Post Session: Quick Review

Indian equity benchmarks gave up huge chunk of gains to end flat on Tuesday, as traders remained on sidelines ahead of Muhurat Trading. Domestic stocks saw a positive opening, backed by recovery in the rupee value against dollar along with encouraging earnings by some blue-chip firms. Traders took encouragement with a private report that the government has generated higher-than-expected revenues from customs duties, which may help it rein in the fiscal deficit within its FY19 target of 3.3% of gross domestic product (GDP). Some optimism also came with rating agency Crisil’s report that the rupee may appreciate to 71 against the dollar by March 2019 on positives like the dip in crude prices and the $75-billion currency swap with Bank of Japan. Buying further crept in with the Textiles Minister Smriti Irani’s statement that the Indian economy would become bigger and stronger than the British economy in the next couple of years and added that the country is moving towards economic empowerment. However, in last hour of trade, key indices pared all of their early gains to trade flat, as anxiety remained among the traders with Arun Jaitley stating that excessive competition at times can result in stress in a particular sector, pointing out that these are challenges of the growing economy. He also said that with the growing economy, the role of each regulator will expand.

On the global front, Asian markets ended mostly in green on Monday, as investors awaited the outcome of the U.S. midterm elections. European markets were trading in red. Back home, select stocks from power sector ended higher with report that average spot power price at Indian Energy Exchange (IEX) rose 45.5% in October at Rs 5.94 per unit over Rs 4.08 per unit in the year-ago month. IEX witnessed highest ever sales volume of 7,125 million units (MU) during the month due to higher demand, coal shortage, lower wind and hydro power generation. Besides, stocks related to housing finance sector were in focus with report stating that India’s housing finance companies (HFCs) are facing a liquidity stress a situation that will put more pressure on the Reserve Bank of India to provide a special window to the sector as sought by the government.

The BSE Sensex ended at 34973.78, up by 22.86 points or 0.07% after trading in a range of 34889.72 and 35196.03. There were 17 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index fell 0.70%, while Small cap index was down by 0.12%. (Provisional)

The top gaining sectoral indices on the BSE were TECK up by 1.08%, IT up by 1.07%, Telecom up by 0.75%, Energy up by 0.56% and Realty up by 0.24%, while Consumer Durables down by 1.87%, Metal down by 1.53%, Basic Materials down by 0.99%, FMCG down by 0.76% and Auto down by 0.73% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were TCS up by 2.37%, Yes Bank up by 1.95%, Tata Motors - DVR up by 1.47%, Reliance Industries up by 1.24% and Power Grid up by 1.08%. (Provisional)

On the flip side, Vedanta down by 6.74%, SBI down by 3.15%, Axis Bank down by 2.71%, Adani Ports &SEZ down by 1.43% and Maruti Suzuki down by 1.41% were the top losers. (Provisional)

Meanwhile, pointing out challenges of the growing economy, Finance Minister Arun Jaitley has said that excessive competition at times can result in stress in a particular sector. He also said that with the growing economy, the role of each regulator will expand.

Jaitley said ‘Excessive competition at times can result in pricing of nature that the sector of the economy itself feels stressed because everybody then tends to follow the leader.’ He added that ‘Therefore, what do you do in such situation of this kind. These are all challenges which are going to emerge as economy moves further and expand further.’ He also said if the current growth rate continues for a decade or two, Indian economy expansion is going to be exponential.

The Finance Minister further said the size is going to increase, the size of industry is going to increase, the size of services sector will increase and the role of each regulator while exercising self-restraint will also expand. Explaining the object of the competition law, he said protection of consumer interest was a key pillar of this. He highlighted that the government wanted effective market players, reasonably optimum in number so that the consumer interest is protected. That was the object of the competition law when the state withdraws and leaves the economy to markets.

The CNX Nifty is currently trading at 10521.10, down by 2.90 points or 0.03% after trading in a range of 10491.45 and 10600.25. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were Zee Entertainment up by 2.20%, Yes Bank up by 2.19%, TCS up by 2.10%, Sun Pharma up by 1.44% and Tata Motors up by 1.29%. (Provisional)

On the flip side, Vedanta down by 6.63%, Cipla down by 5.88%, SBI down by 3.29%, HPCL down by 2.94% and Axis Bank down by 2.61% were the top losers. (Provisional)

European markets were trading in red; UK’s FTSE 100 was down by 13.42 points or 0.19% to 7,090.42, France’s CAC decreased 11.53 points or 0.23% to 5,089.86 and Germany’s DAX fell 12.28 points or 0.11% to 11,482.68.

Asian markets ended mixed on Tuesday after a cautious session ahead of the US midterm elections and the Federal Reserve's monetary policy meet, scheduled to be held on November 7 and 8 respectively. Japanese shares ended higher following the mostly positive cues overnight from Wall Street and on a slightly weaker yen. Meanwhile, the markets in Malaysia and Singapore are closed for Deepavali.