Post Session: Quick Review

Indian equity benchmarks traded on a lackluster note throughout the day and ended the session with modest losses. The market breath was mildly in favour of declines with one stock advancing against each declining ones. The benchmarks made a cautious start and traded slightly in red in early deals as sentiments were dampened on foreign brokerage report which highlighted adverse macroeconomic impact of rise in crude oil prices, said every $10 per barrel rise in the price will worsen India’s fiscal balance by 0.1 percent and current account balance by 0.4 percent of GDP. At the same time, it also estimates that every $10/bbl rise in crude oil price would hit the central government’s fiscal balance by 0.1 percent of GDP. It also added that every $10/bbl rise in crude oil price would increases CPI inflation by 0.6-0.7 percentage points. Separately, the National Highways Authority of India (NHAI) has issued show cause notice to over a dozen infrastructure companies asking why they should not be barred from bidding for highway projects for 2-3 years. 20 highway projects executed by these companies were terminated for builders default. Investors took note that the Goods and Services Tax could be in for a revamp that’s more comprehensive than the tweaks that have been made thus far to iron out kinks to make compliance less onerous. The GST Council has set up a new advisory group that includes industry representatives to look into such changes.

Buying crept in as Prime Minister Narendra Modi has expressed confidence that recently introduced Goods and Services Tax (GST) regime will further improve India’s ranking in the ease of doing business, pointing that the recent ranking did not take into account implementation of GST. Some support also came on reports that after two months of intense selling, foreign investors turned net buyers in October to invest over Rs 3,000 crore in stocks, enthused by the government’s Rs 2.11 lakh crore bank recapitalization plan. The latest inflow followed a net pullout of Rs 24,000 crore from stock markets in the past two months (August and September). PSU banking stocks were buzzing on report that the Finance Ministry may infuse about Rs 70,000 crore through recapitalization bonds in the NPA-hit public sector banks in the next four months.

On the global front, Asian markets closed mixed after a surprise shakeup over the weekend in Saudi Arabia and with President Donald Trump in Asia for more than a week of high-profile meetings. A burst of Chinese data over the next few weeks is expected to show the world’s second-biggest economy cooled further in October as policy makers harden efforts to reduce financial risks and foster long term sustainable growth. The European markets were trading in red as a survey showed that the euro zone’s economy lost some energy last month. However, growth remained strong and firms were able to pass on more of their costs to consumers as pricing power increased.

Back home, Auto stocks were buzzing in today’s trade after ICRA said that the domestic commercial vehicle (CV) sales are expected to grow by around 7 percent in the current fiscal on the back of pent-up demand post GST and replacement cycle in CVs driving the sales. The rating agency added that the industry will find its momentum back aided by increased thrust on infrastructure and rural sectors in the recent budget, potential implementation of fleet modernization and higher demand from consumption-driven sectors. 

The BSE Sensex ended at 33664.79, down by 20.77 points or 0.06% after trading in a range of 33582.38 and 33848.42. There were 13 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.41%, while Small cap index was up by 0.23%. (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 8.26%, Auto up by 1.03%, Consumer Disc up by 0.97%, IT up by 0.73% and Industrials up by 0.48%, while Telecom down by 1.24%, Energy down by 0.77%, Power down by 0.71%, Capital Goods down by 0.62% and Bankex down by 0.56% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Motors - DVR up by 4.27%, ONGC up by 4.00%, Tata Motors up by 2.70%, Mahindra & Mahindra up by 2.53% and Cipla up by 2.08%. (Provisional)

On the flip side, NTPC down by 1.78%, Sun Pharma down by 1.76%, Reliance Industries down by 1.71%, Bharti Airtel down by 1.68% and Lupin down by 1.44% were the top losers. (Provisional)

Meanwhile, highlighting India’s recent significant jump in World Bank’s ‘ease of doing business’ ranking, Prime Minister Narendra Modi has expressed confidence that recently introduced Goods and Services Tax (GST) regime will further improve India’s ranking in the ease of doing business, pointing that the recent ranking did not take into account implementation of GST.

PM further emphasized that the country is swiftly changing for the better amid various reforms initiated by the government and a result of this, India has in three years jumped 42 places to break into top 100 countries on World Bank's ease of doing business ranking. PM said that GST and other different reforms need gestation and stabilisation time before they are taken into account by the World Bank and will further improve the ranking.

PM also listed out more positive aspects of the new tax regime, saying that GST has not just integrated the nation of 1.2 billion into one market with one tax rate but also provided a stable and transparent taxation regime.  He added that under GST regime, tax filing and registration of new business has also got easier. 

The CNX Nifty ended at 10432.75, down by 19.75 points or 0.19% after trading in a range of 10413.75 and 10490.45. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were ONGC up by 3.83%, Tata Motors up by 2.75%, Mahindra & Mahindra up by 2.61%, Bharti Infratel up by 2.49% and Cipla up by 2.16%. (Provisional)

On the flip side, HPCL down by 2.45%, Yes Bank down by 2.33%, Sun Pharma down by 1.86%, Bharti Airtel down by 1.85% and Reliance Industries down by 1.69% were the top losers. (Provisional)

The European markets were trading in red; UK’s FTSE 100 decreased 10.97 points or 0.15% to 7,549.38, Germany’s DAX decreased 21.55 points or 0.16% to 13,457.31 and France’s CAC decreased 10.34 points or 0.19% to 5,507.63.

Asian equity markets made a mixed closing on Monday as US President Donald Trump kicked off his tour of Asia in Japan over the weekend with a tough rhetoric and an anti-corruption crackdown in Saudi Arabia resulted in the arrest of several Saudi princes and ministers, including prominent investor Prince Alwaleed Bin Talal. Chinese shares ended higher even as banking stocks fell after People's Bank of China Governor Zhou Xiaochuan spelled out his strategy to ward off systematic financial risks. Japanese shares ended on a flat note as trading resumed after a long holiday weekend. Meanwhile, Hong Kong shares ended lower ahead of Chinese current account, foreign-exchange reserves and consumer inflation data due this week.