Post Session: Quick Review

Indian equity benchmarks ended with losses on Wednesday. Key indices made a positive start of the day, as Niti Aayog Vice-Chairman Rajiv Kumar said Indian economy is expected to grow by 10 per cent or more in the current fiscal, and 8 per cent plus in the next fiscal year. Some support also came with a private report stating that hiring activity expanded by 43 per cent year-on-year in October driven by strong demand for technology professionals. According to the report, with 2,523 job listings in October 2021, there was a 43 per cent year-on-year (Y-O-Y) growth.

Markets remained higher in the first half of the trading session, as domestic sentiments remained positive after a private survey showed India's dominant services industry expanded at the fastest pace in more than a decade on improved domestic demand despite high inflation, driving firms to take on staff at a rate not seen since the onset of the pandemic. The IHS Markit Services Purchasing Managers' Index accelerated to 58.4 last month from 55.2 in September, above the 50-mark separating growth from contraction for a third straight month.

Some support also came after Minister of State for Electronics and IT Rajeev Chandrasekhar stated that India has an ‘unprecedented opportunity’ to grow electronics manufacturing to $300 billion in the next 3-4 years, building on scale, competitiveness, large market and enabling policies.  He also said the world is seeking more trusted sources for electronics manufacturing post the outbreak of COVID-19 and India has all the essential elements in place to seize the opportunity. However, in the second half of the trading session, markets cut gains and finally ended the trading day in red terrain. 

On the global front, European markets were trading lower as investors prepared for the latest comment and monetary policy decision from the U.S. Federal Reserve. Asian markets ended mostly lower on Wednesday, even after China's service sector logged a strong momentum in October underpinned by business activity and new work. The data published by IHS Markit showed that the Caixin services Purchasing Managers' Index rose to 53.8 in October from 53.4 in September. The rate of growth was the quickest seen since July. A reading above 50.0 indicates expansion in the sector.

The BSE Sensex ended at 59771.92, down by 257.14 points or 0.43% after trading in a range of 59552.49 and 60361.82. 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 0.22%, while Small cap index down by 0.33%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 2.24%, Realty up by 2.05%, Metal up by 0.93%, Industrials up by 0.85% and Basic Materials up by 0.60%, while Telecom down by 1.50%, Bankex down by 1.32%, Auto down by 1.13%, Consumer Durables down by 1.07% and FMCG down by 0.58% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Larsen & Toubro up by 3.99%, Ultratech Cement up by 2.22%, Asian Paints up by 1.84%, SBI up by 1.14% and Tata Steel up by 0.87%. On the flip side, Sun Pharma down by 3.27%, Indusind Bank down by 2.79%, Kotak Mahindra Bank down by 1.97%, Bharti Airtel down by 1.95% and ICICI Bank down by 1.87% were the top losers. (Provisional)

Meanwhile, India’s service sector activity expanded in the month of October, with companies indicating that a notable pick-up in new business led to the fastest expansion in output in over a decade. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index stood at 58.4 in October from 55.2 in September. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services -- stood at 58.7 in October from 55.3 in September.

The report further noted that services companies continued to hire additional workers in October. Although moderate, the pace of job creation quickened from September to the strongest since February 2020. Subsequently, companies were able to clear their backlogs of work. Outstanding business decreased for the third month in a row during October, albeit only slightly.

On the inflation front, price pressures intensified in October, with the aggregate rate of input cost inflation climbing to the joint-highest in over nine years. The rate of charge inflation was moderate in comparison, but nevertheless the fastest since mid-2017. Business sentiment among companies operating in the Indian private sector strengthened in October, owing to a notable rebound in optimism at goods producers.

The CNX Nifty ended at 17829.20, down by 59.75 points or 0.33% after trading in a range of 17757.95 and 17988.75. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were Larsen & Toubro up by 4.07%, Grasim Industries up by 2.38%, UPL up by 2.33%, Ultratech Cement up by 2.26% and Asian Paints up by 2.17%. On the flip side, Sun Pharma down by 3.37%, Indusind Bank down by 2.85%, Bharti Airtel down by 2.08%, Kotak Mahindra Bank down by 1.88% and ICICI Bank down by 1.87% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 6.09 points or 0.08% to 7,268.72, France’s CAC decreased 0.57 points or 0.01% to 6,926.46 and Germany’s DAX was down by 7.15 points or 0.04% to 15,947.30.

Asian markets ended mostly lower on Wednesday ahead of the US Federal Reserve's monetary policy outcome due later in the day, where the US Central Bank is expected to approve plans for scaling back its current $120-billion in monthly bond purchases. Chinese shares declined as market sentiment was dampened by spiking new locally transmitted Covid-19 cases in the country, which lifting the prospect of fresh curbs in Beijing. Moreover, Chinese Premier Li Keqiang warned of downward pressure in the world’s second-top economy. Meanwhile, investors are digested the latest economic data from China where activity in services sector expanded in October. The Japanese stock market was closed in observance of Culture Day.