Post Session: Quick Review

The Indian market continued their consolidation mood and ended with a negative bias for third consecutive session on Wednesday. The day was once again marked by choppy trade and benchmarks making several attempts to break in green, although they managed a couple of time but simultaneous profit taking dragged them back in red. In the final moment selling aggravated and benchmarks lost further ground. The weakness in the markets was visible from the very beginning amid sluggish global cues and as the IT bellwether TCS posted a largely muted set of second quarter earnings post market hours on Tuesday. TCS second-quarter revenue missed street expectation, raising concerns that the company may not be able to continue its trend. For the quarter ended September 30, TCS' revenue grew 3% sequentially, or 5.8% year-over-year.

Weak global cues too dampened the sentiments of the local markets, as after a negative close of the US markets overnight, the Asian markets too followed the trend and ended mostly in red terrain after Chinese factory-gate prices equaled their biggest slump since the global financial crisis. The Chinese market that looked bucking the trends once again on stimulus hopes, too fell in line. The country’s consumer inflation moderated and factory gate deflation extended a record stretch of declines. Food price inflation slowed to 2.7 percent from a year earlier, from 3.7 percent in August. The European markets followed the decline in Asian markets, with the Chinese economy continue to weigh on markets. Meanwhile, France's consumer prices fell 0.4 percent in September from the month before.

Back home, the markets hardly showed any signs of stablising and kept on moving in and out of the red throughout the session. In late morning session, benchmarks recouped losses after falling in opening trade reacting to wholesale inflation numbers. The WPI inflation data released during the day indicated a mild uptick of 0.51 per cent in the September WPI inflations, which stood at -4.54 per cent against -4.95 per cent in August. Though, traders overlooked a private survey where India has been ranked as the most attractive investment destination in the world for the next three years.  While, the IT pack was again one of the biggest laggard of the day, dragged down by TCS and Infosys, the metal pack too ended in red on Chinese concern, after Consumer inflation in China cooled more than expected. Reflecting growing strains on Chinese companies from persistently weak demand and overcapacity, manufacturers continued to cut selling prices to win business. Back on street, second line shares fared better than their large cap counterparts. On the other hand the strong IIP numbers continued impacting the consumer durable sector which attracted buying attention for the second consecutive day and ended as the biggest gainers. In non sectoral gauges, Fertiliser stocks surged after the Cabinet gave its approval for Rs 6806.66 crore fertilizer subsidy payment with the two consortiums of Public Sector Banks led by SBI and PNB. FACT surged by around 7%, Chambal Fertiliser and Coromandel Fertilisers gained over a percent each.

The BSE Sensex ended at 26789.01, down by 57.52 points or 0.21% after trading in a range of 26713.28 and 26869.08. There were 15 stocks in green against 15 stocks in red on the index. (Provisional)

The broader indices made a mixed closing; the BSE Mid cap index was down by 0.28%, while Small cap index gained 0.37%. (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.30%, Oil & Gas up by 0.09%, while IT down by 1.35%, TECK down by 1.13%, Auto down by 0.69%, Power down by 0.68%, PSU down by 0.49% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindalco up by 2.85%, Lupin up by 1.82%, HDFC up by 1.19%, Reliance Industries up by 1.01% and Axis Bank up by 0.98%. On the flip side, TCS down by 4.50%, Tata Motors down by 2.34%, Hindustan Unilever down by 2.20%, BHEL down by 1.89% and Coal India down by 1.89% were the top losers. (Provisional)

Meanwhile, encouraged by the almost three years high industrial production data in August, the Finance Ministry has said that reform measures would continue in order to boost economic activity. Economic Affairs Secretary Shaktikanta Das said that 'Improved IIP numbers are encouraging. Reform measures will continue. GST and Bankruptcy law are on top of reform agenda.'

The finance ministry has said that latest data for Index of Industrial Production (IIP) and Consumer Price Index (CPI)-New Series points at steady improvement in the Indian economy. It said that Industrial growth data is a reflection of recovery in the economy, predominantly led by domestic demand as the external sector environment continues to be sluggish.

Industrial output rose to nearly three-year high of 6.4 percent in August on improvement in manufacturing and capital goods, the more than 6% growth in IIP came after 34 months. Cumulative IIP growth in the first five months in 2015-16 at 4.1% was better than the growth of 3% in the same period last year.

The manufacturing sector grew at 6.9% in August spearheading the industrial production growth. The double digit growth in capital goods of 21.8% and consumer durables of 17% in August 2015 was helped by a favourable base effect, implying improvement in investment and consumption demand.

The CNX Nifty ended at 8109.55, down by 22.15 points or 0.27% after trading in a range of 8096.35 and 8139.30. There were 20 stocks on gainers side against 29 stocks on losers side on the index. (Provisional)

The top gainers on Nifty were Hindalco up by 2.61%, Lupin up by 1.81%, ACC up by 1.76%, HDFC up by 1.33% and Reliance Industries up by 1.05%. On the flip side, TCS down by 4.49%, Cairn India down by 3.64%, Zee Entertainment down by 2.85%, Hindustan Unilever down by 2.33% and Tata Motors down by 2.33% were the top losers. (Provisional)

European markets were trading in red; Germany’s DAX lost 95.22 points or 0.95% to 9,937.60, UK’s FTSE 100 declined by 45.68 points or 0.72% to 6,296.60 and France’s CAC was lower by 29.62 points or 0.64% to 4,613.76.

The Asian equity markets ended in red on Wednesday, after disappointing economic data from China stoked worries about whether the world’s second largest economy can meet its year-end growth target. Malaysia and Indonesia stock exchange were closed on account of national holiday. Indonesia’s central bank is expected to keep its benchmark policy rate unchanged at 7.50 percent on Thursday even though the rupiah recently strengthened and the inflation rate has declined. Bank Indonesia (BI) has held its key rate since making a 25 basis-point cut in February, despite the worst economic slowdown since 2009. The Indonesian government is set to announce yet another policy package to boost the economy, this time particularly aimed at solving employment problems.

Singaporean GDP fell to a seasonally adjusted 1.4%, from 1.8% in the preceding quarter. South Korean Unemployment Rate fell to a seasonally adjusted annual rate of 3.5%, from 3.6% in the preceding month. China’s auto market grew moderately in September as it reversed a three-month sales drop on annual basis - a positive sign that it could regain momentum in the fourth quarter following a cut in vehicle purchase tax effective from October 1. Deliveries of passenger cars and commercial vehicles rose 2.1 percent from a year earlier to 2.03 million units last month, the first time sales were above 2 million since March. Chinese PPI remained unchanged at an annual rate of -5.9% compared to the preceding month while Chinese CPI fell to an annual rate of 1.6%, from 2.0% in the preceding month.