Post Session: Quick Review

Indian equity benchmarks traded on a firm note for most part of the day and ended on a flat note. Profit booking by investors pulled down the market, after equity benchmark Nifty 50 this morning opened above 9,200-mark for the first time. Foreign Institutional Investors stood net buyers in domestic equity markets on Thursday as the bought shares worth Rs 1418.11 crore with gross purchases and gross sales of Rs 6,066.88 crore and Rs 4,648.77 crore, according to the data available with depository NSDL. The equity benchmarks traded in fine fettle in early deals after the country's Goods and Services Tax council cleared all draft Bills. Traders took support with the Goods and Services Tax (GST) Council, finally giving its nod to all the five draft legislations needed for implementation of the unified indirect tax, paving the way for the model laws - central GST (CGST), state GST (SGST), integrated GST (IGST), Union Territory GST (UTGST) and Compensation Act - to be presented in the ongoing Budget session of Parliament after it is approved by the Union Cabinet. The new tax structure will be revenue neutral, and broadly keep the rates that apply to businesses in line with existing levies. Still, it is expected to boost the rate of economic growth by about 0.5 percentage points; broaden the revenue base; and cut compliance costs for firms. Some support also came with the Commerce Minister Nirmala Sitharaman’s statement that the country’s engineering exports are likely to reach over $60 billion during the current financial year on the back of revival of demand in the US. During April-January period of 2016-17, the engineering exports have touched $50.87 billion, exceeding the total shipments of $49 billion in 2015. Meanwhile, Economic Affairs Secretary Shaktikanta Das said that the Indian economy is strong enough to absorb the impact of the US Federal Reserve’s interest rate hike.

On the global front, Asian markets closed mostly higher, as investors eyed into the next set of steps for US economic policies as the Trump administration gears up its healthcare and tax cut plans. Japan stocks closed lower as losses in the Insurance, Banking and Transportation Equipment sectors led shares lower. China’s main stock indexes fell posting their worst day since last December, as investors await fresh evidence of a sustainable recovery in the world’s second-largest economy. European stocks were trading lower as investors turned their attention to a meeting of finance ministers and central bank governors of the G-20, in Germany.

Back home, cigarette stocks such as ITC, VST Industries and Godfrey Phillips India closed in green after the GST Council capped the cess on tobacco and cigarettes at 290% or Rs 4,170 per 1,000 cigarette sticks. It also capped the cess on pan masala at 135 percent ad valorem. This cess would be levied on top of the GST to be imposed on these products.

The BSE Sensex ended at 29606.47, up by 20.62 points or 0.07% after trading in a range of 29606.33 and 29824.62. There were 10 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.19%, while Small cap index was up by 0.01%. (Provisional)

The top gaining sectoral indices on the BSE were FMCG up by 2.32%, Realty up by 1.07%, IT up by 0.70% and TECK up by 0.03%, while Telecom down by 3.03%, PSU down by 0.83%, Utilities down by 0.69%, Auto down by 0.52% and Bankex down by 0.49% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were ITC up by 4.64%, Infosys up by 1.03%, Wipro up by 0.89%, HDFC Bank up by 0.62% and TCS up by 0.59%. (Provisional)
On the flip side, Bharti Airtel down by 4.26%, SBI down by 1.77%, Mahindra & Mahindra down by 1.39%, Larsen & Toubro down by 1.17% and Coal India down by 1.16% were the top losers. (Provisional)

Meanwhile, riding on the back of revival of demand in the US, India’s engineering exports are expected to maintain uptrend. Union minister for commerce and industry Nirmala Sitharaman has said that the country's engineering exports are likely to reach over $60 billion during the current financial year after touching $50.87 billion during April-January period of 2016-17, exceeding the total shipments of $ 49 billion in the entire financial year of 2015-16.

In order to boost engineering exports, Sitharaman has said that the department of commerce is engaged in a key initiative for technology upgradation of engineering manufacturers and added that this is being attempted by bridging the gap between leading R&D labs and industry for the development of cutting-edge, export-oriented technologies. She also noted that the ministry has identified important industrial clusters where it is interacting with stakeholders to identify technology gaps and that can be filled by research labs and academic institutions.

She further stated that there is enormous potential to enhance bilateral trade with Russia, which presently stands at $6.62 billion and the ministry has discussed with the Russian minister about the International North South Transport Corridor that would cut time and cost for transportation of goods between both countries.

The CNX Nifty ended at 9152.15, down by 1.55 points or 0.02% after trading in a range of 9147.60 and 9218.40. There were 16 stocks advancing against 35 stocks declining on the index. (Provisional)

The top gainers on Nifty were ITC up by 4.65%, Infosys up by 1.70%, Wipro up by 1.25%, HCL Technologies up by 1.23% and Eicher Motors up by 1.14%. (Provisional)

On the flip side, Idea Cellular down by 4.74%, Bharti Airtel down by 4.42%, Tata Motors - DVR down by 2.46%, Bank of Baroda down by 2.20% and Mahindra & Mahindra down by 1.61% were the top losers. (Provisional)

The European markets were trading mostly in red; UK’s FTSE 100 decreased 4.61 points or 0.06% to 7,411.34, Germany’s DAX decreased 20.45 points or 0.17% to 12,062.73, while France’s CAC increased 10.68 points or 0.21% to 5,024.06.

Most of the Asian markets made a positive close on Friday, posting their best week in eight months, even as the global equities rally spurred by the Federal Reserve’s outlook lost momentum. Now traders were eyeing the G20 finance ministers' meeting in Germany which is set to be dominated by debate on protectionism. Seoul shares extended gains for a second day to hit fresh highs in almost two years as foreign investors extended their buying streak for the 10th straight session. Indonesia's Jakarta Composite index too ended higher, a day after the country's central bank left its key interest rate unchanged, as widely expected. On the other hand, Chinese shares fell sharply and lost about a percent, a day after the country's central bank raised short-term interest rates to avoid downward pressure on the yuan and manage capital flows. The Japanese market too ended in red ahead of a long holiday weekend.