Post Session: Quick Review

Indian equity markets held strong gains till late afternoon session but in last leg of trade come off from day’s high levels, as sentiments got hit after private report stated that Russian President Vladimir Putin signed a decree broadening the scope of when Moscow can use nuclear weapons in a clear message to the West and Ukraine. Initially, indices maintained their gaining momentum ahead of Maharashtra election voting. The broader indices, BSE Mid cap index and Small cap index ended in green.

Indices made positive start and remained higher as traders preferred to buy stocks at lower levels after recent weakness. Traders took encouragement as Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal said the government is confident of not only meeting the direct tax collection target for FY24, but also exceeding it. Some support also come as the National Sample Survey Office (NSSO) said the unemployment rate for people aged 15 years and above in urban areas dipped to 6.4 per cent in the July-September quarter. In afternoon session, markets continued their firm trade. Sentiments remained optimistic as the National Sample Survey Office (NSSO) stated that the unemployment rate for people aged 15 years and above in urban areas dipped to 6.4 per cent in the July-September quarter. Joblessness, or unemployment rate, is defined as the percentage of unemployed people in the labour force. The unemployment rate in the September quarter of FY24 was 6.6 per cent. Traders took a note of a report by CRISIL stating that the tariff hikes proposed by Donald Trump may pose threat to India’s exports but the country’s surplus in services trade and robust remittances flow may provide comfort. However, in late afternoon session, markets slipped from day’s high levels as geopolitical tensions escalate. 

On the global front, European markets were trading lower with investors keeping an eye on data releases and earnings reports. Asian markets settled mostly higher on Tuesday as strong gains in mining and energy stocks boosted the markets amid climbing commodity prices. Back home, Finance Minister Nirmala Sitharaman has called for more affordable borrowing costs to support industrial growth and capacity building, while addressing concerns about inflation and the overall economic outlook. Sitharaman highlighted key challenges and government measures aimed at stabilising the economy and supporting businesses, particularly small and medium enterprises (SMEs).

The BSE Sensex ended at 77,578.38, up by 239.37 points or 0.31% after trading in a range of 77,411.31 and 78,451.65. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.94%, while Small cap index was up by 0.90%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 1.45%, Auto up by 1.41%, Consumer Disc up by 1.21%, Consumer Durables up by 1.01% and IT was up by 0.73%, while Metal down by 0.90%, Energy down by 0.69% and Oil & Gas was down by 0.59% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 3.55%, HDFC Bank up by 2.21%, Tech Mahindra up by 1.90%, Sun Pharma up by 1.60% and Titan Co up by 1.58%. On the flip side, Reliance Industries down by 1.53%, SBI down by 1.44%, Tata Steel down by 1.31%, Bajaj Finserv down by 1.21% and Maruti Suzuki down by 1.13% were the top losers. (Provisional)

Meanwhile, CRISIL in its latest report has highlighted that the tariff hikes proposed by Donald Trump may pose threat to India’s exports but the country’s surplus in services trade and robust remittances flow may provide comfort. The report stated that India’s export sector is navigating multiple challenges, including geopolitical uncertainties and these factors could pose risks to India’s export performance. It said the surplus in services trade and robust remittances flow provide some comfort and should help keep the current account in safe zone.

The report highlighted that the fiscal year began on a positive note, with steady growth in merchandise exports during the first quarter. However, the momentum faltered in the second quarter, as exports witnessed a contraction. However, the situation improved in October, when merchandise exports staged a remarkable comeback, growing at 17.3 per cent year-on-year-the fastest pace in 28 months. This rebound followed a meagre 0.5 per cent growth in September and an average contraction of 5.8 per cent in July and August. In October, India’s exports surged to $39.2 billion, driven by robust growth in core exports (27.7 per cent) and the gems and jewellery sector (8.7 per cent).

The key contributors within the core segment included engineering goods, electronic goods, chemicals, textiles, marine products, and rice. However, oil exports contracted during this period. Despite this recovery, sustaining the growth remains a concern amid external pressures.

The report also mentioned that U.S. tariffs on Chinese imports, combined with China’s economic slowdown, have intensified competition in Asian markets, including India. This has led to aggressive exports from China, adding pressure on India’s trade balance. The United States has announced tariff hikes on Chinese imports (and more could follow with Trump coming in as the new President). Coupled with the slowdown in the Chinese economy, this is triggering aggressive exports from China to Asian markets, including India. Additionally, growth in imports this fiscal has outpaced exports, widening the trade deficit-a trend that warrants close monitoring. The report outlined that India’s services trade surplus and strong remittances will continue to provide stability, while the merchandise trade deficit remains a concern, these factors are expected to keep the current account within a safe zone.

The CNX Nifty ended at 23,518.50, up by 64.70 points or 0.28% after trading in a range of 23,464.80 and 23,780.65. There were 25 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Mahindra & Mahindra up by 3.58%, Tech Mahindra up by 2.34%, HDFC Bank up by 2.18%, Trent up by 1.94% and Eicher Motors up by 1.84%. On the flip side, SBI Life down by 2.54%, Hindalco down by 1.70%, Reliance Industries down by 1.51%, HDFC Life Insurance down by 1.46% and Tata Consumer down by 1.46% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 34.32 points or 0.42% to 8,075.00, France’s CAC fell 88.25 points or 1.21% to 7,189.98 and Germany’s DAX was down by 225.45 points or 1.17% to 18,963.74.

Asian markets settled mostly higher on Tuesday after mostWall Street stocks ticked higher to recover some of their sharp slide from lastweek and as the US market now looked ahead to the release of tech giantNvidia's earnings. Japanese markets gained despite the prospect ofslower-than-expected interest rate cuts by the Federal Reserve. Chinese andHong Kong markets were rose with expectations that Beijing will unveil morestimulus after a raft of measures at the end of September aimed at kick startingthe economy, with an eye on the property sector. But concern over potentialtariff hikes on Chinese products by President-elect Donald Trump's futureadministration kept investors cautious.