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Markets end marginally lower in lacklustre trade
Nov-08-2024

Indian equity benchmarks continued their downward journey for the second consecutive session and ended marginally lower on Friday due to weak trends in blue-chip stocks like Asian Paints, Tata Steel and SBI. After making a slightly positive start, the frontline indices turned volatile as investor sentiment remained subdued, weighed down by persistent foreign institutional investor (FII) selling and underwhelming Q2 results. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,888.77 crore on Thursday, according to exchange data. In late morning deals, key gauges traded in red as traders remained cautious with S&P Global’s report stating that fight for deposits in an eventually declining rate cycle in India will add pressures on the net interest margins (NIM) for banks by 20 basis points. It said banks may see a further margin squeeze if credit and deposit growth remains steady.

A lackluster trade continued in markets during late afternoon session amid a private report stating that a 21% increase in onion prices in just four days to a five-year high of more than Rs 60 per kg in several markets is likely to weigh on inflation data for November. Potato and cooking oil prices are also expected to stay higher this month. Separately, Niti Aayog CEO BVR Subrahmanyam has said that India should be a part of the Regional Comprehensive Economic Partnership (RCEP) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). India pulled out of the RCEP in 2019 after entering negotiations in 2013. The RCEP bloc comprises 10 ASEAN group members (Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam) and their six FTA partners - China, Japan, South Korea, Australia and New Zealand.

On the global front, Asian markets ended mixed on Friday as China's top legislative body - the National People's Congress (NPC) - approved the State Council's proposal to increase local government debt limit by $838 billion after a week-long session. There was some disappointment as the hotly anticipated stimulus was not as broad or immediate as initially presumed. European markets were trading lower after the Bank of England and the U.S. Federal Reserve cut interest rates by a quarter point. 

Back home, on the sectoral front, stocks related to airline sector were in focus as credit rating agency ICRA in its latest report has said that domestic air passenger traffic in India reached 138.5 lakh in October, marking a 6.3% rise compared to 130.3 lakh in the previous month. It stated year-on-year, domestic air passenger traffic grew by 9.6% in October, with figures 12.8% higher than pre-COVID levels of 122.8 lakh in October 2019. Power stocks were buzzing as a private report projected robust growth for India’s power sector, anticipating a compound annual growth rate (CAGR) of over 7 per cent in electricity demand from FY24 to FY27. 

Finally, the BSE Sensex fell 55.47 points or 0.07% to 79,486.32, and the CNX Nifty was down by 51.15 points or 0.21% to 24,148.20.  

The BSE Sensex touched high and low of 79,807.26 and 79,117.37 respectively. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 1.18%, while Small cap index was down by 1.52%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.70%, IT up by 0.54%, TECK up by 0.39%, Auto up by 0.14% and FMCG up by 0.08%, while Realty down by 2.98%, Energy down by 2.10%, Oil & Gas down by 2.08%, PSU down by 1.84% and Utilities down by 1.59% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 3.09%, Titan Company up by 2.13%, Tech Mahindra up by 1.90%, Nestle up by 1.44% and Infosys up by 1.31%. On the flip side, Asian Paints down by 2.61%, Tata Steel down by 2.22%, SBI down by 1.86%, Tata Motors down by 1.72% and Reliance Industries down by 1.66% were the top losers.

Meanwhile, in line with the Prime Minister Narendra Modi’s vision of a Viksit Bharat and a digitally enabled economy, the Ministry of Coal has launched the Mine Opening Permission module on the Single Window Clearance System (SWCS) portal, with an aim to simplify and accelerate the approval process for opening coal mines. SWCS, launched on January 11, 2021, provides a unified platform for obtaining all necessary clearances and approvals required to operationalize coal mines.

By leveraging digital solutions, this newly launched module enhances transparency, improves efficiency, and reduces processing time. This step significantly promotes the ease of doing business, creating a more investment-friendly environment and supporting faster approvals. This new module will drive growth in the coal sector, strengthen India's energy security, and contribute to the nation’s vision of self-reliance and sustainable development.

The Mine Opening Permission module, a key feature, simplifies and accelerates the process of securing permission to start new mines or open new coal seams. By allowing online applications and real-time tracking, the platform eliminates manual paperwork, reduces processing time, and enhances transparency and ensured efficiency. This streamlined approach fosters a more efficient, investment-friendly environment in the coal industry.

The newly launched Mine Opening Permission module reflects the Ministry's commitment to advancing growth and development in the coal sector. With technology and automation, this system enables quicker decision-making, supporting the accelerated opening of coal mines to increase production and bolster India’s energy security.

The CNX Nifty traded in a range of 24,276.15 and 24,066.65. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 2.40%, Titan Company up by 1.99%, Tech Mahindra up by 1.57%, Nestle up by 1.38% and Infosys up by 1.27%. On the flip side, Trent down by 3.50%, Coal India down by 2.72%, Asian Paints down by 2.67%, Tata Steel down by 2.42% and SBI down by 2.15% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 66.26 points or 0.81% to 8,074.48, France’s CAC fell 83.02 points or 1.12% to 7,342.58 and Germany’s DAX lost 190.76 points or 0.99% to 19,171.76.

Asian markets ended mixed on Friday after the Bank of England and the US Federal Reserve cut interest rates by a quarter point, while US Fed Chair Jerome Powell said the central bank will evaluate data to adjust the pace and destination of interest rates as inflation nears the 2% target. Meanwhile, lingering concerns on a second presidential term for Donald Trump also kept sentiments mixed. Japanese shares gained as technology shares followed their US peers higher overnight, despite weak household spending data and stronger yen. On a monthly basis, Japan’s household spending decreased 1.3%, after a strong 2% gain in August and beats market estimate of 0.7%. Chinese and Hong Kong shares declined as investors’ focus shifted to stimulus announcements from China later in the day as the meeting in the Standing Committee of the National People's Congress ends.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,452.30

-18.36

-0.53

Hang Seng

20,728.19

-225.15

-1.09

Jakarta Composite

7,287.19

43.33

0.59

KLSE Composite

1,621.24

-2.04

-0.13

Nikkei 225

39,500.37

118.96

0.30

Straits Times

3,724.37

50.88

1.37

KOSPI Composite

2,561.15

-3.48

-0.14

Taiwan Weighted

23,553.89

145.07

0.62
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