Post Session: Quick Review

Akin to previous session, local bourses witnessed recovery in the last hour of trade, which took markets higher for yet another session, with gains in the range of 0.10%-0.25%. Incremental buying from foreign institutional investors (FIIs) boosted holdings for local shares expectations of further push to economic reforms after Prime Minister Narendra Modi expanded his cabinet over the weekend. Nevertheless, prevailing caution ahead of the release of crucial macro-economic data this week kept gains in check. The government will issue consumer and wholesale price inflation data for October on 12 and 14 November. While, the street widely expects consumer price index (CPI) to be at 6.46% and wholesale price index (WPI) at 2.38% for October. Additionally, index of industrial production (IIP) data too is scheduled to be released on Wednesday. By close of trade, both Sensex and Nifty concluded above psychologically crucial 27,900 and 8,350 levels respectively. Meanwhile, broader indices staging greater conviction, concluded with gains in the range of 0.25%-0.75%.

On the global front, Asia pacific shares ended mixed even as US shares overnight tapped fresh records for a fourth straight session, while a weaker yen, and rumors of a delayed sales tax, helped Japan's Nikkei extend its recent rally to hit a seven-year high. Meanwhile, European shares inched higher on Tuesday, boosted by upbeat updates from telecoms operator Vodafone and German companies Henkel and Hochtief.

Back home, while most of the sectoral indices closed in green, stocks from Realty, banking and Auto counters were the top gainers. On the flip side, massive selling was witnessed by stocks from Consumer Durables, FMCG and Information Technology counters.

In stock-specific activity, shares of companies engaged in highway construction projects, Hindustan Construction Company (HCC), PBA Infrastructure, Madhucon Projects, IRB Infrastructure Developers, NCC, Unity Infra-projects surged after the Ministry of Road Transport & Highways and the Ministry of Railways signed a Memorandum of Understanding (MoU) on policy related to constructions of Road Over/Under Bridges (ROBs/RUBs) on National Highway corridors. Additionally, shares of public sector oil marketing companies rose as global crude oil prices dropped. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. However, a weakness in rupee against the dollar, which restricted the benefit of falling global crude oil prices to an extent, prevented further uptick of PSU OMCs. Notably, shares of non-banking finance companies (NBFCs) gained after the Reserve Bank of India (RBI) tightened rules for these ‘shadow banks’, which were in line with street expectations. RBI tightened the rules by raising capital adequacy requirement and net owned fund limit, among others. India’s Apex Bank also has restricted deposits with a set of changes that it hopes will protect consumers and the market without stifling growth. The market breadth on the BSE remained in the favour of decliners; where advancing and declining stocks were in a ratio of 1557:1443, while 117 scrips remained unchanged. (Provisional)

The BSE Sensex ended at 27910.06, up by 35.33 points or 0.13% after trading in a range of 27790.40 and 27996.92. There were 16 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended in the green; the BSE Mid cap index was up by 0.72%, while Small cap index up by 0.24%. (Provisional)

The gaining sectoral indices on the BSE were Realty up by 1.05%, Bankex up by 0.74%, Auto up by 0.68%, Capital Goods up by 0.63% and Oil & Gas up by 0.44%, while Consumer Durables down by 1.20%, FMCG down by 0.69%, IT down by 0.37%, TECK down by 0.30% and Metal down by 0.13% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 2.43%, Axis Bank up by 1.69%, Tata Steel up by 1.65%, GAIL India up by 1.53% and HDFC up by 1.37%. On the flip side, BHEL down by 2.43%, ITC down by 1.69%, Bharti Airtel down by 1.60%, Infosys down by 1.25% and Cipla down by 1.10% were the top losers. (Provisional)

Meanwhile, in a move to enhance the investments in aviation sector, the government has announced a draft set of reforms for the aviation sector. The new unveiled draft civil aviation policy proposes to enhance regional air connectivity, develop six major metro airports as international hubs, create more airports through PPP mode, rationalise jet fuel cost, promote air cargo, MRO and helicopter operations and improve passenger facilitation.

The new draft unveiled by Aviation Ministry also recommends listing of state-run Airports Authority of India (AAI) and helicopter service provider Pawan Hans Helicopters (PHHL) on stock exchanges and steps to strengthen Air India operations, indicating its stake sale too. Civil Aviation Minister Ashok Gajapathi Raju asserted that the government wants to work in a transparent manner and listing of AAI and PHHL to improve efficiency and transparency of both the companies. Industry also welcomed the move, stating that it will not just unlock the potential of these two companies but also make them much more professional by providing more autonomy and professional management.

Further, Ashok Gajapathi Raju added that the draft note would now be open for wider consultation with all stakeholders and hoped to finalise and implement it by January next year.

India VIX, a gauge for markets short term expectation of volatility surged 6.24% at 14.80 from its previous close of 13.93 on Monday. (Provisional)

The CNX Nifty ended at 8362.65, up by 18.40 points or 0.22% after trading in a range of 8321.85 and 8378.70. There were 28 stocks advancing against 22 stocks declining on the index. (Provisional)

The top gainers on Nifty were PNB up by 3.41%, Bank of Baroda up by 2.74%, IDFC up by 2.68%, Ultratech Cement up by 2.54% and Mahindra & Mahindra up by 2.41%. On the flip side, BHEL down by 2.23%, ITC down by 2.04%, Bharti Airtel down by 1.60%, NMDC down by 1.47% and Cairn India down by 1.40% were the top losers. (Provisional)

European Markets were trading in the green; UK’s FTSE 100 was up 0.15%, France’s CAC was up by 0.52% and Germany’s DAX was up by 0.39%.

Asian markets ended mixed on Tuesday, with Nikkei hitting a new seven-year high due to weaker yen and following another record close on Wall Street. Indonesia’s benchmark stock index gained for the first time in seven days on speculation President Joko Widodo will improve regional trade ties and secure enough support from parliament to push through reforms. Widodo is on a nine-day trip to attend the Asia Pacific Economic Cooperation summit in Beijing, prompting speculation he’ll attract more foreign direct investment to Southeast Asia’s biggest economy. Since starting work on October 27, Jokowi’s ministers have promised to cut fuel subsidies and overhaul permits for investors. Jokowi’s biggest test will be in pushing through plans to increase the price of subsidized fuel.

Japan’s economy watchers current index fell unexpectedly last month. The Japan’s Economy Watchers Current Index fell to a seasonally adjusted 44.0, from 47.4 in the preceding month. Japan posted its third consecutive monthly surplus in September of $8.1 billion, as a weaker yen lifted the value of overseas investment income, despite continuing trade deficits while Japanese Household Confidence rose to a seasonally adjusted annual rate of 38.9. Malaysian Industrial Production fell to a seasonally adjusted annual rate of 5.4%, from 6.5% in the preceding month.