Post Session: Quick Review

Indian equity benchmarks traded with volatility throughout the day and somehow managed to end the sessions slightly in green terrain. After making a cautious start, markets gained traction and traded in fine fettle as traders took some support from ICRA’s report stating that the GDP growth rate is expected to improve to 7.4% in Q4 FY2018 from 7.2% in Q3 FY2018, exceeding the implicit forecast of 7.1% embedded in the CSO’s Second Advance Estimate of National Income for 2017-18. Some optimism also came with a report that IT Ministry may finalise a package of measures to boost electronics exports as early as June this year. These set of measures that are expected to precede the new overarching national electronics policy currently being crafted will aim at improving the ease of doing business and removing impediments faced by companies in exporting to overseas markets. 

However, up move got restricted as anxiety remained among the traders with a foreign brokerages’ report stating that rise in oil prices may lead to inflationary trends in the country, forcing the Reserve Bank of India (RBI) to hike rates by 0.25% in the August policy review. It further noted that the apex bank, however, may opt for a status quo in rates at the forthcoming review in June. Some concerns also came with SBI’s Ecowrap report stating that India’s current account deficit is expected to widen to 2.5 percent of the Gross Domestic Product (GDP) in the financial year 2018-19, on the back of rise in the crude oil prices. 

On the global front, Asian markets ended mostly in red, with some skepticism over the China-US trade deal seeping in, while oil prices pushed higher after Washington flagged harsh sanctions on key producers Iran and Venezuela. The European markets were trading mostly in green in early deals on Monday, as an easing of pressure on Italian markets coincided with China’s latest move to open up its giant economy to the rest of the world. 

Back home, select gems and jewellery related stocks ended higher despite report that India’s gems and jewellery exports have declined 22 per cent to $2.6 billion in April on account of demand slowdown in major markets including the UAE. 

The BSE Sensex ended at 34657.83, up by 41.70 points or 0.12% after trading in a range of 34550.22 and 34754.60. 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 0.74%, while Small cap index was up by 0.66%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 1.68%, Metal up by 1.62%, Healthcare up by 1.40%, Realty up by 1.19% and Industrials up by 1.07%, while Oil & Gas down by 0.54%, Energy down by 0.41%, FMCG down by 0.08% and Utilities down by 0.06% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Dr. Reddys Lab up by 6.47%, SBI up by 4.47%, Tata Motors up by 3.64%, Bajaj Auto up by 3.32% and Coal India up by 2.84%. (Provisional)

On the flip side, TCS down by 1.23%, ITC down by 1.22%, Axis Bank down by 1.22%, Power Grid down by 0.96% and Asian Paints down by 0.88% were the top losers. (Provisional)

Meanwhile, ahead of the Central Statistics Office’s (CSO’s) Gross Domestic Product (GDP) estimate for the fourth quarter of fiscal 2017-18, domestic rating agency, Indian Credit Rating Agency (ICRA) in its latest report has forecasted that India’s GDP growth is expected to improve to 7.4% in January-March quarter of 2017-18 (Q4FY18) from 7.2% in Q3FY18. It added that the growth will be supported by good rabi crop harvest and improved corporate earnings. It also said that this will exceed the implicit forecast of 7.1% embedded in the CSO's Second Advance Estimate of National Income for FY18.

As per the report, the growth of the Indian gross value added (GVA) at basic prices in year-on-year (Y-o-Y) terms is likely to record a considerable recovery to 7.3% in the fourth quarter of FY18 from 6.7% in the third quarter of FY18, thereby rebounding above 7% after a gap of five quarters. The report stated that this revival in Q4, relative to the previous three months, is expected to be broad-based, supported by an uptick in industry (to 7.7% from +6.8%), agriculture, forestry and fishing (to 4.5% from 4.1%), and services (to 7.8% from +7.7%).

ICRA said that the uptick in economic activity that set in during the second half of 2017 is expected to have strengthened in Q4 FY18, led by a healthy rabi harvest, robust volume growth in various sectors, an improvement in corporate earnings and a favourable base effect. It further said it expects a mild pickup in growth in the services sector, reflecting the improvement in diesel and petrol consumption, service sector exports, passengers carried by domestic airlines, cargo handled at major ports and railway revenue carrying freight.

The CNX Nifty ended at 10542.05, up by 25.35 points or 0.24% after trading in a range of 10490.55 and 10558.60. There were 31 stocks advancing against 19 stocks declining on the index. (Provisional)

The top gainers on Nifty were Dr. Reddys Lab up by 5.99%, SBI up by 4.81%, Bajaj Finserv up by 4.65%, Tata Motors up by 3.99% and Bajaj Auto up by 3.29%. (Provisional)

On the flip side, Indian Oil down by 4.30%, Ultratech Cement down by 2.60%, Bharti Infratel down by 1.76%, Indusind Bank down by 1.36% and ITC down by 1.20% were the top losers. (Provisional)

The European markets were trading mostly in green; Germany’s DAX increased 5.16 points or 0.04% to 13,082.88, UK’s FTSE 100 surged 7.15 points or 0.09% to 7,866.32 while, France’s CAC decreased 5.25 points or 0.09% to 5,632.26.

Asian equity markets ended mostly lower on Tuesday as a strengthening dollar sapped demand for emerging market assets and investors kept an eye on Italian politics after the country's two populist parties announced a joint agreement naming Giuseppe Conte, 53, as the next prime minister. Japanese shares fell from 3 1/2-month highs reached the previous day, with financials leading declines as bond yields peaked after hitting a three-year high last week. Chinese shares ended on a flat note as gains in healthcare and telecom stocks were offset by declines in real estate firms. Meanwhile, markets in South Korea and Hong Kong are closed for holidays.