Post Session: Quick Review

Indian equity benchmarks traded on firm note and ended the session with gains of around quarter percent. Gains in global stocks along with bargain hunting aided the up-move on the domestic bourses. The benchmarks made a cautious start and traded slightly in green in early deals with Prime Minister Narendra Modi’s statement that the Goods and Services Tax law will boost domestic demand, create more opportunities for domestic business and drive job creation. He said that India is the fastest growing major economy and one of the most attractive destinations for FDI adding that indeed, they stand out as a bright spot in the global economy. Union finance minister Arun Jaitley stated that the pace at which the Union government is moving has surpassed that of the private players. The minister added that normally industry is ahead of the government, but at the moment the private sector is a little behind government. Taking a jab at Indian industry he said that public investment pace has picked up. Some support also came after Indian rupee erased all the losses and strengthened marginally against the US dollar. However, investors were cautious on reports that Foreign Portfolio Investors (FPIs) sold shares worth a net Rs 272.91 crore on Friday as per provisional data released by the stock exchanges.

On the global front, Asian markets ended in green, Hong Kong ended firm led by buoyant mainland markets, but gains were capped by concerns over continued yuan weakness and the possibility of a US rate hike in December. European stocks were trading higher after the release of upbeat German and French data and as investors eyed the release of euro zone manufacturing and service sector activity data due later in the trading session.

Back home, telecom stocks Bharti Airtel and Idea Cellular was down after TRAI recommended to the telecom department to impose heavy penalties on Bharti Airtel and Vodafone India - Rs 1,050 crore each and Idea Cellular - Rs 950 crore, for denying Jio adequate points of interconnection (PoIs), while violated rules.

The BSE Sensex ended at 28183.56, up by 106.38 points or 0.38% after trading in a range of 28075.95 and 28256.65. There were 16 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.16%, while Small cap index was up by 0.46%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.69%, PSU up by 1.49%, Auto up by 0.76%, Bankex up by 0.65% and FMCG up by 0.29%, while IT down by 0.94%, TECK down by 0.91%, Capital Goods down by 0.74%, Realty down by 0.43% and Consumer Durables down by 0.34% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were ONGC up by 4.48%, ICICI Bank up by 2.32%, Tata Motors up by 2.31%, Coal India up by 2.22% and Lupin up by 1.87%. (Provisional)

On the flip side, Wipro down by 3.08%, Asian Paints down by 2.12%, Larsen & Toubro down by 1.22%, Axis Bank down by 1.03% and Bharti Airtel down by 0.99% were the top losers. (Provisional)

Meanwhile, Directorate General of Civil Aviation (DGCA), the regulatory body for civil aviation and aviation security agency, Bureau of Civil Aviation Security (BCAS) are all set to get powers to impose fines on violators, as the government is preparing to amend the legislation in this regard. The government is mulling to amend the Aircraft Act, 1934 and it is likely to be taken up during the winter session of Parliament starting next month.

This move will give more scope to the DGCA and BCAS in dealing with instances of violations amid the domestic sector witnessing over 20 percent sustained growth in passenger traffic. As of now, there is no provision for levying penalties. Though, there are stringent provisions in place for DGCA to deal with violations at various levels, including those related to airlines, pilots, crew members and other entities. The regulator can debar, suspend and even cancel the permission to fly for the carriers as well as individual pilots and engineers but cannot impose any monetary penalty. The powers of BCAS which primarily has the mandate to ensure security at airports would also be strengthened with new provisions.

The Civil Aviation Ministry has already floated the draft amendments to Aircraft Act. In the draft Aircraft (Amendment) Bill, 2016, the ministry has also proposed various other changes such as increasing the quantum of fine that can be imposed under this law to up to Rs 1 crore from existing level of Rs 10 lakh. Among others, a new sub-section is proposed to be included stating that DGCA or any other officers specially empowered by the central government shall perform the safety oversight functions in respect of matters specified in the Act.

The CNX Nifty ended at 8711.65, up by 18.60 points or 0.21% after trading in a range of 8684.15 and 8736.95. There were 24 stocks advancing against 27 stocks declining on the index. (Provisional)

The top gainers on Nifty were ONGC up by 4.54%, BPCL up by 2.78%, Tata Motors up by 2.58%, ICICI Bank up by 2.49% and Coal India up by 2.31%. (Provisional)
On the flip side, Idea Cellular down by 3.69%, Wipro down by 3.03%, HCL Tech. down by 2.49%, Zee Entertainment down by 2.11% and Asian Paints down by 2.04% were the top losers. (Provisional)

The European markets were trading in green; UK’s FTSE 100 increased 3.49 points or 0.05% to 7,023.96, Germany’s DAX increased 94.38 points or 0.88% to 10,805.11 and France’s CAC increased 37.68 points or 0.83% to 4,573.75.

Asian stocks ended in green on Monday as some encouraging data out of Japan and hopes that Beijing will speed up structural reforms at state-owned enterprises, boosted investor sentiment. Japan reported that its trade balance swung to a surplus in September coupled with strong Japanese manufacturing data from a purchasing manager’s survey also suggested signs of improved activity in the world's third biggest economy. Chinese shares rallied amid expectations that the government would maintain its high levels of fiscal spending. The yuan weakened further to hit fresh six-year lows against the dollar amid evidence of ongoing outflows from the world's second-largest economy. Further, Hong Kong's shares ended higher as trading resumed following a holiday on Friday owing to a typhoon. However, a retreat in oil prices in Asian deals served to keep a lid on overall gains across the region.