Volatile session closes on flat note

Monday turned out to be a volatile session, with Sensex and Nifty closing near their neutral lines, tracking mixed cues from global markets as investors weighed the potential impact of Trump's protectionist policies on the global economy. Following a weak start, markets gained momentum in late morning deals, as some support came after 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. Besides, the QS World University Rankings: Asia 2025 edition highlighted India's impressive upward trajectory in higher education across the continent. 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.

Trade remained positive for the most part of the trading session, as domestic sentiments were positive, after 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. But, indices failed to hold gains during the last hours of the trade and closed flat, as 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. Investors were concerned as a 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.  Some cautiousness came after data shared by the Reserve Bank of India (RBI) showed that India's foreign exchange reserves dipped by $2.6 billion to $682.13 billion as of November 01. 

On the global front, European markets were trading higher, as Norway's consumer price inflation eased to the lowest level in more than three-and-a-half years in October, while producer prices fell for the second straight month. The consumer price index rose 2.6 percent year-over-year in October, slower than the 3.0 percent gain in September. The statistical office said producer prices fell 3.5 percent annually in October, faster than the 2.9 percent decline in the prior month. Asian markets ended mostly lower, as Malaysia's industrial production posted a slower growth in September. The figures from the Department of Statistics showed that industrial production increased 2.3 percent year-on-year in September, following a growth of 4.1 percent in the previous month. Manufacturing and electricity output registered weaker growth and mining logged another fall albeit at a slower pace.

On the sectoral front, insurance industry stocks remained in focus as Life Insurance Council report stated that the Indian life insurance sector recorded a robust year-on-year (YoY) growth in new business premiums (NBPs) for October 2024, with premiums increasing by 13.16 per cent compared to the same period last year. Further, stocks related to the chemical industry were in watch, as the Basic Chemicals, Cosmetics and Dyes Export Promotion Council (CHEMEXCIL) Director General Raghuveer Kini has said that chemical export target of $31 billion for 2024-25 (FY25) will be achieved, as there is a healthy demand for 'made in India' chemicals in countries like Brazil, the US, Japan and Saudi Arabia.

Finally, the BSE Sensex rose 9.83 points or 0.01% to 79,496.15, and the CNX Nifty was down by 6.90 points or 0.03% to 24,141.30.  

The BSE Sensex touched high and low of 80,102.14 and 79,001.34 respectively. There were 12 stocks advancing against 18 stocks declining on the index.

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

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 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 down by 0.79% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 4.22%, HCL Tech. up by 1.60%, Infosys up by 1.58%, Tech Mahindra up by 1.24% and TCS up by 1.21%. On the flip side, Asian Paints down by 8.18%, Tata Steel down by 1.76%, Bajaj Finance down by 1.73%, Mahindra & Mahindra down by 1.65% and JSW Steel down by 1.64% were the top losers.

Meanwhile, the Basic Chemicals, Cosmetics and Dyes Export Promotion Council (CHEMEXCIL) Director General Raghuveer Kini has said that chemical export target of $31 billion for 2024-25 (FY25) will be achieved, as there is a healthy demand for 'made in India' chemicals in countries like Brazil, the US, Japan and Saudi Arabia.

Kini said that the total exports of chemicals during April-September rose by 4.57 per cent to $14.1 billion. He stated ‘So far, we are registering good growth, and we are confident of achieving the $31 billion target this fiscal. Last year, it was around $30 billion.’ He added ‘Last year, because of drought in Brazil, which is the key market for us, exports were down. But this year, the situation is good, and we expect high growth.’ 

Further, he said that the council is holding awareness programmes for exporters about the preparedness of the European Union's carbon tax and quality control orders. He said The EU's carbon tax is a reality, and we have to be prepared for that. Exporters should not be caught unaware. We are explaining the paperwork required to deal with this tax.’ The EU's Carbon Border Adjustment Mechanism or CBAM is its unilateral measure, which India is opposing strongly. CBAM is a kind of import duty that will apply to energy-intensive goods imported into the European Union. It has decided to impose a carbon tax from January 1, 2026, on seven carbon-intensive sectors, including steel, cement, chemicals, and fertiliser. 

Besides, Kini said there has been a rising demand for chemicals globally by end-user industries like pharmaceuticals, agriculture, and manufacturing. He stated Indian chemicals have gained popularity in overseas markets due to their improved quality and adherence to international standards such as REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) and other regulations.

The CNX Nifty traded in a range of 24,004.60 and 24,336.80. There were 20 stocks advancing against 30 stocks declining on the index.

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.

European markets were trading higher; UK’s FTSE 100 increased 65.15 points or 0.81% to 8,137.54, France’s CAC rose 83.63 points or 1.14% to 7,422.30 and Germany’s DAX gained 255.5 points or 1.33% to 19,470.98.

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.