Post Session: Quick Review

Indian equity benchmarks snapped the two days winning streak and ended the session with cut of around three fourth of a percent. The lackadaisical trade dragged the Nifty below 8000 mark on the expiry day of F&O series. The markets made a gap-down start and traded in red in early deals as the sentiments were under pressure as the US Fed gave more signals that it was inclined towards a rate hike in December. The impact of demonetisation which shocked the economy also continued to weigh on investors. The Indian rupee extended its losses for the fifth consecutive day and traded down against the US dollar, its lowest level since August 2013. Sentiments turned extremely weak in the forex market due to consistent selling by foreign investors in the backdrop of demonetisation and renewed fears of a Fed rate hike. Foreign Institutional Investors (FIIs) have withdrawn over Rs 3,700 crore from equity markets this week. The sentiments also weighed down after Commerce and Industry Minister Nirmala Sitharaman said that economic output in the current quarter may get affected, with the government’s demonetization drive temporarily hitting commercial activities in some sectors.

Separately, global investment firm forecasted a deceleration in India’s GDP growth to 6.8% this fiscal, down from 7.6% last financial year, due to demonetisation of Rs 500 and Rs 1000 currency notes. According to the global financial services major, post the dramatic currency reform the liquidity shortage would be a significant constraint on domestic activity, which in turn would affect GDP growth. In the meantime, Moody’s Investors Service stated that demonetisation will significantly disrupt economic activity and lead to weaker growth in near-term, though in the long run it can boost tax revenues and translate into faster fiscal consolidation. In a report titled ‘Indian Credit -- Demonetisation Is Beneficial for Indian Government and Banks; Implementation Challenges Will Disrupt Economic Activity’, Moody’s added that the move to ban old Rs 500/1000 notes is affecting all sectors of the economy to various extent, with banks being the key beneficiaries.

On the global front, Asian markets ended mostly in red, as upbeat economic data strengthened the prospect for higher US interest rates, while the dollar’s bull run continued with US bond yields propelled to multi-year highs. China’s central bank fixed the yuan 0.26% weaker against the US dollar Thursday and has guided the currency weaker for most of this month amid a broad-based rally in the US dollar. Japan stocks, as usual, beneficiary of this trend, as a weaker yen boosts the competitiveness of the country’s exporters. European stocks were mostly higher with investors eyeing the release of German business climate data later in the day.

The BSE Sensex ended at 25868.36, down by 183.45 points or 0.70% after trading in a range of 25810.97 and 26049.14. There were 10 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.21%, while Small cap index was down by 0.08%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 1.31%, Metal up by 1.10%, TECK up by 0.80%, PSU up by 0.04% and FMCG up by 0.03%, while Auto down by 1.58%, Realty down by 1.28%, Bankex down by 1.26%, Consumer Durables down by 0.92% and Oil & Gas down by 0.77% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid up by 1.95%, TCS up by 1.84%, Bajaj Auto up by 1.66%, Tata Steel up by 1.29% and Infosys up by 1.24%. (Provisional)

On the flip side, Tata Motors down by 3.95%, Sun Pharma down by 2.72%, Mahindra & Mahindra down by 2.61%, Axis Bank down by 2.50% and Adani Ports & Special Economic Zone down by 2.20% were the top losers. (Provisional)

Meanwhile, Niti Aayog is all set to get a broader preview, going beyond the traditional areas of planning and look at internal security, defence, social and development goals. Government has said that Niti Aayog will prepare three inter-connected documents, with differing time horizons.

With the 12th five-year plan drawing to a close, the government think tank has prepared an exercise for the long term with a proposal to formulate a 15-year vision agenda. As part of its appraisal for the 12th five-year plan, the Aayog will prepare a vision document keeping in view the social goals set and or proposed and sustainable development goals (SDGs) for about 15 years for the period up to 2030 which is co-terminus with the period to achieve SDGs. This vision document, or perspective plan, will be formulated with a central objective of eliminating poverty.

To convert the long-term vision into implementable policies, it will also prepare a seven-year National Development Agenda (NDA) from 2017-18 to 2023-24. To take stock of the implementation of the vision, a mid-term review will be done during the year ending March 2020.

Besides, that it will also prepare a three-year Action document for 2017-18 to 2019-20 aligned to the predictability of financial resources during the 14th Finance Commission Award period to help translate into actions the goals of the government to be achieved by 2019.

The CNX Nifty ended at 7974.25, down by 59.05 points or 0.74% after trading in a range of 7952.55 and 8024.85. There were 18 stocks advancing against 33 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindalco up by 3.74%, Bank of Baroda up by 2.84%, TCS up by 2.26%, ACC up by 1.91% and Power Grid up by 1.84%. (Provisional)
On the flip side, Zee Entertainment down by 4.19%, Tata Motors down by 3.90%, Tata Motors - DVR down by 3.66%, Eicher Motors down by 2.97% and Sun Pharma down by 2.82% were the top losers. (Provisional)

The European markets were trading mostly in green; Germany’s DAX increased 13.88 points or 0.13% to 10,676.32, France’s CAC increased 7.83 points or 0.17% to 4,537.04, while UK’s FTSE 100 decreased 11.07 points or 0.16% to 6,806.64.

Asian equity markets ended mostly in red on Thursday on worries about a looming Fed rate hike. Minutes from the Fed's November meeting released on Wednesday showed that policymakers appeared confident on the eve of the US presidential election that the US economy was showing strength to justify an increase in short-term interest rates relatively soon. The dollar firmed up in Asian trading as a slew of upbeat US data and hawkish Fed minutes reinforced investor expectations that the Federal Reserve is on track to raise its benchmark interest rate in December. Chinese shares closed almost flat as the yuan hit an eight-year low after China's central bank weakened the yuan's reference rate to beyond 6.9 to the dollar. Meanwhile, Japanese shares ended higher helped by hopes for better exporters' earnings as the dollar jumped against the yen.