Post Session: Quick Review

Indian equity benchmarks snapped their selling spree and end in green. The final hour of buying helped Nifty to cross 8000 mark. The markets made a gap-up opening in early deals tracking firm cues from Asian markets after crude prices shot up in overnight trade as the dollar weakened a bit and reports suggested that Russia was keen on cutting output to boost crude prices. Indian rupee opened up against dollar on account of some selling of American currency by banks and exporters. The weakness of dollar in the international market capped the rupee fall against the dollar. Moody’s Investors Service in its latest report, on non-financial corporate, stated that Indian corporate sector is expected to log healthy profit growth in 2017 on the back of sustained economic growth, capacity additions and higher commodity prices. Some additional support also came with Commerce and Industry Minister Nirmala Sitharaman statement that FDI went up 60% to $77.86 billion after the launch of Make in India initiative in September 2014. There has been an unprecedented increase in FDI into the country after the launch of this initiative. Make in India was launched with an aim to promote India as an important investment destination and a global hub for manufacturing. Investors are still cautious over concern of India’s demonetisation move, estimated to pull down gross domestic product growth this financial year from last year’s 7.6%. The domestic rating agency ICRA has forecasted a 40 bps dip in growth rate to 7.2% in the second quarter of the current fiscal, citing debilitating impact of the demonetisation drive on the economy. The market may remain volatile this week as traders may roll over positions in the Futures & Options (F&O) segment from the near month i.e. November 2016 series to next month i.e. December 2016 series. The near month November 2016 derivatives contracts will expire on Thursday i.e. November 24, 2016.

On the global front, Asian markets ended in green, in the wake of solid gains in US markets overnight, as oil prices rallied on expectations that key oil-producing countries will agree to a deal to slash production. China stocks advanced to a fresh 10-1/2 month high helped by a strong rally in blue-chips, in particular financial and energy shares, after US exchanges rose. European stocks were trading higher helped by climbing oil prices amid mounting expectations for a global production freeze deal and as optimism following Donald Trump’s election continued to boost market sentiment.

Back home, aviation stock companies ended mixed after aviation regulator DGCA reported that domestic airlines flew 86.72 lakh passengers in October. Interglobe Aviation (IndiGo) and SpiceJet ended in green, while Jet Airways closed in red. IndiGo cornered the largest market share in October at 42.6 percent, higher than 40 percent seen in September. SpiceJet’s share rose marginally to 12.9 percent, while that of AirAsia India inched up to 2.7 percent. The market share of Jet Airways and GoAir fell last month to 14.7 percent and 7.9 percent, respectively.

The BSE Sensex ended at 26012.73, up by 247.59 points or 0.96% after trading in a range of 25765.51 and 26039.70. There were 24 stocks advancing against 6 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.54%, while Small cap index was up by 1.39%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 3.10%, Metal up by 2.84%, Auto up by 2.16%, FMCG up by 1.50% and Oil & Gas up by 1.23%, while Capital Goods down by 0.67% and Power down by 0.26% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Auto up by 3.26%, Maruti Suzuki up by 3.08%, Adani Ports & Special Economic Zone up by 2.67%, Hindustan Unilever up by 2.54% and Hero MotoCorp up by 2.33%. (Provisional)

On the flip side, Larsen & Toubro down by 1.58%, GAIL India down by 1.31%, NTPC down by 0.58%, Power Grid down by 0.43% and Dr. Reddy’s Lab down by 0.32% were the top losers. (Provisional)

Meanwhile, in a meeting with Minister for Commerce and Industry Nirmala Sitharaman, exporters have expressed anxiety over a possible fall in output over the past week due to the government’s demonetisation drive. The exporters voiced their short-term difficulty that they were facing and said that a segment of their activity like procurement of raw material is happening to a large extent in cash, and demanded an increase in the withdrawal limit from Rs 50,000 a week to up to Rs 5 lakh.
Sitharaman assured them that she would take up their demand of enhancing the cash withdrawal limit with the Finance Minister Arun Jaitley so that quick remedial solutions are offered. She also noted that in labour intensive sectors like carpet and handloom, working is dependent on cash withdrawal so they are demanding to increase the limit.  She added that others felt that this month's output might have a bearing because of this cash limit. She further said that due to lack of cash, some of exporters preferred closing down the units partially and some of them were reducing the production capacity from 100% to 30%-40%.

On November 8, 2016, the government had declared demonetisation of Rs 500 and Rs 1,000 note replacing them with new Rs 500 and Rs 2,000 notes to curb corruption and make efforts to recover ‘black’ or unaccounted money.

The CNX Nifty ended at 8014.50, up by 85.40 points or 1.08% after trading in a range of 7938.15 and 8019.05. There were 43 stocks advancing against 8 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindalco up by 6.23%, Bajaj Auto up by 3.43%, Maruti Suzuki up by 3.40%, Zee Entertainment up by 3.25% and Ultratech Cement up by 3.00%. (Provisional)

On the flip side, BHEL down by 3.37%, Larsen & Toubro down by 1.53%, GAIL India down by 1.49%, NTPC down by 0.55% and Dr. Reddy’s Lab down by 0.30% were the top losers. (Provisional)

The European markets were trading in green; UK’s FTSE 100 increased 66.3 points or 0.98% to 6,844.26, Germany’s DAX increased 55.9 points or 0.52% to 10,741.03 and France’s CAC increased 36.39 points or 0.8% to 4,565.97.

Asian equity markets ended in green on Tuesday after Wall Street stocks closed at fresh record highs overnight, and as oil prices rallied on expectations that key oil-producing countries will agree to a deal to slash production. Chinese shares ended higher in line with the region’s strength. The move came after the nation’s central bank fixed the yuan reference level higher Tuesday, ending 12 straight sessions of devaluation. Japanese shares too ended higher after dipping briefly following a powerful 6.9-magnitude earthquake in northern Japan that set off a small tsunami but caused minor damage and injuries.