Post Session: Quick Review

Indian markets made a mixed closing with S&P Sensex managing to extend the gaining streak for the third straight session despite paring early gains  on Thursday, supported by positive global sentiments and some positive economic data, though Nifty ending modestly in red. The August core sector grew at 2.6 percent versus 1.1 percent in July led by a 5.8 percent increase in petroleum refinery growth. Also, the fiscal deficit in the first five months of the current fiscal ended August stood at Rs 3.69 lakh crore or 66.5 per cent, of Budget estimates for 2015-16, compared to the deficit of 74.9 per cent of the corresponding period of the previous year. Fiscal deficit for the entire current fiscal has been pegged at Rs 5.55 lakh crore.

On the global front too, the cheers continued unabated with US markets rallying, while the Asian markets following the footsteps after reports showed the slowdown in Chinese manufacturing activity stabilizing. The nation’s manufacturing output climbed to 52.3 in September from 51.7.  The Japanese index climbed around 2 percent after capping its first three-month slump in six quarters, even as the Tankan gauge of large manufacturers fell to 12. The European markets too made a strong start posting their first back-to-back gains in two weeks, following the worst quarter since 2011.

Back home, markets turned choppy in the very first half of the trade and some of the rate sensitive counters that had been moving higher for last two sessions on RBI’s unexpected cut of 50 basis points in key policy rates, succumbed to profit taking, with realty taking the sharpest plunge along with banks. There was some disappointment after Nikkei/Markit survey stated that India's manufacturing sector output slipped to a seven-month low of 51.2 in September, as order flow turned sluggish amid difficult economic climate. There was buzz in the auto pack with auto sales numbers for the month of September starting to trickle in. Hinduja Group flagship company Ashok Leyland reported a 60.81 per cent increase in total sales at 14,771 units in September as against 9,185 units for the same month last year. Maruti Suzuki India, country's largest carmaker, reported 3.7 per cent rise in total sales in September at 1,13,759 units as against 1,09,742 units sold in the same month last year.

IT pack majorly overlooked the HCL Technologies, India's fourth-largest information technology services company’s  forecast of a tepid revenue growth for its July-September quarter as it weathers the impact of fluctuating currencies, a client specific issue and uneven revenue growth. Infosys ended up by over a percent, TCS gained 2%, Tech Mahindra and Wipro too was up by over half a percent, however HCL Tech ended down by over 12%.

The BSE Sensex ended at 26227.09, up by 72.26 points or 0.28% after trading in a range of 26168.71 and 26431.80. There were 18 stocks in green against 12 stocks in red on the index. (Provisional)

The broader indices managed a positive close; the BSE Mid cap index was up by 0.17%, while Small cap index ended higher by 0.19%. (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.92%, Capital Goods up by 0.73%, TECK up by 0.35%, FMCG up by 0.28%, Oil & Gas up by 0.09%, while Realty down by 1.81%, Power down by 0.44%, Bankex down by 0.39%, Auto down by 0.37%, Metal down by 0.17% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Lupin up by 3.38%, Sun Pharma Inds. up by 2.42%, TCS up by 2.02%, Dr. Reddys Lab up by 1.81% and Hero MotoCorp up by 1.64%. On the flip side, BHEL down by 2.97%, GAIL India down by 2.33%, Maruti Suzuki down by 2.27%, Vedanta down by 1.88% and ICICI Bank down by 1.04% were the top losers. (Provisional)

Meanwhile, Reserve Bank of India (RBI) governor Raghuram Rajan, acknowledging Prime Minister Narendra Modi’s initiative to market India as an investment destination has described him as being “ahead of us” and said that his visits abroad need to be backed up with “action on the ground” to reinforce the “good impression that is created”.  He said that “I think the world view of India in the aftermath of Modi’s foreign visits is changing positively.

Rajan said that we have to come up to speed in a number of dimensions. He added that it is known abroad that there are some issues that they have to deal with, but it should not be worse than their expectations. For example, if the idea of India as a strong economy is sold outside and they come in, and they don't find the ease of doing business, the permissions, etc people aren't (happy).”

The RBI chief also praised the government for effective food management, which he said helped keep food inflation in check despite two consecutive years of drought. Invoking PM Modi's advice to India Inc, Dr Rajan said investors must take a plunge with a 'hope and a prayer' and not wait for government actions. Rajan said he will be “accommodative” if data permits, signaling the possibility of further easing in interest rates.

The governor further said the relationship between the RBI and the government has been strong, but added that he did not always agree with the finance minister's point of view, adding that in a sense we have to be a gatekeeper and sometimes say no!

The CNX Nifty ended at 7947.10, down by 1.80 points or 0.02% after trading in a range of 7930.65 and 8008.25. There were 25 stocks on gainers side against equal numbers of stocks losers side on the index. (Provisional)

The top gainers on Nifty were Ultratech Cement up by 3.84%, Lupin up by 3.20%, Zee Entertainment up by 2.32%, Sun Pharma Inds. up by 2.29% and Adani Ports &Special up by 2.12%. On the flip side, HCL Tech. down by 12.35%, BHEL down by 3.09%, GAIL India down by 2.75%, Maruti Suzuki down by 2.25% and Vedanta down by 1.53% were the top losers. (Provisional)

The Asian equity markets ended in green on Thursday, as global equities found breathing space after their worst quarter in four years. Stock markets in China and Hong Kong were closed on account of National Day. China’s Premier Li Keqiang stated that the country will be able to achieve its main economic targets this year, despite increased downward pressure on the economy. He added that the government aims for economic growth of around 7 percent this year. The government has intervened heavily to support the stock market and the yuan currency in a bid to soothe market jitters. Conditions in China’s manufacturing sector deteriorated at the sharpest rate since March 2009, while the country’s services sector barely managed to stay afloat. The monthly Caixin PMI reading, which measures orders and output in the private sector and at small and medium enterprises declined and stood at 47.2 in September, down from 47.3 the previous month. China’s services sector is also seen as a key driver of the country’s growth, particularly with export-driven manufacturing struggling, and the Caixin PMI figure for the sector -- while remaining in positive territory at 50.5 -- represented a sharp fall from 51.5 in August, with new orders growing at their slowest pace for more than a year. South Korean Industrial Production rose to a seasonally adjusted annual rate of 0.3%, from -3.2% in the preceding month whose figure was revised up from -3.3%. Indonesian Inflation fell to a seasonally adjusted 6.83%, from 7.18% in the preceding month.