Post Session: Quick Review

Indian equity benchmarks traded on a volatile note in positive terrain throughout the day and closed with gain of around quarter a percent. The volatility in the market was on account of the expiry of March F&O series. The equity benchmarks made a positive start in early deals as traders took some encouragement with the much-awaited tax reform - Goods and Services Tax (GST) – inching closer to its July 1 rollout date. The four GST Bills were passed after an eight-hour marathon debate in the Lower House. The unified tax regime is expected to boost economic growth by about 0.5% points in its first year of implementation. Some buying also crept in after Finance Secretary Ashok Lavasa termed the Aadhaar card scheme as revolutionary, saying it has helped the government save Rs 34,000 crore.  Lavasa pointed that Aadhaar was linked to a whole gamut of public expenditure, which is a matter of concern not only for those who want more efficiency in public spending but also those concerned with transparency and removal of corruption. Inventors got some confidence with Union Minister Arjun Ram Meghwal’s statement that the Insolvency and Bankruptcy Code is a key economic reform that will facilitate the ease of doing business. The code provides for a market determined, time-bound mechanism for orderly resolution of insolvency, wherever possible, and ease of exit, wherever required. Meanwhile, according to a private poll, India’s benchmark BSE Sensex share index will scale a new record high by mid-year. The bullish view emerges from the poll despite widespread concern since the last poll over the damage a disruptive and radical government move to replace the bulk of currency in circulation may have done to the economy.

On the global front, Asian markets closed mostly in red, as sentiments remained downbeat over the likely hard slog ahead for the UK to exit the European Union. Japan stocks closed in red as losses in the Transport, Finance & Investment and Construction sectors led shares lower. European markets were trading mostly in red amid investors still digesting the formal start the UK’s exit from the European Union. British Prime Minister Theresa May's historic letter invoking Article 50 of the Lisbon Treaty was delivered to the European Council President Donald Tusk in Brussels, thus triggering the Brexit process. The formal process of exiting the EU must conclude in two years.

The BSE Sensex ended at 29596.70, up by 65.27 points or 0.22% after trading in a range of 29521.65 and 29684.54. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.51%, while Small cap index was up by 1.01%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 1.93%, Consumer Durables up by 1.18%, Industrials up by 0.79%, Consumer Disc up by 0.60% and Bankex up by 0.60%, while IT down by 0.27%, TECK down by 0.17%, Metal down by 0.11% and PSU down by 0.01% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Adani Ports & Special Economic Zone up by 6.45%, GAIL India up by 2.94%, HDFC Bank up by 1.97%, Wipro up by 1.53% and Reliance Industries up by 1.30%. (Provisional)

On the flip side, ONGC down by 1.52%, Axis Bank down by 1.37%, Power Grid down by 1.12%, Tata Steel down by 1.09% and Coal India down by 1.04% were the top losers. (Provisional)

Meanwhile, amid criticism of the government for linking various public services with Aadhaar, the Finance Secretary Ashok Lavasa hailing the biometric identifier programme,  has called it revolutionary step and added that using Aadhaar as a platform, the government initiatives like the direct benefit transfer (DBT) in various social sector schemes has helped the government to save Rs 34,000 crore. Further, he said that benefits of Aadhaar should not be undermined as it has brought efficiency in public spending and removed corruption.

Lavasa emphasizing that the use of technology has made the system more transparent, said that the Aadhaar seeding process has enabled to remove bogus and undeserving people. He also said that Aadhaar has huge potential for changing many of the procedures for conducting business and can become the single identity proof for an array of services.

The Finance Secretary further said that the DBT, together with other things, is going to improve public expenditure and make it more efficient. The DBT is an attempt to change the mechanism of transferring subsidies launched by Government of India, which also aims to check leakages of welfare funds.

The CNX Nifty ended at 9159.95, up by 16.15 points or 0.18% after trading in a range of 9136.35 and 9183.15. There were 25 stocks advancing against 26 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Ports & Special Economic Zone up by 6.23%, Eicher Motors up by 2.65%, GAIL India up by 2.21%, HDFC Bank up by 2.20% and Indiabulls Housing up by 2.15%. (Provisional)

On the flip side, Coal India down by 1.53%, Bosch down by 1.51%, Tata Steel down by 1.42%, ONGC down by 1.36% and Axis Bank down by 1.16% were the top losers. (Provisional)

The European markets were trading mostly in red; UK’s FTSE 100 decreased 2.28 points or 0.03% to 7,371.44, France’s CAC decreased 1 point or 0.02% to 5,068.04, while Germany’s DAX increased 13.64 points or 0.11% to 12,216.64.

Asian equity markets ended mostly in red on Thursday as oil prices dipped after two days of gains and investors assessed the possible effects of a hard Brexit as the UK began the formal process of exiting the European Union. Chinese stocks led regional losses to extend the downtrend for a fourth day on concerns over tightening liquidity and stepped-up regulation in the property market. Further, Japanese shares ended sharply lower, dragged down by financials after US Treasury yields fell on reports that ECB officials are wary of altering their dovish message before June. The Japanese yen was flat after comments from Federal Reserve officials suggested that the Fed is on track to raise interest rates twice more this year.