Post Session: Quick Review

Indian equity benchmarks traded on a volatile note throughout the day and ended the session with modest gains. The benchmarks made a positive start and traded in fine fettle in early deals as traders took encouragement with SBI’s report that the government is likely to achieve its fiscal deficit target of 3.2% this financial year as the budgeted disinvestment receipts are on track to realize Rs 72,500 crore. The report noted that the government will able to meet the disinvestment target of Rs 72,500 crore as Rs 60,000 crore has already been achieved and hence the fear of low disinvestment receipts is completely unwarranted. Separately, a private report highlighted that post-demonetization and implementation of the Goods and Services Tax (GST), the current economic slowdown has bottomed out and the recovery of the economy would critically depend on the initiatives the government takes from now onwards. The report added that the slowdown has bottomed out, however, the stage and pace of recovery would critically depend on the initiatives that the government takes from now onwards to boost the growth momentum, especially the private sector investment.

Investors took note that more respite could be on the way Small and Medium Enterprises (SMEs), with the Goods and Services Tax (GST) council set to ease a string of procedures, including partial relief on penalties on late filing of GST returns. The tax department’s proposal, if approved by the GST Council in its next meeting on November 10 on Guwahati, will lessen the struggles of small businesses still grappling to understand the nuances of the new indirect tax system that was rolled out from July 1. Meanwhile, infrastructure related stocks were buzzing in today’s trade as the government approved Rs 7 lakh crore worth highway projects. The Union Cabinet approved the Phase 1 of Bharatmala project to develop and expand approximately 40,000 km of roads at an investment of Rs 3.5 lakh crore in the next 5 years. PSU banks like State Bank of India, PNB, IDBI Bank, Bank of India, Bank of Baroda, Canara Bank and Syndicate Bank rallied in today’s trade on report that Finance Minister will make a major announcement on the recapitalization plans for public sector banks.

On the global front, Asian markets closed mostly in green. Japanese manufacturing activity expanded in October at a slower pace than the previous month as output and new orders growth eased in a sign final demand is moderating. Investors are closely watching China and the 19th Communist Party Congress, which winds up on Tuesday and at which President Xi Jinping is expected to release the composition of the Standing Committee - the apex of power in the country. The European markets were trading mostly in green, as investors continued to monitor the latest corporate earnings reports and kept a close eye on Spain’s constitutional crisis.

The BSE Sensex ended at 32641.18, up by 134.46 points or 0.41% after trading in a range of 32502.08 and 32670.37. There were 19 stocks advancing against 12 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.17%, while Small cap index was up by 0.55%. (Provisional)

The top gaining sectoral indices on the BSE were PSU up by 1.80%, Utilities up by 1.19%, Power up by 1.15%, Oil & Gas up by 0.74% and Bankex up by 0.71%, while IT down by 0.88%, Healthcare down by 0.39%, Consumer Durables down by 0.39%, TECK down by 0.35% and Auto down by 0.19% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Asian Paints up by 4.66%, SBI up by 3.60%, NTPC up by 2.60%, ONGC up by 2.56% and Hindustan Unilever up by 2.03%. (Provisional)

On the flip side, Tata Motors - DVR down by 1.68%, Tata Motors down by 1.61%, Infosys down by 1.35%, Mahindra & Mahindra down by 1.16% and Sun Pharma down by 1.12% were the top losers. (Provisional)

Meanwhile, raising worries over demand for real estate, credit rating agency, ICRA in its latest report has said that Indian realty sector continues to experience demand headwinds in near term, on the back of subdued macro-economic environment and consumer sentiment despite improvement in the new sales bookings during the April-June 2017 (Q1FY18) over the previous quarter (Q4FY17).

As per the rating agency, the sales value of sector has shown positive trend by improving from Rs 2,709 core in Q3FY17 to Rs 3,310 crore in Q4FY17 and further to Rs 3,703 crore in Q1FY18 with the indication of the waning impact of demonetisation. ICRA further noted that though the noteban impact is fading away, RERA Act and Goods and Services Tax (GST) implementations led to short-term disruption in sales volumes during the first half of FY18.

However, the rating agency has said that few, large players have been able to show growth in volumes, which could be indicative of the scope for organised players to consolidate their market share under the new regulatory regimes of RERA and GST.

The CNX Nifty ended at 10208.70, up by 23.85 points or 0.23% after trading in a range of 10182.40 and 10237.75. There were 29 stocks advancing against 21 stocks declining on the index. (Provisional)

The top gainers on Nifty were Zee Entertainment up by 6.50%, Asian Paints up by 4.74%, SBI up by 3.48%, NTPC up by 2.63% and UPL up by 2.52%. (Provisional)

On the flip side, HCL Tech down by 2.49%, Yes Bank down by 1.95%, IndusInd Bank down by 1.91%, Tech Mahindra down by 1.79% and Tata Motors down by 1.61% were the top losers. (Provisional)

The European markets were trading mostly in green; Germany’s DAX increased 21.86 points or 0.17% to 13,025.00, France’s CAC increased 10.75 points or 0.2% to 5,397.56, while UK’s FTSE 100 decreased 1.54 points or 0.02% to 7,522.91.

Asian equity markets ended mostly higher on Tuesday. Chinese shares rose as the Communist Party of China endorsed a second five-year term for 64-year old President Xi Jinping, making him the country's most powerful leader since Mao Zedong. Further, Japanese shares extended gains for a 16th consecutive session on the back of a weaker yen and amid relief over the BOJ policies. On the economic front, the latest survey from Nikkei revealed that activity in Japan's manufacturing sector continued to expand in October, albeit at a slightly slower pace with a manufacturing PMI score of 52.5, down from 52.9 in September.