Post Session: Quick Review

In see-saw trade, Indian equity benchmarks somehow managed to end the sessions slightly in green terrain on Friday, as Telecom, Oil & Gas, PSU and Energy shares witnessed buying despite negative signals from other Asian markets. Key indices opened on a cautious note, as traders remain concerned about global credit ratings agency Moody’s statement that liquidity constraints faced by some non-bank financial institutions (NBFIs) will likely tighten overall credit supply and slow India’s economic growth rate to just above 7% for the fiscal 2019 and 2020. In addition, any further distress in the Indian NBFI sector will pose significant downside risks to India's growth outlook. The sentiments remained in lackadaisical mood with SBI Research report stating that Modi government may announce a holistic or selective farm loan waiver, however, it could be the ‘worst solution’ to alleviate farmers’ distress.

However, markets shed early losses and managed to keep their heads above water in dying hour of trade, as traders found solace with the data showing that inflation based on wholesale prices fell to a three-month low of 4.64 percent in November, as prices of food articles, especially vegetables, softened. The WPI-based inflation stood was 5.28 percent in October and 4.02 percent in November last year.  Some support also came with Export-Import (Exim) Bank report that India’s merchandise shipments is expected to rise by 7 per cent to $82.39 billion during the third quarter this fiscal. Non-oil exports are projected to increase by 7.2 per cent to $71.45 billion.

On the global front, Asian markets ended in red on Friday, while European markets were trading in red, hurt by data showing disappointing pace of industrial output and retail sales growth in China in the month of November. Back home, public sector banking stocks were in focus with report that the government is considering additional capital infusion of up to Rs 30,000 crore in public sector banks as they have been unable to raise required funds from the markets. Cement sector stocks were buzzing with report that the Goods and Services Tax (GST) Council is likely to rationalise the 28% slab by cutting tax rates on construction items, like cement, in its meeting next week.

The BSE Sensex ended at 35954.27, up by 24.63 points or 0.07% after trading in a range of 35813.85 and 36019.02. There were 20 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index rose 0.19%, while Small cap index was down by 0.02%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 3.08%, Oil & Gas up by 1.68%, PSU up by 1.05%, Energy up by 0.89% and Utilities up by 0.77%, while Healthcare down by 0.76%, Capital Goods down by 0.68%, Consumer Durables down by 0.59%, Industrials down by 0.27% and Metal down by 0.06% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 5.32%, Yes Bank up by 2.83%, ONGC up by 2.65%, NTPC up by 1.77% and Asian Paints up by 1.39%.  (Provisional)

On the flip side, HDFC down by 1.95%, Wipro down by 1.68%, Larsen & Toubro down by 0.99%, Adani Ports &SEZ down by 0.65% and Sun Pharma down by 0.64% were the top losers. (Provisional)

Meanwhile, raising concerns over economic growth, global credit ratings agency, Moody's Investors Service has said that liquidity constraints faced by some non-bank financial institutions (NBFIs) in India, after the default of Infrastructure Leasing & Financial Services (IL&FS) in September 2018, will likely tighten credit supply and the country’s Gross Domestic Product (GDP) growth rate will slow to just a little over 7% for the fiscal 2019 and 2020. Besides, Indian economy grew at 7.1% in the July-September quarter of FY19, lower than 8.2% in April-June.

Moody’s also said that just above 7% growth for fiscal 2019 and 2020, is below an estimated 7.4% outturn in the fiscal year ending March 2018 and below the pick-up in growth that they envisaged a few months ago. It added that any further distress in the NBFI sector will pose significant downside risks to India’s growth outlook. The nation’s NBFIs are an important provider of credit to the country's economy and, in the fiscal year ended March 31, 2018, accounted for nearly 17% of total loans and one third of total retail loans.

The rating agency further said in a downside scenario, a sharper slowdown in NBFI credit supply would significantly tighten overall credit availability, drive up borrowing costs and reduce economic growth by around half a percentage point over a few years. It noted that weaker nominal GDP growth over a prolonged period would weigh on India's fiscal strength and the overall sovereign credit profile.

The CNX Nifty ended at 10805.35, up by 13.80 points or 0.13% after trading in a range of 10752.10 and 10815.75. There were 30 stocks advancing against 20 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bharti Airtel up by 5.44%, BPCL up by 3.27%, Yes Bank up by 2.92%, Indian Oil Corp. up by 2.69% and ONGC up by 2.55%.  (Provisional)

On the flip side, HDFC down by 1.83%, HCL Tech. down by 1.73%, JSW Steel down by 1.69%, Wipro down by 1.51% and Titan Co down by 1.32% were the top losers. (Provisional)

All European markets were trading in red; UK’s FTSE 100 decreased 78.09 points or 1.14% to 6,799.41, France’s CAC fell 60.91 points or 1.24% to 4,836.01 and Germany’s DAX shed 161.29 points or 1.48% to 10,763.41.

Asian markets ended in red on Friday, hurt by data showing disappointing pace of industrial output and retail sales growth in China in the month of November. Worries about slowing global economic growth and skepticism about a trade deal between US and China anytime soon weighed as well on Asian markets. Data showed China's industrial output grew at its slowest pace in nearly three years, increasing by 5.4 percent in November, after growing by 5.9 percent a month earlier. Meanwhile, retail sales in China grew 8.1 percent in November, the weakest growth since 2003. In October, retail sales were up 8.6 percent. The slower pace of industrial output and retail sales growth was due to the impact of the ongoing trade disputes with the US. Japanese market ended lower despite a fairly decent Tankan survey report. The Bank of Japan said in its quarterly Tankan Survey that the index of business and manufacturing sentiment in Japan was steady in the fourth quarter of 2018. The large manufacturing index was unchanged with a score of +19, beating expectations for +18. The outlook came in at +15, shy of forecasts for +17 and down from +19 in the previous three months.