Post Session: Quick Review

Indian equity benchmarks traded in a broad range and ended slightly in green. Investors maintained cautious approach ahead of the release of key macro-economic inflation data points -- the Consumer Price Index (CPI) and Wholesale Price Index (WPI) -- to be released on February 13 and 14, respectively. The equity benchmarks made a positive opening and traded slightly in green in early deals with a report that the government’s revenue collection during April-January, 2016-17 has shown healthy growth, indirect tax collection jumped 23.9 percent to Rs 7.03 lakh crore on the back of robust central excise mop-up, while direct tax collection rose by 10.79 percent to Rs 5.82 lakh crore. The total direct and indirect tax collections at the end of January stood at Rs 12.85 lakh crore, more than half the Rs 16.26 lakh crore target for 2016-17. Some support also came on report that after four months of intense selling, overseas investors turned net buyers in February and have so far pumped in over Rs 5,800 crore in the capital market, enthused by clarity on FPI taxation. The latest inflow followed a net pullout of Rs 80,310 crore from equity and debt together in the past four months (October-January). Prior to that, FPIs had invested over Rs 20,000 crore in the capital market in September 2016. Traders turned cautious as the industrial production data contracted by 0.4% in December 2016 from the same period a year ago, due to a sharp decline in production of consumer goods. The cumulative IIP growth for April-December was 0.3% against 3.2% for the same period in 2015. Finance Minister Arun Jaitley said on Friday that the contraction in industrial production in December as per the latest data is the fallout of demonetization and expansion is expected in the coming months. Adding anxiety among investors, Moody’s in its report highlighted that demonetization has negatively impacted the performance of Indian auto asset-backed loans in the short term and the effect will last until March.

On the global front, Asian markets closed higher on Monday, as investors eyed fresh data and digested new political developments. North Korea fired a ballistic missile into the sea on Sunday morning, the first such test since President Trump was elected. Japanese Gross Domestic Product rose less-than-expected in a report, Cabinet Office said that Japan’s GDP rose to a seasonally adjusted 0.2%, from 0.3% in the preceding quarter. European shares rose for a fifth consecutive session with mining stocks rallying to their highest in two years and a half on stronger copper prices and takeover offers sending German drugmaker Stada to a record high.

The BSE Sensex ended at 28346.27, up by 12.02 points or 0.04% after trading in a range of 28197.38 and 28458.80. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.40%, while Small cap index was down by 0.62%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 0.78%, TECK up by 0.60%, Power up by 0.28%, Bankex up by 0.21% and Metal up by 0.18%, while Realty down by 1.31%, Consumer Durables down by 1.05%, PSU down by 1.02%, Capital Goods down by 0.56% and FMCG down by 0.29% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 1.80%, Power Grid up by 1.60%, Infosys up by 1.44%, Hindustan Unilever up by 1.31% and Wipro up by 1.21%. (Provisional)

On the flip side, SBI down by 1.65%, Maruti Suzuki down by 1.62%, Hero MotoCorp down by 1.46%, Coal India down by 1.23% and Lupin down by 1.08% were the top losers. (Provisional)

Meanwhile, Finance Minister Arun Jaitley has expressed hope that the Universal Basic Income (UBI) scheme, which got a mention in government's economic survey will be implemented over the next one year in some parts of the country at least on experimental basis. UBI will aim to provide a minimum amount of cash to poor people to meet their basic needs.

The Economic Survey, authored by Chief Economic Advisor Arvind Subramanian, had suggested that the Centre may come out with UBI scheme under which the government should provide minimum cash to poor people to meet their basic needs. Finance Minister stated that under the proposed system UBI could be given to people and subsidies can be done away with.

He added that the economic surveys prepared by Arvind Subramanian has been unconventional, very different from the past and float ideas for the future, universal basic income being one of them and government has also started thinking on it to experiment in some part of the country which can help to bring poverty rates down. Jaitley further said that with the current pace of reforms it would be possible to significantly reduce poverty, create world class infrastructure and achieve high level of global competitiveness.

The CNX Nifty ended at 8802.05, up by 8.50 points or 0.10% after trading in a range of 8754.20 and 8826.90. There were 24 stocks advancing against 27 stocks declining on the index. (Provisional)

The top gainers on Nifty were Eicher Motors up by 3.28%, Yes Bank up by 3.12%, Tata Power up by 2.14%, Kotak Mahindra Bank up by 1.68% and Mahindra & Mahindra up by 1.67%. (Provisional)

On the flip side, Bank of Baroda down by 10.56%, Idea Cellular down by 2.99%, Aurobindo Pharma down by 2.70%, BHEL down by 1.99% and SBI down by 1.77% were the top losers. (Provisional)

The European markets were trading in green; UK’s FTSE 100 increased 5.21 points or 0.07% to 7,263.96, Germany’s DAX increased 72.72 points or 0.62% to 11,739.69 and France’s CAC increased 29.98 points or 0.62% to 4,858.30.

The Asian markets maintained their momentum through the day and ended all in green on Monday, with some indices registering gains of over half a percent. Chinese market rose for the fourth straight session, as a rally in metals prices lifted material stocks. Seoul shares too edged higher in cautious trade on reports that South Korean prosecutors plan to question Lee Jae-yong, Samsung Group's de facto leader again over bribery allegations this week. The yen weakened Monday after the S&P 500 Index climbed to a record high on Friday lifting the stocks higher. Japanese stocks also gained after Shinzo Abe and US President Donald Trump refrained from arguing about currency levels during the Japanese prime minister’s two-day US visit. Meanwhile, data showed Japan’s economy continued on a moderate growth path during the final quarter of 2016, driven by rising exports and business investment.