Post Session: Quick Review

Indian equity benchmarks continued their winning run for the third straight day on Monday, by rallying around a percentage point in the session, on positive expectations from the RBI Board meeting currently underway. Intense buying activity in last hour of trade largely forced the markets to close at day’s high, with Sensex settling above 35,800 level. In the morning deals, key indices traded on optimistic note, as traders took some encouragement with former Niti Aayog Vice Chairman Arvind Panagariya’s statement that the government has made a huge progress in implementing reforms including some difficult structural ones such as the Goods and Services Tax (GST) and Insolvency and Bankruptcy Code (IBC) that previous governments had difficulty in introducing. He also said that the Centre should stick to the fiscal deficit target for 2018-19. Investors took note of report stating that the government may push the Reserve Bank of India (RBI) to allow more active participation by government nominees to the central board in the decision-making process and keep them informed about key regulatory issues. However, markets trimmed some of their morning gains, as market-men got anxious with SEBI data indicating that the share of foreign portfolio investments (FPI) through participatory notes (P-notes) in domestic capital markets has declined to nine-and-a-half year low of Rs 66,587 crore at the end of October.

But, key indices regained traction in the last leg of trade to end higher, as optimism remained among traders with a private report stating that corporate India reported a good set of numbers during the July-September 2018 quarter, thanks to gains from a low base during the corresponding quarter last fiscal year and a better-than-expected showing by metals and mining firms. Local investors also took some support from Commerce and Industry Minister Suresh Prabhu’s statement that the development of industrial park rating system would help increase competitiveness of industries and promotion of the manufacturing sector. The system is being developed by the ministry to assess industrial parks in the country based on four pillars internal and external infrastructure, connectivity, environment and safety management, and business support services. The mood also remained upbeat on strengthening of rupee against the dollar.

On the global front, Asian markets ended mostly higher on Monday, but investors were keeping a close eye on the China-US trade row after Donald Trump's optimistic comments on a possible deal were offset by a war of words between his vice president and Xi Jinping. European markets were trading in green. Back home, select gems and jewellery sector stocks ended in red with report stating that a surge in demand for diamonds from Europe after a hiatus of five years is seen as green shoots of a revival that will improve sentiment in the second of the fiscal, but muted Middle East demand is still likely to see Indian gems and jewellery exports stay flat or even decline by 5%.  Besides, telecom sector was in focus with private report stating that the Telecom industry, which has attracted foreign direct investment of more than 32 billion dollars from April 2000 to June 2018, is expected to create an economic value of 217 billion dollars within next two years. 

The BSE Sensex ended at 35808.20, up by 351.04 points or 0.99% after trading in a range of 35511.10 and 35815.62. There were 24 stocks advancing against 7 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.41%, while Small cap index was up by 0.31%. (Provisional)

The top gaining sectoral indices on the BSE were FMCG up by 1.37%, Realty up by 1.24%, Energy up by 1.22%, Metal up by 1.21% and Auto up by 1.17%, while PSU down by 0.11% and Oil & Gas down by 0.05% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Yes Bank up by 7.50%, Tata Motors up by 3.01%, Indusind Bank up by 2.78%, Tata Motors - DVR up by 2.73% and ITC up by 2.70%. (Provisional)

On the flip side, ONGC down by 1.25%, ICICI Bank down by 1.20%, SBI down by 0.62%, NTPC down by 0.62% and Bajaj Auto down by 0.44% were the top losers. (Provisional)

Meanwhile, with a dedicated chapter on the importance of design, the Department of Industrial Policy and Promotion (DIPP) Secretary, Ramesh Abhishek has said that the government will soon unveil a new industrial policy. He emphasized the significance of design and innovation in India's economic progress and also extended his ‘full support’ to the setting up of a National Design Centre as early as possible.

Abhishek said “We are also bringing out a new industrial policy soon and we are proposing to include a substantial chapter and paragraphs on the importance of design, and how it should be taken forward”. The DIPP Secretary also said that enforcement of intellectual property rights was being improved through better training of police officers and judiciary. He further said “In principle the department (DIPP) would like to fully support the setting up of a National Design Centre. We can see how it can be done, it can be done through the mechanism of the India Design Council”.

With an aim to create jobs for the next two decades, promote foreign technology transfer and attract $100 billion foreign direct investment (FDI) annually, DIPP had floated a draft industrial policy in August last year. The proposed policy will completely revamp the Industrial Policy of 1991. Among other things, the policy would endeavour to reduce regulations and bring new industries in focus.

The CNX Nifty ended at 10772.40, up by 90.20 points or 0.84% after trading in a range of 10688.80 and 10772.95. There were 38 stocks advancing against 12 stocks declining on the index. (Provisional)

The top gainers on Nifty were Yes Bank up by 7.54%, Tata Motors up by 2.89%, ITC up by 2.86%, Indusind Bank up by 2.59% and Vedanta up by 2.22%. (Provisional)

On the flip side, Indiabulls Housing Finance down by 4.43%, GAIL India down by 2.12%, Bajaj Finance down by 1.67%, ICICI Bank down by 1.28% and ONGC down by 0.99% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 rose 18.10 points or 0.26% to 7,031.98, France’s CAC was up by 12.11 points or 0.24% to 5,037.31 and Germany’s DAX increased 5.09 points or 0.04% to 11,346.09.

Asian markets ended mostly higher on Monday, despite remarks from US Vice President Mike Spence at the Asia Pacific Economic Co-operation summit on Saturday which added to anxiety over the Sino-US trade spat. Pence said the US would not back down from its trade dispute until China changes its ways. The stark warning dampened investor hopes for a thaw in the Sino-US dispute on the eve of the G20 summit later this month in Argentina. Comments from two US Federal Reserve officials cautioning about global economic growth and a CIA report concluding that Saudi Arabia's powerful Crown Prince Mohammed bin Salman was behind the killing of journalist Jamal Khashoggi also kept investors nervous. However, Chinese shares ended higher, helped by gains in financials and property developers. While, Japanese shares rebounded from last week's selloff, with chip-related stocks outperforming.