Post Session: Quick Review

Indian equity benchmarks ended Friday's choppy session on a negative note, with BSE benchmark index Sensex declining around 120 points. Markets made a positive start, following robust growth data for the fourth quarter. Indian economy grew at 7.7 percent during January-March quarter of financial year 2017-18 compared to 6.1 percent a year ago, driven by gains in manufacturing and consumer spending. However, the GDP growth for the entire fiscal of 2017-18 was at 6.7%, lower than 7.1 percent in 2016-17. Some support also came with report that eight infrastructure industries recorded 4.7 percent growth in April helped by healthy performance in segments like coal, natural gas and cement. The growth rate of eight core sectors, which also include fertilisers and steel, was 2.6 percent in April 2017.

However, key indices erased all of their gains and entered red terrain in later part of the day, as sentiments turned pessimistic with a report that activity in India’s manufacturing sector declined marginally in May on the back of weaker expansion in output, new order growth and employment. A build up of inflationary pressures, amid persistent crude oil rally led to the input and output cost rising at the fastest pace since February, thereby impacting activity growth. The Nikkei India Manufacturing Purchasing Managers Index (PMI) fell from 51.6 in April to 51.2 in May. Sentiments got hit with a report showing that GST collections in May declined to Rs 940.16 billion from over Rs 1.03 trillion in April. As many as 6.247 million businesses filed their summary sales return GSTR-3B in the month of May. Some anxiety also spread among the investors with a report showing that India’s per capita income grew at a slower pace of 8.6 per cent to Rs 1,12,835 during the last fiscal ended March 2018.

On the global front, Asian equity markets ended mixed, as fears of a trade war blasted back to the fore after Donald Trump imposed stiff tariffs on European, Mexican and Canadian steel and aluminium. European markets were trading in green in early deals on Friday, as a deal for a new Italian government spurred a rebound in the country’s markets.

Back home, select gems and jewellery related stocks ended higher after Commerce and Industry Minister Suresh Prabhu said that the government is mulling a proposal to import gold from Russia to help gems and jewellery exporters provided they agree to ship out the entire consignment after value addition. Besides, select automobile stocks such as Bajaj-Auto and Tata Motors soared on the back of good sales figure for month of May. Bajaj Auto has registered a rise of 30% in total sales to 4,07,044 units in May 2018 against 3,13,756 units in May 2017. Tata Motors has registered an impressive growth of 58% at 54,295 units in May 2018, as against 34,461 units over last year due to the continued strong sales performance of its Commercial and Passenger Vehicles Business in the domestic market.

The BSE Sensex ended at 35203.71, down by 118.67 points or 0.34% after trading in a range of 35197.82 and 35438.22. There were 11 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined by 1.01%, while Small cap index was down by 1.64%. (Provisional)

The few gaining sectoral indices on the BSE were Auto up by 0.62%, Telecom up by 0.59% and Energy up by 0.14%, while Power down by 1.86%, Utilities down by 1.65%, Basic Materials down by 1.26%, PSU down by 1.18% and Realty down by 1.13% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Auto up by 4.92%, Maruti Suzuki up by 2.91%, Bharti Airtel up by 2.74%, Hero MotoCorp up by 2.25% and Tata Motors - DVR up by 1.83%. (Provisional)

On the flip side, ONGC down by 2.68%, Tata Steel down by 2.43%, Mahindra & Mahindra down by 2.37%, Hindustan Unilever down by 1.84% and Indusind Bank down by 1.75% were the top losers. (Provisional)

Meanwhile, continuing its status as the world’s fastest-growing major economy, Indian economy beating all the estimates registered a growth of 7.7% for the fourth quarter of fiscal year 2017-18, highest in seven quarters. The growth was aided by rapid construction activity, manufacturing and consumer spending along with corporate investment. However, for the entire fiscal year, the economy grew at four-year low of 6.7%, as against growth of 7.1% in 2016-17. The previous low was recorded in 2013-14 at 6.4%.

As per the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation data, real GDP or GDP at constant (2011-12) prices for the year 2017-18 is now estimated at Rs 130.11 lakh crore showing a growth rate of 6.7% over First Revised Estimates of GDP for the year 2016-17 of Rs 121.96 lakh crore, released on January 31, 2018. Besides, real GVA or  GVA at basic constant (2011-12) prices for the year 2017-18 is now estimated at Rs 119.76 lakh crore showing a growth rate of 6.5% over First Revised Estimates of GVA for the year 2016-17 of Rs 112.48 lakh crore, released on January 31, 2018.

Acocording to the data, GDP at current prices in Q4 of 2017-18 is estimated at Rs 45.34 lakh crore, as against Rs 40.90 lakh crore in Q4 of 2016-17, showing a growth of 10.9%. GVA at current basic prices in Q4 of 2017-18 is estimated at Rs 39.51 lakh crore, as against Rs 35.69 lakh crore in Q4 of 2016-17, showing a growth of 10.7%. Among the sectors, all core sectors clocked significant growth during Q4 of FY18, in comparison to the quarter before. During the March quarter, agriculture, manufacturing, and construction sectors grew at 4.5%, 9.1% and 11.5%, respectively. The financing, real estate and insurance segment registered a growth of 5%, while ‘Public administration, defence and other Services' grew at 13.3%.

GDP at current prices for the year 2017-18 is estimated at Rs 167.73 lakh crore, showing a growth rate of 10.0% over the First Revised Estimates of GDP for the year 2016-17 of Rs 152.54 lakh crore. Besides, Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs 99.14 lakh crore in 2017-18 as against Rs 90.05 lakh crore in 2016-17. Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 19.08 lakh crore in 2017-18 as against Rs 16.64 lakh crore in 2016-17. Gross Fixed Capital Formation (GFCF) at current prices is estimated at Rs 47.79 lakh crore in 2017-18 as against Rs 43.52 lakh crore in 2016-17.

The CNX Nifty is currently trading at 10687.40, down by 48.75 points or 0.45% after trading in a range of 10685.75 and 10764.75. There were 15 stocks advancing against 34 stocks declining on the index, while 1 stock remained unchanged. (Provisional)

The top gainers on Nifty were Bajaj Auto up by 5.33%, Bharti Airtel up by 3.10%, Maruti Suzuki up by 2.97%, Hero MotoCorp up by 2.30% and Hindalco up by 2.07%. (Provisional)

On the flip side, Bajaj Finserv down by 2.97%, Eicher Motors down by 2.86%, ONGC down by 2.81%, GAIL India down by 2.76% and Tata Steel down by 2.44% were the top losers. (Provisional)

The European markets were trading in green; UK’s FTSE 100 increased 56.05 points or 0.73% to 7,734.25, France’s CAC rose 64.76 points or 1.2% to 5,463.16 and Germany’s DAX surged 113.38 points or 0.9% to 12,718.27.

Asian equity markets ended mixed on Friday, with investors cautious over trade tensions after the US announced tariffs on steel and aluminum imports from several of its allies would be reapplied. Investors look ahead to the release of US jobs data for May, due later in the day for direction. Japanese shares ended slightly lower as fears of a global trade war resurfaced and US President Donald Trump downplayed the chances of reaching a quick resolution with North Korea in the upcoming summit. Further, Chinese shares ended lower even as global index provider MSCI Inc. added around 230 mainland-listed Chinese stocks to its flagship Emerging Markets Index and other indexes. On the data front, China's manufacturing activity expanded at a steady pace in May, survey data from IHS Markit showed. The Caixin Purchasing Managers' index remained unchanged at 51.1 while expected it to rise to 51.2. Meanwhile, the markets in Malaysia and Indonesia are closed on Friday in observance of the King's Birthday and Pancasila Day, respectively.