Post Session: Quick Review

Local equity markets hit a record high on Friday ahead of the release of economic data due later in the day and the Reserve Bank of India's monetary policy on Tuesday. Q2GDP FY15 data is expected to be released later during the day and 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. Nevertheless, it the hopes of surprise cut by RBI, which mainly aided the sentiment. Besides, four year low brent crude prices also buttressed investors’ sentiment. By close of trade, both Sensex and Nifty concluded above 28,650 and 8,550 levels respectively, with gains of around a percent. Meanwhile, broader indices also participating into the rally, went home with gains in the range of 0.25%-0.95%.

On the global front, Asian stocks advanced higher, driven by Japanese index gains tailing weaker yen after slowing inflation data spurred stimulus bets. On the data front, Japanese October consumer price inflation slowed to its lowest level in a year and South Korean industrial output unexpectedly declined in October. Meanwhile, European shares pausing after a five sessions’ winning streak, were reeling under pressure on Friday.

Closer home, amidst broad based buying activity, most of the sectoral indices concluded higher, with an exception from Technology and Information Technology stocks. On the flip side, stocks from banking, Auto and Public Sector Undertaking counters were the top performers of the session. Banking stocks rallied ahead of Reserve bank of India’s policy review on December in anticipation of a surprise rate cut by India’s apex bank. Meanwhile, shares of all three listed state-owned oil marketing companies- Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Indian Oil Corporation (IOC) gathered gains after brent oil fell more than $6 to $71.25 a barrel, its weakest since July 2010, after OPEC ministers meeting in Vienna left the group's output ceiling unchanged despite huge global oversupply, marking a major shift away from its long-standing policy of defending prices. Besides, Aviation stocks like Spicejet and Jet Airways surged following hopes that the recent fall in international crude oil prices would lead to oil marketing companies cutting aviation turbine fuel (also known as jet fuel) prices. The overall market breadth on BSE was in the favour of advances, which thumped declines in the ratio of 1205:806; while 17 shares remained unchanged (Provisional)

The BSE Sensex concluded at 28693.99, up by 255.08 points or 0.90% after trading in a range of 28483.99 and 28822.37. 19 stocks advanced against 11 stocks declining on the index. (Provisional)The broader indices too concluded into positive territory; the BSE Mid cap index was up by 0.97%, while Small cap index up by 0.26% (Provisional)

The top gainning sectoral indices on the BSE were Bankex up by 2.87%, Auto up by 1.95%, PSU up by 1.93%, Realty up by 1.65%, Consumer Durables up by 1.16% while, TECK down by 0.18%, IT down by 0.05% were only losers on BSE. (Provisional)

The top gainers on the Sensex were SBI up by 5.10%, Axis Bank up by 2.79%, Tata Steel up by 2.78%, Tata Motors up by 2.78% and Mahindra & Mahindra up by 2.53%. On the flip side, Sesa Sterlite down by 2.88%, Bharti Airtel down by 1.01%, ONGC down by 0.71%, Dr. Reddys Lab down by 0.44% and Bajaj Auto down by 0.35% were the top losers. (Provisional)

Meanwhile, with an aim to boost India’s MSME sector, Finance Ministry has set up a committee to examine financial architecture for the micro, small and medium enterprises (MSME) sector. The committee consists of 15 members including joint secretary of Institutional Finance and is headed by ICICI Bank Chairman K V Kamath.

The MSME sector accounts for around 45 per cent of the manufacturing output and 40 per cent in the country's total exports. The MSME sector also contributes 8 per cent to India's Gross Domestic Product (GDP) and provides jobs to 60 million people in different segments such as readymade garments, leather, gems and jewellery, light engineering and handicrafts.

In other development, the government has also proposed amendments to the MSME Act to enable time-bound exit and revival of loss-making units to help them consolidate their businesses and re-deploy capital in other greenfield ventures.  The government has sought comments from the states and UTs on proposed amendments to the MSME Act with a view to formulate a suitable policy for the sector. Revival clause of proposed act seeks early assistance to tide over difficult financial times and provide a framework where a viable MSME can seek standard as well as customised relief and concession to revive. On the other hand, time-bound exit clause to provide an easier and expeditious exit procedure for the benefit of promoters and guarantors through liquidation and change in management.

The CNX Nifty concluded at 8588.25, higher by 94.05 points or 1.11% after trading in a range of 8516.25 and 8617.00. 33 stocks advanced against 17 stocks declining on the index (Provisional)

The top gainers on Nifty were PNB up by 7.41%, Bank of Baroda up by 7.09%, Asian Paints up by 5.53%, SBI up by 5.08% and Indusind Bank up by 4.14%. On the flip side, Cairn India down by 4.44%, Sesa Sterlite down by 2.94%, Jindal Steel & Power down by 0.85%, Bharti Airtel down by 0.80% and ONGC down by 0.76% were the top losers. (Provisional)

European stocks were reeling under pressure; with CAC 40 trading lower by 0.53%; DAX declining by 0.47% and FTSE 100 losing 0.69%.

Asian markets ended mostly in green on Friday. Though there were no overnight cues from the US, the Japanese stock markets rose sharply, as a weaker yen boosted exporter shares. The investors also digested a flurry of economic data painting a mixed picture of the world's third-largest economy. The Japanese industrial output unexpectedly rose for the second straight month in October, the jobless rate fell and inflation fell a less than expected 4% in the month, while retail sales fell more than forecast and the annual core consumer inflation slowed for a third straight month due to falling oil prices, underscoring the challenges facing Prime Minister Shinzo Abe, as he tries to overcome deflation and boost growth in the world's third-largest economy. The Chinese market increased amid optimism lower crude prices will benefit transport companies and the central bank will continue to ease policy. The Chinese market was up on hopes that People’s Bank of China may trim reserve ratios after unexpectedly lowering lending rates last week.