Benchmarks end higher as WPI eases; Sensex recaptures 28,000 mark

Indian equity benchmarks ended the volatile day of trade in green terrain with Sensex recapturing its crucial 28,000 mark on sustained capital inflows and positive economic data. Overall, sentiments remained up-beat after India’s main inflation gauge, based on monthly WPI, softened to five year low at 1.77% for the month of October as compared to 2.38% (Provisional) for the month of September. The reading was way below the street expectation, which were expecting figure to be near 2% mark for the month under review. Meanwhile, the Organisation for Economic Cooperation and Development (OECD), in its latest economic outlook report for Asian countries, has highlighted that Indian economy is expected to witness an average growth of 6.7% over the 2015-19 period and a further boost would depend on reform plans of the government.

On the global front, European markets were trading mostly in the green in early deals after gross domestic product numbers showed both France and Germany grew marginally in the third quarter. Asian markets concluded mostly in green, led by gains in Japanese shares which continued their record run on speculation that Japan's prime minister will call a snap election next month and delay the sales tax rise.

Back home, sentiments remained up-beat on report that foreign portfolio investors bought shares worth a net Rs 690.61 crore yesterday, as per provisional data. Better than expected second quarter earnings from State Bank of India (SBI) too lifted the sentiments. The bank’s consolidated net profit after taxes and minority interest for the quarter under review registered 30.95% growth at Rs 4023.84 crore against Rs 3072.77 crore in the September quarter of previous fiscal. The bank’s consolidated total income has increased by 15.02% at Rs 61098.67 crore for the quarter from Rs 53118.63 crore in the similar quarter of previous year.

Meanwhile, stocks related to software and technology edged higher on weak rupee. The Indian rupee was trading at 61.77 at the time of equity markets closing against the US dollar compared to the previous close of Rs 61.54. Stocks related to rate sensitive counters like Banking and Auto too remained on buyers’ radar amidst hopes that RBI may slash interest rates in upcoming monetary policy in December after 5-year low October WPI data. Additionally, public sector oil marketing companies (OMCs) edged higher on decline in crude oil prices. Crude oil futures extending the declining run ended to three year low on Thursday, on increasing concerns of a supply glut and that OPEC won’t act to ease a global glut.

The NSE’s 50-share broadly followed index Nifty gained above thirty points to end near the psychological 8,400 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex surged by above hundred points to end above the psychological 28,000 mark. Broader markets traded with traction and ended the session with a gain of over half a percent. The market breadth remained in favour of advances, as there were 1,581 shares on the gaining side against 1,450 shares on the losing side while 117 shares remain unchanged.

Finally, the BSE Sensex surged by 106.02 points or 0.38%, to 28046.66, while the CNX Nifty gained 32.05 points or 0.38% to 8,389.90.

The BSE Sensex touched a high and a low of 28093.23 and 27912.90, respectively. The BSE Mid cap index was up by 0.52%, while the Small cap index was up by 0.52%.

The top gainers on the Sensex were Hindalco up by 3.59%, Coal India up by 2.63%, SBI up by 2.55%, GAIL India up by 2.50% and ONGC up by 2.05%. On the flip side, Cipla down by 2.45%, Sun Pharma down by 2.43%, Dr. Reddys Lab down by 1.15%, Hindustan Unilever down by 1.05% and Tata Motors down by 0.47% were the top losers in the index.

On the BSE Sectoral front Metal up by 2.53%, Realty up by 2.35%, PSU up by 1.61%, Oil & Gas up by 1.06% and Bankex up by 0.72% were the top gainers, while Healthcare down by 1.22% and FMCG down by 0.12% were the only losers in the space.

Meanwhile, the Organisation for Economic Cooperation and Development (OECD), in its latest economic outlook report for Asian countries, has highlighted that Indian economy is expected to witness an average growth of 6.7 % over the 2015-19 period and a further boost would depend on reform plans of the government.

The OECD highlighted that these reforms include promoting domestic and foreign investments, creating jobs and improving food security, raising standards of education and skills development, building new infrastructure, enhancing water governance and increasing the country's overall competitiveness, particularly in the manufacturing sector.

After two years of slowdown, Indian economy is showing signs of revival and expanded at its fastest pace in more than two years by 5.7% y-o-y during Q1FY15 as compared to 4.7% growth recorded in same quarter last year and 4.6% in Q4FY14.

Regarding economic outlook for Asian countries, the OECD’s report has stated that Emerging Asia is set for healthy growth over the medium term even as outlook for many OECD countries remains subdued. Annual GDP growth for the ASEAN-10 countries is forecast to average 5.6% over 2015-19. China's growth is expected to slow to 6.8% over 2015-19 period. However, the Paris based think tank also highlighted that India and China could face significant challenges in future.

The CNX Nifty touched a high and low of 8,400.65 and 8,346.80 respectively.

The top gainers on Nifty were Asian Paints up by 4.37%, Jindal Steel & Power up by 3.84%, Hindalco Industries up by 3.65%, NMDC up by 2.74% and GAIL (India) up by 2.65%. On the flip side, Sun Pharmaceuticals Industries down by 2.29%, Cipla down by 2.29%, HCL Technologies down by 1.80%, Grasim Industries down by 1.39% and Kotak Mahindra Bank down by 1.33% were the top losers.

Most of European markets were trading in the green, France’s CAC 40 was up by 0.26% and Germany’s DAX was up by 0.02% while, United Kingdom’s FTSE 100 was down by 0.07%.

Asian markets ended mostly in green on Friday, with Japan’s index rising as investors await a report on economic growth amid speculation Prime Minister Shinzo Abe plans to delay a sales-tax increase and call an election. South Korea’s central bank kept its policy interest rate steady as widely expected, to assess the effects of this year’s two rate cuts as well as policy decisions in the United States and Japan. The Bank of Korea’s monetary policy committee left its base rate unchanged at 2 percent. Singapore’s housing market may face fire sales with mortgage defaults as the government’s property curbs hurt home sales and prices. Singapore’s private home prices fell 0.7 percent in the three months ended September, the fourth quarter-on-quarter drop, bringing the slide in the past year to almost 4 percent. That’s the longest losing streak since 2009, when the government started introducing measures, with some of the strictest implemented last year, including a cap on debt. Singaporean Retail Sales rose to a seasonally adjusted 5.5%, from 5.4% in the preceding month. Indonesia central bank stated that the country posted a balance of payments surplus of $6.5 billion during July to September, bigger than the $4.3 billion surplus it had in April-June. Malaysian GDP fell to a seasonally adjusted 5.6%, from 6.4% in the preceding month.