Post Session: Quick Review

Breaking a six-day winning streak, Indian equity benchmarks ended the volatile day of trade marginally in red on Tuesday, amid caution ahead of the outcome of the Reserve Bank of India’s monetary policy review meeting tomorrow. Key bourses started on a weaker note, following weakness in its other Asian counterparts amid uncertainty about the future of US-China trade relations. Traders remained concerned with Crisil cutting India’s growth forecast for current fiscal to 7.4% on the back of weakening GDP growth and lower global trade forecasts. India’s growth in the July-September quarter slipped to 7.1% from 8.2% in the April-June quarter. It added that India’s export, which saw a revival in early part of 2018, could likely see a slower growth. Some cautiousness also came with ICRA’s statement that India’s current account deficit is likely to rise to 3% of GDP in the July-September quarter of current fiscal, from 2.4% in the preceding quarter, driven mainly by high crude oil prices.

However, key indices gave up most of their losses in last leg of trade to come off their intraday low points, due to some buying witnessed in IT and TECK stocks. But, the trade remained in negative terrain, as some anxiety remained among the investors with a private report that the 50 percent rise in shadow-banking loans in October was on account of difficulties in arranging money from money market alternatives but is unlikely to sustain.

On the global front, Asian markets closed mostly lower on Tuesday, while European markets were trading in red, amid rising doubts over whether the world's two largest economies will be able to resolve their trade differences. Back home, select Telecom sector stocks ended lower with Credit rating agency ICRA stating that telecom industry's debt would remain elevated and maintains negative outlook for the sector with no respite in sight, following intense rivalry. Logistic industry were in focused with a private report stating that demand for logistics infrastructure is booming in India due to the introduction of the GST that has revolutionised how goods are delivered across the country.

The BSE Sensex ended at 36143.15, down by 97.85 points or 0.27% after trading in a range of 36036.39 and 36295.84. There were 12 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices were ended mixed; the BSE Mid cap index was down by 0.08%, while Small cap index was up by 0.10%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 1.66%, TECK up by 1.43%, Oil & Gas up by 0.84%, Energy up by 0.24% and Metal up by 0.23%, while FMCG down by 0.69%, Realty down by 0.67%, Consumer Durables down by 0.54%, Bankex down by 0.51% and Auto down by 0.40% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were ONGC up by 2.42%, Infosys up by 2.16%, Wipro up by 1.87%, Power Grid up by 1.68% and Vedanta up by 1.55%. (Provisional)
On the flip side, Sun Pharma down by 2.83%, Mahindra & Mahindra down by 2.35%, SBI down by 1.76%, HDFC down by 1.70% and NTPC down by 1.31% were the top losers. (Provisional)

Meanwhile, Citing weak Gross Domestic Product (GDP) growth and forecasts of lower global trade, rating agency Crisil in its latest report has lowered India’s economic growth forecast by 10 basis points (bps) to 7.4% for the current fiscal year (FY19), from 7.5% forecasted earlier. Besides, the country’s growth in the July-September quarter slipped to 7.1% from 8.2% in the April-June quarter.

Crisil also projected that India's export, which saw a revival in early part of 2018, could likely see a slower growth. It further said that the forecast has a downward bias given that global growth prospects are turning weaker than estimated earlier. Also, if liquidity issues persist in the financial system, demand could get further dented. The report noted that for the rest of the current financial year, growth will find support from private consumption, driven by continues government spending on construction activities, benign inflation and revision in government salaries at the state level.

However, the rating agency said that despite the downward revision at 7.4%, India's growth in the financial year 2019 will be faster than both, the 6.7% seen in financial year 2018 and the trend rate of growth. It said the long-term average growth rate seen in the last 13 years, as per the recently released GDP back series data is 6.9%.

The CNX Nifty is currently trading at 10872.45, down by 11.30 points or 0.10% after trading in a range of 10833.35 and 10890.95. There were 25 stocks advancing against 25 stocks declining on the index. (Provisional)

The top gainers on Nifty were BPCL up by 3.07%, Indiabulls Housing Finance up by 2.53%, ONGC up by 2.46%, Infosys up by 2.22% and Indian Oil Corp. up by 2.22%. (Provisional)

On the flip side, Sun Pharma down by 2.82%, Mahindra & Mahindra down by 2.72%, Grasim Industries down by 2.06%, HDFC down by 1.84% and SBI down by 1.67% were the top losers. (Provisional)

European markets were trading in red; UK’s FTSE 100 decreased 28.45 points or 0.4% to 7,033.96, France’s CAC shed 31.71 points or 0.63% to 5,022.27 and Germany’s DAX fell 81.75 points or 0.72% to 11,383.71.

Asian markets closed mostly lower on Tuesday as the initial euphoria over the US-China truce on import tariffs subsided and investors wondered if a 90-day tariff truce was enough for the two countries to resolve their differences on a range of issues. According to reports, US President Donald Trump has appointed Robert Lighthizer, one of his cabinet's most strident trade hawks, to oversee the next round of trade negotiations with China. China's central bank chief said in an article in the China Finance magazine that the central bank would keep its monetary policy flexible and adjust it appropriately according to changes in the country's economic situation. Japanese shares fell on profit taking after a strong rally in the previous session.