Post Session: Quick Review

Indian equity benchmarks ended Thursday’s trade at record closing high levels, with the Sensex hit dizzying heights, reaching the 37,000-level for the first time and Nifty also touched an all-time high, driven by better than expected quarterly results along with positive global cues. Markets begun the day on a strong note, as traders took encouragement with Commerce and Industry Minister Suresh Prabhu’s statement that India’s exports would register healthy growth rates in the coming months and are expected to touch $350 billion in 2018-19. He also said that services sector is set to become a dominant driver of the Indian economy and will contribute $3 trillion to the GDP by 2025. The domestic sentiment was also buoyed with the global rating agency Moody’s Investor Service’s statement that the fund infusion in five weak public sector banks will be credit positive and strengthen their capitalization. Moreover, short-covering of bets, today being the last session of July expiry in the derivatives segment, and strengthening rupee against the dollar, too lifted the mood.

However, both the indices receded from their peaks as sudden selloff witnessed in the last leg of trade with traders turning cautious on a report that as many as 59 mega central sector infrastructure projects, worth at least Rs 1,000 crore each, have reported cost overrun of Rs 1.36 lakh crore. But, the selling proved short-lived as markets once again entered into green terrain and picked up pace to end at record closing high levels, as traders found solace with a private report that the demand for credit from companies in the manufacturing and services sectors is moving up, in tandem with economic growth showing clear signs of gathering steam. The working capital has a major share in this higher demand, corporates are also beginning to seek credit for creating new capacities and to finance acquisitions. Investors continued to take support with Housing and Urban Affairs Minister Hardeep Singh Puri’s statement that India’s economy will breach the $5 trillion mark by 2025.

On the global front, Asian markets ended mostly in green, while European markets were trading in green in early deals on Thursday, as investors cheered an agreement between the U.S. and the European Union to hold off on new tariffs while they work through differences on trade. Back home, stocks related to steel sector were in focus as a private report stated that prices of steel-making raw materials are likely to move in a narrow range during the financial year 2018-19 due to increased supply pressure from major producing countries.

The BSE Sensex ended at 37000.61, up by 142.38 points or 0.39% after trading in a range of 36852.53 and 37027.02. There were 18 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.78%, while Small cap index was up by 0.32%. (Provisional)

The top gaining sectoral indices on the BSE were PSU up by 2.16%, Utilities up by 1.67%, Bankex up by 1.53%, Power up by 1.44% and Telecom up by 1.01%, while Metal down by 0.70%, IT down by 0.63%, TECK down by 0.53%, Capital Goods down by 0.51% and Consumer Durables down by 0.47% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were SBI up by 6.02%, Power Grid up by 4.47%, ICICI Bank up by 4.15%, ONGC up by 2.45% and Axis Bank up by 2.07%. (Provisional)

On the flip side, Yes Bank down by 4.22%, Maruti Suzuki down by 3.69%, Larsen & Toubro down by 1.13%, Asian Paints down by 1.05% and Wipro down by 0.91% were the top losers. (Provisional)

Meanwhile, expressing hopes on good growth in exports, Commerce and Industry Minister Suresh Prabhu has said that India may register healthy growth rates in exports in the coming months, despite increasing global protectionism. He added that the country’s exports are expected to touch $350 billion in the current fiscal year (FY19).

Prabhu also said that services sector is set to become a dominant driver of the Indian economy and will contribute $3 trillion to the Gross Domestic Product (GDP) by 2025. The services sector contributes significantly to India’s increased productivity and competitiveness. He said that India is pushing for export of services to countries in Africa and Latin America.

In order to give a boost to the services sector Commerce Ministry has identified 12 champion services sectors for which Cabinet has approved a dedicated fund of Rs 5000 crore to support initiatives for sectoral action. Besides, India’s merchandise exports rose 9.8% to $303 billion during 2017-18, the highest growth rate in six year.

The CNX Nifty ended at 11175.55, up by 43.55 points or 0.39% after trading in a range of 11125.70 and 11179.60. There were 25 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were SBI up by 6.42%, Grasim Industries up by 4.20%, Power Grid up by 4.13%, ICICI Bank up by 3.91% and Eicher Motors up by 3.48%. (Provisional)

On the flip side, Yes Bank down by 3.80%, Maruti Suzuki down by 3.75%, Indian Oil Corporation down by 1.99%, HPCL down by 1.90% and BPCL down by 1.57% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 surged by 0.59 points or 0.01% to 7,658.85, Germany’s DAX rose by 168.64 points or 1.32% to 12,747.97 and France’s CAC was up by 39.28 points or 0.72% to 5,465.69.

Asian equity markets ended mostly higher on Thursday as US President Donald Trump and European Commission president Jean-Claude Juncker agreeing to work towards eliminating trade barriers on industrial goods. The US and the EU have agreed to work for zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto goods. They also agreed to increase trade in services and agriculture, including greater US soybean exports to the EU. Though, Chinese shares ended lower as months of see-sawing US-Sino trade friction stoked uncertainties over the country’s economic growth, prompting investors to take a cautious stance. Japanese shares ended slightly lower as the yen gained ground on speculation the Bank of Japan could scale back its stimulus program next week.