Post Session: Quick Review

Indian equity benchmarks traded on choppy note and ended below neutral line, as lower earning guidance from IT majors and negative global crude oil prices dragged the markets down. There were lingering worries about a US rate hike on horizon which made investors skittish, as a rate hike could affect liquidity flow for emerging markets. The benchmarks made a cautious start and traded slightly in green in early deals with Prime Minister Narendra Modi’s assertion that results of the reforms undertaken by his government were visible and the country has transformed into ‘one of the most open economies’ in the world with a strong growth rate. The Prime Minister indicated that the economic growth of the country is strong and they are taking steps to keep the momentum going. Sentiments also got some support with report that India’s export during September 2016 has shown sign of revival, registering a growth of 4.62 per cent in dollar term to $22.88 billion as compared to $21.86 billion in September 2015. In rupee term the exports was higher by 5.45 percent to Rs 1, 52,699.59 crore in September 2016 compared to Rs 1, 44,814.06 crore during September, 2015. Weak opening in European shares triggered fresh selling in afternoon trade. Sentiments also remained down-beat on report that Foreign Institutional Investors (FIIs) continued selling in equity markets. Foreign institutional investors were net sellers in equities worth Rs 946 crore on October 15, as per provisional stock exchange data. Besides, a study claimed that as many as 550 jobs have disappeared every day in last four years and if this trend continues, employment would shrink by 7 million by 2050 in the country. The study by Delhi-based civil society group PRAHAR highlighted that farmers, petty retail vendors, contract labourers and construction workers are the most vulnerable sections facing never before livelihood threats in India today.

On the global front, Asian markets ended mostly in green, while the dollar held firm near seven-month high against a basket of major currencies after comments from Federal Reserve Chair Janet Yellen boosted long-dated US bond yields. China reported higher than-expected inflation in September for consumers and producers alike, with producer prices rising for the first time since January 2012. European markets were trading lower as investors remained cautious ahead of earnings, key data and a European Central Bank (ECB) meeting scheduled later this week.

Back home, selected banking stock traded with traction on report from the Reserve Bank of India (RBI) that Indian banks’ loans rose 10.4 percent in two weeks to September 30 from a year earlier. ICICI Bank ended in green as the Ruias of the Essar group signed a binding agreement with Russia’s Rosneft, United Capital Partners and Trafigura Group to sell 98% in its most priced asset, the 20 million tonnes per annum Vadinar refinery and Vadinar port in Gujarat. The proceeds of the sale will be used to repay loans of both foreign and local lenders, which was around Rs 88,000 crore. ICICI Bank has been closely working with various companies, including the Essar Group, to help them deleverage their stressed balance sheets.

The BSE Sensex ended at 27535.73, down by 137.87 points or 0.50% after trading in a range of 27488.30 and 27803.21. There were 7 stocks advancing against 23 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.89%, while Small cap index was down by 0.51%. (Provisional)

The sole gaining sectoral index on BSE was Bankex up by 0.47%, while Auto down by 2.04%, Capital Goods down by 1.28%, Metal down by 1.04%, Realty down by 0.99% and TECK down by 0.88% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were ICICI Bank up by 6.88%, NTPC up by 2.17%, ONGC up by 0.98%, Hindustan Unilever up by 0.74% and SBI up by 0.36%. (Provisional)

On the flip side, Mahindra & Mahindra down by 2.98%, Asian Paints down by 2.02%, Hero MotoCorp down by 2.02%, Bajaj Auto down by 1.81% and Reliance Industries down by 1.79% were the top losers. (Provisional)

Meanwhile, the Reserve Bank of India (RBI) in its latest weekly statistical supplement report showed that Indian banks' loans rose 10.4 percent in two weeks to September 30 from a year earlier, deposits rose 11.3 percent. Also, outstanding loans rose Rs 2.11 trillion ($31.56 billion) to 75.21 trillion rupees in the two weeks to September 30 from Rs 73.09 trillion as on September 16.

As per the data, non-food credit rose Rs 2.21 trillion to Rs 74.35 trillion from 72.14 trillion rupees, while food credit fell Rs 105.30 billion to Rs 854.60 billion from Rs 959.90 billion rupees. Bank deposits rose Rs 3.52 trillion to Rs 101.43 trillion in the two weeks to September 30 from Rs 97.91 trillion as on September 16.
As far as the foreign exchange reserves are concerned it stood at $367.647 billion at end of October 7. India's foreign currency assets, which are 93 percent of forex reserves, fell $4.317 billion to $342.394 billion reflecting the sharp fall in valuation of the forex held in pound sterling.

The CNX Nifty ended at 8524.90, down by 58.50 points or 0.68% after trading in a range of 8506.15 and 8615.40. There were 7 stocks advancing against 44 stocks declining on the index. (Provisional)

The top gainers on Nifty were ICICI Bank up by 7.20%, NTPC up by 1.76%, Hindustan Unilever up by 0.78%, ONGC up by 0.70% and SBI up by 0.36%. (Provisional)
On the flip side, Zee Entertainment down by 5.81%, Idea Cellular down by 3.35%, Bosch down by 3.09%, Ambuja Cement down by 3.04% and Mahindra & Mahindra down by 3.03% were the top losers. (Provisional)

The European markets were trading in red; UK’s FTSE 100 decreased 60.32 points or 0.86% to 6,953.23, Germany’s DAX decreased 67.03 points or 0.63% to 10,513.35 and France’s CAC decreased 27.32 points or 0.61% to 4,443.60.

Asian stocks ended mostly in green on Monday as a weakening yen aided market sentiment. Underlying sentiment remained somewhat cautious after global bond yields rose in the wake of comments from Federal Reserve Chair Janet Yellen on the economy. In a speech in Boston on Friday, Yellen offered an argument for running the US economy hot for a period to ensure moribund growth doesn't become an entrenched feature of the business landscape. Chinese shares fell the most in three weeks after a sudden bout of afternoon selling in dollar-denominated B shares amid weakness in the yuan, which hit a fresh six-year low against the greenback. Hong Kong shares drifted near 1-1/2-month lows, as a cautious mood prevailed ahead of a slew of China data this week that investors hope will paint a clearer picture of how the world's second largest economy is faring. Japanese shares eked out modest gains as the yen hovered near a three-week low against the dollar amid expectations of a US interest rate hike as early as December. Investors shrugged off a government report, which showed that Japan's industrial output rose less than initially estimated in August.