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Post Session: Quick Review
Sep-18-2024

Indian equity markets failed to hold gains and concluded in red on Wednesday ahead of the US Federal Reserve's FOMC decision. Besides, negative exports data dampened investors sentiments. Sector wise, IT stocks witnessed profit booking during the day. The broader indices, the BSE Mid cap index and Small cap index ended in red. 

Markets made negative start as traders were cautious with data released by Commerce & Industry Ministry showing that India's trade deficit widened to a 10-month high of nearly $30 billion in August as gold-led merchandise imports surged to over $64 billion and merchandise exports declined. Exports contracted for the second month in a row to $34.7 billion due to softening of oil prices and muted global demand. Further, in late morning session, indices recouped from initial weakness. Traders took support with a private report that the Centre’s direct tax collection collections, net of refunds, rose about 16% on year to Rs 9.92 lakh crore till September 15, 2024 in the current financial year. The direct tax receipts till September 15 were 45% of the FY25 target of Rs 22.07 lakh crore, broadly in line with annual trends. Meanwhile, Crisil Ratings said that the recent developments in Bangladesh did not have a significant impact on India's trade and it does not foresee any near-term impact on the credit quality of India Inc. However, markets lost ground in late afternoon session and touched day’s low point amid some profit booking. 

On the global front, European markets were trading lower amid Fed is widely expected to announce its first interest rate cut in over four years. Market expectations currently point to a smaller cut following better-than-expected retail sales data released overnight. Asian markets ended mostly in red as Japan's core machinery orders declined unexpectedly in July. The data from Cabinet Office showed that core machinery orders that exclude volatile orders for ships and electric utilities, fell 0.1 percent on a monthly basis, confounding expectations for an increase of 0.4 percent. Back home, the commerce ministry has taken a host of steps during the 100 days of the Modi 3.0 government for MSME exporters who are facing global challenges due to geo-political tensions.

The BSE Sensex ended at 82,948.23, down by 131.43 points or 0.16% after trading in a range of 82,700.63 and 83,326.38. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.71%, while Small cap index was down by 0.52%. (Provisional)

The only gaining sectoral indices on the BSE were Bankex was up by 0.95%, while IT down by 3.00%, TECK down by 2.43%, Healthcare down by 1.23%, Oil & Gas down by 1.12% and Energy was down by 0.90% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finance up by 3.65%, Bajaj Finserv up by 2.11%, Nestle up by 1.61%, ICICI Bank up by 1.55% and HDFC Bank up by 1.54%. On the flip side, TCS down by 3.49%, Infosys down by 3.09%, Tech Mahindra down by 2.94%, HCL Tech down by 2.77% and Sun Pharma down by 1.79% were the top losers. (Provisional)

Meanwhile, the commerce ministry in its latest data has showed that India's merchandise export dipped 9.32 per cent to $34.71 billion in August 2024 from $38.28 billion in the year-ago month, due to global economic uncertainties. However, imports increased by 3.3 per cent to $64.36 billion in August as compared to $62.3 billion a year ago, due to a significant jump in the inbound shipments of gold and silver.  The trade deficit, or the gap between imports and exports, widened to $29.65 billion in August from $24.2 billion in the same month last year.

According to the data, merchandise exports during April-August 2024 were $178.68 billion as compared to $176.67 billion during April-August 2023. Merchandise imports during April-August 2024 were $295.32 billion compared to $275.83 billion during April-August 2023. Merchandise trade deficit during April-August 2024 was $116.64 billion compared to $99.16 billion during April-August 2023.

It further stated that non-petroleum and non-gems & jewellery exports in August 2024 were $26.76 billion compared to $26.14 billion in August 2023. Non-petroleum and non-gems & jewellery exports in April-August 2024 were $135.75 billion, compared to $128.95 billion in April-August 2023. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in August 2024 were $40.65 billion compared to $38.88 billion in August 2023. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in April-August 2024 were $186.25 billion, compared to $177.13 billion in April-August 2023. 

The CNX Nifty ended at 25,377.55, down by 41.00 points or 0.16% after trading in a range of 25,285.55 and 25,482.20. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were Shriram Finance up by 4.38%, Bajaj Finance up by 3.61%, Bajaj Finserv up by 2.14%, Nestle up by 1.97% and ICICI Bank up by 1.60%. On the flip side, TCS down by 3.54%, HCL Tech down by 3.16%, Infosys down by 3.09%, Tech Mahindra down by 2.79% and Wipro down by 2.49% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 49.67 points or 0.6% to 8,260.19, France’s CAC fell 20.6 points or 0.28% to 7,466.82 and Germany’s DAX was down by 7.92 points or 0.04% to 18,718.16.

Asian markets ended mostly down on Wednesday tracking mixed cues from Wall Street overnight with caution ahead of the US Federal Reserve's first interest-rate cut in more than four years. While, uncertainty over the size of interest rate cut also added pressure on market sentiments after data showed US retail sales unexpectedly ticked up in August and production at factories bounced back. However, Chinese shares gained on hopes of stimulus measures as trading resumed after a holiday break. Japanese shares advanced, even as Japan posted a trade deficit for a second straight month in August as growth in both imports and exports missed expectations. A weaker yen lifted sentiment. Hong Kong and South Korean markets were closed for Mid-Autumn Festival and Chuseok-Thanksgiving Day respectively.

 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

2,717.28

13.19

0.49

Hang Seng

--

--

--

Jakarta Composite

7,829.14

-2.64

-0.03

KLSE Composite

1,660.59

-3.69

-0.22

Nikkei 225

36,380.17

176.95

0.49

Straits Times

3,592.42

-1.00

-0.03

KOSPI Composite

--

--

--

Taiwan Weighted

21,678.84

-171.24

-0.79
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