Post Session: Quick Review

Local equity markets, erasing early losses, showed splendid recovery by scaling a  record high level on Monday, which took both Sensex and Nifty above psychologically crucial 28,100 and 8,400 marks respectively, with gains of around half a percent. Fresh buying activities by funds and retail investors despite negative global cues mainly lifted the spirits of bulls at D-street. Additionally, broader indices outperforming larger counterparts ended with gains in the range of 0.90%-1.00%.

Market-participants were also heartened by the reports on macro-economic front, which pointed that October trade deficit data narrowed to $13.35 billion from $14.25 billion in the previous month thanks to decline in oil imports. However, in a bit of concern, decline in exports took off some shine of the trade data. Exports in October hit lowest level since March 2014. It fell to $26.09 billion from $28.90 billion last month. On a year-on-year basis, the fall has been to the tune of 5.04%.

On the global front, both Asian and European shares edged lower in trade on account of globally risk-averse environment after Japan's economy slipped in recession as its GDP contracted for a second consecutive quarter. Japan’s Gross domestic product (GDP) fell 1.6% from July to September, compared with the same period last year, below forecasts of a 2.1% rise, which was followed by a revised 7.3% contraction in the second quarter.

Closer home, most of the sectoral indices on BSE concluded into positive territory, however stocks from Metal and Healthcare counters were the only losers. In stock-specific activity, Cement stocks, like Ambuja Cements, Ultratech Cements and Shree Cements edged lower in trade.

On the flip side, shares of gold jewellery, like Titan Company, Tribhovandas Bhimji Zaveri, Gitanjali Gems  and  PC Jeweller  concluded mostly higher even after reports suggested of RBI was in talks with govt to increase gold import curbs. October gold shipments to India, jumped to about 150 tonnes from less than 25 tonnes a year earlier and 143 tonne in September. Besides, sugar stocks also ended upbeat after the department of food estimated a total production of 25 million tonnes of sugar in the new sugar season starting October 2014 -September 2015, similar to the production level last year, which is higher than the first advance estimate of 24.5 mn tonne and the increased production is estimated due to higher acreage in Maharashtra and Karnataka and carries over stock of 3-4 lakh tones.

Additionally, Insurance related stocks like Bajaj Finserv, Max India, Aditya Birla Nuvo, IDFC, Yes Bank edged higher after Finance Minister Arun Jailtey, at an Investor Summit, expressed hope that the Select Committee of the Rajya Sabha on the Insurance Laws (Amendment) Bill would submit a report in parliament which would further government’s reform agency in the upcoming winter session. The market breadth on the BSE remained in the favour of advances, where advancing and declining stocks were in a ratio of 1610:1448, while 86 scrips remained unchanged. (Provisional)

The BSE Sensex ended at 28154.69, up by 108.03 points or 0.39% after trading in a range of 27921.34 and 28205.71. There were 18 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in the green; the BSE Mid cap index was up by 0.90%, while Small cap index up by 1.09%. (Provisional)

The gaining sectoral indices on the BSE were Infrastructure up by 1.88%, Power up by 1.55%, Auto up by 1.41%, PSU up by 1.39% and Oil & Gas up by 0.87% while, Metal down by 0.64% and Healthcare down by 0.23% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were SBI up by 5.50%, Tata Motors up by 4.05%, Hero MotoCorp up by 2.09%, NTPC up by 1.75% and Reliance Industries up by 1.55%. On the flip side, ICICI Bank down by 1.63%, Coal India down by 1.07%, HDFC Bank down by 1.06%, Sesa Sterlite down by 0.79% and Tata Power down by 0.68% were the top losers. (Provisional)

Meanwhile, industry chamber Assocham has suggested that government must utilize the opportunity to integrate proposed Foreign Trade Policy with the 'Make in India' programme, which would help in realizing its greater objective of making India a low cost global manufacturing hub.

The apex trade association has suggested the country to prioritize its manufacturing focus on key sectors where India already has existing strengths like Auto, Textiles, Pharma, bio-tech etc and deepen its capabilities in creating strong global market share and mind share. It also insisted India to mandatorily provide incentives for Domestic Value Addition (DVA), which is the proportion of exports truly produced in India.

While, lauding Textile Industry’s efforts in nearly doubling its DVA component from 8% in 1994-95 to 18% as of 2013-14, it pointed that electrical components and machinery exports were the industries which require adequate support  so as to dovetail these sectors strongly into the 'Make in India' theme.

It noted that electronics was another key segment where India has a good talent base, domestic demand or consumption and necessary environment to create a strong manufacturing base.

On GST front, the trade apex industry body opined that the government should adopt a dual model of GST one for the Centre (CGST) and one for the state (SGST) to grant autonomy to both states and the Centre, thereby creating a harmonious model acceptable to states and centre.

India VIX, a gauge for markets short term expectation of volatility rose 2.68% at 14.34 from its previous close of 13.97 on Friday. (Provisional)

The CNX Nifty ended at 8430.75, up by 40.85 points or 0.49% after trading in a range of 8349.10 and 8438.10. There were 30 stocks advancing against 20 stocks declining on the index. (Provisional)

The top gainers on Nifty were SBI up by 5.48%, Bank of Baroda up by 4.21%, Tata Motors up by 4.08%, Asian Paints up by 2.94% and PNB up by 2.74%. On the flip side, Jindal Steel & Power down by 2.62%, Ultratech Cement down by 2.09%, DLF down by 1.83%, NMDC down by 1.68% and Tech Mahindra down by 1.59% were the top losers. (Provisional)

European Markets were trading in the red; France’s CAC was down by 0.66%, Germany’s DAX was down by 0.57% and UK’s FTSE 100 was down by 0.43%.

Asian markets ended mostly in red on Monday, as Japan's economy unexpectedly fell into recession and Hong Kong shares slid as a trading link with Shanghai started. Japan’s economy unexpectedly slipped into recession in the third quarter, setting the stage for Prime Minister Shinzo Abe to delay an unpopular sales tax hike and call a snap election two years before he had to go to the polls. Gross domestic product (GDP) shrank by an annualized 1.6 percent in July-September, after plunging 7.3 percent in the second quarter following a rise in the national sales tax, which clobbered consumer spending. The recession comes nearly two years after Abe returned to power promising to revive the economy with his ‘Abenomics’ mix of massive monetary stimulus, spending and reforms, and is unwelcome news for an already shaky global economy. The world’s third-largest economy had been forecast to rebound by 2.1 percent, but consumption and exports remained weak, saddling companies with huge inventories to work off. Hong Kong Unemployment Rate remained unchanged at a seasonally adjusted 3.3%, compared to the preceding month. Thai GDP rose to a seasonally adjusted 0.6%, from 0.4% in the preceding month.