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EQUITY
Post Session: Quick Review
Oct-22-2021

Indian equity benchmarks ended with losses on Friday. The start of the day was on a positive note, as sentiments got a boost with Niti Aayog Vice Chairman Rajiv Kumar's statement that Indian economy is expected to grow 10.5 per cent or more in the current fiscal. Adding more optimism, ICRA stated that with half of the 15 high-frequency indicators recovering to the pre-pandemic levels in the second quarter, the economy finally looks nearly out of the pandemic woods, helping the Q2 GDP print at 7.7 per cent. Some support also came in as Union Minister Hardeep Singh Puri exuded confidence that India will become a $5-trillion economy by 2024-25 and $10-trillion by 2030.

Key indices remained higher in the first half of the trading session, as traders took support with Commerce and Industry Minister Piyush Goyal’s statement that all indicators, including GDP, foreign direct investment (FDI) inflows and exports growth, are pointing towards a clear and sharp economic recovery in the country. He said forex reserves have constantly grown from $433 billion in September 2019 to $638 billion in September this year, while FDI inflows in the first four months of the current fiscal rose by 62 per cent, which is higher than the corresponding figure last year.

Domestic sentiments were positive, as investments in Indian capital through participatory notes (P-notes) were at Rs 97,751 crore till September-end, and going forward inflow is expected to remain positive. Adding more comfort among traders, RBI data showed that bank credit grew by 6.48 per cent to Rs 110.13 lakh crore and deposit by 10.16 per cent to Rs 157.56 lakh crore in the fortnight ended October 8. However, in the second half of the trading session, markets turned negative and ended lower, as traders opted to book profit in frontline blue-chip counters.

On the global front, European markets were trading higher helped by an easing of worries surrounding embattled property group China Evergrande as well as positive corporate earnings, notably French cosmetics giant L'Oreal. Asian markets ended mixed on Friday, after the manufacturing sector in Japan continued to expand in October, and at a faster pace, the latest survey from Jibun Bank showed on Friday with a manufacturing PMI score of 53.0. That's up from 51.5 in September, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

The BSE Sensex ended at 60821.62, down by 101.88 points or 0.17% after trading in a range of 60551.15 and 61420.13. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.97%, while Small cap index down by 1.20%. (Provisional)

The only gaining sectoral indices on the BSE were Realty up by 2.45%, Bankex up by 0.74% and Consumer Durables up by 0.09%, while Metal down by 2.93%, Basic Materials down by 1.78%, Healthcare down by 1.58%, IT down by 1.55% and TECK down by 1.33% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were HDFC up by 2.25%, Bajaj Auto up by 1.81%, Indusind Bank up by 1.21%, Kotak Mahindra Bank up by 1.19% and Axis Bank up by 0.98%. On the flip side, ITC down by 3.39%, Maruti Suzuki down by 2.12%, Infosys down by 1.96%, NTPC down by 1.93% and HCL Tech. down by 1.45% were the top losers. (Provisional)

Meanwhile, The Securities and Exchange Board of India (SEBI) in its data report has showed that the value of participatory notes (P-notes) investments in Indian markets -- equity, debt and hybrid securities -- was at Rs 97,751 crore by September-end compared to Rs 97,744 crore by August-end.

The report further noted that out of the total Rs 97,751 crore invested through the route till September, Rs 86,624 crore was invested in equities, Rs 10,873 crore in debt, Rs 547 crore in hybrid securities and Rs 68 crore in derivatives.

The figure for July was revised to Rs 85,799 crore from Rs 1,01,798 crore posted earlier. Prior to that, investment level was at Rs 92,261 crore by June-end, Rs 89,743 crore by May-end, Rs 88,447 crore at April-end and Rs 89,100 crore by March-end.

P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be a part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process.

The CNX Nifty ended at 18114.90, down by 63.20 points or 0.35% after trading in a range of 18034.35 and 18314.25. There were 16 stocks advancing against 33 stocks declining, while 1 stock remained unchanged on the index. (Provisional)

The top gainers on Nifty were HDFC up by 2.10%, Bajaj Auto up by 1.64%, ONGC up by 1.32%, Kotak Mahindra Bank up by 1.29% and Axis Bank up by 1.10%. On the flip side, Hindalco down by 4.72%, Coal India down by 3.56%, Tata Motors down by 3.37%, ITC down by 3.31% and Tata Consumer Products down by 2.40% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 31.55 points or 0.44% to 7,221.85, France’s CAC increased 77.25 points or 1.16% to 6,763.42 and Germany’s DAX was up by 90.55 points or 0.59% to 15,563.11.

Asian markets ended mixed on Friday, following the mixed cues from Wall Street overnight. Chinese shares ended lower, even as Chinese developer Evergrande Group made an overdue interest payment to international bondholders just before the 30-day grace period ends. South Korean shares closed flat with negative bias as investors turned cautious ahead of the third-quarter economic data and earnings report from major chipmakers at home. Meanwhile, Japanese shares gained after data showed factory activity growth in the country picked up in October from the previous month and the services sector expanded for the first time in 21 months, but caution ahead of the nation’s general election capped gains.

Asian Indices

Last Trade           

Change in Points

Change in %    

Shanghai Composite

3,582.60
-12.18
-0.34

Hang Seng

26,126.93
109.40
0.42

Jakarta Composite

6,643.74
10.77
0.16

KLSE Composite

1,588.08-3.54-0.22

Nikkei 225

28,804.85
96.27
0.34

Straits Times

3,205.14
16.64
0.52

KOSPI Composite

3,006.16
-1.17
-0.04

Taiwan Weighted

16,888.74
-0.77
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