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EQUITY
Post Session: Quick Review
Nov-14-2024

Indian equity benchmarks ended with minor losses on Thursday amid weekly F&O expiry. Most part of the day, markets traded in red amid rising wholesale inflation. However, during the day indices managed to trade with limited losses. As for broader indices, the BSE Mid cap index and Small cap index ended in green. 

After making cautious start, markets extended their gains. Traders got some support as S&P Global Ratings has said supply capacity in India is continuing to expand pretty quickly which will help contain inflationary pressure. S&P Senior Economist Asia Pacific Vishrut Rana has said the central bank's monetary policy and inflation target remains credible and the Reserve Bank of India (RBI) should be able to anchor inflationary expectations. However, indices failed to hold their gains and turned negative in late morning session as Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,502.58 crore on Wednesday, according to exchange data. 

Markets continued to trade lower in afternoon session as sentiments got hit after Inflation based on wholesale price index (WPI) in India jumped in the month of October 2024 to 2.36% from 1.84% in September 2024, due to increase in prices of food articles, crude petroleum & natural gas and electricity. Adding anxiety among traders, a WTO report said that there has been an increase in the trade restrictive measures introduced by G20 member countries during mid-October 2023 to mid-October 2024. It said that during the review period, G20 economies introduced 91 new trade-restrictive and 141 trade-facilitating measures on goods, both of which mostly dealt with imports. In late afternoon session, markets remained in red as private report stated that India’s trade deficit surged to $27.14 billion in October, up from $20.8 billion in September, as imports grew faster than exports.

On the global front, European markets were trading higher ahead of Eurozone growth data due later in the day. Earnings offered some comfort as bond yields surged amid inflation concerns under Trump's presidency. Asian markets ended mostly in red after some Federal Reserve officials shifted investors’ attention back to inflation risks. European markets were trading mostly in green ahead of Eurozone growth data due later in the day. Back home, ratings agency CareEdge in its latest report has said that with India having limited resources of lithium, cobalt, nickel and other critical minerals, domestic players need to secure long-term supply from countries having sizable reserves and focus on battery reuse and recycling.

The BSE Sensex ended at 77,580.31, down by 110.64 points or 0.14% after trading in a range of 77,424.81 and 78,055.52. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.41%, while Small cap index up by 0.83%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 1.11%, Consumer Disc up by 0.81%, Telecom up by 0.64%, Auto up by 0.60% and Basic Materials was up by 0.33%, while FMCG down by 1.35%, Utilities down by 0.88%, PSU down by 0.71%, Oil & Gas down by 0.48% and Power was down by 0.37% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Kotak Mahindra Bank up by 1.29%, Reliance Industries up by 1.22%, Tech Mahindra up by 0.78%, Mahindra & Mahindra up by 0.73% and Asian Paints up by 0.69%. On the flip side, Hindustan Unilever down by 2.87%, Nestle down by 2.12%, NTPC down by 1.93%, Adani Ports down by 1.82% and Power Grid down by 1.79% were the top losers. (Provisional)

Meanwhile, inflation based on wholesale price index (WPI) in India jumped in the month of October 2024 to 2.36% from 1.84% in September 2024, due to increase in prices of food articles, crude petroleum & natural gas and electricity. 

The Component wise, primary articles index, having weight of 22.62%, surged by 2.35% to 200.3 (provisional) in October,2024 from 195.7 (provisional) for the month of September 2024, on account of rise in prices of food articles and crude petroleum & natural gas in the reported month. However, the prices of minerals and non-food articles declined in October 2024 as compared to September 2024.

Fuel & Power index, having weight of 13.15%, declined by 0.27% to 146.5 (provisional) in October 2024 from 146.9 (provisional) for the month of September 2024, as prices of mineral oils and coal decreased in October 2024 as compared to September 2024. But, price of electricity witnessed surge in October 2024. 

Further, Manufactured Products constituting the major portion of the index with weight of 64.23%, increased by 0.49% to 142.5 (provisional) in October 2024 from 141.8 (provisional) for the month of September 2024. Meanwhile, for the month of August 2024, the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011- 12=100) stood at 154.4 and 1.25% respectively.

The CNX Nifty ended at 23,532.70, down by 26.35 points or 0.11% after trading in a range of 23,484.15 and 23,675.90. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were Eicher Motors up by 6.43%, Hero MotoCorp up by 1.87%, HDFC Life Insurance up by 1.31%, Reliance Industries up by 1.24% and Kotak Mahindra Bank up by 1.19%. On the flip side, Hindustan Unilever down by 3.07%, Tata Consumer down by 2.91%, Britannia down by 2.59%, BPCL down by 2.50% and Nestle down by 2.35% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 4.53 points or 0.06% to 8,034.86, France’s CAC rose 53.19 points or 0.73% to 7,270.02 and Germany’s DAX was up by 196.41 points or 1.02% to 19,199.52. 

Asian markets settled mostly down on Thursday, tracking mixed Wall Street cues overnight after data showed US inflation ticked higher in October 2024 and with expectations that the US Fed may not reduce interest rates as much as previously thought. Japanese shares edged down, despite the yen falling to fresh lows as major technology shares tracked their US peers lower. Chinese and Hong Kong shares declined on worries of a possible Sino-US trade war in the wake of Donald Trump's return to the White House. Market sentiments weakened even after China unveiling tax incentives on home and land transactions to shore up an ailing economy. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,379.84

-59.44

-1.76

Hang Seng

19,435.81

-387.64

-1.99

Jakarta Composite

7,214.56

-94.11

-1.30

KLSE Composite

1,600.68

-10.82

-0.67

Nikkei 225

38,535.70

-185.96

-0.48

Straits Times

3,738.16

17.82

0.48

KOSPI Composite

2,418.86

1.78

0.07

Taiwan Weighted

22,715.38

-144.85

-0.64


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