Post Session: Quick Review

Indian equity benchmarks traded on a firm note throughout the day and closed in green with gains of around half percent. The markets opened higher as buying in some blue-chip counters kept the rally going. HDFC Bank edged higher after RBI on Thursday lifted restrictions on foreign investors for purchase of shares in the company. The equity benchmarks traded in fine fettle in early deals taking some encouragement with Finance Minister Arun Jaitley’s statement that the whole process of remonetisation of new notes that began after scrapping Rs 500 and Rs 1000 notes on November 8, is almost complete now. He also said that the Reserve Bank of India (RBI) is closely monitoring cash supply position on a daily basis. Minister of State for Finance Arjun Ram Meghwal too has said that demonetisation of old high value currency and the government’s push towards digital economy will definitely expand India’s GDP. He also said that India was on the verge of a transition from a large cash economy to a less cash and digital economy. Sentiments got a boost after Reserve Bank of India (RBI) governor Urjit Patel said India was at a ‘good place’ in terms of financial stability and the central bank will manage any sharp volatility in the markets arising out of global developments including concerns over US President Donald Trump’s protectionist policies. He also said RBI is looking beyond the headline inflation figures and is focusing on core inflation trends, which excludes more volatile food and fuel prices, to guide RBI’s policy moves. The governor added that RBI needs to ensure that the hard earned gains with regard to macro-economic stability are maintained and able to withstand global financial volatility. However, the upside was capped with domestic rating agency, India Ratings and Research (Ind-Ra) report, which doesn’t expect the performance of Indian companies to improve substantially in FY18. Pick-up in capital expenditure by the private sector is at least another two fiscal years away. Rise in commodity prices and uptick in interest rates amid rate hikes globally are two important risks to slow-but-improving demand for FY18.

On the global front, Asian markets closed mostly lower, as markets took a breather from their recent surge, while the dollar inched up after Thursday’s slide and optimism over possible renewed supply cuts by OPEC lifted oil prices. China’s main stock indices closed in red as investors retreated from brokerage and newly-listed stocks after a recent rally, erasing most of the gains made earlier this week. Singapore revised its fourth-quarter gross domestic product growth sharply higher. Earlier in the week, Taiwan raised its 2017 economic growth target to a three-year high, Indonesia’s January exports rose at the fastest pace in more than five years and China’s January inflation picked up by more than expected to near six-year highs. European shares were trading lower, as investors eyed economic data and more earnings reports.

The BSE Sensex ended at 28454.95, up by 153.68 points or 0.54% after trading in a range of 28410.91 and 28726.26. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.46%, while Small cap index was up by 0.34%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.46%, Bankex up by 1.26%, Consumer Durables up by 0.32%, PSU up by 0.32% and Realty up by 0.27%, while IT down by 0.99%, TECK down by 0.84%, Metal down by 0.69% and Auto down by 0.22% were the losers on BSE. (Provisional)

The top gainers on the Sensex were Sun Pharma up by 3.67%, HDFC Bank up by 3.59%, GAIL India up by 1.73%, ICICI Bank up by 1.70% and Cipla up by 1.56%.  (Provisional)

On the flip side, Infosys down by 1.62%, TCS down by 1.31%, Asian Paints down by 1.28%, Hero MotoCorp down by 1.15% and Wipro down by 1.10% were the top losers. (Provisional)

Meanwhile, supporting the government’s demonetization move, Minister of State for Finance Arjun Ram Meghwal has said that demonetisation of old high value currency and government’s digital push will boost country’s gross domestic product (GDP) and also help to prevent tax evasion.

Further, noting that about 23.2 per cent of the economic activity is shadow economy, Meghwal said that these steps would address the shadow economy and will widen the tax bracket. He added that the demonetisation was in accordance with the general will of the citizens of India towards a corruption free society.

Expressing his concern over the country’s cash to GDP ratio, which is high in comparison to developed countries, as in advance countries, the cash to GDP ratio is in range of 4, while in India it is estimated at 12. He said that the demonetisation and digitisation of payments will also help to narrow this gap.

The CNX Nifty ended at 8816.95, up by 38.95 points or 0.44% after trading in a range of 8804.25 and 8896.45. There were 29 stocks advancing against 22 stocks declining on the index. (Provisional)

The top gainers on Nifty were HDFC Bank up by 3.81%, Sun Pharma up by 3.73%, GAIL India up by 1.98%, Grasim Industries up by 1.62% and ICICI Bank up by 1.58%.  (Provisional)

On the flip side, Bharti Infratel down by 3.65%, Hindalco down by 2.32%, Idea Cellular down by 1.62%, Eicher Motors down by 1.47% and TCS down by 1.46% were the top losers. (Provisional)

The European markets were trading in red; UK’s FTSE 100 decreased 16.17 points or 0.22% to 7,261.75, Germany’s DAX decreased 60.21 points or 0.51% to 11,697.03 and France’s CAC decreased 41.56 points or 0.85% to 4,857.90.

Asian equity markets ended mostly lower on Friday after a mixed session on Wall Street overnight. With oil prices caught in a range on concerns over growing US crude production and the yen strengthening, investors opted to stay on the sidelines ahead of the weekend. The arrest of Samsung's de facto leader Lee Jae-yong for bribery, embezzlement and perjury in connection to a massive corruption scandal also hurt regional sentiment. Japanese shares fell as the yen gained ground amid the G20 gathering in the German city of Bonn. Further, Chinese and Hong Kong shares ended lower as investors took profits on resources shares, but losses were checked by strength in Chinese brokerage shares after authorities relaxed some rules on stock index futures trading.