Post Session: Quick Review

Indian equity markets traded on a lackluster note throughout the day and ended the session with modest cut. The equity benchmarks continued its bullish run in early deals with Nifty touching a new peak of 9,900 mark for the first time ever. However, the markets, failed to hold on to their gains and entered into red terrain, breaching their respective crucial levels, as traders remained concerned with disappointing earnings by the Tata Consultancy Services, India’s largest software services exporter whose quarterly profit fell 10 percent sequentially, while revenues declined 0.2 percent. Separately, global IT research firm Gartner further lowered its 2017 IT spending growth estimate to 2.4 percent from the 2.7 percent earlier on worries on digitization. The firm had first predicted for a 3 percent growth in worldwide IT spends, which got revised down to 2.7 percent in January this year. The downward revision in growth estimates comes amid growing anxieties over the future of the IT industry, with concerns surrounding automation and rising protectionism that is being blamed for job losses in the country.

Investors took note that India is ranked 116 out of 157 nations on a global index that assesses the performance of countries towards achieving the ambitious sustainable development goals (SDGs). India with a score of 58.1, is behind countries such as Nepal, Iran, Sri Lanka, Bhutan and China. The SDG Index and Dashboards Report shows world leaders need to strengthen their efforts to realize the 17 global goals. Investors failed to draw solace from the fall in wholesale price index based inflation to 0.9 percent in June from 2.17 percent in May. The fall in WPI as well as CPI inflation raised hopes for rate cut by RBI in August monetary policy. Meanwhile, all eyes will be on a high-profile meeting chaired by Prime Minister Narendra Modi to review the country’s foreign direct investment policy, where further easing of restrictions may also be discussed.

On the global front, Asian markets closed mostly in green. Japan’s government raised its growth forecasts for private consumption, capital expenditure, and housing investment for the current fiscal year as domestic demand gathers strength. South Korea’s central bank held its policy rate at a record-low 1.25 percent for a 13th straight month, a widely expected decision as policy makers seek to boost subdued private consumption and keep any thoughts of tightening off the table for now. European markets were trading in red but are poised for their best week in more than two months on signs that the world's major central banks would likely not tighten monetary policy as quickly as some had feared.

The BSE Sensex ended at 32000.11, down by 37.27 points or 0.12% after trading in a range of 31897.87 and 32109.75. There were 13 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was up by 0.20%, while Small cap index was down by 0.39%. (Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 1.12%, Healthcare up by 0.93%, Oil & Gas up by 0.78%, Telecom up by 0.72% and PSU up by 0.53%, while IT down by 1.04%, TECK down by 0.71%, Industrials down by 0.63%, Realty down by 0.53% and Consumer Durables down by 0.43% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 2.29%, Kotak Mahindra Bank up by 1.11%, SBI up by 0.94%, Cipla up by 0.89% and Dr. Reddy’s Lab up by 0.81%. (Provisional)

On the flip side, Wipro down by 1.97%, TCS down by 1.88%, Tata Motors - DVR down by 1.49%, Tata Motors down by 1.48% and Coal India down by 1.20% were the top losers. (Provisional)

Meanwhile, coming in line with the decline in retail inflation, India's annual rate of inflation based on wholesale prices too eased in the month of June to record low level since July 2016, on account of easing manufactured products and fuel prices. According to the data released by the Ministry of Commerce & Industry, the country’s WPI in the month of June 2017 softened to 0.90% as compared to 2.17% in the previous month and (-) 0.09% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was (-) 0.44% compared to a build up rate of 3.71% in the corresponding period of the previous year.

Component wise, primary articles index, having weight of 22.62%, witnessed a growth of 0.3% to 126.9 (provisional) from 126.5 (provisional) for the previous month. Among the primary articles, the index for ‘Food Articles’ group increased by 0.9% to 139 (provisional) from 137.7 (provisional) for the previous month and the index for ‘Minerals’ group rose by 1.3% to 116.3 (provisional) from 114.8 (provisional) for the previous month, while the index for ‘Non-Food Articles’ group decreased by 1.7 % to 117.8 (provisional) from 119.8 (provisional) for the previous month and the index for ‘Crude Petroleum & Natural Gas’ group declined by 2.4% to 69.4 (provisional) from 71.1 (provisional) for the previous month.

Fuel & Power index with weight of 13.15% declined by 1.2% to 89.7 (provisional) from 90.8 (provisional) for the previous month, with drop in index of Mineral Oils and Electricity.

Manufactured Products constituting the major portion of the index with weight of 64.23% declined by 0.1% to 112.5 (provisional) from 112.6 (provisional) for the previous month. The index for ‘Manufacture of Food Products’ group decreased by 0.4% to 126.7 (provisional) from 127.2 (provisional) for the previous month, the index for ‘Manufacture of Wearing Apparel’ group declined by 0.2% to 133.2 (provisional) from 133.5 (provisional) for the previous month, the index for ‘Manufacture of Wood and of Products of Wood and Cork’ group declined by 0.1% to 130.5 (provisional) from 130.6 (provisional) for the previous month, the index for ‘Manufacture of Paper and Paper Products’ group down by 0.6% to 115.7 (provisional) from 116.4 (provisional) for the previous month, The index for ‘Manufacture of Chemicals and Chemical Products’ group declined by 0.1% to 111.6 (provisional) from 111.7 (provisional) for the previous month, the index for ‘Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products’ group fell 0.5% to 120.2 (provisional) from 120.8 (provisional) for the previous month.

The index for ‘Manufacture of Rubber and Plastics Products’ group decreased by 0.1% to 108.5 (provisional) from 108.6 (provisional) for the previous month, the index for ‘Manufacture of Basic Metals’ group declined by 0.1% to 96.7 (provisional) from 96.8 (provisional) for the previous month, the index for ‘Manufacture of Fabricated Metal Products, Except Machinery and Equipment’ group declined by 0.1% to 108 (provisional) from 108.1 (provisional) for the previous month, the index for ‘Manufacture of Computer, Electronic and Optical Products’ group down by 0.5% to 108.5 (provisional) from 109.1 (provisional) for the previous month, the index for ‘Manufacture of Machinery and Equipment’ group declined by 0.5% to 107.8 (provisional) from 108.3 (provisional) for the previous month and the index for ‘Other Manufacturing’ group declined by 3.8% to 110.3 (provisional) from 114.6 (provisional) for the previous month.

On the other hand, the index for ‘Manufacture of Beverages’ group increased by 0.1% to 117.6 (provisional) from 117.5 (provisional) for the previous month, the index for ‘Manufacture of Tobacco Products’ group rose by 1% to 144.3 (provisional) from 142.9 (provisional) for the previous month, The index for ‘Manufacture of Textiles’ group rose by 0.1% to 113.7 (provisional) from 113.6 (provisional) for the previous month, the index for ‘Manufacture of Leather and Related Products’ group rose by 0.3% to 119.9 (provisional) from 119.5 (provisional) for the previous month, the index for ‘Printing and Reproduction of Recorded Media ‘ group rose by 0.5% to 142.4 (provisional) from 141.7 (provisional) for the previous month.

The index for ‘Manufacture of Other Non-Metallic Mineral Products’ group rose by 0.8% to 112.3 (provisional) from 111.4 (provisional) for the previous month, the index for ‘Manufacture of Motor Vehicles, Trailers and Semi-Trailers’ group rose by 0.3% to 111.6 (provisional) from 111.3 (provisional) for the previous month, the index for ‘Manufacture of Other Transport Equipment’ group increased by 0.6% to 109.7 (provisional) from 109 (provisional) for the previous month and the index for ‘Manufacture of Furniture’ group was up by 1.8% to 116.2 (provisional) from 114.2 (provisional) for the previous month.

 The CNX Nifty ended at 9886.70, down by 5.00 points or 0.05% after trading in a range of 9845.45 and 9913.30. There were 23 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were Aurobindo Pharma up by 5.36%, GAIL India up by 4.82%, ACC up by 3.87%, NTPC up by 2.38% and Bharti Infratel up by 1.80%. (Provisional)

On the flip side, Indian Oil Corporation down by 2.17%, TCS down by 1.93%, Tata Motors down by 1.75%, Wipro down by 1.53% and Tata Motors - DVR down by 1.45% were the top losers. (Provisional)

The European markets were trading in red; UK’s FTSE 100 decreased 19.23 points or 0.26% to 7,394.21, Germany’s DAX decreased 16.08 points or 0.13% to 12,625.25 and France’s CAC decreased 1.26 points or 0.02% to 5,234.14.

Asian equity markets ended mostly in green on Friday as investors digested Fed Chair Janet Yellen's measured comments on the second day of her testimony before Congress and looked ahead to earnings from a slew of US banks due later in the day for direction. Yellen on Thursday spoke about the dual risks of inflation and the factors holding down productivity growth. She said that it would be quite challenging for the United States to reach the three percent growth target set by President Donald Trump. Chinese shares ended tad higher as Fitch Ratings maintained the country's sovereign ratings at 'A+' with 'stable' outlook, but warned a further increase in economy's overall leverage and tighter monetary conditions will constrain growth prospects over the medium term. Hong Kong stocks finished higher, extending their gains to a fifth-straight day following another record close on Wall Street. Further, Japanese shares closed marginally higher ahead of a three-day weekend.