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EQUITY
Post Session: Quick Review
Oct-18-2024

The local equity markets were finally able to break declining trend on Friday with Sensex and Nifty settling above the crucial 81,200 and 24,850 levels, respectively, as traders preferred to buy stocks at lowest levels. Initially, markets traded muted, but as the day progressed the markets added gains. As for broader indices, the BSE Mid cap index ended in green, while Small cap index ended in red. 

Markets made negative start and remained lower due to muted global cues as Middle East tensions persisted, and investors trimmed their bets on Federal Reserve interest-rate cuts this year. Some concern also came as exchange data showed Foreign Institutional Investors (FIIs) offloaded equities worth Rs 7,421.40 crore on Thursday. Traders overlooked World Bank president Ajay Banga’s statement that India's growth rate is the shiniest part in the global economy. He noted that a lot of this is driven by the domestic market. However, in late morning session, indices managed to wipe out all losses to trade higher, as some support came with report that direct tax collections have surged 182 per cent to over Rs 19.60 lakh crore in 2023-24 in the 10-year period of Prime Minister Narendra Modi-led government. The latest ‘Time Series Data’ released by the income tax department showed that the corporate tax collections more than doubled to over Rs 9.11 lakh crore in 10 years to 2023-24 fiscal. Personal income tax mop up grew close to four-fold to Rs 10.45 lakh crore during the period. In afternoon session, markets continued to trade in green tracing some positive cues from European markets. Finally, markets concluded the last trading day of week in green. 

On the global front, European markets were trading mostly in green after an ECB survey showed headline inflation in the euro zone will return to the central bank's 2 percent target sooner than earlier thought. The survey is an important input in the ECB's policy deliberations. Asian markets ended mostly in green as a slew of Chinese data backed calls for more stimulus. Back home, Union Minister of State for Science and Technology (Independent Charge) Jitendra Singh has said that India will be transformed into a science and technology driven global biomanufacturing hub. 

The BSE Sensex ended at 81,224.75, up by 218.14 points or 0.27% after trading in a range of 80,409.25 and 81,391.15. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index gained 0.21%, while Small cap index was down by 0.16%. (Provisional)

The top gaining sectoral indices on the BSE were Bankex up by 1.84%, Metal up by 1.65%, Basic Materials up by 1.02%, Utilities up by 0.91% and PSU was up by 0.74%, while IT down by 1.73%, TECK down by 1.37%, FMCG down by 0.46%, Oil & Gas down by 0.13% and Consumer Discretionary was down by 0.10% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Axis Bank up by 5.57%, ICICI Bank up by 2.49%, Tata Motors up by 2.06%, Tata Steel up by 1.94% and NTPC up by 1.90%. On the flip side, Infosys down by 4.60%, Asian Paints down by 2.20%, Nestle down by 1.20%, Hindustan Unilever down by 0.78% and HCL Tech. down by 0.71% were the top losers. (Provisional)

Meanwhile, S&P Global Ratings has said that India is poised to be the fastest-growing major economy over the next three years and the third largest global economy by 2030 but rising population presents mounting challenges in basic service coverage and growing investment needs to maintain productivity. It said emerging economies have high ambitions for the next decade and beyond with India aiming to become a $30 trillion economy by 2047, from the current $3.6 trillion. India is currently the fifth largest economy.

In its report titled ‘Look forward Emerging Markets: A decisive decade’, S&P said ‘the country’s 2024 entry into JP Morgan’s Government Emerging Market Bond Index could provide additional government funding and unlock significant resources in domestic capital markets. This is only a first step - investors will continue looking for improved market access and settlement procedures’. It added emerging markets will play a crucial role in shaping the global economy over the next decade, averaging 4.06 per cent GDP growth through 2035, compared to 1.59 per cent for advanced economies. By 2035, emerging markets will contribute about 65 per cent of global economic growth. This growth will be driven mainly by emerging economies in Asia-Pacific, including China, India, Vietnam and the Philippines.

It further said ‘Also by 2035, India will be cemented as the world’s third-largest economy, with Indonesia and Brazil ranking eighth and ninth, respectively’. It said India has also taken measures to improve its weak fiscal flexibility by boosting its capital expenditure, further supporting long-term growth. But population challenges are meaningful, with the country expected to have the world’s largest population by 2035. This presents mounting challenges in basic service coverage and growing investment needs to maintain productivity. Stating that India is positioned to grow its economy in the next decade, the agency said as the next decade approaches, the economic trajectory of emerging markets will likely be heavily influenced by their governments’ design and execution of long-term growth strategies.

The CNX Nifty ended at 24,854.05, up by 104.20 points or 0.42% after trading in a range of 24,567.65 and 24,886.20. There were 32 stocks advancing against 18 stocks declining on the index. (Provisional)

The top gainers on Nifty were Axis Bank up by 5.74%, Wipro up by 3.76%, Eicher Motors up by 3.07%, ICICI Bank up by 2.70% and Shriram Finance up by 2.64%. On the flip side, Infosys down by 4.50%, Asian Paints down by 2.08%, Britannia down by 1.69%, Nestle down by 1.20% and Hindustan Unilever down by 0.79% were the top losers. (Provisional)

European markets were trading mostly in green; France’s CAC rose 45 points or 0.59% to 7,628.73 and Germany’s DAX was up by 39.88 points or 0.2% to 19,623.27. On the flip side, UK’s FTSE 100 was down by 22.32 points or 0.27% to 8,362.81.

Asian markets settled mostly higher on Friday with Chinese and Hong Kong shares led gains after the world’s second-largest economy posted better-than-expected economic growth. Market sentiments improved further after the PBoC released plans for supporting the stock market through share repurchases by companies and major shareholders, while the PBoC also officially launched a swap facility for securities, funds and insurance companies. Japanese shares rose, supported by the yen's weakness at around 150 to the US dollar. The BoJ must focus on the economic impact of unstable markets and risks from overseas, Governor Kazuo Ueda said, suggesting the Japanese central bank was in no rush to raise interest rates further.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,261.56

92.18

2.83

Hang Seng

20,804.11

725.01

3.48

Jakarta Composite

7,760.06

25.02

0.32

KLSE Composite

1,645.99

4.55

0.28

Nikkei 225

38,981.75

70.56

0.18

Straits Times

3,640.19

14.94

0.41

KOSPI Composite

2,593.82

-15.48

-0.60

Taiwan Weighted

23,487.27

433.43

1.85
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