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Post Session: Quick Review
May-29-2023

Indian markets ended in green territory for yet another session as investors continued to hunt for fundamentally strong stocks. Indices maintained their range bound trade till the end. Traders preferred to take long positions in Banking and Metal counters, while selling in IT and Oil & gas counters to some extent curbed the gains of frontline equity indices. As for broader indices, the BSE Mid cap index and Small cap index also witnessed positive trend during the day. Market-participants would be eyeing the data of India’s GDP Annual Growth Rate which is scheduled to be release on May 31, 2023. 

After making optimistic start, markets extended their gains, as traders got support with report that Foreign Portfolio Investors (FPIs) pumped Rs 37,316 crore in Indian equities in May so far, primarily due to strong macroeconomic fundamentals and reasonable valuation of stocks. Some optimism came in as World Economic Forum (WEF) President Borge Brende said India is expected to clock the highest growth among the world’s big economies this year and the country’s economy is witnessing the ‘famous snowball effect’ that will lead to more investments and more jobs. Markets remained upbeat in afternoon session, as some additional support also came in amid Union minister Ashwini Vaishnaw’s statement that India is all set to become the fourth largest economy in world within two years. India is being seen as a bright spot globally and the world is placing its confidence in India, he said, urging people to continue posing their faith in the decisive leadership that will take the nation to new highs by 2047. In late afternoon session, market participants pared some their gains but managed to end the day’s trade with gains of above half a percent. 

On the global front, European markets were trading higher as investors drew comfort from a tentative deal reached by U.S. lawmakers to raise the debt ceiling and avert a default. Asian markets ended mostly in green following the broadly positive cues from global markets on Friday. Back home, think tank Global Trade Research Initiative (GTRI) in its latest report has said that share of India's exports in the world trade in sectors such as pharma, gems and jewellery, leather, and footwear declined in 2022 as compared to 2015.

The BSE Sensex ended at 62,846.38, up by 344.69 points or 0.55% after trading in a range of 62,801.54 and 63,026.00. There were 20 stocks advancing against 10 stocks declining on the index (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.41%, while Small cap index was up by 0.30% (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.58%, Metal up by 1.38%, Realty up by 0.80%, Auto up by 0.63% and Bankex was up by 0.60%, while Oil & Gas down by 0.94%, IT down by 0.33%, Energy down by 0.28% and TECK was down by 0.21% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 3.71%, Titan Company up by 2.48%, Tata Steel up by 1.88%, HDFC up by 1.55% and SBI up by 1.55%. On the flip side, HCL Tech down by 0.97%, Power Grid down by 0.95%, Maruti Suzuki down by 0.77%, Wipro down by 0.47% and TCS down by 0.29% were the top losers. (Provisional)

Meanwhile, just few days ahead of official release of the provisional estimate for the India's Gross Domestic Product (GDP) growth for the fourth quarter as well for the fiscal 2022-23, domestic rating agency Icra is eyeing GDP growth in January-March period of 2022-23 at 4.9 per cent, a modest step-up from the 4.4 per cent recorded in preceding quarters, driven by the services sector. The National Statistical Organisation (NSO) is scheduled to release the provisional estimate for the GDP data on May 31.

Icra estimates the services gross value added (GVA) year-on-year growth to have risen mildly to about 6.4 per cent in Q4 FY23 from 6.2 per cent in Q3 FY23. The YoY performance of nine of the 14 high frequency indicators of the services sector improved in Q4 FY23 relative to Q3 FY23, partly reflecting the robust demand for the contact-intensive segment, as well as the low base of Covid 3.0 for some sectors such as aviation.

The agency estimates the industrial GVA year-on-year growth to have improved to about 3.6 per cent in Q4 FY2023 from 2.4 per cent in Q3 FY2023, aided by an improvement in manufacturing, and mining and quarrying. It further said higher acreage, early sowing, healthy reservoir levels and improved availability of fertilisers augured well for the rabi output in 2023. However, unseasonal rains are likely to have dampened the yield of some crops. It estimates the agri GVA growth at 3.5 per cent for Q4 FY2023, a step down from the 3.7 per cent recorded in October-December quarter.

The CNX Nifty ended at 18,598.65, up by 99.30 points or 0.54% after trading in a range of 18,581.25 and 18,641.20. There were 35 stocks advancing against 15 stocks declining on the index. (Provisional)

The top gainers on Nifty were Mahindra & Mahindra up by 3.77%, Titan Company up by 2.56%, Tata Steel up by 1.93%, Coal India up by 1.90% and SBI Life Insurance up by 1.87%. On the flip side, ONGC down by 2.90%, Power Grid down by 1.18%, HCL Tech down by 1.14%, Divi's Lab down by 1.03% and BPCL down by 0.71% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 56.33 points or 0.74% to 7,627.20, France’s CAC rose 0.6 points or 0.01% to 7,319.78 and Germany’s DAX was up by 8.63 points or 0.05% to 15,992.60.

Asian markets settled mostly higher on Monday on the news that the US government has come to an agreement to raise the federal government's $31.4 trillion debt ceiling. Market sentiments improved further by tracking Wall Street’s gains last Friday, despite growing expectations of further interest rate hikes by the US Federal Reserve. Chinese shares gained, despite uneven recovery in the world’s second largest economy with data showed profits at industrial profits in China fell 20.6% in the January-to-April period from the same period the previous year. Moreover, Japanese shares rallied as a weaker yen lifted exporters. Meanwhile, South Korean market was closed for Vesak Day holiday.

Asian Indices          

Last Trade            

Change in Points   

Change in %     

Shanghai Composite

3,221.45

8.95

0.28

Hang Seng

18,551.11

-195.81

-1.06

Jakarta Composite

6,681.10

-5.90

-0.09

KLSE Composite

1,404.93

1.95

0.14

Nikkei 225

31,233.54

317.23

1.02

Straits Times

3,195.22

-12.17

-0.38

KOSPI Composite

--

--

--

Taiwan Weighted

16,636.30

131.25

0.79

 
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