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EQUITY
Post Session: Quick Review
Apr-16-2024

Local equities continued their southward journey on Tuesday and ended in red as traders were cautious with rising geopolitical tensions in the Middle East. Weak exports data also dampened the sentiments on the Street. IT and TECK sector’s stocks witnessed selling pressure during the day. However, the broader indices, the BSE Mid cap index and Small cap index ended in green.

After making gap down opening, markets remained lower following the broad sell-off on Wall Street overnight as well as lackluster trade in Asian counterparts, as bond yields spiked after a report showed a much stronger than expected U.S. retail sales growth in March. Besides, traders were concerned with report that India’s merchandise exports dipped marginally in March to $41.69 billion, and by 3.11 per cent during the last fiscal year to $437.06 billion mainly due to continued geopolitical turmoil, and depressed global trade. Imports, too, declined in March as well during the entire 2023-24. Trade deficit narrowed 17.74 per cent in March to $15.6 billion and came down 9.33 per cent to $240.17 billion in FY24. Markets touched low points in afternoon session. Traders ignored Reserve Bank of India’s (RBI) latest data on ‘Overseas Direct Investment’ showing that India’s outward foreign direct investment (OFDI) commitments rose 48.68% to $3919.84 million in March 2024 as against $2636.42 million in March 2023. Sequentially, FDI commitments were also up from $3,671.94 million in February 2024. In late afternoon session, markets continued their weak trade as investors preferred to play safe. Finally, Nifty and Sensex settled below their psychological 22,150 and 73,000 levels, respectively.

On the global front, European markets were trading lower as investors ponder over a wider Middle East conflict and the outlook for U.S. interest rates. All Asian markets ended lower as stronger-than-expected U.S. retail sales for March further reinforced expectations that the Federal Reserve is unlikely to be in a rush to cut interest rates this year. Back home, Engineering Export Promotion Council (EEPC) has said India's engineering exports edged up to $109 billion in 2023-24 from $107.04 billion in the previous financial year, thus registering a growth of 2.13 per cent, despite a slowdown in some of the major global markets amid geo-political tensions.

The BSE Sensex ended at 72,943.68, down by 456.10 points or 0.62% after trading in a range of 72,685.03 and 73,135.43. There were 7 stocks advancing against 23 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index declined 0.05%, while Small cap index was up by 0.57%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.70%, Consumer Durables up by 0.62%, Energy up by 0.54%, FMCG up by 0.43% and Power was up by 0.37%, while IT down by 2.32%, TECK down by 2.09%, Bankex down by 0.50%, Telecom down by 0.40% and Metal was down by 0.36% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Titan Company up by 1.40%, Hindustan Unilever up by 1.20%, HDFC Bank up by 0.97%, Maruti Suzuki up by 0.62% and ITC up by 0.18%. On the flip side, Infosys down by 3.65%, Indusind Bank down by 3.12%, Wipro down by 2.32%, Bajaj Finserv down by 2.31% and HCL Tech down by 1.94% were the top losers. (Provisional)

Meanwhile, amidst prevailing moderate El Nino conditions over the equatorial Pacific region, the India Meteorological Department (IMD) has predicted an above-normal rainfall season across the country during the southwest monsoon. El Nino and La Nina are climate patterns in the Pacific Ocean that can affect weather worldwide. According to IMD’s forecast, the seasonal June to September rainfall is expected to be above normal, with quantitative estimates indicating it could reach 106 per cent of the Long Period Average (LPA). The LPA for the period 1971-2020 stands at 87 cm.

Presently, neutral Indian Ocean Dipole (IOD) conditions prevail over the Indian Ocean. Nonetheless, IMD’s latest climate model forecasts hint at the likelihood of positive IOD conditions emerging during the later part of the southwest monsoon season, adding another dimension to the monsoon dynamics. IMD said that the northern hemisphere snow cover extent during the last three months (January to March 2024) has been below normal. Such deviations from the norm in snow cover extent could influence weather patterns, including the forthcoming monsoon season.

The forecast of above-normal rainfall raises prospects for agricultural productivity and water reserves across the country. However, it also underscores the importance of preparedness measures to mitigate potential risks associated with flooding and landslides, particularly in vulnerable regions. IMD emphasizes the need for stakeholders to closely monitor evolving climate patterns and undertake proactive measures to ensure the safety and well-being of communities, as well as to optimize agricultural planning and water resource management strategies.

The CNX Nifty ended at 22,147.90, down by 124.60 points or 0.56% after trading in a range of 22,079.45 and 22,213.75. There were 15 stocks advancing against 34 stocks declining on the index. (Provisional)

The top gainers on Nifty were Eicher Motors up by 3.23%, Divi's Lab up by 1.28%, Titan Company up by 1.26%, Hindustan Unilever up by 1.22% and ONGC up by 1.18%. On the flip side, Infosys down by 3.66%, Indusind Bank down by 3.18%, LTIMindtree down by 3.16%, Wipro down by 2.39% and Bajaj Finserv down by 2.31% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 121.42 points or 1.55% to 7,844.11, France’s CAC fell 106.49 points or 1.34% to 7,938.62 and Germany’s DAX was down by 258.85 points or 1.46% to 17,767.73. 

Asian markets settled down on Tuesday tracking Wall Street’s overnight fall after robust US retail sales data for March fuelled concerns about the outlook for US interest rates. Meanwhile, San Francisco Federal Reserve Bank President Mary Daly said there was no urgency for the Fed to cut interest rates. Moreover, rising oil prices and persisting Middle East tensions have also added more pressure on market sentiments. Investors were also awaiting Israel's response to Iran's first-ever direct attack on the country. Seoul shares declined amid heavy selling pressure with speculation that the Bank of Korea will not rush to lower borrowing costs. Chinese shares fell even after data showed China's GDP grew 5.3% in January-March from the year earlier, beating expectations for a 4.6% increase. Moreover, Japanese shares dropped after a jump in US Treasury yields.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,007.07

-50.31

-1.67

Hang Seng

16,248.97

-351.49

-2.16

Jakarta Composite

7,164.81

-122.07

-1.70

KLSE Composite

1,535.00

-7.53

-0.49

Nikkei 225

38,471.20

-761.60

-1.98

Straits Times

3,144.76

-38.85

-1.24

KOSPI Composite

2,609.63

-60.80

-2.33

Taiwan Weighted

19,901.96

-547.81

-2.75
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