Post Session: Quick Review

Indian equity markets went through hefty losses on Thursday amid escalating tensions in the Russia-Ukraine conflict and heightened the nuclear concerns. Also, some cautiousness came after a sharp sell-off in Adani group stocks as US prosecutors indicted billionaire Gautam Adani and seven other senior business executives in connection with an alleged $250 million bribery scheme. As for broader indices, the BSE Mid cap index and Small cap index ended in red.

After making cautious start, markets extended their losses amid mixed global cues, as traders remained cautious and are reluctant to make significant moves keeping close eye on the escalating tensions between Ukraine and Russia. Foreign fund outflows also added some pressure on markets. Foreign institutional investors (FIIs) extended their selling as they sold equities of Rs 3,411 crore worth on November 19. Investors were worried as domestic rating agency Icra said India's real GDP growth for the September quarter is likely to decline to 6.5 per cent due to heavy rains and weaker corporate performance. In afternoon session, indices continued their weak trade, some concern came as Economic Affairs Secretary Ajay Seth’s statement that India’s economic growth may have slowed in the September quarter, but overall, there is not much downside risk to 6.5-7 per cent growth in the current fiscal year.  Traders overlooked the report that the retirement fund body, Employees' Provident Fund Organisation (EPFO) in its latest ‘Provisional payroll data’ report has showed that 18.81 lakh net members have been added in the month of September 2024, a 9.33% year-on-year growth as compared to September 2023, signifying increased employment opportunities and heightened awareness of employee benefits, bolstered by EPFO’s effective outreach initiatives. Markets remained lower in late afternoon session, as traders sold out their riskier stocks.

On the global front, European markets were trading lower amidst renewed tensions between Russia and Ukraine. Asian markets ended mostly in red as the People's Bank of China left its benchmark lending rates unchanged on Wednesday as it monitors the impact of recent policy adjustments. The PBoC maintained its one-year loan prime rate at 3.10 percent. Likewise, the five-year LPR, the benchmark for mortgage rates, was retained at 3.60 percent. The bank had cut its both LPRs by 25 basis points each in October. Back home, Reserve Bank of India’s (RBI) article on 'State of the Economy' published in the November Bulletin has said that private consumption is back driven by festive spending, and the medium-term economic outlook remains bullish as the innate strength of the macro-fundamentals reasserts itself.

The BSE Sensex ended at 77,155.79, down by 422.59 points or 0.54% after trading in a range of 76,802.73 and 77,711.11. There were 10 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.37%, while Small cap index was down by 0.67%. (Provisional)

The few gaining sectoral indices on the BSE were Realty up by 1.07%, IT up by 0.36%, TECK up by 0.32% and Healthcare was up by 0.11%, while Utilities down by 3.16%, PSU down by 1.57%, Basic Materials down by 1.55%, Oil & Gas down by 1.45% and Energy was down by 1.44% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid up by 3.21%, Ultratech Cement up by 1.41%, HCL Tech up by 0.68%, Axis Bank up by 0.63% and Tata Steel up by 0.54%. On the flip side, Adani Ports down by 13.11%, SBI down by 2.57%, NTPC down by 2.49%, ITC down by 2.30% and Asian Paints down by 2.18% were the top losers. (Provisional)

Meanwhile, Economic Affairs Secretary Ajay Seth has said that economic growth of India may have slowed in the September quarter (Q2), but overall there is not much downside risk to 6.5-7 per cent growth in the current fiscal year (FY25). Seth said while some goods and services may not have grown at the same pace as in the last year in the second quarter of the current fiscal year, data on e-way bills and e-invoices does not indicate any significant downside possibility to the full year 6.5-7 per cent growth projected in the Economic Survey.

The secretary also said food prices have been a concern but other than that, inflation is not a challenge for India. On capex, he said the government’s capital expenditure may see some undershooting of the Rs 11.11 lakh crore in the current fiscal year. But the capex will be higher than Rs 9.5 lakh crore in the last fiscal year.

The Indian economy grew 6.7 per cent year-over-year in the April-June period of FY25. Although this marks the slowest growth in five quarters, India ranks among the fastest-growing major economies globally. India grew 8.2 per cent in the 2023-24 financial year.

The CNX Nifty ended at 23,349.90, down by 168.60 points or 0.72% after trading in a range of 23,263.15 and 23,507.30. There were 15 stocks advancing against 35 stocks declining on the index. (Provisional)

The top gainers on Nifty were Power Grid up by 3.44%, Ultratech Cement up by 1.72%, Hindalco up by 1.26%, Grasim Industries up by 1.06% and HCL Tech up by 0.87%. On the flip side, Adani Enterprises down by 22.61%, Adani Ports down by 13.57%, SBI Life down by 2.95%, NTPC down by 2.88% and SBI down by 2.77% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 7.97 points or 0.1% to 8,077.10, France’s CAC fell 34.36 points or 0.48% to 7,164.09 and Germany’s DAX was down by 43.74 points or 0.23% to 18,961.04.

Asian markets ended mostly lower on Thursday as lackluster revenue forecast from AI darling Nvidia, disappointed investors. Nvidia, the world’s most valuable firm, projected its slowest revenue growth in seven quarters. Prevailing geopolitical concerns following the escalating conflict in Ukraine earlier this week have also weighed on risk sentiment, leading safe-haven assets higher, including gold and government bonds. Markets in China and Hong Kong saw a downturn as investors grappled with the dual prospects of U.S. tariff hikes and anticipated fiscal stimulus measures from Beijing.