Post Session: Quick Review

Indian equity benchmarks ended the sluggish day of trade with a cut of around half a percent as concerns about growth in China resurfaces. Sentiments remained dampened since morning as markets made a gap-down start as investors remained on sidelines ahead of Q3 earning season which is due to start tomorrow with TCS and IndusInd Bank unveiling the numbers. Traders also remained concerned with a private report stating that consumer sentiments in India fell for the fourth consecutive month in December to the lowest on record, as consumers reported a further deterioration in their personal finances amid rising inflation. Also, as the Commerce and Industry Minister Nirmala Sitharaman has said the devaluation of the Chinese currency is a 'worrying' development which will make Indian exports expensive and widen the trade deficit with the neighbouring nation.

However, markets gradually started recovering and regained their green terrain in second half a of trade as some solace came with a World Bank report stating that India will continue to be the bright spot of the global economy and is projected to grow at a robust 7.8 percent in fiscal 2016-17, more than a percentage point higher than China’s. But, the recovery proved short lived and markets lost around half a percent in dying hour of trade.

Weakness in global markets too dampened sentiments. All the regional counterparts ended to its lowest level in more than four years, as concern about China's growth outlook continued to fan a global sell-off. The Japanese market was shut for the day on account of Coming of Age (Adults') Day. However, European markets after a weak start regained momentum and entered into green terrain in early deals as investors opted to buy beaten down but fundamentally strong stocks.

Back home, foreign investors sold shares worth Rs. 1,236.95 crore last Friday, as per provisional data. Depreciation in Indian rupee too weighed down sentiments. The rupee was trading lower by 10 paise at 66.73 against the American currency at the time of equity markets closing at the Interbank Foreign Exchange market as the dollar strengthened overseas.

Metals and mining stocks played spoil sport for Indian markets, as India is getting ready to open up commercial coal mining to private companies and Coal Secretary Anil Swarup has stated that the government has identified mines it plans to auction, and is now finalising other terms such as eligibility criteria for companies to take part and whether and how to set up revenue sharing. However, shares of sugar companies were trading higher by up to 10% on the bourses, extending their Friday’s gain, in otherwise weak market, on report that the state advised price (SAP) of sugarcane in Uttar Pradesh is expected to be announced by the Akhilesh Yadav government in current week.

The NSE’s 50-share broadly followed index Nifty tumbled by around forty points to end below the psychological 7,600 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex declined by around one hundred and ten points to finish below its psychological 24,900 mark. Broader markets too witnessed selling pressure and ended the session with a cut of around half a percent.

The market breadth remained in the favour off decliners, as there were 1,241 shares on the gaining side against 1,556 shares on the losing side while 133 shares remain unchanged. (Provisional)

The BSE Sensex ended at 24825.04, down by 109.29 points or 0.44% after trading in a range of 24598.90 and 24961.88. There were 8 stocks advancing against 22 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.95%, while Small cap index down by 0.47%. (Provisional)

The few gaining sectoral indices on the BSE were Energy up by 0.70%, Utilities up by 0.28%, Realty up by 0.25% and Auto up by 0.10%, while Healthcare down by 1.37%, IT down by 1.10%, TECK down by 1.06%, Finance down by 0.89% and Bankex down by 0.79% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Reliance Industries up by 2.83%, Tata Motors up by 2.11%, Maruti Suzuki up by 1.81%, NTPC up by 1.36% and Axis Bank up by 1.12%. On the flip side, Wipro down by 3.42%, Mahindra & Mahindra down by 3.40%, Adani Ports &Special down by 3.25%, Dr. Reddys Lab down by 2.56% and BHEL down by 2.41% were the top losers.

Meanwhile, In order to review the on-ground implementation of some of the recent initiatives announced by the government for a taxpayer-friendly regime and to widen the base of taxpaying people, the Central Board of Direct Taxes (CBDT) will hold a high-level meeting with top income-tax department officials on January 13. The meeting will be chaired by the Chairman AK Jain of CBDT and will be attended by other members of the board who will interact with all the regional IT department heads via video conferencing. The inputs received by the CBDT after the meeting, will be used in preparation of the Union Budget.

According to the agenda proposed for the meeting, the top policy-making body of the Income Tax department will review the current status of revenue collection under the direct taxes category, prompt issuance of refunds up to Rs. 50,000 in non-scrutiny cases and progress on the new project of holding scrutiny of cases through email and internet-based communication. Besides, the meeting will assess the progress made by IT department in adding new assesses under the initiative to add one crore new taxpayers this fiscal.

Furthermore, the other subjects for review include the monitoring of pending legal cases and their effective disposal, implementation of recent orders for hike in monetary limits for appeal in the Income Tax Appellate Tribunal (ITAT) and High Courts, quick disposal of taxpayer grievances and status of scrutiny cases being worked out in the department.

The CNX Nifty ended at 7563.85, down by 37.50 points or 0.49% after trading in a range of 7494.35 and 7605.10. There were 17 stocks advancing against 33 stocks declining on the index. (Provisional)

The top gainers on Nifty were Vedanta up by 4.87%, Reliance Industries up by 2.52%, Tata Motors up by 1.94%, NTPC up by 1.47% and Maruti Suzuki up by 1.37%. On the flip side, Wipro down by 3.30%, Adani Ports &Special down by 3.04%, Mahindra & Mahindra down by 2.95%, Tech Mahindra down by 2.84% and BHEL down by 2.70% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 10.88 points or 0.18% to 5,923.32, France’s CAC rose 28.23 points or 0.65% to 4,361.99 and Germany’s DAX was up by 78.47 points or 0.8% to 9,927.81.

Asian equity markets ended in deep red on Monday after more weak data reignited concerns about China's economy following a global stocks rout at the start of the year. Chinese shares ended down at their lowest since September, following data released over the weekend showed producer prices fell for a record 46th month and inflation remained muted at about half the government's target for 2015 in December, stirring concerns over a slowing economy. China guided its yuan currency stronger for a second straight session, adding to market confusion over what the central bank is trying to achieve. Seoul shares fell sharply on foreign fund selling after oil prices came under fresh selling pressure and Samsung Electronics indicated it may be due for another profit drop in 2016. The Japanese market was closed in observance of Coming of Age Day.