Post Session: Quick Review

Extending previous session’s northward journey, Indian equity benchmarks ended the Thursday’s session at their fresh record closing levels. Both the S&P BSE Sensex and the NSE Nifty 50 settled above crucial 38,000 and 11,450 levels, respectively. Markets made an optimistic start and traded at all-time high levels, as traders took encouragement with the International Monetary Fund’s (IMF) statement that India is on track to hold its position as one of the world’s fastest-growing economies as reforms start to pay off. The $2.6 trillion economy was described by Ranil Salgado, the IMF’s mission chief for India, as an elephant starting to run, with growth forecast at 7.3% in the fiscal year through March 2019 and 7.5% in the year after that. Traders also reacted positively to report that India’s average per capita income in the last four financial years was higher at Rs 79,882 as compared to the preceding four fiscals. As per the report, the per capita income grew by 4.6% in 2013-14 to Rs 68,572; 6.2% to Rs 72,805 in 2014-15; 6.9% to Rs 77,826 in 2015-16 and by 5.7% to Rs 82,229 in 2016-17. The domestic sentiment was also buoyed with a private report stating that optimism level among India’s chief financial officers for the July-September period has improved as compared to the previous quarter and going forward distribution of rainfall, raw material costs and revival in demand will be the key deciding factors. Adding some optimism among the investors, Commerce and Industry Minister Suresh Prabhu said that the exports are showing good sign and registering increase at the rate of 20%.

On the global front, Asian markets ended mixed, while European markets were trading mostly in red in early deals on Thursday, as investors attempted to dispel trade-war angst between the U.S. and China.

Back home, power stocks ended higher on report that the installed power generation capacity in India has risen to 344 GigaWatts (GW) and its energy deficit, which stood at over 4% in 2014, has shrunk to less than 1% in 2018. Besides, real estate sector was in limelight with private report stating that Indian real estate sector is seeing an encouraging growth across assets class with returning confidence in the market. While, corporate occupies and institutions investors are seen actively investing and leasing office space in the country.  

The BSE Sensex ended at 38048.53, up by 160.97 points or 0.42% after trading in a range of 37939.28 and 38076.23. There were 16 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose by 0.57%, while Small cap index was up by 0.25%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 2.35%, Metal up by 1.39%, Bankex up by 1.34%, PSU up by 1.07% and Utilities up by 0.97%, while Telecom down by 1.22%, Consumer Durables down by 0.85%, Healthcare down by 0.69%, Capital Goods down by 0.22% and Oil & Gas down by 0.15% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were ICICI Bank up by 4.21%, Axis Bank up by 3.95%, SBI up by 2.54%, Vedanta up by 2.51% and Power Grid up by 1.48%. (Provisional)

On the flip side, Bharti Airtel down by 4.54%, ONGC down by 1.69%, Kotak Mahindra Bank down by 0.99%, Hero MotoCorp down by 0.86% and Asian Paints down by 0.85% were the top losers. (Provisional)

Meanwhile, in an encouraging development, the government has said that India’s average per capita income in the last four financial years was higher at Rs 79,882 as compared to the preceding four fiscals. In contrast, from 2011-12 to 2014-15 it was Rs 67,594.

Minister of State for Statistics Vijay Goel said that the average Per Capita NNI (net national income) in the country during 2011-12 to 2014-15 is estimated at Rs 67,594 whereas average Per Capita NNI in the country during 2014-15 to 2017-18 is estimated at Rs 79,882. As per the report, the per capita income grew by 4.6 percent in 2013-14 to Rs 68,572; 6.2 percent to Rs 72,805 in 2014-15; 6.9 percent to Rs 77,826 in 2015-16 and by 5.7 percent to Rs 82,229 in 2016-17.

Meanwhile, the Ministry of Statistics and Programme Implementation (MOSPI) data had showed that India’s per capita income grew at a slower pace of 8.6 percent to Rs 1,12,835 during the last fiscal ended March 2018. The per capita net national income in 2016-17 stood at Rs 1,03,870, witnessing a growth of over 10.3 percent from the preceding fiscal ended March 2016 (at Rs 94,130). The per capita income is a crude indicator of the prosperity of a country.

The CNX Nifty ended at 11472.15, up by 22.15 points or 0.19% after trading in a range of 11454.10 and 11495.20. There were 21 stocks advancing against 29 stocks declining on the index. (Provisional)

The top gainers on Nifty were Axis Bank up by 4.20%, ICICI Bank up by 4.08%, Hindalco up by 3.26%, SBI up by 2.85% and Vedanta up by 2.47%. (Provisional)

On the flip side, Bharti Airtel down by 4.70%, Cipla down by 2.09%, ONGC down by 2.09%, Titan Co down by 2.08% and UPL down by 1.88% were the top losers. (Provisional)

European markets were trading mostly in red; UK’s FTSE 100 shed by 47.40 points or 0.61% to 7,729.25 and France’s CAC dipped 13.58 points or 0.25% to 5,488.32, while Germany’s DAX was up by by 4.93 points or 0.04% to 12,638.47.

Asian equity markets ended mixed on Thursday after China announced retaliatory tariffs against the United States, raising concerns over the escalation of the trade war between the world's top two economies. A slump in oil prices overnight and the US announcement that it would soon impose new sanctions on Russia also kept investors nervous. Chinese shares ended higher after a government report showed consumer inflation in the country rose an annual 2.1 percent in July, exceeding expectations for 2.0 percent and up from 1.9 percent in June. The producer price index climbed 4.6 percent from last year - beating forecasts for 4.5 percent and down from 4.7 percent in the previous month. Meanwhile, Japanese shares ended lower as machinery orders data disappointed and caution crept in ahead of US-Japan trade talks. Singapore’s market was closed for a holiday.