Post Session: Quick Review

Indian equity benchmarks traded in red for most part of the day on Wednesday and sharp selloff in last hour of trade largely forced the markets to close at day’s low. Markets snapped two sessions record hitting spree, with Sensex and Nifty slipping below their crucial 38,750 and 11,700 levels, respectively. Key bourses started on a flat note, as investors remained on sidelines on penultimate session of August F&O expiry. The sentiments remained in lackadaisical mood with a private report that the Indian economy is in for a rough ride, with rising oil prices set to continue weighing on its already-weakened currency, widen its deficit, and affect its growth outlook. Moreover, steep fall in the Indian rupee against the US dollar too weighed on investors’ morale.

Sharp selling in dying hour of trade mainly dragged domestic bourses to their intraday lows, as sentiments on the street weakened further with the credit rating agency, India Ratings’ latest report stating that the widening current account deficit (CAD), which is projected to cross 2.6% of GDP this year, coupled with the rupee plunge, is likely to increase borrowing costs for corporates and bring down the overall volume of fresh forex loans. Domestic sentiments also got hit with Credit rating agency Moody's Investors Service report that there are risks of India breaching the 3.3% fiscal deficit target for the current financial year as higher oil prices will add to short-term fiscal pressures. Adding some woes, the Reserve Bank of India in its annual report said that bad loans for the banking sector are likely to increase in 2018-19 from the current levels of around 11.5%.

On the global front, Asian markets ended mostly in green, following the positive cues from Wall Street as worries about global trade wars eased slightly. European markets were trading in green in early deals on Wednesday.

Back home, tourism sector was in focus with private report stating that the state tourism industry, which has estimated a total loss of Rs 2,000 crore due to property damages in the deluge and loss of business during July-September period, is hoping to limp back on track by October. Besides, telecom sector stocks were in focus with a report that India Ratings and Research (Ind-Ra) has maintained a negative-to-stable outlook on telecom sector for the rest of FY19, saying weak revenue per user and high capex will continue to suppress the sectoral credit outlook.

The BSE Sensex ended at 38722.93, down by 173.70 points or 0.45% after trading in a range of 38679.57 and 38989.65. There were 12 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.47%, while Small cap index up by 0.05%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 1.11%, Realty up by 1.09%, Basic Materials up by 0.68%, PSU up by 0.66% and Oil & Gas up by 0.23%, while Energy down by 1.13%, Telecom down by 0.71%, TECK down by 0.50%, IT down by 0.41% and Healthcare down by 0.38% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were ONGC up by 1.35%, SBI up by 1.33%, Tata Motors - DVR up by 0.93%, Tata Steel up by 0.54% and Wipro up by 0.37%. (Provisional)

On the flip side, Coal India down by 2.83%, Reliance Industries down by 1.87%, Indusind Bank down by 1.46%, Power Grid down by 1.37% and Yes Bank down by 1.25% were the top losers. (Provisional)

Meanwhile, for the second phase of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India scheme (FAME India II), the Finance Ministry has approved a sizeable amount as provision. Union Minister Anant Geete has said that the biggest concern currently is charging facilities for an electric vehicle. Therefore, they are providing charging facilities free of cost in public places and government offices to encourage people to adopt electric mobility.

Geete said they have accorded priority to public transport, especially buses, taxis and three-wheelers, including auto-rickshaws in FAME. Similarly, they are also seriously thinking about government vehicles (switching to electric vehicle technology). The minister said about 300 charging stations have been established till now for electric vehicles. The Department of Heavy Industry had allocated 455 electric buses to selected cities and special category states through expression of interest recently.

Besides, the modalities of the scheme have been finalised by an inter-ministerial panel and it will soon be placed before the Union Cabinet for approval. Meanwhile, Prime Minister Narendra Modi will launch on September 7 the second phase of the FAME India scheme, offering incentives for mass adoption of electric vehicles with an outlay of Rs 5,500 crore.

The CNX Nifty ended at 11691.90, down by 46.60 points or 0.40% after trading in a range of 11678.85 and 11753.20. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were UPL up by 3.95%, Bajaj Finance up by 1.80%, SBI up by 1.46%, ONGC up by 1.32% and BPCL up by 0.92%. (Provisional)

On the flip side, Coal India down by 2.92%, Power Grid down by 2.08%, Lupin down by 2.06%, Reliance Industries down by 1.88% and Indusind Bank down by 1.58% were the top losers. (Provisional)

European markets were trading in red; France’s CAC shed 3.11 points or 0.06% to 5,481.88, Germany’s DAX was down by 13.75 points or 0.11% to 12,513.67 and UK’s FTSE 100 fell 44.44 points or 0.59% to 7,572.78.

Asian equity markets ended mostly higher on Wednesday. Japanese markets ended higher as technology shares advanced along with their Wall Street counterparts. Meanwhile, investors are awaited cues from high-stakes talks between the US and Canada as well as China's official factory PMI due Friday. Canada's Foreign Minister Chrystia Freeland has arrived in Washington to resume talks about the future of the three-nation North American Free Trade Agreement or NAFTA, after the US and Mexico agreed to a new trade deal on Monday. Though, Chinese shares closed lower after the country's state planner warned of increased economic risks in the second half of the year and said that greater efforts are needed to hit key development goals.