement from NATO would also increase security risks in Europe by emboldening Russia, putting countries along NATO's eastern border at greatest risk. Also, the proposed blanket tariffs and US-China tensions will likely hurt trading partners in the region, but could indirectly benefit Europe by making it a more attractive investment destination because of its relative policy stability’.

The CNX Nifty ended at 24,141.30, down by 6.90 points or 0.03% after trading in a range of 24,004.60 and 24,336.80. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were Power Grid up by 4.28%, Trent up by 2.89%, Infosys up by 1.65%, HCL Tech up by 1.62% and Tech Mahindra up by 1.36%. On the flip side, Asian Paints down by 8.17%, Britannia down by 5.44%, Apollo Hospital down by 3.58%, Cipla down by 2.50% and ONGC down by 2.15% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 55.95 points or 0.69% to 8,128.34, France’s CAC rose 81.09 points or 1.1% to 7,419.76 and Germany’s DAX was up by 235.17 points or 1.22% to 19,450.65. 

Asian markets ended mostly lower on Monday after the deflation fears in China spooked followed by the lower-than-expected Chinese inflation numbers. Absence of direct economic stimulus measures raised concerns over economic recovery of China. Heightened tension between China and US under presidency of Donald Trump also saddled investor sentiments. Hang Seng plunged the most among Asian indices marking its lowest level in three weeks.