Post Session: Quick Review

Bulls which woke up in last leg of trade mainly helped the benchmarks to end near intraday high levels on Tuesday, as investors took to hefty across the board buying. After making a firm start, markets entered into negative terrain as traders turned cautious with report stating that GST benefits are likely to accrue over time rather than immediately, though in the long run the indirect tax regime will boost growth, lower costs and strengthen tax revenues. It added that it expects over time, as the GST council widens the tax net, minimises the tax slabs and lower the standard tax rates, the benefits will be substantial. Sentiments also remained down-beat with the report that Reserve Bank of India (RBI) is expecting to maintain a status quo in the upcoming December meet.

However, markets took U-turn and regained green terrain as traders opted to buy beaten-down but fundamentally strong stocks. Some support also came with Finance Minister Arun Jaitley’s statement that the Centre will step up on reforms to attract more investment and fill up infrastructure deficit. Some support also came with private report stating that retail inflation is expected to soften to 4.1 percent in October and ease further to sub-4 percent level by November-December, largely helped by favorable base effect.

Global cues too remained supportive with European markets making a firm start and Asian markets ended mostly in green on Tuesday on reports that Democratic presidential candidate Hillary Clinton is most likely to win the US election boosted investor sentiment. The US markets surged in last session and all the major averages posted their biggest one-day percentage gain since March 01.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. Appreciation in Indian rupee too aided sentiments. The Indian rupee strengthens marginally against the US dollar at the time of equity markets closing at 67.63 from its previous close of 67.72. On the sectoral front, stocks related to auto industry remained in focus after it discussed with Revenue Secretary Hasmukh Adhia, the rate of cess and definition of luxury cars under the GST regime, which is likely to kick in from next April.

The NSE’s 50-share broadly followed index Nifty gained around fifty points to end above the psychological 8,500 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex surged by over one hundred and thirty points to finish near its psychological 27,600 mark. Broader markets too traded in-line with benchmarks and ended the session in green terrain.

The market breadth remained in favor of decliners, as there were 1,357 shares on the gaining side against 1,530 shares on the losing side while 123 shares remain unchanged. (Provisional)

The BSE Sensex ended at 27591.14, up by 132.15 points or 0.48% after trading in a range of 27406.76 and 27646.84. There were 18 stocks advancing against 12 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.36%, while Small cap index was up by 0.16%. (Provisional)

The gaining sectoral indices on the BSE were Auto up by 1.67%, Oil & Gas up by 1.00%, Bankex up by 0.83%, PSU up by 0.45% and Metal up by 0.37%, while FMCG down by 0.18% and Realty down by 0.18% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Motors up by 6.49%, GAIL India up by 3.04%, Asian Paints up by 1.82%, Power Grid up by 1.67% and ICICI Bank up by 1.60%. On the flip side, Sun Pharma down by 3.35%, Cipla down by 1.74%, Maruti Suzuki down by 1.03%, Adani Ports &Special down by 0.94% and NTPC down by 0.71% were the top losers. (Provisional)

Meanwhile, in order to look beyond trade in defence equipment, India and UK have decided to expand bilateral strategic ties in defence sector. Prime Minister Narendra Modi invited British companies to build partnerships with Indian enterprises that focus on manufacturing, technology transfer and co-development. 

Modi has said that in the current global environment both the countries were facing several economic challenges, which directly affects trade and commerce. But he is confident that together they can leverage their scientific strengths and technological prowess to create new opportunities. He also highlighted that bilateral trade has remained at the same level for the past five years and investments in both directions have been robust.

Narendra Modi and UK Prime Minister Theresa May have recognized the potential for cooperation in defence manufacturing between UK and Indian companies in the 'Make in India' framework and agreed to encourage and facilitate such cooperation. The UK will continue their engagement with the Indian Ministry of Defence (MOD) and Indian defence companies to simplify and expedite export controls and to support the transfer of technology to enable projects in areas of mutual interest.

Earlier, the two Prime Ministers also tasked the Defence Consultative Group (DCG) to advance the bilateral defence cooperation agenda, including the UK's proposals for capability partnerships, through a range of activities including military to military cooperation, training, exchange of subject matter experts, research and technology linkages as well as defence manufacturing. 

The CNX Nifty ended at 8543.55, up by 46.50 points or 0.55% after trading in a range of 8480.10 and 8559.40. There were 31 stocks advancing against 20 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Motors up by 6.69%, Tata Motors - DVR up by 5.40%, GAIL India up by 2.99%, BHEL up by 2.98% and Tech Mahindra up by 2.09%. On the flip side, Sun Pharma down by 2.98%, Cipla down by 1.91%, Aurobindo Pharma down by 1.52%, Tata Power down by 1.26% and Adani Ports &Special down by 1.24% were the top losers. (Provisional)

European markets were trading mostly in green; France’s CAC increased 5.87 points or 0.13% to 4,467.08 and UK’s FTSE 100 was up by 9.26 points or 0.14% to 6,816.16, while Germany’s DAX was down by 3.86 points or 0.04% to 10,453.09.

Asian equity markets ended mostly in green on Tuesday, as Americans prepared to vote in their presidential election with opinion polls showing Hillary Clinton ahead of Donald Trump. Chinese shares ended higher as investors shrugged off weak trade data, which showed the country's exports fell for a seventh consecutive month in October. Chinese exports fell an annual 7.3 percent year-over-year on dollar terms, exceeding expectations for a decrease of 6.0 percent. Imports dropped 1.4 percent in the month from a year ago, just above the 1.0 percent fall expected. Meanwhile, Japanese shares ended a choppy session flat as cautious investors opting to stay on the sidelines before the US presidential election.