Post Session: Quick Review

Today’s trade was marked by volatility but ended the session in green despite absence of domestic as well as global cues ahead of Christmas holiday. The equity benchmarks snapped the seven day losing streak with BSE Sensex closing above 26000 level. The markets traded slightly in red in early deals as investors booked profits due to lack of clear domestic triggers and persisting worries about the impact from the ban on higher value banknotes on the economy and corporate profits. Foreign institutional investors continued to sell Indian shares. On Thursday, FIIs sold shares worth Rs 614 crore. Foreign institutional investors have sold over $250 million in Indian shares this month as of December 20. The share of foreign portfolio investments (FPI) through participatory notes (P-notes) slipped to its lowest level in nearly three years to Rs 1.79 lakh crore in end-November. According to Securities and Exchange Board of India (SEBI) data, P-Notes investments have fallen to a 33-months low. Some support came after NITI Ayog vice-chairman Aravind Panagariya termed Prime Minister Narendra Modi’s demonetisation scheme as a frontal attack on black money and said that more such actions are in store to curb corruption. Traders also got some encouragement with some signs of thaw appearing on the GST issue, and the prospects of early roll out of goods and services tax (GST) brightening with the states and the Centre making progress on a crucial legislation, amid indications that the states may get concessions to tide over possible demonetisation-related revenue loss.

On the global front, Asian markets ended mostly in red, with investors looking to US economic data scheduled later in the day for potential catalysts. The market volumes have began to thin out in the run-up to the Christmas holidays with many investors sitting on the sidelines. Japan’s stock exchange was closed on account of ‘Emperor’s Birthday’ holiday. The index had posted seven straight weeks of gains, its longest winning streak since early 2013, boosted by the yen’s weakness in the face of a surging dollar. European stocks were trading mostly higher, although trading volumes were expected to remain thin as traders were unwinding positions ahead of the Christmas holiday.

The BSE Sensex ended at 26048.29, up by 68.69 points or 0.26% after trading in a range of 25872.38 and 26143.19. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.36%, while Small cap index was down by 0.05%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 0.94%, Consumer Durables up by 0.62%, Auto up by 0.51% and Oil & Gas up by 0.33%, while Realty down by 1.17%, FMCG down by 0.54%, IT down by 0.38%, Metal down by 0.31% and TECK down by 0.26% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Cipla up by 3.86%, Maruti Suzuki up by 2.37%, Sun Pharma up by 2.28%, Bajaj Auto up by 2.28% and GAIL India up by 2.21%. (Provisional)

On the flip side, Axis Bank down by 2.49%, ONGC down by 1.23%, ITC down by 1.08%, TCS down by 1.06% and Mahindra & Mahindra down by 0.98% were the top losers. (Provisional)

Meanwhile, admitting the fact that demonetisation will impact Gross Domestic Product (GDP), Union Minister for Statistics and Programme Implementation D. V. Sadananda Gowda has said that demonetisation could bring down the growth rate by just 0.2 percent and not more than that. He added that India’s GDP stood at 7.6 percent and it may go down to 7.4 percent.

Gowda said 'I do concede that there will be impact of demonetisation on GDP and I do not dispute it. There is a small problem as far as employment generation and industrial productions are concerned, but still, it may not go down more than 0.2 percent'. Further, he expressed hopes that the problem would be sorted out soon and automatically things will improve. He said that for 10-12 days, more than Rs 4,000 crore black money have been unearthed and also recovered gold in kilograms.
Minister also said that corruption should be curbed at any cost to maintain financial discipline in the country. He added that the Centre has taken stringent measures and action against bank and other officials who had colluded with the black marketeers and others who had violated the law.

The CNX Nifty ended at 7989.85, up by 10.75 points or 0.13% after trading in a range of 7942.05 and 8022.60. There were 25 stocks advancing against 26 stocks declining on the index. (Provisional)

The top gainers on Nifty were Cipla up by 3.66%, Bosch up by 3.01%, Maruti Suzuki up by 2.47%, Sun Pharma up by 2.22% and Bajaj Auto up by 2.18%. (Provisional)

On the flip side, Axis Bank down by 2.54%, HCL Tech down by 2.46%, Eicher Motors down by 1.87%, Aurobindo Pharma down by 1.52% and Tech Mahindra down by 1.40% were the top losers. (Provisional)

The European markets were trading mostly in green; Germany’s DAX increased 14.85 points or 0.13% to 11,470.95 and France’s CAC increased 6.07 points or 0.13% to 4,840.70, while UK’s FTSE 100 decreased 1.92 points or 0.03% to 7,061.76.

Asian equity markets ended mostly in red in thin trading on Friday, the last trading day before Christmas, after Wall Street stocks fell for a second straight session overnight. Hong Kong stocks ended lower as rosier US growth data deepened fears of money flowing out of emerging markets. The Commerce Department reported that the US economy grew 3.5% in the three months ended September 30, up from a previous estimate of 3.2% and improving from growth of 1.4% in the second quarter. The personal consumption rose 3.0% in the third quarter, up from an initial estimate of 2.7%. Consumer spending typically accounts for nearly 70% of US economic growth. Further, Chinese shares ended lower, dragged down by financials, after two major Chinese cities tightened housing purchase restrictions and reports emerged that regulators would tighten supervision over online insurance products. The Japanese market was closed for the Emperor's birthday.