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Key gauges settle in green for 2nd consecutive session
Nov-06-2024

Indian equity benchmarks continued their upward rally for the second consecutive session and ended with gains of over a percent on Wednesday amid positive global cues as Republican Donald Trump claimed victory in the US presidential election. All sectors contributed to the rally, with IT, TECK and Oil & Gas emerging as the top gainers. Markets made a positive start and gradually climbed as the day progressed as traders took encouragement with Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri stating that oil prices in India are expected to remain stable amid the rising geopolitical tensions as the country has several options to buy crude oil. Addressing concerns over potential supply chain disruptions, Puri emphasized that India has strategically positioned itself to manage such situations effectively, with access to a diverse range of crude oil suppliers.

Markets extended gains in second half of trading session and ended near day’s high levels as sentiments got boost with data showing that India’s services sector activity gained traction in the month of October, aided by healthy customer demand domestically and from abroad. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index rose to 58.5 in October from 57.7 in September. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 59.1 in October as against 58.3 in September. Traders took a note of report that total production of main kharif crops-rice, pulses and maize-in the 2024-25 crop season is expected to surpass last year mainly because of good monsoons and gains from a larger area under cultivation. While kharif rice output is expected to increase nearly 6% to 119.93 million tonnes from 113.25 million tonnes last year, tur production is expected to rise about 3% to 3.5 million tonnes from 3.4 million tonnes. 

On the global front, European markets were trading higher as investors cheered the results of a survey that showed Eurozone business activity held steady last month, a small improvement from September's modest decline. A separate report revealed Germany's factory orders rebounded in September on strong growth in aircraft and other transport equipment orders. Asian markets ended mixed on Wednesday as U.S. Republican candidate Donald Trump won two crucial swing states, North Carolina and Georgia, and tightened his hold on key battlegrounds in the race for the White House. 

Back home, tax officers have detected about 18,000 fake companies registered under GST which have been involved in tax evasion of about Rs 25,000 crore. In the recently concluded all-India drive against fake companies, GST officers had identified 73,000 companies which they suspected of being set up only to avail of input tax credit (ITC) without any actual sale of goods and thereby defraud the exchequer. Tax officers had identified around 73,000 GSTINs for verification in the second all-India drive against fake registrations. Of this, around 18,000 were found to be non-existent. They were involved in tax evasion of about Rs 24,550 crore. Voluntary GST payments of about Rs 70 crore were made by companies during the special drive.

Finally, the BSE Sensex rose 901.50 points or 1.13% to 80,378.13, and the CNX Nifty was up by 270.75 points or 1.12% to 24,484.05. 

The BSE Sensex touched high and low of 80,569.73 and 79,459.12 respectively. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 2.28%, while Small cap index was up by 1.96%.

The top gaining sectoral indices on the BSE were IT up by 4.04%, TECK up by 3.37%, Oil & Gas up by 2.81%, Realty up by 2.68% and Capital Goods up by 2.68%, while there were no losing sectoral indices on the BSE. 

The top gainers on the Sensex were TCS up by 4.21%, Infosys up by 4.06%, Tech Mahindra up by 3.85%, HCL Technologies up by 3.71% and Adani Ports & SEZ up by 3.21%. On the flip side, Titan Company down by 1.72%, Indusind Bank down by 1.14%, Hindustan Unilever down by 0.79%, Axis Bank down by 0.35% and HDFC Bank down by 0.22% were the top losers.

Meanwhile, concerned over the growing instances of cyber frauds, the finance ministry has asked public sector banks (PSBs) to align their digital and cybersecurity frameworks with industry best practices and ensure customer protection and operational continuity as top priorities. During a review meeting chaired by the Department of Financial Services (DFS) Secretary M Nagaraju, discussions were held on enhancing the robustness of PSBs, building on recent financial achievements, and addressing strategic challenges with key focus on financial performance indicators, assets and liabilities management, cyber resilience, and digital payments infrastructure. The secretary exhorted the PSBs to accelerate the pace of lending to agriculture and MSMEs as well as deepen financial inclusion. 

The finance ministry said PSBs were asked to continue strengthening their financial and operational frameworks, particularly in light of the evolving market dynamics and cyber security needs. During the meeting, the importance of enhancing the current account savings account (CASA) deposits was underlined, reinforcing the need for PSBs to mobilise CASA deposits so as to further accelerate the pace of sustainable credit growth.

It said PSBs were advised to align their digital and cybersecurity frameworks with best practices, ensuring that customer protection and operational continuity remain top priorities. Specific emphasis was placed on reinforcing credit support to MSMEs and streamlining customer onboarding processes through digital innovations. 

The CNX Nifty traded in a range of 24,537.60 and 24,204.05. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Bharat Electronics up by 5.33%, Adani Enterprises up by 4.48%, TCS up by 4.32%, Wipro up by 3.92% and HCL Technologies up by 3.92%. On the flip side, SBI Life Insurance down by 1.60%, Titan Company down by 1.45%, HDFC Life Insurance down by 1.11%, Indusind Bank down by 0.91% and Trent down by 0.55% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 98.07 points or 1.2% to 8,270.46, France’s CAC rose 108.15 points or 1.46% to 7,515.30 and Germany’s DAX gained 181.39 points or 0.94% to 19,437.66.

Asian markets ended mixed on Wednesday on bets that US Republican candidate Donald Trump would win the US presidential election. Japanese shares gained by tracking Wall Street’s rally overnight after data showed the US services sector accelerated to a more than two-year high in October. Meanwhile, a weaker yen boosted export-related shares as Trump is leading Kamala Harris in the US election. Meanwhile, Chinese and Hong Kong shares declined on concerns that Trump's tariff plans could reignite US-China trade tensions. But the meeting of the National People's Congress Standing Committee in China is widely expected to approve additional stimulus measures.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,383.81

-3.18

-0.09

Hang Seng

20,538.38

-468.59

-2.28

Jakarta Composite

7,383.87

-108.06

-1.46

KLSE Composite

1,634.17

13.47

0.83

Nikkei 225

39,480.67

1,005.77

2.55

Straits Times

3,602.99

21.38

0.59

KOSPI Composite

2,563.51

-13.37

-0.52

Taiwan Weighted

23,217.38

110.59

0.48
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