Post Session: Quick Review

Indian equity markets regained upward momentum on Friday, with both Sensex and Nifty ending higher by around a percent. In early deals, indices trade cautiously, following the lack of cues from Wall Street, as traders reacted to a slew of economic data from Japan and manufacturing data from South Korea. The developments in the Middle East were also hurting market sentiment. Investors were eyeing India’s GDP numbers of the country to be out later in the day for more directional cues. As per a private report, India's economy is expected to have slowed in the July-September quarter, growing at the slowest pace in 18 months, weighed down by weak urban consumption following a rise in food prices despite an increase in government spending. Some worries came as the exchange data showed Foreign Institutional Investors (FIIs) offloaded Rs 11,756.25 crore in the capital markets on net basis on Thursday. 

However, markets rallied during the late morning session and maintained their strong gains till the end. Traders took support with Commerce and Industry Minister Piyush Goyal’s statement that President-elect Donald Trump is a ‘friend of India’ and India-US friendship will only continue to blossom and grow further. Sentiments remained optimistic, amid a private report stating that revenue collections of states, as percentage of their gross domestic product, are budgeted to beat the pre-Covid level in 2024-25 on the back of projected improvement in their own revenue streams as well as central transfers. Adding more relief, the Ministry of Petroleum & Natural Gas in its latest notification has said that government has been taking various steps to ensure fair and reasonable prices for consumers. 

On the global front, European markets were trading lower, after Germany's retail sales declined more than expected in October on falling non-food retail trade. The data released by Destatis showed that retail sales decreased by real 1.5 percent month-on-month in October, sharper-than-expected fall of 0.5 percent. Sales in food stores edged up 0.1 percent on month, while non-food sales fell 2.2 percent in October. Asian markets settled mostly down on Friday, as Japan's industrial production and retail sales registered weaker-than-expected growth in November and core inflation in the capital (Tokyo) came in above the 2 percent target, boosting expectations for an interest rate hike in the near-term.

On the sectoral front, metal stocks remained in limelight as Crisil Ratings has said that the drop in the prices of steel will impact the operating profitability of primary steel producers in the domestic market. Early-stage steel produced from iron ore is referred as primary steel. It stated despite an increase in sales volume and lower cost pressures, mainly due to reduced coking coal prices, the operating profit margin will remain at 15-16 percent in the current financial year. Besides, battery sector stocks were in watch, as NITI Aayog member V K Saraswat has said that India must establish nationally accredited testing facilities for battery energy storage systems to support its ambitious clean energy transition goal.

The BSE Sensex ended at 79802.79, up by 759.05 points or 0.96% after trading in a range of 79026.18 and 79923.90. There were 27 stocks advancing against 3 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose by 0.31%, while Small cap index was up by 0.76%. (Provisional)

The top gaining sectoral indices on the BSE were Healthcare up by 2.05%, Telecom up by 1.53%, Utilities up by 1.46%, Energy up by 1.09% and Basic Materials up by 1.04%, while Realty down by 0.58% was the only losing index on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 4.30%, Sun Pharma up by 2.68%, Mahindra & Mahindra up by 2.38%, Adani Ports & SEZ up by 1.94% and Ultratech Cement up by 1.78%. On the flip side, Power Grid down by 1.23%, Nestle down by 0.07% and SBI down by 0.05% were the only losers. (Provisional)

Meanwhile, Union Agriculture Minister Shivraj Singh Chouhan has said that there should be strict action against those selling spurious seeds, fertilisers and pesticides to protect farmers' interests. He said farmers of the country should be ensured to get good quality fertilisers, seeds and pesticides under all circumstances. He pointed out that farmers often complain about receiving poor-quality inputs, resulting in significant losses. He stressed that as a responsible public representative, it is imperative to address these concerns. 

The minister said in many states prosecution action is not effective against such guilty people and they are left free. He said he will soon talk to the state governments about this so that effective action is taken continuously at the state level. If anyone is found guilty, they should be punished severely so that such heinous acts can stop. He wanted the strictest action in this regard to protect the interest of common farmers of the country.

In view of the upcoming crop season, he said farmers should get relief in this regard. He said he will soon discuss with the chief ministers and ministers of the states because mainly effective measures are taken at the state level only. In the case of substandard fertilisers, seeds and pesticides, strict action should be taken against big sellers and manufacturers and existing laws, rules and procedures should be used effectively. He also added that all concerned departments should jointly run a campaign to ensure good quality of pesticides and fertilisers.

The CNX Nifty is currently trading at 24131.10, up by 216.95 points or 0.91% after trading in a range of 23927.15 and 24188.45. There were 44 stocks advancing against 6 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bharti Airtel up by 4.28%, Cipla up by 2.76%, Sun Pharma up by 2.69%, Mahindra & Mahindra up by 2.33% and Adani Ports & SEZ up by 1.92%. On the flip side, Power Grid down by 1.27%, Shriram Finance down by 0.79%, Hero MotoCorp down by 0.46%, Apollo Hospital down by 0.18% and Nestle down by 0.07% were the top losers. (Provisional)

European markets were trading mostly in red; UK’s FTSE 100 decreased 6.71 points or 0.08% to 8,274.51 and Germany’s DAX lost 6.26 points or 0.03% to 19,419.47, while France’s CAC rose 7.91 points or 0.11% to 7,187.16.

Asian markets settled mostly down on Friday as investors are awaiting key US data next week, including job openings, the ADP employment report and the employment report for further insights into the Federal Reserve's monetary policy direction. Japanese markets declined and the yen strengthened as data showed that core inflation in the capital region came in above the 2 percent target boosted expectations for an interest rate hike in the near-term. Seoul shares fell as the local central bank's interest rate cut raised economic slowdown worries, while an increasingly tense geopolitical environment on the Korean Peninsula also kept investors cautious. However, Chinese shares logged strong gains with speculation that China will provide more support for the economy at a key policy meeting next month. China is set to prolong tariff exemptions for specific US imports until February 28, 2025, signifying a potential easing in trade barriers amid US trade tensions.