Post Session: Quick Review

Indian equity benchmarks indices displayed a lackluster trade oscillating between green and red terrain but ended the session on negative note. Though the benchmarks made a gap-up opening it erased gains and entered into red territory in morning deals on account of profit booking after a tremendous rally in previous session. The downside was however limited since Indian rupee continued upward movement on September 7as well and opened up against the US dollar as banks and exporters took to selling of American currency. The American currency dropped after the economic data released showed that the chances of US Federal Reserve going for a rate hike is dim. Some support also came in from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs 1,439 crore on September 06, 2016. Investors took note of reports that the government has begun the groundwork for creation of a secretariat to cater to the Goods and Services Tax (GST) Council, which will be constituted after Presidential assent for the Constitution Amendment Bill enabling implementation of the proposed tax. The government wants the institutional arrangements ready so that the GST Council can start deliberating the nuances of the law quickly. Finance Minister Arun Jaitley at the Economist India Summit hailed the Goods and Services Tax (GST) as a long-standing reform in indirect taxation. He also stressed that the GST will stabilize tax rates and even bring the rates down. The minister also added that the government has set a stiff target, running against time to implement GST.

On the global front, Asian markets were mostly lower; with Japan’s stock market leading declines amid a soaring yen. The Bank of Japan’s nine board members are split over how to stimulate the economy, or whether to stimulate it at all, as they prepare for a review of the central bank’s ultra-loose monetary policy. European stock markets were mostly in green, with investors cautiously testing the waters one day ahead of the European Central Bank’s policy meeting.

Back home, hectic activity was witnessed in stocks related to agriculture and irrigation on report that India’s apex rural-development bank, National Bank for Agriculture and Rural Development (NABARD) will manage a Rs. 77,000 crore corpus as part of a Central government push to complete 99 unfinished irrigation projects across the country by 2019 and bring water to 76.03 lakh hectares. Some activity was witnessed in PSU sector stocks after NITI Aayog made a case for strategic sale in as many as 44 Public Sector Undertakings (PSUs) where the government can reduce its holding below 50 percent by selling its stake.

The BSE Sensex ended at 28925.78, down by 52.24 points or 0.18% after trading in a range of 28911.31 and 29067.84. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.03%, while Small cap index was up by 0.45%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 1.33%, PSU up by 1.26%, Realty up by 1.19%, Metal up by 1.15% and Power up by 0.72%, while Consumer Durables down by 1.19%, IT down by 0.50%, TECK down by 0.43% and Oil & Gas down by 0.29% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were SBI up by 2.81%, ICICI Bank up by 2.37%, ONGC up by 2.36%, Tata Steel up by 1.21% and Infosys up by 1.12%. (Provisional)

On the flip side, HDFC down by 2.00%, Asian Paints down by 1.93%, Axis Bank down by 1.86%, Power Grid Corporation down by 1.34% and NTPC down by 1.19% were the top losers. (Provisional)

Meanwhile, government’s think tanks NITI Aayog, which recently submitted first list of Public Sector Undertaking (PSUs) for closure or sell off to the government is now preparing a second list on PSUs disinvestment. Niti Aayog Vice Chairman Arvind Panagariya has said that they are preparing a second list on disinvestment and have recommended a lot of names.

Government kick-started the disinvestment programme for the current fiscal with 11.36 per cent stake sale in National Hydroelectric Power Corporation (NHPC) and raised Rs 2,700 crore through the process. Niti Aayog has lined up as many as 15 PSUs, including Coal India, NMDC, MOIL, MMTC, National Fertilisers, NALCO and Bharat Electronics, for stake sale in current fiscal.

In the first list prepared by NITI Aayog, there were two separate lists of sick and loss-making PSUs- one comprising those that can be closed down and the other of those where government can divest its stake. The government aims to collect Rs. 56,500 crore through disinvestment in PSUs this fiscal. Of this Rs. 36,000 crore is estimated to come from minority stake sale in PSUs and the remaining Rs. 20,500 crore from strategic sale in both profit and loss-making companies.

The CNX Nifty ended at 8923.95, down by 19.05 points or 0.21% after trading in a range of 8913.35 and 8968.70. There were 21 stocks advancing against 29 stocks declining, while 1 stock remained unchanged on the index. (Provisional)

The top gainers on Nifty were BHEL up by 15.74%, Bank of Baroda up by 3.30%, ONGC up by 2.98%, SBI up by 2.65% and ICICI Bank up by 1.94%. (Provisional)

On the flip side, Yes Bank down by 2.42%, Asian Paints down by 2.13%, GAIL India down by 2.08%, Tata Power down by 2.04% and Tech Mahindra down by 1.90% were the top losers. (Provisional)

The European markets were trading mostly in green; Germany’s DAX increased 24.1 points or 0.23% to 10,711.24 and France’s CAC increased 3.68 points or 0.08% to 4,533.64, while UK’s FTSE 100 decreased 1.31 points or 0.02% to 6,824.74.

The Asian markets made mostly a lower closing on Wednesday, as weaker than expected US ISM services data lowered the chances the Federal Reserve will hike rates this month. Japanese share market led declines amid a soaring yen, which hit its highest level against the dollar in more than a week after the release of weak US data and on doubts over BOJ policy easing. Meanwhile, Chinese stocks ended marginally higher after China's State Council pledged to strengthen efforts to lift domestic demand with a more proactive fiscal policy.