Post Session: Quick Review

The Maharashtra election results lifted sentiment over the Dalal Street on Monday, with both Sensex and Nifty ending over a percent higher. After a strong start of the day, markets remained bullish for the whole day, aided by heavy buying at all sectoral counters along with positive cues from European markets and optimism after the BJP-led Mahayuti alliance won the Maharashtra elections. Some support came with a report that the Trade and Economic Partnership Agreement (TEPA), signed in March 2024 between India and the European Free Trade Association (EFTA) countries, is poised to unlock new opportunities for Indian exports and drive investments worth $100 billion. 

Markets came off day’s high points in afternoon deals amid global geopolitical uncertainty, coupled with the continued selling by foreign investors, still weighed on investors' sentiment. Besides, S&P Global Ratings has revised down its estimate for India's economic growth in the next two financial years. However, indices held their notable gains, as Union Minister of State (Independent Charge) for Science and Technology; Earth Sciences and Minister of State for PMO, Department of Atomic Energy, Department of Space, Personnel, Public Grievances and Pensions, Jitendra Singh has said that from being led, India is today in a position to lead others across the world and this is amply borne out by recent success stories accomplished under PM Narendra Modi including Space sector headway, Biotechnology Vaccine breakthroughs and CSIR Purple Revolution. 

On the global front, Asian markets settled mostly higher on Monday, after China's central bank left the rate on medium-term lending facility unchanged on Monday after cutting the rate in September. The People's Bank of China maintained the MLF rate at 2.0 percent. The bank offered CNY 900 billion via one-year policy loans. European markets were trading higher, after Finland's producer prices decreased for the third straight month in October. The data from Statistics Finland showed that the producer price index dropped 2.3 percent year-over-year in October, the same as in the previous two months. The fall in the producer prices was particularly caused by lower prices of oil products, chemicals and chemical products, and electricity.

The BSE Sensex ended at 80109.85, up by 992.74 points or 1.25% after trading in a range of 79765.99 and 80473.08. There were 24 stocks advancing against 6 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose by 1.61%, while Small cap index was up by 1.86%. (Provisional)

The top gaining sectoral indices on the BSE were Industrials up by 3.29%, Capital Goods up by 3.27%, Oil & Gas up by 3.26%, PSU up by 2.96% and Energy up by 2.56%, while there were no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Larsen & Toubro up by 4.13%, SBI up by 3.52%, Adani Ports & SEZ up by 2.55%, HDFC Bank up by 2.21% and ICICI Bank up by 1.82%. On the flip side, JSW Steel down by 2.31%, Tech Mahindra down by 0.79%, Asian Paints down by 0.74%, Infosys down by 0.73% and HCL Tech. down by 0.37% were the top losers. (Provisional)

Meanwhile, the World Gold Council (WGC) report has said that as AI systems become increasingly integral to devices such as smartphones, autonomous vehicles, and data centres, the use of gold has surged due to its unparalleled properties. Gold demand in the electronics sector peaked in 2010 at 328 tons but gradually declined to 249 tons by 2023. Recent quarters, however, have shown a modest recovery, driven in part by the expansion of AI-enabled devices. As manufacturers strive to meet the technological demands of AI, gold’s unique properties ensure its continued relevance in high-performance electronic applications.  

The report said gold’s exceptional electrical conductivity and resistance to corrosion make it indispensable in advanced hardware components, ensuring high-speed data processing, minimal energy loss, and long-lasting performance. The healthcare and financial sectors, among others, are heavily investing in AI to boost innovation and efficiency, further amplifying gold’s demand. As these industries expand their reliance on AI, gold’s role in delivering reliable and efficient electronic components is becoming more prominent. From processors to sensors, gold remains a critical material for enabling AI-driven technology.  

As per the report, the rising cost of gold, which recently surpassed Rs 72,056 per 10 grams ($2,700 per ounce), poses significant challenges for manufacturers. During previous price surges, like those between 2001 and 2011, industries responded by substituting gold with alternatives such as silver or copper and adopting thrifting techniques to reduce usage.  

The CNX Nifty ended at 24221.90, up by 314.65 points or 1.32% after trading in a range of 24135.45 and 24351.55. There were 41 stocks advancing against 9 stocks declining on the index. (Provisional)

The top gainers on Nifty were ONGC up by 5.01%, Larsen & Toubro up by 4.15%, Bharat Electronics up by 4.09%, BPCL up by 3.74% and SBI up by 3.48%. On the flip side, JSW Steel down by 2.46%, Tech Mahindra down by 0.85%, Infosys down by 0.66%, Bajaj Auto down by 0.64% and Asian Paints down by 0.51% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 24.54 points or 0.3% to 8,286.62, France’s CAC rose 25.69 points or 0.35% to 7,280.70 and Germany’s DAX gained 73.64 points or 0.38% to 19,396.23.