Post Session: Quick Review

Indian equity benchmarks traded in green terrain throughout the day but with volatility, and ended finally with strong gains, as the rupee touched a three-week high. Markets snapped four sessions’ losing streak, with Sensex and Nifty closing near their crucial 34,100 and 10,250 levels, respectively. The day began on a strong note, as traders took encouragement with report stating that government is responding well to the rising trade tensions between the world's two largest economies, maintaining a stance that serves the cause of Indian exporters best. However, indices gave up gains in the last leg of trade and turned negative, as anxiety remained among the traders with private report stating that liquidity crunch may hurt economic growth. The report penciling in a few basis points shave off in economic growth in the December quarter if the hoarding of cash by banks and mutual funds continue threatening on-lending non-banking finance companies, the lifeline of lakh of medium and small enterprises.

But, dying hour of trade saw renewed buying on the back of a fall in crude oil prices. Some optimism also spread among the local traders with the Directorate General of Foreign Trade (DGFT)’s statement that India relaxed some restrictions on imports of petcoke for use as feedstock in some industries. The street overlooked a report stating that Private Equity (PE) investments moderated to $14.60 billion during January-September period, owing to macroeconomic concerns, market volatility and valuations of companies. Traders also shrugged off a private report which stated that the Indian growth story has been far from perfect. That is not an understatement by any stretch of imagination. A growing challenge for the economy is the fast-evolving problem of inequality.

On the global front, Asian markets ended mixed on Wednesday as traders mulled over the impact of tariffs on corporate America, after big industrial companies admitted that they were facing rising costs. European markets were trading in green, as investors monitored a fresh batch of economic data and a flurry of corporate earnings results. Back home, Pharma sector stocks were in limelight with ICRA’s report that the domestic pharmaceutical industry is likely to register a moderate growth at 7-9 per cent in the period between FY18 and FY21. Steel sector too remained in focus with private report stating that thirty-eight pacts worth $5 billion were signed among 20 technology providers, capital goods manufacturers and steel producers, which will give impetus to the manufacturing of capital goods for iron and steel industry.

The BSE Sensex ended at 34066.88, up by 219.65 points or 0.65% after trading in a range of 33726.07 and 34300.97. There were 21 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index surged 1.06%, while Small cap index was up by 0.82%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 4.47%, Realty up by 3.75%, Oil & Gas up by 2.31%, Consumer Durables up by 1.54% and Metal up by 1.31%, while Healthcare down by 0.26%, IT down by 0.16% and Power down by 0.08% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 10.04%, Asian Paints up by 4.71%, HDFC up by 3.32%, Indusind Bank up by 3.09% and Larsen & Toubro up by 1.94%. (Provisional)

On the flip side, Yes Bank down by 4.73%, Bajaj Auto down by 4.25%, Adani Ports & SEZ down by 1.40%, Infosys down by 1.22% and Tata Motors - DVR down by 1.11% were the top losers. (Provisional)

Meanwhile, in order to boost trade and investment, the commerce ministry has said that it is important to resume long-stalled talks for the proposed free trade agreement (FTA) between India and the European Union (EU) at the earliest and without any pre-conditions. It added that any FTA has to be balanced and mutually beneficial. India has been sensitive to EU's concerns and has gone an extra mile to be accommodative.

The ministry said that the two sides reaffirmed their support to finalise an ambitious and balanced Broad Based Trade and Investment Agreement (BTIA) between India and the EU. BTIA is a kind of comprehensive free trade agreement. The Czech side noted that India is one of the most important partners for the EU and liberalisation of their markets would be beneficial in the long term for both sides. The India side stated that it is committed for an early and balanced outcome of the BTIA negotiations.

The negotiations for the pact have been held up since May 2013 as both the sides are yet to bridge substantial gaps on crucial issues. Launched in June 2007, the negotiations for the proposed BTIA have witnessed many hurdles with both sides having major differences on key issues like intellectual property rights, duty cut in automobile and spirits, and liberal visa regime. Besides, bilateral trade between the countries stood at $1.07 billion in 2017-18. It was same in the previous fiscal also.

The CNX Nifty ended at 10242.50, up by 95.70 points or 0.94% after trading in a range of 10126.70 and 10290.65. There were 35 stocks advancing against 15 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bajaj Finance up by 11.43%, Bharti Airtel up by 10.14%, HPCL up by 6.52%, Indian Oil up by 5.96% and Hindalco up by 5.51%. (Provisional)

On the flip side, Yes Bank down by 4.36%, Bajaj Auto down by 4.31%, Grasim Industries down by 2.06%, Dr. Reddys Lab down by 1.76% and Adani Ports & SEZ down by 1.63% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 41.59 points or 0.59% to 6,996.80, France’s CAC rose 32.13 points or 0.64% to 4,999.82 and Germany’s DAX was up by 42.73 points or 0.38% to 11,317.01.

Asian markets ended mixed on Wednesday as traders mulled over the impact of tariffs on corporate America, after big industrial companies admitted that they were facing rising costs. The US-China trade war, Italian government finances and US-Saudi tensions also remained in focus for markets. Japanese shares ended higher after a survey showed activity in Japan's manufacturing sector expanded at a faster rate in October. The flash Markit/Nikkei manufacturing PMI rose to a seasonally adjusted 53.1 from a final 52.5 in September, as new export orders returned to growth. Meanwhile, Chinese shares ended higher as robust earnings partly offset ongoing concerns over pledged share risks and economic growth.