HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Post Session: Quick Review
May-25-2022

Indian equity benchmarks ended lower on Wednesday. The start of the day was on a positive note, as sentiments got boost with a report stating that the country's exports rose by 21.1 percent to $23.7 billion during May 1-21, on account of healthy growth in various sectors, such as petroleum products, engineering, and electronic goods. Some support also came after Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal said that India has taken a series of strict measures to tame inflation, keep interest rates in check and rein-in rupee depreciation so that growth and prosperity are not affected.

But soon, key indices cut gains to trade near their neutral lines as Former World Bank chief economist Kaushik Basu said that even though the fundamentals of the Indian economy are strong, the rise in divisiveness and polarisation in the country is damaging the foundations of the nation’s growth. Some pessimism also came in with report that India was ranked at the 54th place in a global travel and tourism development index, down from 46th in 2019, but still remained on the top within South Asia.

In late morning deals, markets turned negative and remained lower till the end as export of engineering goods to CIS countries including Russia and Ukraine fell the most year-on-year during April 2022, while that to North America registered the highest growth during this period, according to an EEPC India analysis. Besides, as global challenges push inflation in India and elsewhere higher, top union ministers said the India growth story in the long-run remains strong but necessary safeguards are being put in place to tackle the short-term issues and the government is open to taking further measures as well if required.

On the global front, European markets were trading higher as global markets tried to bounce back from a widespread retreat in the previous trading session. Asian markets ended mostly higher, after the Ministry of Trade and Industry said Singapore's gross domestic product was up an annualized 3.7 percent in the first quarter of 2022. That matched expectations and was down from 6.1 percent in the previous three months. On a seasonally adjusted quarterly basis, GDP was up 0.7 percent - shy of expectations for a gain of 0.8 percent and slowing from 2.3 percent in the three months prior.

The BSE Sensex ended at 53749.26, down by 303.35 points or 0.56% after trading in a range of 53683.16 and 54379.59. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 1.93%, while Small cap index down by 2.94%. (Provisional)

The only gaining sectoral index on the BSE was Bankex up by 0.21%, while IT down by 3.19%, Realty down by 3.02%, Industrials down by 2.66%, Consumer discretionary down by 2.47% and Capital Goods down by 2.44% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 3.84%, Kotak Mahindra Bank up by 1.42%, Bharti Airtel up by 1.41%, HDFC up by 1.35% and Nestle up by 1.02%. On the flip side, Asian Paints down by 8.04%, TCS down by 3.69%, Tech Mahindra down by 3.53%, Wipro down by 3.30% and Larsen & Toubro down by 3.09% were the top losers. (Provisional)

Meanwhile, urging industry to bring scale into all economic activities, Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal has said that India has taken a series of strict measures to tame inflation, keep interest rates in check and rein-in rupee depreciation so that growth and prosperity are not affected.

Expressing concern over the excessive dependence on international supply chains, Goyal urged businesses to procure locally wherever there is an opportunity. He asked businesses to support each other and help fortify domestic supply chains. The Minister said that the National Master Plan would help improve infrastructure planning and ensure implementation of projects within time and budget, stressing upon government’s bid to bring down logistics cost through measures such as PM GatiShakti.

Further, the Minister remarked that the government was on a mission to rewrite the script of a New India that is ready to play the leading role in global trade and asked investors to come invest in India, in its ideas, talent and limitless potential. The Minister also said that India is the future.

The CNX Nifty ended at 16025.80, down by 99.35 points or 0.62% after trading in a range of 16006.95 and 16223.35. There were 19 stocks advancing against 31 stocks declining on the index. (Provisional)

The top gainers on Nifty were NTPC up by 3.91%, HDFC Life Insurance up by 2.93%, SBI Life insurance up by 2.11%, Bharti Airtel up by 1.47% and HDFC up by 1.39%. On the flip side, Asian Paints down by 8.06%, Adani Ports & SEZ down by 5.88%, Divi's Lab down by 3.89%, TCS down by 3.66% and UPL down by 3.60% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 34.62 points or 0.46% to 7,518.97, France’s CAC increased 15.90 points or 0.25% to 6,269.04 and Germany’s DAX was up by 41.95 points or 0.3% to 13,961.70.

Asian markets ended mostly higher on Wednesday even as the investors were cautiously awaiting for further cues ahead of the US Fed's minutes from its latest monetary policy meeting. US President Jeo Biden's remarks that he might drop trade tariffs on China supported market sentiments. Chinese shares gained with expectations that growth would likely strengthen in the second half of 2022 in response to the stimulus measures that China has introduced into the economy. While, Shanghai authorities plan to keep most restrictions in place this month, before a more complete lifting of the two-month-old lockdown from June 1. China's central bank and banking regulator urged lenders to boost loans in the latest effort to shore up Covid-battered economy. However, Japanese shares settled slightly down tracking declines on Wall Street overnight.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,107.4636.531.19

Hang Seng

20,171.2759.170.29

Jakarta Composite

6,883.50-30.64-0.44

KLSE Composite

1,535.564.260.28

Nikkei 225

26,677.80-70.34-0.26

Straits Times

3,187.39-7.65-0.24

KOSPI Composite

2,617.2211.350.44

Taiwan Weighted

16,104.03140.400.88
  RELATED NEWS >>
Most Viewed >>
April 22 , 2024
Invest lumpsum through systematic transfer pla
April 22 , 2024
FPIs mount bearish bets as risk aversion grows
April 22 , 2024
FPIs withdraw over Rs 5,200 crore in April so
April 23 , 2024
Sensex climbs 560 points, Nifty closes above 2
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.