Post Session: Quick Review

Today’s session of trade was characterized by volatility, with benchmarks oscillating between green and red due to profit-booking by funds and retail investors amid weak global cues. Market sentiment was also influenced by investors treading cautiously ahead of June IIP and retail inflation data for July scheduled to be released on Friday. Indian equity benchmarks which traded mostly in red in early deals added some strength hovering near the highest point in late noon deals before paring entire gains and finally ended in green. The market had started on a negative note and managed to trade slightly higher receiving some minor support from stock exchange report that Foreign Institutional Investors were net buyers in equities worth Rs 413 crore (provisional) on Wednesday. Investors took note of media report that the government is working out a plan to optimally utilize land banks of state run companies as part of its bigger ambition to monetize the assets of public sector enterprises. The government will look at all central public sector companies (CPSEs), including profit making firms, to assess if their existing resources can be utilized for spurring the economic growth. The government has budgeted Rs 56,500 crore of revenue from disinvestment, including Rs 20,500 crore from strategic sales in this fiscal. The government may offer the land available with these loss making enterprises to state governments, other CPSEs or public sector banks.

On the global front, Asian shares displayed mixed performance while European stocks are trading mostly in green but on caution note as a rise in crude oil inventory and expanding production in Saudi Arabia sent oil prices lower. China’s banking regulator cut the ratio of bad loans at commercial banks in the second quarter from preliminary data it released last month.

Back home, the street gained strength taking cues from regional counterparts. Volatility was seen in telecom stocks as the Department of Telecom suspended spectrum sharing, trading and liberalization activities till the provisional results of the upcoming spectrum auction are declared. The broking and non-banking financial companies stocks displayed mixed response with the cabinet approving amendments to the Foreign Exchange Management (Transfer or Issue of Security by the Person Resident Outside India) regulations on NBFCs to this effect. Some railway stocks gained after Minister of State for Railways Rajen Gohain stated that investment of over Rs 35,000 crore has been committed for various projects through public-private partnership in Railways. Some of the areas identified by Railway are building last mile connectivity for ports/mines/industrial clusters, setting up of manufacturing units for rolling stock, building Private Freight Terminals (PFT), procurement of wagons, private operation of containers trains and redevelopment of stations among others.

The BSE Sensex ended at 27870.09, up by 95.21 points or 0.34% after trading in a range of 27697.33 and 27902.39. There were 16 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.12%, while Small cap index was up by 0.03%. (Provisional)

The top gaining sectoral indices on the BSE were FMCG up by 1.51%, Oil & Gas up by 0.72%, Power up by 0.45%, IT up by 0.27% and TECK up by 0.14%, while Realty down by 0.94%, Metal down by 0.56%, Auto down by 0.47%, Consumer Durables down by 0.31% and PSU down by 0.30% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Lupin up by 2.20%, ITC up by 1.91%, ICICI Bank up by 1.46%, Asian Paints up by 1.18% and HDFC up by 1.09%. (Provisional)

On the flip side, Mahindra & Mahindra down by 2.06%, SBI down by 1.97%, Adani Ports & Special Economic Zone down by 1.80%, GAIL India down by 1.19% and Sun Pharma down by 0.91% were the top losers. (Provisional)

Meanwhile, India is moving to grab more opportunities and planning to push for delinking the investment from proposed Bilateral Trade and Investment Agreement (BTIA) with the European Union (EU). Commerce and Industry Minister Nirmala Sitharaman has said that India is negotiating a broad-based BTIA with the EU.
The BTIA negotiations began in 2007, so far sixteen rounds of negotiations has concluded. Recently three rounds of stocktaking meetings have been held. On other free trade agreement’s (FTAs), she said that India is negotiating a trade pact with Israel. The eighth round was held in Israel from 24-26 November 2013 wherein discussions took place on market access in goods, rules of origin, custom procedures and trade in services. In the subsequent inter-sessional consultations, the focus has been on a balanced outcome in both goods and services.

Sitharaman further stated that the full impact of the UK's decision to exit EU on India may take some time to unfold and the opportunities for India would depend on Great Britain's negotiations of terms of exit with the EU and their future negotiated trade relations. She added that a Joint Study Group (JSG) has been set up for considering the feasibility of entering into an FTA between India and Eurasian Economic Union (EaEU) comprising of five countries Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan. An FTA is also being negotiated with the Gulf Cooperation Council (GCC) which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates.

The CNX Nifty ended at 8594.05, up by 18.75 points or 0.22% after trading in a range of 8540.05 and 8601.15. There were 27 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Eicher Motors up by 2.81%, Idea Cellular up by 2.80%, BPCL up by 2.15%, Lupin up by 2.14% and ITC up by 2.03%. (Provisional)

On the flip side, Bank of Baroda down by 9.23%, Grasim Industries down by 6.51%, Zee Entertainment down by 2.63%, Bharti Infratel down by 2.52% and Hindalco down by 2.09% were the top losers. (Provisional)

The European markets were trading mostly in green; Germany’s DAX increased 56.25 points or 0.53% to 10,707.14, France’s CAC increased 29.13 points or 0.65% to 4,481.14, while UK’s FTSE 100 decreased 21.3 points or 0.31% to 6,845.12.

Asian equity markets showed mixed performance on Thursday after US shares were pulled down overnight by a sell-off in energy companies, due to lower oil prices and some disappointment over the New Zealand central bank’s interest rate cut. Investors awaited Friday’s US retail sales report to find out whether the Federal Reserve will raise interest rates this year. China is also set to release data on industrial production, retail sales and fixed asset investment on Friday, with investors waiting to see if recent stabilization will continue into the second half of the year. Regional volumes were affected by the closure of Japan’s stock exchange for a holiday. Chinese shares closed lower despite gains in the financial sector after a conglomerate increased its stake in New China Life Insurance. Meanwhile, Hong Kong shares climbed to an eight-month closing high, as a further decline in global bond yields increased the appeal of blue-chips listed in the city.