Indian markets witness another muted session on Wednesday

Indian equity markets witnessed another muted trading session on Wednesday as traders awaited inflation data from the US later in the day and from India a day later. Persisting geopolitical tension due to escalating violence in Syria also weighed on market sentiment. After a positive start, markets faced volatility during the whole day, as Union finance minister Nirmala Sitharaman said that inflation is a big challenge for the world and the major reason for that is ‘disruption’. Adding some anxiety, the Asian Development Bank (ADB) lowered India's economic growth forecast to 6.5 per cent for the current financial year from its earlier estimate of 7 per cent due to lower-than-expected growth in private investment and housing demand.

However, markets managed to keep their heads above water for the most part of the trading session, as the rating agency S&P Global Ratings in its latest India Outlook has said that the Indian economy is set for resilient growth in 2025 on the back of strong urban consumption, steady services sector growth, and ongoing investment in infrastructure. The global ratings agency kept the FY25 gross domestic product (GDP) growth outlook unchanged at 6.8 per cent amid slower fiscal impulse tempering urban demand. Market participants got some support as foreign institutional investors (FIIs) bought equities worth Rs 1,285.96 crore on December 10.

On the global front, European markets were trading higher, even as Hungary's consumer price inflation increased further in November to the highest level in four months. Consumer prices climbed 3.7 percent year-on-year in November, faster than the 3.2 percent rise in October. Asian markets settled mixed on Wednesday, as producer prices in Japan were up 3.7 percent on year in November. That exceeded expectations for an increase of 3.4 percent and was up from the upwardly revised 3.6 percent gain in October (originally 3.4 percent). On a monthly basis, producer prices were up 0.3 percent - unchanged from the October reading following an upward revision from 0.2 percent and exceeding expectations for 0.2 percent.

Back home, solar industry stocks remained in watch, as Ministry of New and Renewable Energy has unveiled a significant amendment to the Approved Models and Manufacturers of Solar Photovoltaic Modules (ALMM) Order, 2019 which will have far-reaching implications for India’s solar power sector and its clean energy transition. This amendment introduces the long-awaited List-II for solar PV cells under the ALMM framework. Besides, auto stocks remained in focus after Union Minister Nitin Gadkari exuded confidence that India's automobile industry will rise to the number one position globally in the next five years and outlined his ministry's ambitious target to also reduce the logistics costs in India to 9 per cent over two years.

Finally, the BSE Sensex rose 16.09 points or 0.02% to 81,526.14, and the CNX Nifty was up by 31.75 points or 0.13% to 24,641.80.        

The BSE Sensex touched high and low of 81,742.37 and 81,383.42 respectively. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose by 0.25%, while Small cap index was up by 0.35%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.59%, Industrials up by 0.40%, Auto up by 0.37%, TECK up by 0.35% and IT up by 0.35%, while Utilities down by 0.35%, Power down by 0.34%, Bankex down by 0.31% and PSU down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.61%, Nestle up by 1.23%, Bajaj Finserv up by 1.20%, Asian Paints up by 1.17% and Ultratech Cement up by 1.04%. On the flip side, JSW Steel down by 1.30%, Adani Ports & SEZ down by 1.25%, NTPC down by 0.88%, SBI down by 0.70% and Reliance Industries down by 0.53% were the top losers.

Meanwhile, Minister of State for Finance Pankaj Chaudhary has said that the gross non-performing assets (NPAs) of public sector banks (PSBs) stood at Rs 3.16 lakh crore as of September 30. He said that as per provisional data of the Reserve Bank of India (RBI), gross NPAs of PSBs and private sector banks as on September 30, 2024 were Rs 3,16,331 crore and Rs 1,34,339 crore, respectively. Gross NPAs as percentage of outstanding loan was 3.09 per cent in public sector banks and 1.86 per cent in private sector banks.

Further, he said as of March 31, 2024, 580 unique borrowers (excluding individuals and overseas borrowers), each having loan outstanding of more than Rs 50 crore, were classified as wilful defaulters by Scheduled Commercial Banks.

Talking about the number of cases resolved and amount of haircuts by banks through the operation of Insolvency and Bankruptcy Code, he said as per data, up to September 30, 2024, resolution plans have been approved in 1,068 corporate insolvency resolution processes. These resolutions led to a recovery of Rs 3.55 lakh crore to the creditors, including banks. Further, in these cases, aggregate claim of creditors, including banks was Rs 11.45 lakh crore, whereas the aggregate liquidation value was Rs 2.21 lakh crore.

The CNX Nifty traded in a range of 24,583.85 and 24,691.75. There were 26 stocks advancing against 23 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Trent up by 2.69%, Bajaj Finance up by 2.58%, Britannia up by 2.14%, Shriram Finance up by 1.94% and Bajaj Finserv up by 1.39%. On the flip side, JSW Steel down by 1.26%, Adani Ports & SEZ down by 1.20%, NTPC down by 0.99%, SBI down by 0.68% and Axis Bank down by 0.55% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 1.29 points or 0.02% to 8,281.65, France’s CAC rose 3.5 points or 0.05% to 7,398.28 and Germany’s DAX gained 3.43 points or 0.02% to 20,332.59.

Asian markets settled mixed on Wednesday ahead of key US CPI data due later in the day that could influence the Federal Reserve's interest rate decision next week, while investors also awaiting China's two-day Central Economic Work Conference that is expected to map out policies for next year. Seoul shares rose after data showed South Korea added more than 120,000 jobs in November, a slight uptick from the previous month. Chinese shares gained in anticipation of more government cues on stimulus measures, while President Xi Jinping said that China is fully confident in achieving its economic growth target this year. Meanwhile, Japanese shares ended flat with uncertainty over how soon the Bank of Japan could raise interest rates, while the Japanese yen recovered from a recent slump after data showed inflation in Japan's corporate goods prices accelerated to the fastest pace in 16 months.