Post Session: Quick Review

Final session of F&O expiry turned out to be one with modest gains. Local equity markets extended their winning streak on continued hopes the central bank would follow other countries such as Japan and China in easing monetary policy to boost economic growth. Notably, these gains also came ahead of the release of Q2 GDP data on Friday, which is estimated to have grown at 5% or even lower in the second quarter of 2014-15, sharply lower than the 5.7% witnessed in the first quarter. By close of trade, both Sensex and Nifty concluded above psychologically crucial 28,400 and 8,450 levels respectively. Meanwhile, broader indices outperforming larger counterparts went home with gains of over half a percent.

On the global front, Asian stocks hit a month high on Thursday as investors bet that more central bank stimulus in China and Europe would shore up the global economy, while oil prices tumbled to a four year low as the hope for output cuts by organization of Petroleum Exporting Countries (OPEC) faded. Additionally, European shares inched up in early trade on Thursday, adding to their recent sharp rally that has been fuelled by expectations of further stimulus measures from the European Central Bank (ECB). Closer home, most of the sectoral indices on BSE concluded into positive territory, nevertheless top gainers were stocks from IT, Power and TECK counters. On the flip side, stocks from Consumer Durables, Realty and Metal counters were the top losers of the session.

In stock-specific activity, Aviation stocks, like Jet Airways, Spicejet flew higher on hopes of cut in jet fuel prices after oil prices dipped to four-year lows as some reports suggested that OPEC’s production cut was unlikely anytime soon. Additionally, Infra stocks also gained ground after Reserve Bank of India (RBI) eased norms to fund low-cost housing by permitting banks to extend loans against long-term infrastructure bonds, however, barred lenders from providing loans against long-term infrastructure bonds issued by other banks.

The overall market breadth on BSE concluded in the favour of advances, which outnumbered declines in the ratio of 1105:904; while 23 shares remained unchanged (Provisional)

Finally, the BSE Sensex gained 52.72 points or 0.19%, to 28438.91, after touching a high and a low of 28498.30 and 28307.58 respectively (Provisional)

Broader indices outperformed larger counterparts. The BSE Mid cap index was up by 0.51%, while the Small cap index was up by 0.55%. (Provisional)

On the BSE Sectoral front IT up by 1.08%, Power up by 0.78%, TECK up by 0.73%, Healthcare up by 0.64% and Auto up by 0.35% were the top gainers, while Consumer Durables down by 0.99%, Realty down by 0.30%, Metal down by 0.18%, Capital Goods down by 0.18% and Oil & Gas down by 0.02% were the top losers in the space. (Provisional)

The top gainers on the Sensex were BHEL up by 4.35%, Hindustan Unilever up by 2.71%, Tata Power up by 2.26%, Hindalco up by 2.07% and Infosys up by 1.61%. On the flip side, Bharti Airtel down by 1.91%, Tata Steel down by 1.12%, Sesa Sterlite down by 1.08%, ONGC down by 0.91% and Larsen & Toubro down by 0.89% were the top losers in the index. (Provisional)

Meanwhile, exhibiting some confidence in the economy, Minister of State for Finance Jayant Sinha underscored that India had the potential to become a $5 trillion economy in the next 10 years, if it grows at an average 7-8%.

Presently, India economy accounts for $2 trillion and has grown at 6-7% CAGR in the last 10 years. He emphasized that the country needs to sustain a growth rate of 7-8% to have at least a chance of offering jobs to 10 million young people.

Further, the government is considering amendment to various labour laws in order to bring them in tune with better enforcement of labour laws, streamlining inspection mechanism, more coverage of labour rights and with emerging needs of the economy which include facilitating investments. Union minister for Labour and Employment Bandaru Dattatreya has stated that the Ministry is actively pondering amendments in the Child Labour (Regulation and Abolition) Act 1986, Factories Act 1948, Mines Act 1952, Minimum Wages Act 1948, the Apprenticeship Act 1961 and Labour Laws Act 1988.

Bandaru Dattatreya stressed that proposal to amend the various labour laws is formulated on the basis of consultations held with union ministries, state governments, employers' and employees organizations.

Giving details of amendment in labour laws, Labour and Employment Minister asserted that amendment in the Child Labour (Regulation and Abolition) Act 1986 proposes linking the definition of child under this Act to Right to Education Act 2009, complete prohibition of employment of children below 14 years, prohibition of working of adolescents in mines, explosives and other hazardous occupations under Factories Act 1948 and more strict punishment to offenders.

Further, elaborating on the proposed amendments in the Factories Act 1948, Bandaru Dattatreya emphasized that there are proposals to amend Section 66 of the Act relating to permission for employment of women for night work with adequate safeguards, amendment of sections 64 and 65 of the Act to enhance limit of overtime hours from the present limit of 50 hours per quarter to 100 hours per quarter amongst others. Another proposal is to empower the central government to make rules under the Factories Act on some important provisions.

The CNX Nifty added 18.45 points or 0.22% to end at 8,494.20 after touching a high and low of 8,506.75 and 8,456.35 respectively. (Provisional)

The top gainers on Nifty were BHEL up by 5.86%, PNB up by 3.47%, Hindustan Unilever up by 2.76%, Tata Power Company up by 2.09% and HCL Technologies up by 1.93%. On the flip side, DLF down by 3.06%, Bharti Airtel down by 1.69%, Grasim Industries down by 1.59%, Ambuja Cements down by 1.33% and Tata Steel down by 1.23% were the top losers. (Provisional)

Most of European markets were trading in green, Germany’s DAX was up by 0.68% and United Kingdom’s FTSE 100 was up by 0.13%, while France’s CAC 40 was down by 0.20%.

Asian markets ended mixed on Thursday, the Chinese Shanghai Composite gained amid signs the Chinese government is loosening monetary policy further after cutting interest rates for the first time since 2012. China’s central bank refrained from selling repurchase agreements for the first time since July, loosening monetary policy further as a report showed industrial companies’ profits fell by the most in two years. The industrial profits in China fell 2.1 percent from a year earlier in October, the biggest decline since August 2012. However, the gross domestic product is forecast to increase 7.4 percent in 2014, down from an average 10.2 percent in the past decade.

The Japanese shares retreated, as drop in oil weighed on energy companies as well as the dollar fell against the yen for a third day, the longest streak in a month, after data raised concern the US economic recovery has plateaued. The yen rose versus most of its 16 major peers as trading patterns signaled its recent declines were excessive amid speculation traders are reducing bearish positions into month-end.