Post Session: Quick Review

Indian equity benchmarks bounced back from their losses in late trade and managed to close the session in green, due to buying witnessed in Telecom, TECK and IT stocks.  Markets started off with marginal gains, as traders took some support with the Reserve Bank of India’s (RBI) latest data showing that foreign direct investment (FDI) during the previous fiscal grew 18 per cent to Rs 28.25 lakh crore. As per data, FDI increased by Rs 4,33,300 crore, including revaluation of past investments, during 2017-18 to reach Rs 28,24,600 crore in March 2018 at market value. The RBI said as many as 23,065 companies responded to the latest round of the census, of which, 20,732 firms had FDI or ODI in their balance sheet in March 2018. But traders soon turned cautious due weak global cues as hopes of US-China trade deal were again hit after the United States charged Chinese telecom firm Huawei with bank fraud and for conspiring to steal trade secrets.

Markets extended their fall in late-afternoon trade, as traders remained cautious ahead of Budget announcements due later this week. Pessimism over some heavyweight Q3 corporate results too weighed on the sentiment. However, key indices wiped off early losses to trade in the positive zone in dying hour of trade, as traders found solace with commerce ministry’s report that India and China have held wide ranging discussions on various issues, including providing market access to domestic products in the neighbouring country. Traders also took a note of a private report which stated that India wants to triple exports to Argentina, eyeing an additional $1.5 billion worth of shipments, and is seeking market access for apparel, textiles, folding bicycles and home furnishing products in the South American country.

On the global front, Asian markets ended mostly lower as fresh concerns over a slowing Chinese economy and renewed trade tensions weighed on investor sentiment. European markets were trading mostly in green. Back home, steel sector stocks were in focus with World Steel Association’s report that India has replaced Japan as world's second largest steel producing country, while China is the largest producer of crude steel accounting for more than 51 per cent of production.

The BSE Sensex ended at 35706.90, up by 50.20 points or 0.14% after trading in a range of 35375.51 and 35718.90. 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 0.58%, while Small cap index was up by 0.05%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 1.09%, TECK up by 1.00%, IT up by 0.92%, Healthcare up by 0.88% and FMCG up by 0.72%, while Energy down by 0.92%, Capital Goods down by 0.79%, Oil & Gas down by 0.71%, Realty down by 0.50% and Auto down by 0.36% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finance up by 3.74%, Sun Pharma up by 2.53%, Tata Motors - DVR up by 1.85%, TCS up by 1.80% and Hero MotoCorp up by 1.65%. (Provisional)

On the flip side, Larsen & Toubro down by 1.50%, Yes Bank down by 1.28%, Reliance Industries down by 1.26%, HDFC Bank down by 1.09% and Power Grid down by 0.88% were the top losers. (Provisional)

Meanwhile, the Reserve Bank of India’s (RBI) data on ‘Census on Foreign Liabilities and Assets of Indian Direct Investment Companies, 2017-18’ has showed that during the fiscal year 2017-18 (FY18), foreign direct investment (FDI) recorded a healthy jump of 18% to Rs 28.25 lakh crore. As per the data, FDI increased by Rs 4,33,300 crore, including revaluation of past investments, during 2017-18 to reach Rs 28,24,600 crore in March 2018 at market value. The RBI said the data released are the provisional results of 2017-18.

The report stated that as many as 23,065 companies responded to the latest round of the census, of which, 20,732 firms had FDI or ODI in their balance sheet in March 2018. Overseas direct investment (ODI) by Indian companies increased 5% to Rs 5.28 lakh crore. FDI companies witnessed a substantial increase in other investment liabilities, largely due to the increase in trade credit.

The census showed that Mauritius continued to be the largest source of FDI in India (19.7%) followed by the US, the UK, Singapore and Japan. In case of overseas investment by Indian companies, Singapore (17.5%) was the major destination, followed by the Netherlands, Mauritius and the US.

Manufacturing sector had majority share in total FDI. ‘Information and communication services’ and ‘financial and insurance activities’ were other major recipients of FDI. In the census participating companies, 15,104 were common from the previous census round and 5,628 reported for the first time. Besides, 1,916 companies that reported in the previous round did not report in the latest round.

The CNX Nifty ended at 10687.35, up by 25.80 points or 0.24% after trading in a range of 10583.65 and 10687.90. There were 32 stocks advancing against 18 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Ports &SEZ up by 7.45%, Indiabulls Housing Finance up by 4.24%, Bharti Infratel up by 3.81%, Bajaj Finserv up by 3.73% and Bajaj Finance up by 3.61%. (Provisional)

On the flip side, Eicher Motors down by 5.64%, GAIL India down by 2.64%, HPCL down by 1.36%, Larsen & Toubro down by 1.27% and Reliance Industries down by 1.18% were the top losers. (Provisional)

European markets were trading mostly in green; UK’s FTSE 100 increased 67.54 points or 1% to 6,814.64 and France’s CAC rose 19.31 points or 0.4% to 4,907.89, while Germany’s DAX was down by 11.05 points or 0.1% to 11,199.26.

Asian markets ended mostly lower on Tuesday as weak earnings guidance from heavy equipment maker Caterpillar and chipmaker Nvidia stoked fresh fears over falling demand in China. Concerns over trade also dented sentiment after the US Department of Justice unsealed sweeping criminal charges against Chinese tech giant Huawei and its chief financial officer Meng Wanzhou. Chinese shares ended lower, but losses were limited by Beijing’s fresh measures to prop the market and stimulate the sluggish economy. Though, Japanese shares ended higher, led by gains in defensive shares such as utilities.