Post Session: Quick Review

Indian equity benchmarks ended the volatile session on positive note that marked a third straight day of gain, as investors took comfort after the new RBI governor Shaktikanta Das on his first day said he would take a more consultative approach and move quickly to address some of the pressing issues. Key indices made a gap-up opening and traded in fine fettle in morning deals on strong macro numbers and positive cues from global peers. The Central Statistics Office (CSO) in its latest data showed that India’s industrial output grew at an 11-month high of 8.1% in October mainly on the back of mining, power and manufacturing sectors coupled with higher offtake of capital as well as consumer durable goods. Industrial production measured in terms of Index of Industrial Production (IIP) grew 1.8% in October 2017. The previous high IIP growth rate was recorded in November last year at 8.5%. Also, India’s retail inflation eased to 2.33% in November 2018 as compared to 4.88% in November last year and was 3.31% in October.

However, key indices gave up most of their gains in last leg of trade to come off their intraday high points, due to some selling witnessed in Metal and Telecom stocks. Market-men also got anxious with report that as many as 358 infrastructure projects worth Rs 150 or above, entailing a total investment of Rs 3.53 lakh crore, reported cost overruns as on August 1, 2018. But, the trade remained in positive terrain, on hopes that RBI is likely to cut rate after CPI inflation eased to 2.33 percent in November 2018.

On the global front, Asian markets ended in green on Thursday, as investors are cheered by the more conciliatory noises from China and the US on trade. European markets were trading in red. Back home, sugar sector stocks were in focus with a private report that India’s sugar production could fall in 2019/20 as farmers are struggling to plant cane because of a drought in two of the country’s top producing states

The BSE Sensex ended at 35943.27, up by 164.20 points or 0.46% after trading in a range of 35794.51 and 36095.56. 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 0.79%, while Small cap index was up by 0.65%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 1.38%, Realty up by 1.38%, Consumer Durables up by 1.27%, Auto up by 0.97% and Industrials up by 0.97%, while Metal down by 0.74% and Telecom down by 0.59% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 2.54%, Wipro up by 2.53%, Infosys up by 2.45%, Kotak Mahindra Bank up by 2.41% and Hero MotoCorp up by 1.96%. (Provisional)

On the flip side, Yes Bank down by 6.80%, Sun Pharma down by 2.19%, TCS down by 1.86%, Tata Steel down by 1.57% and Bharti Airtel down by 0.93% were the top losers. (Provisional)

Meanwhile, S&P Global has said that India’s rapid economic growth will be enough to offset worries about the independence of its central bank and keep its credit rating in the coveted investment grade bracket. It also said ‘we always like to see a central bank that is independent because if you do not, it can have very negative consequences on your capacity to contain inflation and foster growth’. It added at the moment the high growth is enough to keep the rating stable.

It further mentioned that ‘when you are growing at 7%, that environment is quite forgiving, because it allows for a lot of these unorthodox things to happen without having a tremendous amount of damage’. Still, there are other pressures mounting too. Prime Minister Narendra Modi’s support has taken a hit ahead of national elections next year, volatile crude prices are tough for a country that imports over 90 percent of its oil, and there is general pressure on emerging markets amid a rumbling global trade war.

India’s BBB- rating puts it on the bottom rung of the investment grade ladder, and sentiment towards the country was hit when central bank governor Urjit Patel resigned following a months-long tussle over policy with the government.

The CNX Nifty ended at 10797.40, up by 59.80 points or 0.56% after trading in a range of 10749.50 and 10838.60. There were 31 stocks advancing against 19 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indiabulls Housing finance up by 5.16%, Bajaj Finserv up by 3.17%, Maruti Suzuki up by 2.81%, Infosys up by 2.76% and Zee Entertainment up by 2.75%. (Provisional)

On the flip side, Yes Bank down by 6.22%, Sun Pharma down by 2.25%, UPL down by 2.13%, TCS down by 1.88% and JSW Steel down by 1.62% were the top losers. (Provisional)

All European markets were trading in red; UK’s FTSE 100 decreased 10.57 points or 0.15% to 6,869.62, France’s CAC dipped 16.26 points or 0.33% to 4,893.19 and Germany’s DAX was down by 31.54 points or 0.29% to 10,897.89.

Asian markets ended in green on Thursday, following the positive lead overnight from Wall Street. Optimism about US-China trade relations and reports that British Prime Minister Theresa May survived a no-confidence vote by the Conservative Party boosted investor sentiment. Japanese shares ended higher, lifted by signs of reduced Sino-US trade tensions, and technology firms got a boost from a rally for US peers. Further, Chinese stocks rallied as expectations of further policy measures to aid the economy led to gains across the board.