Post Session: Quick Review

Indian markets could not get much relief from their last session’s brutal sell-off and the major averages showed a choppy trade throughout the day, finally resulting in a modestly higher closing. Though, there was modest gains but the traders lacked confidence to place bet and all the recovery attempts were quickly sold out by the cautious investors ahead of the key macro data of CPI inflation and Industrial production, slated to be announced after the market hours.

On the global front, following the gains in the US markets, the Asian markets ended mostly in green though the trade remained muted. The European markets fell amid concern that Greece’s efforts to renegotiate its debt and stay in the single currency, are failing. Earlier, on Thursday the International Monetary Fund said that its team negotiating with Greece left Brussels after failing to make progress on a debt deal.

Back home, the only saving grace for markets was that they managed a positive close on the final day of the week, otherwise at no point of time they looked confident, fearing further fall on continuous fund outflow from foreign investors and Nifty ended below the crucial 8000 level. Traders went for some bottom fishing in the blue chip stocks but it was the banking stocks that aided the last hour recovery in the markets after Finance Minister Arun Jaitley coming from his meeting with the heads of PSU private banks, said that he has discussed road map for reducing stress in balance sheets with regards to NPAs. Banks have put up a strong case for additional capital requirement. He also said that banks would cut rates further over the next few months. The whole IT pack came into pressure on reports that the US government has opened an investigation against two of the biggest Indian outsourcing companies for possible violations of H1-B visa rules. The Department of Labour reportedly opened the investigation against Tata Consultancy Services and Infosys for 'possible violations' of rules for visas for foreign technology workers under contracts they held with an electric utility Southern California Edison. Traders were also eyeing interaction of Reliance Industries chairman Mukesh Ambani at its 41st AGM, who has said that the company is planning to invest over Rs 2 lakh crore over the next one year. Regarding future plans for Reliance Jio, he has said that Reliance Jio Infocomm will commercially launch its much awaited high-speed broadband services around December. He further added that the company is prioritising connectivity of Reliance Jio in rural areas, to cover 80% of country’s population by year-end. Reliance Jio would connect over 10 lakh homes over next 3 years. He added that country would see a host of 4G-LTE handsets at sub-Rs 4000 price-points by the year-end to complement Jio's December commercial launch.

The BSE Sensex ended at 26432.07, up by 61.09 points or 0.23% after trading in a range of 26307.07 and 26489.58. There were 17 stocks on gainers side against 13 stocks on the decliners side on the index.(Provisional)

The broader indices though ended mixed; the BSE Mid cap index was up by 0.40%, while Small cap index was down by 0.36%.(Provisional)

The gaining sectoral indices on the BSE were Bankex up by 1.08%, Power up by 0.43%, Oil & Gas up by 0.32%, Auto up by 0.27%, PSU up by 0.08%, while IT down by 1.50%, Metal down by 1.50%, Consumer Durables down by 1.12%, TECK down by 1.00%, Capital Goods down by 0.37% were the major losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Power up by 3.71%, Bajaj Auto up by 3.46%, ICICI Bank up by 2.44%, HDFC up by 2.16% and BHEL up by 1.99%. On the flip side, Hindalco down by 2.35%, Vedanta down by 2.34%, Wipro down by 1.92%, Tata Motors down by 1.87% and TCS down by 1.87% were the top losers.(Provisional)

Meanwhile, in the latest global 'assessment study' of the regulatory framework for financial market infrastructures across the world, India's financial market regulatory framework has received the top-most ratings from the global bodies of banking and capital market regulators, with the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) being rated better than their peers in China and the US.

In the assessment study only six countries, including India, have got the highest score of '4' for all eight parameters on a scale of one to four. The other five countries are Australia, Brazil, Hong Kong, Japan and Singapore. The 'Rating Level 4' for India means that the financial market regulators - the RBI and Sebi - have all regulatory measures 'fully in force'.

The annual assessment studies the implementation status of the international Principles for Financial Market Infrastructure (PFMIs) in various countries. The study showed that capital market watchdog Sebi and the RBI have put in place all necessary regulations for the PFMIs, while they also 'have a legal capacity to implement the responsibilities' outlined under these global standards.

The assessment took into account regulations for central counter-parties, trade repositories, payment systems, central securities depositories and securities settlement systems and India scored top ratings on all these counts. The next update of the first-level assessments will be conducted next year.

The CNX Nifty ended at 7991.65, up by 26.30 points or 0.33% after trading in a range of 7940.30 and 7995.60. 24 stocks advanced against 25 declines on the index, while one stock remained unchanged.(Provisional)

The top gainers on Nifty were Tata Power up by 4.21%, Bajaj Auto up by 3.09%, ICICI Bank up by 2.65%, Kotak Mahindra Bank up by 2.53% and Idea Cellular up by 2.30%. On the flip side, NMDC down by 2.33%, Vedanta down by 2.29%, Hindalco down by 2.27%, TCS down by 2.00% and Tata Motors down by 1.69% were the top losers.(Provisional)

The European markets were showing cautious undertone, Germany’s DAX was marginally up 3.67 points or 0.03% to 11,336.45, while UK’s FTSE 100 lost 21.9 points or 0.32% to 6,824.84 and France’s CAC was down by 4.17 points or 0.08% to 4,967.20.

Asian markets closed mostly in green on Friday, following a second successive rally on Wall Street. The People’s Bank of China (PBOC) stated that China will continue to push for the yuan’s inclusion in the International Monetary Fund’s currency basket, known as Special Drawing Rights (SDRs). China will also encourage foreign central banks to include yuan assets in their forex reserves. China’s fiscal expenditure rose 2.6 percent to 1.31 trillion yuan ($211 billion) in May year on year, easing from a 33.2 percent jump in April. The Finance Ministry stated that central government spending rose 8.6 percent from a year ago, slowing from 19.7 percent in April, while local government expenditure grew 1.2 percent, a sharp drop from 36.7 percent in April. Indonesia’s Finance Minister stated that the country will halve lending rates for some small businesses, as part of efforts to revive growth in Southeast Asia’s biggest economy. Bambang Brodjonegoro confirmed reports that lending rates for small businesses would be cut to 12 percent from 24 percent. Japan’s industrial production rose to a seasonally adjusted 1.2%, from 1.0% in the preceding month while Japanese tertiary industry activity index fell to a seasonally adjusted -0.2%, from -1.0% in the preceding month.