Post Session: Quick Review

Indian equity benchmarks traded between green and red terrain throughout the session and ended Tuesday’s trade on optimistic note, with Sensex ending just shy of 36,000 mark.  With that, key indices took winning streak to third straight session. Markets started off with marginal gains, as traders took some encouragement with the central statistics office’s (CSO) latest data showing that Indian economy is expected to grow at 7.2% in 2018-19, a tad higher from 6.7% in the previous fiscal, mainly due to improvement in the performance of agriculture and manufacturing sectors. Besides, describing the 7.2% GDP growth projection for 2018-19 as very healthy, Economic Affairs Secretary Subhash Chandra Garg said India remains to be the fastest growing economy in the world.

However, key indices pared early gains to trade flat as investors took cautious approach ahead of the Q3 corporate earning session starting this week and outcome of the ongoing US-China trade talks. Traders also remained anxious with Crisil’s report that India Inc is set to report a decline in both revenue as well as profit growth numbers in the December quarter. It said revenue growth will dip by up to 5 percentage points on average to 12-13%. The sentiments remained in lackadaisical mood with a report that the growth in direct tax collection in the first nine months of the year was marginally lower than the rate of 14.4% required to meet the budget estimate of Rs 11.5 lakh crore for direct taxes in FY19. The net (post-refunds) direct tax collection for April-December period this fiscal was Rs 7.43 lakh crore, up 13.6% from the year-ago period.

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 a private report expecting that the government to maintain fiscal deficit target of 3.2-3.3 percent. Traders also took note of Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that necessary steps would be taken if liquidity shortage arises in the economy, even as liquidity needs are largely met at present. 

On the global front, Asian markets ended mostly in red on Tuesday, as investors waited to see whether the outcome of fresh talks on trade will be productive and ahead of a televised address from US President Donald Trump. European markets were trading in green, with retail sales climbing more than expected despite mounting economic headwinds facing the bloc. Back home, Cement sector was in focus as ICRA reported that the domestic cement demand is expected to be at 7% in FY2019 and around 8% in FY2020, driven by housing, primarily rural housing and affordable housing and improved focus on infrastructure segments like roads, metro and irrigation projects.

The BSE Sensex ended at 35978.69, up by 128.53 points or 0.36% after trading in a range of 35753.95 and 36037.35. There were 17 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index fell 0.15%, while Small cap index was up by 0.13%. (Provisional)

The gaining sectoral indices on the BSE were Bankex up by 1.35%, Telecom up by 1.28%, Healthcare up by 1.02%, PSU up by 0.71% and Metal up by 0.50%, while Capital Goods down by 0.50%, Realty down by 0.32%, Utilities down by 0.32%, Oil & Gas down by 0.23% and Energy down by 0.23% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Sun Pharma up by 4.03%, ICICI Bank up by 3.56%, SBI up by 3.35%, Tata Motors up by 2.71% and Yes Bank up by 2.70%. (Provisional)

On the flip side, Kotak Mahindra Bank down by 1.35%, Mahindra & Mahindra down by 0.88%, Hindustan Unilever down by 0.84%, HDFC Bank down by 0.83% and Bajaj Finance down by 0.77% were the top losers. (Provisional)

Meanwhile, after Central Statistics Office’s (CSO) estimation on GDP growth, Economic Affairs Secretary Subhash Chandra Garg has described the 7.2% GDP growth projection for 2018-19 as very healthy and noted that India remains to be the fastest growing economy in the world.

Garg highlighted that increase in gross fixed capital formation (GFCF) indicates a pickup in investment activities. He pointed towards impressive GVA growth seen in several industry segments during 2018-19 compared to 2017-18. He further listed the facts and figures about the growth seen in industry segments in FY19 as compared to FY18  such as manufacturing at 8.3% against 5.7%, Construction at 8.9% against 5.7% and Electricity, Gas, Water Supply and Utilities at 9.4% against 7.2%.

Meanwhile, CSO in its First Advance Estimates of National Income, 2018-19, reported that India’s economic growth is expected to grow at 7.2% in the current fiscal year (FY19), from 6.7% in the previous fiscal, mainly due to improvement in the performance of agriculture and manufacturing sectors.

The CNX Nifty ended at 10796.80, up by 25.00 points or 0.23% after trading in a range of 10733.25 and 10818.45. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Sun Pharma up by 4.13%, ICICI Bank up by 3.41%, SBI up by 3.17%, Tata Motors up by 2.77% and Yes Bank up by 2.62%. (Provisional)

On the flip side, Zee Entertainment down by 2.98%, UPL down by 1.60%, Kotak Mahindra Bank down by 1.50%, BPCL down by 1.36% and Hindalco down by 1.10% were the top losers. (Provisional)

European markets were trading in green, UK’s FTSE 100 increased 46.04 points or 0.68% to 6,856.92, France’s CAC rose 37.43 points or 0.79% to 4,756.60 and Germany’s DAX was up by 61.47 points or 0.57% to 10,809.28.

Asian markets ended mixed on Tuesday as traders awaits for the developments from the second day trade talks between China and United States. Japanese shares ended higher after Amazon and Microsoft Corp fueled a second straight session of gains on Wall Street overnight. Though, China stocks closed slightly lower amid investor caution as US and Chinese officials seek to reach a trade deal in Beijing. Seoul stocks fell as investors monitored the second day of trade talks between China and the United States.