HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Post Session: Quick Review
May-08-2024

The hawkish Fed comments and the ongoing conflict in the Middle East left impact on Indian equity benchmarks on Wednesday, with both Sensex and Nifty ending trading session on a flat note. The start of the day was in red, amid foreign fund outflows. FIIs sold shares worth Rs 3,668.84 crore on May 7. There was some cautiousness as an industry wise analysis of the National Accounts Statistics 2024 data showed gross capital formation (GCF) - or investment - in manufacturing, construction, and mining sectors contracted in FY23 primarily due to a fall in export demand and low private consumption during the year. Besides, the Ministry of Statistics and Programme Implementation (MoSPI) it its National Account Statistics 2024 has said that net household savings declined sharply by Rs 9 lakh crore to Rs 14.16 lakh crore in three years to 2022-23. 

However, in afternoon deals, markets staged recovery, as Chief Economic Adviser in the Ministry of Rural Development Kuntal Sensarma said that robust capital expenditure by the government and improvement in business confidence will push the country's economic growth in 2024-25. He said that the focus areas in 2024-25 should be infrastructure growth, inclusive development and harnessing demographic dividend, among others. Traders got relief, after Fitch Ratings said that the potential big foreign inflows into Indian bonds will help the rupee recover from near a record low, but the nation’s central bank is likely to limit the extent of gains. Investors got some support with government's chief economic adviser V. Anantha Nageswaran’s statement that India does not see any nasty upside to inflation at the moment, and expects its economy to expand by more than 7 per cent in the current fiscal year.

On the global front, European markets were trading higher, even after Germany's industrial production declined for the first time in three months in March driven by the decreases in consumer and intermediate goods output. The Destatis reported that industrial production declined 0.4 percent on a monthly basis, in contrast to the 1.7 percent increase in February. Asian markets ended mostly in red, even as Taiwan consumer price inflation eased more-than-expected in April. The data released by the Directorate General of Budget, Accounting, and Statistics showed that the consumer price index, or CPI, rose 1.95 percent year-on-year in April, slower than the 2.15 percent rise in March. The street had forecasted inflation to moderate fractionally to 2.10 percent.

Back home, the automobile industry stocks remained in focus during the trading session, as the industry body Federation of Automobile Dealers Association (FADA) stated that the Indian auto retail sector recorded a robust 27% year-on-year (YoY) growth in April 2024, with the combined March-April period showing a 14% YoY increase. It noted that two-wheeler sales picked up 33% on-year, while three-wheeler sales increased 9% on-year. Besides, the aviation industry stocks were in focus with a private report stated that the average daily domestic air traffic experienced a month-on-month increase of 1.6 per cent, reaching 442,783, fueled by sustained demand during the summer season.

The BSE Sensex ended at 73466.39, down by 45.46 points or 0.06% after trading in a range of 73073.92 and 73684.93. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose by 0.78%, while Small cap index was up by 0.50%.(Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 2.13%, PSU up by 2.01%, Industrials up by 1.79%, Oil & Gas up by 1.79% and Energy up by 1.67%, while IT down by 0.57%, Bankex down by 0.38%, TECK down by 0.29%, Consumer Durables down by 0.11% and Healthcare down by 0.03% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Motors up by 2.43%, Power Grid up by 2.25%, NTPC up by 1.89%, Larsen & Toubro up by 1.53% and Maruti Suzuki up by 1.41%. On the flip side, Asian Paints down by 2.31%, Ultratech Cement down by 1.73%, Hindustan Unilever down by 1.65%, HDFC Bank down by 1.61% and HCL Tech. down by 1.25% were the top losers. (Provisional)

Meanwhile, the United Nations (UN) migration agency has said that India received over $111 billion in remittances in 2022, the largest in the world, becoming the first country to reach and even surpass the $100 billion mark. The International Organisation for Migration (IOM), in its World Migration Report 2024, said that in 2022, India, Mexico, China, the Philippines and France were the top five remittance recipient countries. Mexico was the second-largest remittance recipient in 2022, a position it also held in 2021 after overtaking China, which historically had been the second-biggest recipient after India.

According to the report's data, India was the top country receiving remittances in 2010 ($53.48 billion), 2015 ($68.91 billion), and 2020 ($83.15 billion), with the remittances crossing the $100 billion mark to reach $111.22 billion in 2022. It noted that with a very large number of migrant workers from the subregion, Southern Asia receives some of the largest inflows of remittances globally. It also stated that three countries in Southern Asia - India, Pakistan and Bangladesh, rank among the top ten recipients of international remittances in the world, underscoring the significance of labour migration from the subregion. With India estimated to have received more than $111 billion in 2022, it is by far the largest recipient of international remittances in the world and the first country to ever reach that figure. Pakistan and Bangladesh were the sixth and eighth largest international remittance recipients in 2022, receiving nearly $30 billion and $21.5 billion respectively.

The report added that nearly 18 million or 1.3 per cent of the total population, India is also the origin of the largest number of international migrants in the world, with large diasporas living in countries such as the United Arab Emirates, the United States and Saudi Arabia. India came in 13th as the destination country for immigrants, with 4.48 million. India United Arab Emirates, India US, India Saudi Arabia and Bangladesh India were among the top 10 international country-to-country migration corridors. Mexico is now the second largest recipient of international remittances in the world after India. China had long held the second spot but it was surpassed by Mexico in 2021, with the Central American country estimated to have received more than $61 billion in 2022, while China received about $51 billion.

The CNX Nifty ended flat at 22302.50, after trading in a range of 22185.20 and 22368.65. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hero MotoCorp up by 3.06%, BPCL up by 2.65%, Tata Motors up by 2.38%, Power Grid up by 2.29% and Hindalco up by 2.14%. On the flip side, Dr. Reddy's Lab down by 3.22%, Asian Paints down by 2.39%, Grasim Industries down by 1.80%, Ultratech Cement down by 1.68% and Hindustan Unilever down by 1.61% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 45.48 points or 0.55% to 8,359.15, France’s CAC rose 72.75 points or 0.9% to 8,148.43 and Germany’s DAX gained 98.52 points or 0.53% to 18,528.57. 

Asian markets ended mostly down on Wednesday as investors awaited more clarity on when the US Federal Reserve may start cutting interest rates. Meanwhile, Minneapolis Fed President Neel Kashkari cautioned that US interest rates are likely to remain on hold for an extended period. Japanese shares led regional losses, slipping from multi-week highs hit in the previous session. Chinese shares declined on profit taking after rallying to over six-month highs on optimism over improving economic conditions in China and hopes on potential stimulus measures to revive the country's struggling property market.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,128.48

-19.26

-0.62

Hang Seng

18,313.86

-165.51

-0.90

Jakarta Composite

7,088.80

-34.81

-0.49

KLSE Composite

1,604.75

-0.93

-0.06

Nikkei 225

38,202.37

-632.73

-1.66

Straits Times

3,264.53

-35.51

-1.09

KOSPI Composite

2,745.05

10.69

0.39

Taiwan Weighted

20,700.51

46.98

0.23
  RELATED NEWS >>
Most Viewed >>
May 13 , 2024
Pvt sector capex likely to expand amid expecta
May 13 , 2024
Record additions of new SIPs give local funds
May 14 , 2024
MFs lap up commodity and metal stocks; some bu
May 15 , 2024
Demat account additions flat at 31 lakh in Apr
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.