Post Session: Quick Review

Indian equity benchmarks witnessed consolidation on Thursday after yesterday’s sharp rally, as traders opted to book profits ahead of consumer price index (CPI) and Index of Industrial Production (IIP) data scheduled to be released tomorrow. Markets started off the session on an optimistic note with Prime Minister Narendra Modi setting up a task force under the chairmanship of the Vice Chairman of NITI Aayog Dr Arvind Panagriya, with an aim to create policies on employment based on credible data. The Prime Minister has directed that this task be expedited so that policies on employment can be formulated with a proper appreciation of impacts, based on credible data.

Meanwhile, six months after the announcement of demonetisation by Prime Minister Narendra Modi, the RBI has declined to share details of the note ban process, saying it would be detrimental to the country’s economic interests. Hopes of higher agricultural and economic growth post better monsoon forecast by IMD too added to the sentiments. However, it was last leg of trade which played a spoil sport for the Indian markets, where market participants booked almost all of their profits at higher levels. Meanwhile, the government is set to release the new Index of Industrial Production (IIP) and Wholesale Price Index (WPI) series with 2011-12 base year replacing the 2004-05 base years on Friday.

Weakness in European counters too dampened sentiments, as investors digested the latest batch of corporate earnings and reacted to strong gains in oil prices. However, Asian markets ended in green terrain on Thursday, as a rebound in oil boosted energy producers. Also, the corporate earnings and positive data on the US economy have buoyed sentiments about global growth.

Back home, traders took encouragement with the private report that average crude oil prices will be around $45 for the next half of this year and this coupled with positive macro fundamentals, could translate into better growth numbers for the country. Besides, investors took note of Icra’s latest report stating that securitisation transaction rose 34% in FY17 to Rs 90,000 crore on the back of a strong growth in priority sector qualifying assets. On the sectoral front, auto stocks remained in top gear after the credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has maintained a stable outlook on the auto sector for the current financial year. This is mainly driven by moderate annual volume growth of 6-9% for passenger vehicle (PV) segment, despite an expected slowdown in the commercial vehicle (CV) segment.

The NSE’s 50-share broadly followed index Nifty gained by fifteen points to hold its psychological 9,400 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex rose marginally to finish above its psychological 30,250 mark. Broader markets too traded in-line with benchmarks and ended with marginal gains.    

The market breadth remained in favour of decliners, as there were 1,247 shares on the gaining side against 1,578 shares on the losing side while 167 shares remain unchanged. (Provisional)

The BSE Sensex ended at 30250.98, up by 2.81 points or 0.01% after trading in a range of 30207.11 and 30366.43. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

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

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.65%, Consumer Disc up by 1.16%, Auto up by 0.98%, Metal up by 0.69% and TECK up by 0.57%, while Power down by 1.22%, Utilities down by 1.03%, Oil & Gas down by 0.93%, PSU down by 0.77% and Energy down by 0.63% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hero MotoCorp up by 4.26%, Bajaj Auto up by 3.12%, Adani Ports & SEZ up by 2.28%, SBI up by 1.15% and ITC up by 1.00%. On the flip side, Bharti Airtel down by 2.21%, GAIL India down by 2.14%, ONGC down by 1.94%, Hindustan Unilever down by 1.81% and Axis Bank down by 1.69% were the top losers. (Provisional)

Meanwhile, in order to meet rising domestic demand of liquefied petroleum gas (LPG), India the world's second largest LPG importer, for the first time ever will be importing LPG from Iran. India has signed a contract with Iran to import LPG, in which state-owned oil firms will import one very large gas carrier (VLGC), or 44,000 tonnes, per month for an initial six-month period.

LPG consumption in 2016-17 rose 9.8 per cent to 21.55 million tones, of this, 11 million tonnes came from imports. To meet the rising demand, the country imports almost a million tonnes of LPG every month. LPG imports are further expected to rise over the next three years to 16-17 million tonnes as the government pushes for making available cooking gas cylinders to the poor and wean them off polluting fuels.

Demand for the LPG may grow by 9.7 per cent to 23.7 million tonnes in the current fiscal and may touch 35 million tonnes by 2031-32 due to increase in penetration of cooking gas connections in rural areas.

At present, India imports LPG via term contracts from major Middle Eastern producers Saudi Aramco, Qatar’s Tasweeq, Abu Dhabi National Oil Co and Kuwait Petroleum Corp and is also planning to import LPG from Bangladesh.

The CNX Nifty ended at 9422.40, up by 15.10 points or 0.16% after trading in a range of 9411.30 and 9450.65. There were 30 stocks advancing against 21 stocks declining on the index. (Provisional)

The top gainers on Nifty were Eicher Motors up by 5.74%, Zee Entertainment up by 5.53%, Hero MotoCorp up by 4.15%, Hindalco up by 3.50% and Bajaj Auto up by 3.22%. On the flip side, ONGC down by 2.31%, GAIL India down by 2.20%, Indian Oil Corp. down by 2.13%, Bharti Airtel down by 1.81% and Axis Bank down by 1.80% were the top losers. (Provisional)

European markets were trading in red; UK’s FTSE 100 decreased 8.64 points or 0.12% to 7,376.60, Germany’s DAX shed 2.29 points or 0.02% to 12,755.17 and France’s CAC was down by 2.07 points or 0.04% to 5,398.39.

Asian equity markets ended higher on Thursday, with a rebound in crude oil prices and rising optimism about the US economy lending some support. Chinese shares reversed earlier losses to end higher, led by gains in realty and infrastructure stocks, after reports suggested that the central bank is likely to inject funds via its medium-term lending facility on Friday. Further, Japanese shares eked out modest gains as crude prices inched higher and the yen held steady around the 114 level following the release of strong trade and investment data. Meanwhile, the Indonesian market was closed in observance of Wesak Day.