Post Session: Quick Review

Indian equity Markets traded with volatility throughout the day and somehow managed to end the sessions slightly in green terrain on Monday, on the back of buying by participants amid positive global cues. Key indices started on a higher note, as traders took encouragement with data showing that overseas investors have pumped Rs 12,260 crore into the Indian capital markets in November, making it the highest inflow in 10 months due to falling crude oil prices and sharp rupee appreciation. Traders also found some support with Economic Affairs Secretary Subhash Chandra Garg’s statement that foreign investors have put in Rs 10,925 crore in equity and debt instruments in November.

However, in afternoon trade, domestic stock markets receded from their early gains and slipped into red zone, as market-men got anxious with report that the Central Statistics Office’s (CSO) latest report showing that India’s gross domestic product (GDP) grew 7.1% in July-September, down from 8.2% in the previous quarter, as consumption demand moderated and farm sector displayed signs of weakness. Anxiety also persisted with a report stating that the Goods and Services (GST) collections for October (collected in November) dropped to Rs 97,637 crore from Rs 1 lakh crore collected in the previous month.

Though, markets once again entered into green terrain and managed to keep their heads above water in dying hour of trade, as traders found solace with survey indicating that India’s manufacturing sector activity improved in November and touched an 11-month high as new order flows encouraged companies to lift production amid strong demand conditions. The Nikkei India Manufacturing Purchasing Managers’ Index strengthened from 53.1 in October to 54.0 in November, signalling the strongest improvement in the health of the sector in almost one year.

On the global front, Asian markets closed in green, while European markets were trading in green, after U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce on their escalating trade war by halting additional tariffs as the two countries continue negotiations. Back home, most of the banking sector stocks ended in green with report that global rating agency Moody’s gave a stable (Baa2) outlook to India’s banking system, driven by the ongoing progress on asset quality front and better operating environment.

The BSE Sensex ended at 36238.08, up by 43.78 points or 0.12% after trading in a range of 36099.68 and 36446.16. There were 19 stocks advancing against 12 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.40%, while Small cap index was up by 0.48%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 2.88%, Utilities up by 2.52%, Power up by 2.20%, Metal up by 2.10% and PSU up by 1.50%, while Healthcare down by 1.28%, Energy down by 0.52%, Auto down by 0.21% and Capital Goods down by 0.03% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Yes Bank up by 5.04%, Hindustan Unilever up by 4.13%, Vedanta up by 3.45%, NTPC up by 3.11% and Adani Ports &SEZ up by 2.42%. (Provisional)

On the flip side, Sun Pharma down by 7.59%, Mahindra & Mahindra down by 3.76%, ITC down by 1.17%, Reliance Industries down by 1.03% and Hero MotoCorp down by 0.70% were the top losers. (Provisional)

Meanwhile, the finance ministry in its latest report has showed that Goods and Services Tax (GST) collection dropped to Rs 97,637 crore in November 2018 as compared to Rs 1 lakh crore collected previous month. Of the Rs 97,637 crore collected, central GST (CGST) collection was Rs 16,812 crore, state GST (SGST) was Rs 23,070 crore, integrated GST (IGST) was Rs 49,726 crore (including Rs 24,133 crore collected on imports) and cess was Rs 8,031 crore (including Rs 842 crore collected on imports). The total number of GSTR 3B returns filed for October up to November 30, 2018, was 69.6 lakh. Compensation released to states for August-September stood at Rs 11,922 crore.

The government has settled Rs 18,262 crore to CGST and Rs 15,704 crore to SGST from IGST as regular settlement. The total revenue earned by central government and the state governments after regular settlement in November 2018 was Rs 35,073 crore for CGST and Rs 38,774 crore for SGST. Besides, the GST collections stood at Rs 1.03 lakh crore in April, Rs 94,016 crore in May, Rs 95,610 crore in June, Rs 96,483 crore in July, Rs 93,960 crore in August, Rs 94,442 crore in September and Rs 1,00,710 crore in October.

Additionally, the government has set a target of over Rs 12 lakh crore for current financial year (FY19), which can be achieved if the average monthly mop up is around Rs 1 lakh crore, as compared with Rs 89,885 crore in last financial year (FY18). During April-November of FY19, the government has collected Rs 7.76 lakh crore revenue from GST.

The CNX Nifty is currently trading at 10890.15, up by 13.40 points or 0.12% after trading in a range of 10845.35 and 10941.20. There were 30 stocks advancing against 20 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indiabulls Housing Finance up by 9.75%, Yes Bank up by 4.89%, Hindustan Unilever up by 4.05%, GAIL India up by 3.50% and Vedanta up by 3.32%. (Provisional)

On the flip side, Sun Pharma down by 7.65%, HPCL down by 3.49%, Mahindra & Mahindra down by 3.47%, UPL down by 2.94% and Zee Entertainment down by 2.58% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 156.88 points or 2.2% to 7,137.12, France’s CAC added 97.70 points or 1.92% to 5,101.62 and Germany’s DAX gained 291.22 points or 2.52% to 11,548.46.

Asian markets closed in green on Monday after US President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce on their escalating trade war. While Trump agreed to hold off on his threat to slap 25 percent tariffs on $200 billion worth of Chinese goods from January 1, Beijing agreed to buy very substantial amount of agricultural, energy, industrial and other products from the US to narrow its trade gap with the US. Japanese shares ended higher and hit a six-week high despite the dollar retreating to the mid-113 yen range on expectations of slower pace of US rate hikes and ahead of Fed Chair Jerome Powell's testimony before a congressional Joint Economic Committee due this week.