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Indian equity benchmarks ended flat with negative bias in the volatile session on Tuesday due to losses in Telecom, Oil & Gas and Energy stocks.  After making a cautious start, markets traded in green terrain as traders took support with NITI Aayog CEO B V R Subrahmanyam’s statement that India's industrial sector is growing at a fast pace and the country can now aim to achieve 9% plus economic growth. Subrahmanyam said India's manufacturing sector has been generating sufficient number of jobs. According to the Annual Survey of Industries (ASI) data, the number of persons employed in manufacturing industries rose 7.5% in 2022-23 to 1.85 crore from 1.72 crore in the previous year. However, the markets erased all gains in morning deals to trade marginally lower as traders turned cautious with the Ministry of Commerce & Industry’s data showing that the output of eight core industries contracted for the first time in nearly four years by 1.8 per cent in August 2024 due to decline in output of coal, crude oil, natural gas, refinery products, cement and electricity. In August 2023, the core sector’s output had grown 13.4% and in July 2024, it had grown by 6.1%. 

Markets continued their lackluster trade in late afternoon deals, as the HSBC final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, fell to 56.5 last month (September) from 57.5 in August - the weakest since January - and slightly below a preliminary estimate of 56.7. Growth in India's manufacturing industry cooled to an eight-month low in September as solid demand and output eased slightly. Some concern also came as data showed the foreign institutional investors (FIIs) extended their selling as they sold equities worth Rs 9792 crore on September 30.  Meanwhile, the data released by the Controller General of Accounts (CGA) has showed that the Centre’s fiscal deficit - the gap between expenditure and revenue - at the end of the first five months (April-August) of the current fiscal (FY25) touched 27 per cent of the full-year target. The deficit stood at 36 per cent of the Budget Estimates (BE) in the corresponding period of 2023-24. 

On the global front, Asian markets settled mostly higher on Tuesday following the broadly positive cues from Wall Street, as markets reacted to remarks by US Fed Chair Jerome Powell, who suggested the central bank will continue to lower interest rates but stressed the downward path for rates is not on a preset course. European markets were trading mostly in green after flash data from Eurostat showed Eurozone inflation eased more than expected in September. The harmonized index of consumer prices posted an annual increase of 1.8 percent compared to a 2.2 percent rise in August. Back home, on the sectoral front, aviation industry stocks were buzzing after the Centre slashed jet fuel or aviation turbine fuel (ATF) prices. ATF prices have been cut by six percent in Delhi to Rs 87,597 per kg, down from Rs 93,480 per kg earlier. The cost of jet fuel is now at the lowest level since April 2024. 

Finally, the BSE Sensex fell 33.49 points or 0.04% to 84,266.29, and the CNX Nifty was down by 13.95 points or 0.05% to 25,796.90.     

The BSE Sensex touched high and low of 84,648.40 and 84,098.94 respectively. There were 14 stocks advancing against 16 stocks declining on the index. 

The broader indices ended in green; the BSE Mid cap index rose 0.27%, while Small cap index was up by 0.56%.

The top gaining sectoral indices on the BSE were IT up by 1.05%, TECK up by 0.72%, Basic Materials up by 0.71%, Consumer Durables up by 0.41% and Auto up by 0.30%, while Telecom down by 0.86%, Oil & Gas down by 0.71%, Energy down by 0.64%, Utilities down by 0.35% and Realty down by 0.24% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.93%, Mahindra & Mahindra up by 2.22%, Infosys up by 1.50%, Kotak Mahindra Bank up by 1.48% and SBI up by 1.19%. On the flip side, Indusind Bank down by 2.68%, Asian Paints down by 1.54%, Hindustan Unilever down by 1.27%, Tata Motors down by 0.96% and Tata Steel down by 0.86% were the top losers.

Meanwhile, the data released by the Controller General of Accounts (CGA) has showed that the Centre’s fiscal deficit - the gap between expenditure and revenue - at the end of the first five months (April-August) of the current fiscal (FY25) touched 27 per cent of the full-year target. The deficit stood at 36 per cent of the Budget Estimates (BE) in the corresponding period of 2023-24.

In absolute terms, the fiscal deficit was at Rs 4,35,176 crore as of August-end. In the Union Budget, the government projected to bring down the fiscal deficit to 4.9 per cent of the gross domestic product (GDP) in the current financial year. The deficit was 5.6 per cent of the GDP in 2023-24. In absolute terms, the government aims to contain the fiscal deficit at Rs 16,13,312 crore during the current fiscal.

The central government’s total earnings during the April-August period of FY25 stood at Rs 12.17 lakh crore, which is 38 per cent of the full year target. The total receipts included Rs 8.73 lakh crore tax revenue (net to centre), Rs 3.34 lakh crore non-tax Revenue and Rs 8,866 crore of non-debt capital receipts. Rs 4,55,717 crore has been transferred to State Governments as Devolution of Share of Taxes by Government of India upto this period which is Rs 73,235 crore higher than the previous year.

The central government’s total expenditure in the five months through August stood at Rs 16.5 lakh crore or 34.3 per cent of BE. The expenditure was 37.1 per cent of the BE in the year-ago period. Of the total expenditure, Rs 13,51,367 crore was in the revenue account and Rs 3,00,987 crore was in the capital account. Out of the total revenue expenditure, Rs 4,00,160 crore was towards interest payments and Rs 1,78,625 crore is on account of Major Subsidies.

The CNX Nifty traded in a range of 25,907.60 and 25,739.20. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.90%, Mahindra & Mahindra up by 2.36%, Britannia Industries up by 1.80%, Infosys up by 1.62% and Adani Enterprises up by 1.50%. On the flip side, Indusind Bank down by 2.66%, ONGC down by 1.75%, Asian Paints down by 1.63%, Bajaj Auto down by 1.38% and Tata Steel down by 1.10% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 34.92 points or 0.42% to 8,271.87 and Germany’s DAX gained 77.65 points or 0.4% to 19,402.58, while France’s CAC fell 5.91 points or 0.08% to 7,629.84.

Asian markets settled mostly higher on Tuesday ahead of US labor market data due this week that could offer more clarity on the pace of US interest rate cuts. Market sentiments improved further by tracking Wall Street gains overnight as markets react to remarks by US Fed Chair Jerome Powell, who suggested the Federal Reserve will continue to lower interest rates but stressed the downward path for interest rates is not on a preset course. Japanese shares gained on a weakening yen as the BoJ Summary of Opinions indicated no immediate plans for further rate hikes and a key survey showed that big manufacturer sentiment held steady in the third quarter. Meanwhile, Hong Kong, Chinese and South Korean share markets were closed for holidays.