Post Session: Quick Review

Indian equity markets witnessed volatility throughout the day and ended the session on a flat note on account of negative global cues and weak rupee. Investors started cutting down their bets amid continued capital outflows by foreign funds. The market breath was in favour of declines, while Nifty Bank ends with minor gains. The equity benchmarks made a somber start and traded in red in early deals as sentiments were under pressure with the inclusion of Chinese mainland stocks to the MSCI index, which could lead to hundreds of billions of dollars worth of share purchases, shrinking shares of other emerging markets, including India. Some concerns also came with the Fitch Ratings’ latest report indicating that demonetization of old Rs 500 and 1,000 notes had a material impact on spending as reflected in significant slowing of GDP growth in January-March, and warned that the ongoing steep decline in investment could spell risks to growth potential. In its Global Economic Outlook (GEO), Fitch said Indian GDP growth slowed significantly to 6.1% in first quarter of 2017 from 7% in October-December 2016. Selling crept in with CARE Ratings’ latest report highlighting that the fiscal deficit estimate for 2017-18 is set to rise to 3.35% from present 3.24% of GDP, impacted by Rs 17,780-crore shortfall in non-tax revenue (NTR) target from telecom services. The agency added that the fiscal deficit estimate for the year 2017-18 is Rs 5,46,532 crore and if the shortfall is taken into account, the deficit estimate for the year will stand increased to Rs 5,64,312 crore. However, the losses remained capped with the report that India’s farm sector is poised for a boom as monsoon’s biggest threat, the El Nino phenomenon, has been completely ruled out and heavy showers in the key agricultural regions of Punjab, Haryana and Uttar Pradesh have created the right conditions for crop planting. The widely respected Australian weather office had formally withdrawn its El Nino alert and said that outlook for the phenomenon was inactive.

On the global front, Asian markets closed mostly in red. China’s stocks took a major step toward global acceptance finally winning a long campaign for inclusion in a leading emerging markets benchmark, in what was seen as a milestone for global investing. The European markets were trading in red. The Bank of England reported that consumers were under growing pressure from rising inflation, but business investment plans had strengthened and sterling weakness was boosting export volumes.

Back home, shares of aviation companies like InterGlobe Aviation (IndiGo), Jet airways and SpiceJet closed in green taking cues from the benchmark Brent which hit a fresh seven-month low of $45.85 a barrel - a level not seen since November 18 last year.

The BSE Sensex ended at 31318.88, up by 21.35 points or 0.07% after trading in a range of 31193.61 and 31336.44. There were 14 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.01%, while Small cap index was up by 0.08%. (Provisional)

The top gaining sectoral indices on the BSE were FMCG up by 0.87%, Realty up by 0.46%, Power up by 0.17% and Capital Goods up by 0.05%, while Metal down by 1.27%, Oil & Gas down by 0.75%, Auto down by 0.75%, PSU down by 0.72% and Industrials down by 0.44% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindustan Unilever up by 2.63%, Kotak Mahindra Bank up by 0.99%, NTPC up by 0.76%, Sun Pharma up by 0.75% and Wipro up by 0.73%. (Provisional)

On the flip side, Tata Motors down by 2.16%, ONGC down by 2.07%, Adani Ports & Special Economic Zone down by 1.94%, Lupin down by 1.56% and TCS down by 1.51% were the top losers. (Provisional)

Meanwhile, terming the rollout of the Goods and Services Tax (GST) as historic event, Prime Minister Narendra Modi has said that India would set an example for the world with implementation of it. He further said that the world will witness a transformation in the country and will get to know efforts of all the political parties of different ideologies which have been united for the implementation of the GST.

PM said that the new tax regime will prove to be a miracle and the government will try to overcome difficulties. Modi while listing the various initiatives like changes in policy norms and allowance to 100 per cent FDI in defence sector, said that the government is moving forward with the dream of how to make India self-dependent in the field of defence & security.

India's long-awaited GST is all set to be launched at a grand function in the Central Hall of Parliament on the midnight of June 30 in the presence of several dignitaries, including President Pranab Mukherjee, Vice President M.Hamid Ansari and Prime Minister Modi, besides other luminaries. The GST is expected to lead to higher revenues for the Centre and the states, while also increasing the size of the economy and having a positive impact on the GDP.

The CNX Nifty ended at 9633.70, down by 19.80 points or 0.21% after trading in a range of 9608.60 and 9650.45. There were 18 stocks advancing against 33 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindustan Unilever up by 2.97%, Maruti Suzuki up by 0.90%, Kotak Mahindra Bank up by 0.85%, Sun Pharma up by 0.80% and HDFC Bank up by 0.74%. (Provisional)

On the flip side, ONGC down by 2.69%, Hindalco down by 2.67%, Tata Motors down by 2.21%, Bosch down by 2.11% and GAIL India down by 2.07% were the top losers. (Provisional)

The European markets were trading in red; UK’s FTSE 100 decreased 24.6 points or 0.33% to 7,448.11, Germany’s DAX decreased 84.89 points or 0.66% to 12,729.90 and France’s CAC decreased 54.75 points or 1.03% to 5,238.90.

Asian equity markets ended mostly in red on Wednesday, tracking losses on Wall Street overnight, after US crude futures fell more than 2 percent to enter into bear market territory on concerns about oversupply amid indications of rising production in Nigeria and Libya. A decision by US index provider MSCI to add mainland China-listed shares to its widely followed stock indexes failed to boost investors' risk appetite. Geopolitical tensions also took center stage after US President Donald Trump tweeted that efforts by China to rein in North Korea have not worked. Trump's warning came exactly a day before US and Chinese officials are to meet in Washington to talk about North Korea. Japanese shares lost ground as a stronger yen as well as falling oil prices sapped investors' appetite for risk.