Post Session: Quick Review

Indian equity benchmarks traded on choppy note and ended in red near the lowest point of the day.  Sentiment remained downbeat due to sustained selling by foreign funds and retail investors on the domestic bourses. Foreign portfolio investors have been steadily paring their bullish derivatives bets on Indian stocks in the run-up to the US elections next week. The benchmarks made a cautious start but traded slightly green in early deals after taking support with a survey of Federation of Indian Chambers of Commerce and Industry (FICCI), which said that India Inc believes the economy is faring better and is optimistic about demand rising. Expectations regarding the performance of the economy in the next six months went up, with about 75% positive on growth, up from 66%. The Indian services activity accelerated rapidly in October as broadly steady prices helped drive a surge in domestic and foreign demand. The Nikkei/Markit Services Purchasing Managers’ Index jumped to 54.5 in October from 52.0 in September. It has only been higher once - in August - since January 2013 and marked its 16th month above the 50 level that separates growth from contraction. A sub index measuring new business climbed to 54.3 in October from 52.1, its second highest in over two years, although optimism cooled to a four-month low, suggesting a slowdown is possible after the annual festive season between October-December. However, the gains were short lived and market drifted in negative terrain. Global ratings agency Standard & Poor’s (S&P) reiterated its sovereign rating and outlook on India but ruled out any upgrade for this year and the next, citing weak public finances. The government slammed S&P’s statement saying there was disconnect between rating agencies views and investor perception on India. Economic Affairs Secretary Shaktikanta Das stated that the reforms undertaken by Asia’s third largest economy were unparalleled in any major economy. Das cited various steps taken by the government in the past two years, including building strong external position, controlling inflation and structural reforms such as the goods and services tax and bankruptcy code, saying that globally investors recognize these.

On the global front, Asian shares ended mostly in red on jitters over the US presidential election. A Trump victory could trigger financial market volatility given investor worries about his stance on trade, immigration and foreign policy. Trump has also accused the Fed of keeping rates low because of pressure from the Obama administration. China stocks rose after a private survey showed more signs of economic stability, with sentiment that also spurred by the upcoming Shenzhen-Hong Kong Stock Connect scheme. A private survey showed growth in China’s services sector accelerated in October, reinforcing the view that the world’s second-largest economy is on a steadier footing. European stocks were mostly higher as investors eyed the Bank of England’s policy statement due later in the day.

The BSE Sensex ended at 27421.93, down by 105.29 points or 0.38% after trading in a range of 27399.26 and 27600.74. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 1.51%, while Small cap index was down by 1.15%. (Provisional)

The sole gaining sectoral index on the BSE was FMCG up by 0.35%, while Oil & Gas down by 1.92%, PSU down by 1.82%, Realty down by 1.41%, Power down by 1.10% and Consumer Durables down by 0.92% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were ITC up by 1.88%, Hero MotoCorp up by 1.38%, Bajaj Auto up by 0.79%, TCS up by 0.72% and Dr. Reddy’s Lab up by 0.71%. (Provisional)

On the flip side, Adani Ports & Special Economic Zone down by 3.79%, ONGC down by 3.55%, Asian Paints down by 2.37%, Tata Steel down by 2.33% and Wipro down by 2.23% were the top losers. (Provisional)

Meanwhile, in order to protect domestic aluminium sector, the Indian government is mulling to provide duty protection for the aluminium sector which is facing dumping of cheap aluminium products from countries like China for over a year now. The Directorate General of Anti-Dumping and Allied Duties (DGAD) in its recent notification said that it has found prima facie evidence of dumping of aluminium from China.

As per the notification, “the authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry. To determine the existence, degree and effect of any alleged dumping and to recommend the amount of anti-dumping duty, which if levied would be adequate to remove the injury to the domestic industry”.  The period of investigation is from April 2014 to March 2015.

India's annual aluminium consumption currently stood at 3 million tonnes and production capacity is 4 million tonne. Nearly half the consumption is met by imports, mainly from China. Aluminium imports had rose 159 per cent in 2015 as compared to 2011 levels.

The CNX Nifty ended at 8483.55, down by 30.45 points or 0.36% after trading in a range of 8476.15 and 8537.65. There were 16 stocks advancing against 35 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindalco up by 4.12%, Bharti Infratel up by 3.74%, ITC up by 1.66%, ACC up by 1.46% and Hero MotoCorp up by 1.34%. (Provisional)
On the flip side, Adani Ports & Special Economic Zone down by 3.75%, ONGC down by 3.53%, Grasim Industries down by 3.30%, Wipro down by 2.57% and BPCL down by 2.53% were the top losers. (Provisional)

The European markets were trading mostly in green; UK’s FTSE 100 increased 14.08 points or 0.21% to 6,859.50, France’s CAC increased 10.69 points or 0.24% to 4,425.36, while Germany’s DAX decreased 7.77 points or 0.07% to 10,363.16.

Asian equity markets ended mostly in red on Thursday, although the downside remained limited amid a rebound in oil prices in Asian deals and a market holiday in Japan. While US election worries persisted, the greenback came under selling pressure after the Federal Reserve policy announcement. The Fed on Wednesday held rates steady, as widely expected, but left the door open to a December rate hike amid signs of an improving economy. Hong Kong stocks closed at a 2-1/2-month low as worries over the tightening US presidential election race. However, Chinese shares ended higher after a private gauge showed activity in China's service sector expanded at a faster pace in October. The Caixin China services PMI rose to a four-month high of 52.4 on the back of growing new orders. Japan Stock Exchange was closed on account of ‘Culture Day’ holiday.