Post Session: Quick Review

Indian equity benchmarks traded on a lackluster note but managed to end the session with modest gains. The markets recovered from day’s low and the market breadth was in favour of advances with four stocks advancing against every three declining ones. The benchmarks traded in fine fettle in early deals with frontline gauges recapturing their crucial 10,350 (Nifty) and 33,300 (Sensex) levels backed by positive global cues and a bit of short covering in beaten down stocks. The street took note that a year after demonetization, India is getting ready to give digital payments yet another push. It could consider providing incentives in the goods and services tax (GST) regime for payments that are settled electronically. The GST Council meeting on Friday is likely to consider a proposal in this regard along with steps to cut GST on some items from the top 28% rate besides easing the compliance burden for businesses. Investors took note that in a move that could unlock defence contracts of more than Rs 25,000 crore, the government is amending its defence procurement manual (DPM), which will enable the armed forces to procure the latest tech in a speedy manner. Markets pared initial gains in the noon session on Grant Thornton’s latest International Business Report (IBR) which highlighted that India slipped to the 7th position in the September quarter from the 2nd spot in the previous three months in its ‘business optimism index’, showing clear signs of lag in the economy. According to the survey report, Indonesia is at the top, followed by Finland (2nd), the Netherlands (3rd), Philippines (4th), Austria (5th) and Nigeria (6th).

Today’s trade was marked with lot of activity in individual stocks on account of quarterly results as investors eyed for more earnings for further cues. Meanwhile, Amara Raja Batteries closed in green after the automotive battery manufacturer posted profit after tax of Rs 127.2 crore, lower by 6.7 percent from year-ago period but higher than street estimates. Page Industries, the exclusive licensee of JOCKEY International Inc (USA), closed in green on reporting 22.4 percent growth year-on-year in profit at Rs 84 crore and 17.1 percent rise in revenue at Rs 626 crore for the quarter. Tata Motors closed in green after the company reported around 3-fold jump in its net profit at Rs 2501.67 crore for the quarter under review as compared to Rs 848.16 crore for the corresponding quarter in the FY17, on the consolidated basis. Total consolidated income of the company rose 8.53% at Rs 70,344.76 crore for quarter under review as compared to Rs 64,816.22 crore for the same quarter ended previous year.

On the global front, Asian markets closed mixed. China’s consumer inflation rate accelerated to 1.9% in October from a year earlier, beating market expectations. The consumer price index (CPI) had been expected to increase 1.8% on-year compared with an increase of 1.6% in September. The European markets were trading mostly in green, as a flurry of corporate earnings for the third quarter triggered sharp prices moves across some sectors and bourses. The European Central Bank is prepared to delay the introduction of stricter rules on bad bank loans after fierce criticism from the European Parliament and Italy.

Back home, select textile related stocks were buzzing in today’s trade on report that India’s textiles sector is likely to touch $250 billion in the next two years from the current level of $150 billion. The joint study by ASSOCHAM and Resurgent pointed out that the textile sector in India accounts for 10% of the country’s manufacturing production, 5% of its GDP, and 13% of exports earnings.

The BSE Sensex ended at 33284.42, up by 65.61 points or 0.20% after trading in a range of 33111.54 and 33463.80. There were 17 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.06%, while Small cap index was up by 0.84%. (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 3.27%, Consumer Disc up by 0.99%, Power up by 0.83%, Metal up by 0.77% and Energy up by 0.71%, while Healthcare down by 0.16%, Auto down by 0.12% and FMCG down by 0.01% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Asian Paints up by 2.23%, Bharti Airtel up by 2.20%, ICICI Bank up by 1.98%, Tata Steel up by 1.82% and Reliance Industries up by 1.67%. (Provisional)

On the flip side, ITC down by 1.94%, Coal India down by 1.57%, Lupin down by 1.31%, Axis Bank down by 1.25% and HDFC down by 1.20% were the top losers. (Provisional)

Meanwhile, a recent joint study carried out by the Associated Chambers of Commerce & Industry of India (ASSOCHAM) and Resurgent, has stated that the size of Indian textile market is expected to touch $250 billion in the next two years from $150 billion now. The joint study also highlighted the contribution of the sector to the national economy in terms of manufacturing production, exports earnings and GDP.

According to the joint study, Indian textile sector contributes 10 per cent to the country's manufacturing production, 5 per cent to the National Gross Domestic Product (GDP), and 13 per cent to exports earnings. Further by employing nearly 51 million people directly and 68 million people indirectly in 2015-16, it is the second largest employment generating sector in the country.

ASSOCHAM-Resurgent study also mentioned the impact of demonetization, Goods and Service Tax (GST) and textile units’ closure on the textile industry, noting that smaller players were worst hit by demonetization and GST, while 4,356 workers affected on account of the closure of 18 units during 2016-17.  Besides, it found that capital goods firms are struggling as most of the downstream sectors are saddled with excess capacity and low demand.

The CNX Nifty ended at 10318.90, up by 15.75 points or 0.15% after trading in a range of 10266.95 and 10368.45. There were 25 stocks advancing against 25 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indiabulls Housing up by 3.60%, Bharti Airtel up by 2.22%, Bosch up by 2.10%, Asian Paints up by 2.03% and ICICI Bank up by 1.96%. (Provisional)

On the flip side, ITC down by 1.88%, Bharti Infratel down by 1.79%, Coal India down by 1.67%, ONGC down by 1.64% and Cipla down by 1.41% were the top losers. (Provisional)

The European markets were trading mostly in green; Germany’s DAX increased 10.66 points or 0.08% to 13,393.08, France’s CAC increased 3.2 points or 0.06% to 5,474.63, while UK’s FTSE 100 decreased 3.42 points or 0.05% to 7,526.30.

Asian equity markets made a mixed closing on Thursday as optimism over US President Donald Trump's tax reforms faded and tensions continued to flare in the Middle East. The yen was a little weaker and oil held steady after overnight losses while strong inflation data out of China underscored the resilience of the world's second-largest economy. Chinese shares ended at a fresh two-year high as encouraging inflation data pointed to a pickup in global demand. China's inflation climbed at the fastest pace in nine months in October and producer price inflation exceeded expectations as measures taken to curb pollution raised commodity prices. Consumer price inflation rose to 1.9 percent in October from 1.6 percent in September, data from the National Bureau of Statistics showed. This was the highest rate since January, when inflation was 2.5 percent. Producer price inflation held steady at 6.9 percent in October, while it was forecast to ease to 6.6 percent. Meanwhile, Japanese shares ended down after dramatic intraday swings took the Nikkei and Topix indexes to multi-decade highs only to plunge in the afternoon on futures-driven trading ahead of the following day’s options settlement.