Post Session: Quick Review

Indian equity benchmarks traded in a narrow range throughout the day and ended in red for the fourth straight session. The last hour of trade dragged the market lower with NSE benchmark Nifty closing near 8100 mark. Traders might need to brace for some gyrations in the stock market in the coming days as volumes could drop with the holiday season setting in. The foreign and domestic fund activity moderates usually in the last couple of weeks of the year.  Investors will now look forward to results to understand the impact of demonetization on corporate earnings. The market traded in red in early deals as investors remained cautious due to lack of any major domestic as well as global cues. The rupee opened lower against the US dollar amid buying of the greenback by banks and exporters. Foreign portfolio investors stood net sellers in the domestic equity market on Friday, having sold shares worth Rs 405.66 crore with gross purchases and gross sales of Rs 3,978.44 crore and Rs 4,384.10 crore, respectively. Foreign investors have pulled out more than Rs 19,500 crore from the capital market so far in December following demonetization, a rate hike by the US Federal Reserve and a spike in crude oil prices. Oil prices rose on in anticipation of tighter crude supply going into 2017 following the decision by OPEC and other producers to cut output to prop up prices.

The sentiments were under pressure after the industry body ASSOCHAM in its latest report has said that prospects of interest rate cut in near future may be bleak due to factors like continuous pressure on rupee against dollar, firming of the US interest rates and hardening of crude oil prices. As per the Associated Chambers of Commerce & Industry of India (ASSOCHAM), the biggest risks are deriving from the unfolding global scenario marking sharp firming of the US dollar and raking in international money back into the US economy. Some weakness also crept in after the Reserve Bank of Indian (RBI) imposed stiff restrictions on depositing more than Rs 5,000 in the scrapped Rs 500 and Rs 1,000 notes, mandating that it can be deposited only once per account till December 30, that too after explaining to bank officials the reasons for not having done that so far. The street failed to take some support with Union Transport Minister Nitin Gadkari’s statement that India’s infrastructure sector has the potential of boosting GDP growth up to 3% and efforts are being put in by the centre to achieve this objective.

On the global front, Asian markets ended in red, as Chinese bond selloff continues. There is easing worries about rising diplomatic tensions between the world’s two biggest economic powers after China agreed to return a US drone it had seized. A Chinese warship seized a US underwater drone in the South China Sea, which triggered a formal diplomatic protest and a demand for its return. Japan’s Nikkei closed flat in red. Japan’s November exports fell 0.4% year-on-year, boosted by a weaker yen and recovery in overseas demand. Imports fell 8.8%. European markets were trading mostly on cautious note with the recent rally in banks on pause as troubled lender Banca Monte dei Paschi di Siena SpA made a last-ditch effort to avoid a state bailout.

The BSE Sensex ended at 26369.57, down by 119.99 points or 0.45% after trading in a range of 26340.38 and 26505.66. There were 9 stocks advancing against 21 stocks declining on the index. (Provisional)

The top broader indices ended in red; the BSE Mid cap index was down by 0.60%, while Small cap index was down by 0.49%. (Provisional)

The only gaining sectoral indices on the BSE were Oil & Gas up by 0.87%, while Consumer Durables down by 1.35%, Capital Goods down by 0.98%, Metal down by 0.82%, Realty down by 0.65% and Auto down by 0.56% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were GAIL India up by 2.07%, ICICI Bank up by 0.59%, Cipla up by 0.37%, ITC up by 0.33% and Reliance Industries up by 0.33%. (Provisional)

On the flip side, Asian Paints down by 2.29%, Sun Pharma down by 2.21%, HDFC down by 1.92%, Dr. Reddy’s Lab down by 1.36% and Bharti Airtel down by 1.27% were the top losers. (Provisional)

Meanwhile, encouraged by the signs of a positive growth recorded by the exports in the last three months, the Commerce and Industry Minister Nirmala Sitharaman has expressed hope that exports will see a positive and solid difference in 2017. Though, the exports had shown a lacklustre trend for almost past two years. Sitharaman said that 'I look at the new year which is going to definitely see positive and solid difference in exports compared to the previous years when we have been really very slow.” She also expects that newer market should emerge.

The minister said that India should reach 3.5% of the total global trade by 2020 from its current share of 2% and added that the increase in trade needs to be achieved by exporters, various segments who have strength, units who aspire to be a part of the global value chain. She said that exports, which contribute 7.5% of our Gross Domestic Product, need to be pushed further.

As per the commerce ministry's data, since December 2014, exports fell for 18 straight months till May 2016 due to subdued global demand and slide in oil prices. Shipments started witnessing growth only in June this year, but again entered the negative zone in July and August. However, in September, October and November, it registered growth. The latest data showed that in November exports grew 2.29 percent to $20 billion. According to the Federation of Indian Export Organisations (FIEO), out of the 30 key product groups, close to 20 are exhibiting positive trends in the past couple of months.

The CNX Nifty ended at 8101.45, down by 38.00 points or 0.47% after trading in a range of 8094.85 and 8132.50. There were 17 stocks advancing against 34 stocks declining on the index. (Provisional)

The top gainers on Nifty were GAIL India up by 2.32%, Aurobindo Pharma up by 1.06%, Grasim Industries up by 0.95%, Tata Power up by 0.65% and HCL Tech up by 0.51%. (Provisional)

On the flip side, Bharti Infratel down by 3.08%, Sun Pharma down by 2.37%, Asian Paints down by 2.22%, Ultratech Cement down by 2.13% and HDFC down by 2.09% were the top losers. (Provisional)

The European markets were trading mostly in red; UK’s FTSE 100 decreased 4.62 points or 0.07% to 7,007.02 and France’s CAC decreased 8.83 points or 0.18% to 4,824.44, while Germany’s DAX increased 8.71 points or 0.08% to 11,412.72.

Asian equity markets ended in red on Monday as investors pondered over rising diplomatic tensions between the world's two biggest economic powers. While China agreed to return the US underwater drone that it seized in international waters on Thursday, US President-elect Donald Trump continued to take jabs at China on Twitter telling Beijing to keep the naval drone it had seized. China stocks slipped, led by blue-chips, as hopes for fresh monetary stimulus dimmed after Beijing vowed to contain asset bubbles next year by keeping monetary policy ‘prudent and neutral.’ Japanese shares fell slightly after a nine-day rally, as the yen strengthened and data showed a smaller-than-expected trade surplus in November. Hong Kong stocks slid to 4-1/2 month lows, extending declines since last week's US rate hike, with shares hurt as Beijing signalled a ‘neutral’ monetary policy and media reports said mainland insurance firms face fresh investment curbs.