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EQUITY
Post Session: Quick Review
May-09-2024

Thursday turned out to be yet another weak day for Indian equity markets, with both Sensex and Nifty ending around one and half a percent lower, amid negative cues from other Asian markets as higher bond yields and looming uncertainty over the ceasefire deal in Gaza overshadowed solid trade figures from China. Markets made a cautious start of the day, amid foreign fund outflows. Foreign Institutional Investors have net sold Rs 6,669.10 crore worth of Indian shares on May 08. Some cautiousness crept in amid a private report that India's consumer price inflation is likely to have eased to 4.80% in April, just shy of March's rate as food inflation remains sticky. As per the report, with parts of the country experiencing a heatwave, food prices continue to pose an additional risk to India's inflation trajectory. 

Indices extended losses towards end of the day, as sentiments got hit after the Reserve Bank of India (RBI) in its latest data report has showed that India’s outward foreign direct investment (OFDI) commitments declined 18.29% to $2943.98 million in April 2024 as compared to $3602.95 million in April 2023. In March 2024, it stood at $3,963.94 million. Traders overlooked Chief Economic Adviser V Anantha Nageswaran’s statement that there was a high possibility of GDP growth touching 8 per cent in FY24 on the back of robust growth registered during the three quarters of the financial year ended March 2024. 

On the global front, European markets were trading mostly in green, after Sweden's central bank lowered its policy rate for the first time in eight years and signaled another two more rate reductions during the second half of the year as inflation approaches the target of around 2 percent amid the weak economic activity. The executive board of the Riksbank, led by Governor Erik Thedeen, decided to lower the policy rate by 25 basis points to 3.75 percent. Asian markets ended mostly in red, even after China's exports rebounded more than expected in April on lower base of comparison. The customs office reported that exports advanced 1.5 percent on a yearly basis in April, faster than the 1.0 percent expected growth. The growth reversed March's 7.5 percent decrease. Imports posted an annual increase of 8.4 percent, which was also bigger than forecast of 5.4 percent.

Back home, the steel industry stocks were in watch, as Steel Secretary Nagendra Nath Sinha said that India’s steel demand is expected to grow at a rate of 10 per cent over the next few years, supported by the government's focus on infrastructure. Besides, shares of NBFCs, mainly those involved in the business of Gold loans, remained in focus after the RBI directed these firms not to lend in cash of more than Rs 20,000 for gold loans, citing the Income Tax act. 

The BSE Sensex ended at 72404.17, down by 1062.22 points or 1.45% after trading in a range of 72334.18 and 73499.49. There were 5 stocks advancing against 25 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index fell by 2.01%, while Small cap index was down by 2.41%. (Provisional)

The only gaining sectoral indices on the BSE was Auto up by 0.57%, while Oil & Gas down by 3.41%, Capital Goods down by 3.37%, Energy down by 3.23%, Metal down by 3.13% and Industrials down by 2.92% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Motors up by 1.86%, Mahindra & Mahindra up by 1.48%, SBI up by 1.27%, Infosys up by 0.54% and HCL Tech. up by 0.49%. On the flip side, Larsen & Toubro down by 5.56%, Asian Paints down by 4.51%, JSW Steel down by 3.46%, ITC down by 3.27% and Bajaj Finance down by 2.83% were the top losers. (Provisional)

Meanwhile, Reserve Bank of India (RBI) has said that its Governor Shaktikanta Das has discussed with banks and other stakeholders ways to scale up the UPI ecosystem, expand products and foster innovative payment solutions. UPI (Unified Payments Interface) is an instant real-time payment system developed by the National Payments Corporation of India (NPCI) to facilitate inter-bank transactions through mobile phones.

It stated he held a meeting with major stakeholders in the UPI ecosystem - banks, NPCI, third-party application providers and technology service providers - to discuss potential strategies for further expanding the reach of UPI. It said ‘There were wide-ranging discussions on various aspects to widen and deepen the adoption and usage of UPI. The stakeholders shared their valuable inputs and suggestions.’

The discussions broadly covered strategies for scaling up UPI infrastructure and expanding product portfolio, and challenges being encountered by the ecosystem and innovative solutions for addressing the same. The deliberations focused on innovative ideas to integrate potential users into the digital payments ecosystem. Further, it said the various suggestions received will be examined and suitable action will be initiated in due course by the Reserve Bank. The meeting was also attended by RBI Deputy Governor T Rabi Sankar and other senior officials of the central bank.

The CNX Nifty is currently trading at 21957.50, down by 345.00 points or 1.55% after trading in a range of 21932.40 and 22307.75. There were 7 stocks advancing against 43 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hero MotoCorp up by 3.27%, Tata Motors up by 1.80%, Mahindra & Mahindra up by 1.38%, SBI up by 1.11% and Bajaj Auto up by 1.11%. On the flip side, Larsen & Toubro down by 6.06%, Asian Paints down by 4.68%, BPCL down by 4.54%, Coal India down by 4.51% and ONGC down by 4.19% were the top losers. (Provisional)

European markets were trading mostly in green; UK’s FTSE 100 increased 0.61 points or 0.01% to 8,354.66 and Germany’s DAX gained 46.48 points or 0.25% to 18,544.86, while France’s CAC fell 10.94 points or 0.13% to 8,120.47.

Asian markets ended mostly down on Thursday due to lingering uncertainty over possible interest rate cuts in the United States, and fighting and bombardment continued on the outskirts of the southern Gaza city of Rafah. Meanwhile, investors were cautiously awaiting the release of key US CPI data next week. Japanese shares declined, while the yen stabilized after three days of declines as Japan talked up potential currency interventions. Japan's real wages in March fell for the 24th consecutive month, the labour ministry reported. However, Chinese and Hong Kong shares advanced on the back of strong trade data. Exports advanced 1.5% on a yearly basis in April, faster than the 1% expected growth and reversing March's 7.5% decrease, while imports posted an annual increase of 8.4% that also bigger than forecast of 5.4%. Stock market of Indonesia was closed for Ascension Day.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,154.32

25.84

0.82

Hang Seng

18,537.81

223.95

1.21

Jakarta Composite

--

--

--

KLSE Composite

1,601.22

-3.53

-0.22

Nikkei 225

38,073.98

-128.39

-0.34

Straits Times

3,265.95

1.42

0.04

KOSPI Composite

2,712.14

-32.91

-1.21

Taiwan Weighted

20,560.77

-139.74

-0.68
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