Post Session: Quick Review

Indian equity benchmarks made a brief rally to close higher on Wednesday driven by a surge in Adani group shares after the conglomerate issued a clarification on the bribery charges by US authorities. After a positive start, indices turned volatile amid weak cues from global markets as traders remained cautious ahead of the release of a key U.S. inflation measure, the Thanksgiving holiday in the U.S. and uncertainty over Trump's tariff plans. Some cautiousness came in with a report that after running surplus liquidity of about Rs 1.4 lakh crore for over two months, the banking system saw a decline in cash, prompting the Reserve Bank of India to inject Rs 6,956 crore on November 25.

However, benchmarks gained the traction in afternoon deals, amid foreign fund inflows. Foreign investors net bought shares worth Rs 1,157.70 crore on November 26. Sentiments were positive, amid reports that India's Goods and Services Tax (GST) collection for November 2024 is expected to surpass Rs 1.87 lakh crore, recorded in October, making it the second-highest monthly collection ever. The anticipated growth in GST revenue is attributed to robust domestic sales during the festive season. Besides, the government is working on an integrated platform for the insolvency ecosystem covering key stakeholders that will also help speed up resolution processes. 

On the global front, European markets were trading mostly in red, as Consumers in Finland showed a more pessimistic attitude in November. The consumer confidence index dropped to -7.4 in November from -6.8 in October. Moreover, the score is well below the long-term average of -2.6. Asian markets ended mixed on Wednesday, after China's industrial profits declined at a slower pace in October. The National Bureau of Statistics reported that industrial profits posted an annual decline of 10 percent on a yearly basis in October. This follows a sharp 27.1 percent decrease in September.

On the sectoral front, telecom stocks remained in focus with a private report that India is projected to have 270 million 5G subscribers by the end of 2024, making up 23 per cent of the country’s mobile subscriptions. This represents a significant rise from the 110-120 million 5G users recorded in 2023. Besides, mines and minerals industry stocks were also in focus, as the Ministry of Mines, Government of India, is all set to launch the first-ever tranche of auction of mineral blocks in the offshore areas of India on November 28, 2024. Offshore area of India includes the territorial waters, continental shelf, exclusive economic zone (EEZ) and other maritime zones of India.

The BSE Sensex ended at 80234.08, up by 230.02 points or 0.29% after trading in a range of 79844.49 and 80511.15. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index surged by 0.34%, while Small cap index was up by 1.18%. (Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 3.11%, Power up by 2.74%, Industrials up by 1.35%, Telecom up by 1.17% and Capital Goods up by 1.13%, while Realty down by 0.40% and Healthcare down by 0.28% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Adani Ports & SEZ up by 6.29%, NTPC up by 2.09%, HDFC Bank up by 1.43%, Bajaj Finance up by 1.28% and Maruti Suzuki up by 1.24%. On the flip side, Titan down by 0.77%, Indusind Bank down by 0.73%, SBI down by 0.61%, Asian Paints down by 0.58% and TCS down by 0.47% were the top losers. (Provisional)

Meanwhile, National Bank for Agriculture and Rural Development (NABARD) Chairman Shaji K V has said that cooperative banks are expected to be digitised by March 2025 with a view to streamline operations and enhance the efficiency of these financial institutions. The Reserve Bank of India (RBI) has mandated all cooperative banks to adopt the Core Banking Solution (CBS) marking a significant step towards modernisation.

He said NABARD is proposing to set up a common shared services entity across the country for all rural cooperatives. Both government and the RBI have agreed in principle for this entity.  He said ‘we jointly with the central government and cooperative banks will set up a separate company for digital adoption’. This entity will also need lot of fintech collaboration and there are a lot of opportunities for fintechs to partner with both regional rural banks (RRBs) and cooperative banks. As smaller entities, most cooperative banks are currently not able to invest in technology.  

Shaji further said fintechs must look to enhance their focus on the cooperatives sector and RRBs, noting that both are engaging with technology in a larger way. He said there will be ample room for fintechs to devise tech solutions' work on the digitised database and platforms in the two areas of cooperatives and RRBs in the coming days. Observing that RRBs are the middle layer of the banking system in the country, he said these banks are engaging in technology in larger way on account of the intervention of the Department of Financial Services (DFS) in the finance ministry. He added that now, consolidation of RRBs is also being agreed in-principle by the finance ministry and this could lead to a situation of 'One State One RRB’.

The CNX Nifty is currently trading at 24274.90, up by 80.40 points or 0.33% after trading in a range of 24145.65 and 24354.55. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Enterprises up by 11.50%, Adani Ports & SEZ up by 6.30%, Bharat Electronics up by 3.17%, Trent up by 2.64% and NTPC up by 2.12%. On the flip side, Apollo Hospital down by 1.33%, Titan down by 1.08%, Wipro down by 1.04%, Shriram Finance down by 0.90% and Indusind Bank down by 0.76% were the top losers. (Provisional)

European markets were trading mostly in red; France’s CAC fell 71.91 points or 1% to 7,122.60 and Germany’s DAX lost 86.11 points or 0.45% to 19,209.87, while UK’s FTSE 100 increased 18.21 points or 0.22% to 8,276.82. 

Asian markets ended mixed on Wednesday amid tariff worries as U.S. President-elect Donald Trump picked another China sceptic, Jamieson Greer, to serve as the United States Trade Representative (USTR) and appointed Kevin A Hassett as the director of the White House National Economic Council, key figures in implanting the new administration's economic agenda. Jamieson played a key role during Trump's first term in imposing tariffs on China and others to combat unfair trade practices and replacing the failed NAFTA deal with USMCA. Hassett played a crucial role in helping design and pass the Tax Cuts and Jobs Act of 2017. Japanese markets retreated as a stronger yen weighed on automotive stocks such as Honda Motor, Toyota and Nissan, which fell 3-5 percent. China's Shanghai Composite index rallied after data showed industrial profit decline eased to 10 percent year-on-year in October from 27.1 percent the previous month.