Post Session: Quick Review

The domestic stock markets rebounded from previous’ losses to post solid gains on Friday, on the back of firm global cues along with optimism over September quarter earnings. Sensex and Nifty settled above their crucial 34,700 and 10,450 levels, respectively. Markets traded with full traction throughout the session, as sentiments remained up-beat with FICCI’s latest quarterly survey showing that India’s manufacturing sector output is expected to register robust growth in the July-September quarter on account of higher production even as the hiring outlook for the sector remains subdued. The survey also revealed that exports to rise in the second quarter. Market-men also took some encouragement with the Revenue Department of the Finance Ministry’s statement that the government yet again increased import duty on several electronic items and telecom equipment to rein in current account deficit (CAD) and stabilise the rupee.

Key indices maintained their strong gains in the last leg of trade, taking support from Commerce Minister Suresh Prabhu’s statement that the New Industrial Policy is in sync with the challenges and opportunities for India with the fourth industrial revolution technologies and will place the country firmly in the global supply and value chains. Traders also reacted positively to a report stating that the finance ministry assured investors of the exchange rate and liquidity issues in non-banking financial companies (NBFCs) after markets came under heavy spell of selling. The report further noted that the finance ministry is confident that crude oil prices will move only down south hereon and the government is expecting the rupee to gain against the dollar in coming weeks. Besides, appreciation in the Indian rupee too supported the markets. Traders were looking forward to the key economic data -- August IIP and September CPI, which will be announced after the market hours.

Asian markets ended in green on Friday, as better-than-expected Chinese trade data gave some markets a breather from worries about the impact of punitive tariffs. European markets were trading in green, with global sentiments turning more positive after two sessions of sharp losses. Back home, pharma sector were in focus with report that the Indian pharmaceutical market (IPM) grew at 9.7 percent in the second quarter ended September. Besides, shipping sector too remained in focus with the shipping ministry indicating that major ports in the country witnessed 5.12 percent rise in cargo traffic to 343.26 million tonne (MT) in the April-September period of the ongoing financial year.

The BSE Sensex ended at 34712.17, up by 711.02 points or 2.09% after trading in a range of 34279.78 and 34808.42. There were 29 stocks advancing against 2 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index surged 2.32%, while Small cap index was up by 2.60%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 3.93%, Metal up by 3.84%, Realty up by 3.58%, Energy up by 3.48% and Consumer Disc up by 3.33%, while IT down by 0.89% and TECK down by 0.61% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 5.80%, Mahindra & Mahindra up by 5.15%, Coal India up by 4.61%, Kotak Mahindra Bank up by 4.55% and Bajaj Auto up by 4.15%. (Provisional)

On the flip side, TCS down by 3.17% and Tata Motors - DVR down by 0.59% were the only losers. (Provisional)

Meanwhile, with higher production in manufacturing, Federation of Indian Chambers of Commerce and Industry (FICCI) in its latest quarterly survey has stated that the outlook for India’s manufacturing sector is positive for July-September quarter (Q2) even as the hiring outlook for the sector remains subdued. Besides, the survey report showed that exports to rise in the second quarter.

According to the survey report, a total of 61% respondents said output will grow during July-September 2018 quarter from 49% in April-June 2018. This is the highest percentage of respondents expecting higher production since Q2 of 2015-16 where 63% of respondents expected higher production -- a 12-quarter high sentiment. The percentage of respondents reporting low production decreased to 9% in Q2FY19 from 13% in Q1FY19. However, rupee depreciation has not led to any significant increase in exports during the first quarter as 83% of the respondents reported that shipments were not affected much by a weakening rupee.

As per the report, high growth is expected in cement and ceramics, capital goods, automotive and medical devices and technologies in Q2 2018-19, whereas textiles, textile machinery, metal and metal products, electronics and electricals, chemicals, fertilisers and pharmaceuticals, food products and paper products may witness moderate growth. But, hiring outlook for the manufacturing sector remains subdued in near future as 65% of the respondents mentioned that they are not likely to hire additional workforce in next three months.

The FICCI’s latest quarterly survey assessed the sentiments of manufacturers for the second quarter for twelve major sectors -- automotive, capital goods, cement and ceramics, chemicals, fertilisers and pharmaceuticals, electronics and electricals, food products, leather and footwear, medical devices and technologies, metal and metal products, paper products, textiles machinery and textiles. Responses have been drawn from over 300 manufacturing units from both large and SME segments with a combined annual turnover of over Rs 2.8 lakh crore.

The CNX Nifty ended at 10464.55, up by 229.90 points or 2.25% after trading in a range of 10322.15 and 10492.45. There were 46 stocks advancing against 4 stocks declining on the index. (Provisional)

The top gainers on Nifty were Maruti Suzuki up by 6.22%, Bajaj Finance up by 5.64%, Eicher Motors up by 5.56%, Mahindra & Mahindra up by 5.25% and HPCL up by 5.12%. (Provisional)

On the flip side, TCS down by 3.03%, HCL Tech. down by 2.65%, Dr. Reddys Lab down by 0.37% and Tech Mahindra down by 0.35% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 53.51 points or 0.76% to 7,060.44, France’s CAC added 30.17 points or 0.59% to 5,136.54 and Germany’s DAX surged 66.60 points or 0.57% to 11,605.95.

Asian markets ended in green on Friday as investors cheered media reports suggesting that the US Treasury Department has not labeled China as a currency manipulator in an internal report. Sentiments  were also bolstered after data showed China's exports have so far held up well despite escalating trade tensions with the US. China's exports logged a double-digit growth in September, figures from customs administration revealed. Exports grew 14.5 percent year-on-year in September, faster than the 9.8 percent increase seen in August. Imports advanced an annual 14.3 percent, resulting in higher trade surplus of around $32 billion in September. Japanese shares finished modestly higher as the yen held broadly lower and data showed Chinese exports strengthened unexpectedly in September.