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EQUITY
Post Session: Quick Review
Feb-06-2023

Backed by negative global cues, Indian equity benchmarks went downhill into the negative terrain during Monday’s session. Indices showed dismal performance from early morning, as traders booked their profits after gains in previous session. Intense selling pressure in stocks belonging from Metal and IT counters mainly pressurized the sentiment at D-street. Adani Group's governance and disclosures also kept investors nervous. The trade at Dalal Street mainly mirrored the gloominess spread across the globe after US markets closed in red on Friday amid concerns about the outlook for interest rates following the release of much stronger than expected jobs data. Traders were worried after official data showed US employers hired twice as many people in January as the previous month. That was good news for workers but dampened hopes the Federal Reserve might decide no more rate increases are needed to slow economic activity. Elevated Sino-U.S. geopolitical tensions also dented investor’s sentiment.

The benchmarks made negative start, as traders were concerned as Foreign investors pulled out Rs 28,852 crore from Indian equities in January, making it the worst outflow in the last seven months, primarily due to attractiveness of the Chinese markets. Markets sagged under pressure till the end amid investors were keenly watching out for the Reserve Bank of India's monetary policy decision later this week. The Indian central bank is likely to raise rates by 25 basis points despite signs of softening retail inflation.

On the global front, European markets were trading lower with investors fretting about rising Sino-U.S. geopolitical tensions and the global economic outlook despite a healthy rebound in German factory orders. Asian markets ended mostly in red, after strong U.S. jobs data fanned fears of more interest rate hikes to cool inflation. Back home, Reserve Bank of India (RBI) has said India's banking sector is resilient and stable, and the central bank maintains constant vigil on the lenders amid concerns over banks' exposure to the embattled Adani Group. Talking about private reports expressing concern about the exposure of Indian banks to a business conglomerate, RBI said that it is constantly monitoring the banking sector. However, the RBI did not name the Adani Group.

The BSE Sensex ended at 60,506.90, down by 334.98 points or 0.55% after trading in a range of 60,345.61 and 60,847.21. There were 7 stocks advancing against 23 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.75%, while Small cap index was up by 0.49%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 3.42%, Realty up by 0.61%, PSU up by 0.52%, FMCG up by 0.50% and Capital Goods was up by 0.46%, while Metal down by 2.03%, Utilities down by 1.26%, Power down by 1.01%, IT down by 0.67% and TECK was down by 0.65% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Indusind Bank up by 2.58%, Bajaj Finance up by 1.60%, Power Grid up by 1.05%, ITC up by 0.79% and Bajaj Finserv up by 0.41%. On the flip side, Tata Steel down by 2.21%, Infosys down by 2.09%, Kotak Mahindra Bank down by 1.86%, Mahindra & Mahindra down by 1.15% and Tata Motors down by 1.00% were the top losers. (Provisional)

Meanwhile, expressing optimism over budget, Union Finance Minister Nirmala Sitharaman has said growth is the main focus of the budget for FY24 presented by her recently. She added that the budget proposals establish both fiscal consolidation and growth, especially inclusive growth.

She noted ‘Growth is the main focus. We want to sustain that recovery, sustain that growth’. She gave credit for ensuring growth to the people of the country, who absorbed the relief and policy measures introduced by the government since the onset of the pandemic to make India the second-fastest growing economy.

The finance minister said it was the ‘express desire’ of Prime Minister Narendra Modi to continue with the elevated public capital expenditure, due to which she has proposed a higher outlay of Rs 10 lakh crore under the head. She also acknowledged the budget-making team for making it possible to devote such a high quantum of resources for the task amid the myriad challenges like the need for fiscal consolidation. She said ‘Mumbai should be liking it (the proposals)’.

The CNX Nifty ended at 17,764.60, down by 89.45 points or 0.50% after trading in a range of 17,698.35 and 17,823.70. There were 18 stocks advancing against 32 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Ports up by 9.34%, Indusind Bank up by 2.32%, BPCL up by 2.16%, Apollo Hospital up by 1.63% and Hero MotoCorp up by 1.54%. On the flip side, Divi's Lab down by 3.69%, JSW Steel down by 2.84%, Hindalco down by 2.68%, Tata Steel down by 2.41% and Kotak Mahindra Bank down by 1.87% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 63.87 points or 0.81% to 7,837.93, France’s CAC fell 84.44 points or 1.18% to 7,149.50 and Germany’s DAX was down by 136.57 points or 0.89% to 15,339.86.

Asian markets finished mostly lower on Monday as the investments got saddled as the unexpected surge in US employment fanned fears about more interest rate hikes by Federal Reserve. Moreover, investment got dulled as the alleged spy balloon incident spooked concerns about new sanctions against Chinese companies. Hang Seng Stocks plunged maximum among Asian indices, posts its third straight sessional loss as the Chinese economy rebound bets tumbled with the new geo-political tensions between US and China. Stock Market of Malaysia was closed for Thaipusam holiday.

Asian Indices

Last Trade            

Change in Points

Change in %  

Shanghai Composite

3,238.70-24.71-0.76

Hang Seng

21,222.16-438.31-2.07

Jakarta Composite

6,873.79-37.94-0.55

KLSE Composite

--

----

Nikkei 225

27,693.65

184.190.67

Straits Times

3,385.931.640.05

KOSPI Composite

2,438.19

-42.21-1.73

Taiwan Weighted

15,392.82-209.84-1.36
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