Post Session: Quick Review

Indian equity markets ended with gains of over half a percent amid value buying by investors during last leg of trade. Most part of the day, markets traded with limited gains with disappointing macroeconomic data. Traders were braced for upcoming RBI rate cut decision, which scheduled to be held on December 06. As for broader indices, the BSE Mid cap index and Small cap index ended with healthy gains.

After making cautious start, markets turned volatile as India's September quarter Gross Domestic Product (GDP) print came in widely lower than market expectations at 5.4 percent, and US President-elect Donalt Trump threatened 100% tariffs on BRICS nations if they act to weaken the dollar's dominance in international trade. Traders were worried after Crisil expects GDP growth to slow to 6.8% this financial year 2024-25. It said the growth is weighed down by high interest rates and low fiscal impulse. Further, markets wavered between gains and losses. Traders overlooked government data showed that the total gross Goods and Services Tax (GST) revenue grew 8.5% to over Rs 1.82 lakh crore in November as compared to Rs 1.68 lakh crore in the same month a year ago. In afternoon session, indices managed to keep their heads above water. Traders found some support after the government data showed that foreign direct investment in India rose by 45% year-on-year to $29.79 billion in April-September this fiscal on healthy inflows in services, computer, telecom and pharma sectors. In late afternoon session, indices touched their day’s high levels. Finally, Nifty and Sensex settled above the psychological 24,250 and 80,200 levels respectively. 

On the global front, European markets were trading mostly in red ahead of manufacturing Purchasing Managers' survey results from Germany and the euro area, due out later in the day. Asian markets ended mostly in green after the release of robust Chinese factory activity data. Back home, India's manufacturing sector growth eased in the month of November, impacted by competitive conditions and prices pressures. Goods producers experienced a weaker, albeit still robust, upturn in new business intakes during the reported month.

The BSE Sensex ended at 80,248.08, up by 445.29 points or 0.56% after trading in a range of 79,308.95 and 80,337.82. There were 21 stocks advancing against 9 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 1.05%, while Small cap index was up by 0.84%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 3.16%, Consumer Durables up by 2.26%, Basic Materials up by 1.59%, Metal up by 1.28% and Healthcare was up by 1.21%, while Utilities down by 0.43%, PSU down by 0.14%, FMCG down by 0.07% and Bankex was down by 0.02% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Ultratech Cement up by 3.93%, JSW Steel up by 2.47%, Adani Ports up by 2.18%, Tech Mahindra up by 1.81% and Titan Company up by 1.73%. On the flip side, NTPC down by 1.55%, Hindustan Unilever down by 0.69%, Kotak Mahindra Bank down by 0.67%, Indusind Bank down by 0.60% and Power Grid down by 0.49% were the top losers. (Provisional)

Meanwhile, Chief Economic Advisor V Anantha Nageswaran has said that India's second quarter GDP growth at 5.4 per cent is disappointing but maintained that overall growth projection for FY25 at 6.5 per cent is ‘not in danger’. The Economic Survey projected India's GDP to grow at 6.5-7 per cent in 2024-25, down from a high of 8.2 per cent in the preceding financial year. He said agriculture and allied sector and construction sector are some of the bright spot, and added that record production estimates for kharif foodgrains as well as promising rabi crop prospects augur well for farm income and rural demand.

On the basis of second quarter number, he said it cannot be said that 6.5 per cent number is in danger as the low second quarter number is not a trend. He exuded confidence that economy shows resilience underpinned by steady demand and strong manufacturing and service sector activity. Talking about other bright spot, he said, labour market shows signs of growth, with an easing unemployment rate and expanding formal workforce, with notable increases in manufacturing jobs and a strong inflow of youth into organised sectors. He also said better growth in labour incomes holds the key to sustained demand growth and capital formation in the private sector, and added that global crude oil prices remaining low, bodes well for economic activity and price stability.

With regard to challenges, Nageswaran said geopolitical conditions remain fragile and may continue to impact domestic inflation, supply chains and capital flows. He said elevated asset prices globally is a risk factor, and added that exports face greater uncertainties due to potential policy development elsewhere and an uncertain outlook for monetary policy and economic growth in advanced economies. He further said limits to states' capacity on capex, capital-intensive growth in private corporate sector and the regulatory environment are medium- to long-term risk factors for economic growth.

The CNX Nifty ended at 24,276.05, up by 144.95 points or 0.60% after trading in a range of 24,008.65 and 24,301.70. There were 33 stocks advancing against 17 stocks declining on the index. (Provisional)

The top gainers on Nifty were Ultratech Cement up by 3.98%, Apollo Hospital up by 3.47%, Grasim Industries up by 3.35%, Shriram Finance up by 2.47% and JSW Steel up by 2.46%. On the flip side, HDFC Life Insurance down by 2.67%, Cipla down by 1.71%, NTPC down by 1.50%, SBI Life down by 1.09% and Britannia down by 0.69% were the top losers. (Provisional)

European markets were trading mostly in red; UK’s FTSE 100 decreased 9.13 points or 0.11% to 8,278.17 and France’s CAC was down by 49.67 points or 0.69% to 7,185.44. On the flip side, Germany’s DAX was up by 15.24 points or 0.08% to 19,641.69.

Asian markets settled mostly higher on Monday tracking a record monthly closing on Wall Street, and after the release of robust Chinese factory activity data. A private survey showed that the manufacturing sector in China expanded at a faster pace in November, with the corresponding PMI rising to 51.5 from 50.3 in October. Japanese shares gained by banks and technology shares, while a weakening yen has also supported sentiments. However, some gains were limited by US-China trade war fears after US President-elect Donald Trump threatened a 100% tariff on the so-called 'BRICS' nations if they replace the US dollar with another currency for international transactions.