Post Session: Quick Review

Indian equity benchmarks ended Monday’s trade on a lower note, due to selling in frontline blue chip stocks, despite strong trend seen in other Asian markets. Benchmark indices saw a positive opening but soon slipped into red zone as further weakening of rupee hurt sentiment. Traders remain concerned with the Federation of Indian Chambers of Commerce (Ficci) and the Indian Banks’ Association (IBA) survey stating that Liquidity is expected to remain constrained till the end of March owing to factors such as higher demand for money at the end of 2018-19, the upcoming Lok Sabha elections and advance tax outflow. The survey said higher fiscal deficit too will be a factor in constraining liquidity. It covered areas like current liquidity and suggestions to improve it and enhance credit growth. Sentiments also remained dampened as Former Reserve Bank of India Governor Y V Reddy termed the recent trend of rolling out doles for the farm sector, including the Union Budget's basic income scheme, as a 'disturbing trend' which will impact fiscal stability, growth and also Centre-state relations.

Markets continued a downward trajectory in the last leg of trade, and traded at day’s low points, as sentiment on the street weakened further with the Reserve Bank of India’s (RBI) data report showing that the country's foreign exchange reserves declined by $2.119 billion to $398.122 billion in the week to February 8, due to fall in foreign currency assets. In the previous week, the reserves had surged by $2.063 billion to $ 400.24 billion. Traders also took a note of Finance Minister Arun Jaitley’s statement that India needs fewer banks and mega banks which are strong to help the needs of common man. He said economies of scale are of great help in the banking sector.  

On the global front, Asian markets ended in green on Monday as investors pin hopes for progress in the Sino-US trade talks and await more policy stimulus from major central banks. European markets were trading in red, after Eurozone's merchandise trade surplus for December came in below the street expectations, as exports decreased, while imports were unchanged. Back home, sugar sector stocks were in focus with a ICRA’s report that the government's move to increase the minimum selling price of sugar will augur well for the mills and is expected to increase their operating profit margins by 6%.

The BSE Sensex ended at 35483.62, down by 325.33 points or 0.91% after trading in a range of 35470.76 and 35912.44. There were 7 stocks advancing against 24 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index fell 1.03%, while Small cap index was down by 1.01%. (Provisional)

The only gaining sectoral indices on the BSE were Telecom up by 0.68% and Realty up by 0.66%, while Energy down by 1.48%, FMCG down by 1.40%, Consumer Durables down by 1.29%, IT down by 1.20% and Basic Materials down by 0.94% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were ONGC up by 1.44%, Tata Motors up by 1.15%, Axis Bank up by 0.79%, NTPC up by 0.55% and Vedanta up by 0.44%. (Provisional)

On the flip side, TCS down by 3.02%, Yes Bank down by 2.58%, Reliance Industries down by 2.10%, ITC down by 2.00% and Sun Pharma down by 1.96% were the top losers. (Provisional)

Meanwhile, emphasizing the employment opportunities in tourism, the Union Minister of State for Tourism, Alphons Kannanthanam has said that India is the largest employer in the world in tourism sector.

The Union Tourism Minister further highlighted facts and figures, noting that most of those who get employed are poor and around 8.21 crore people in India were employed in the sector.

Meanwhile, with an aim to development of roads, facilities for tourists, footpaths and protect the flora and fauna, the government unveiled the project ‘Development of Eco Circuit: Pathanamthitta – Gavi – Vagamon – Thekkady’ in Kerala under the Swadesh Darshan scheme of Ministry of Tourism.

The CNX Nifty is currently trading at 10633.40, down by 91.00 points or 0.85% after trading in a range of 10630.65 and 10759.90. There were 14 stocks advancing against 36 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bharti Infratel up by 3.19%, Zee Entertainment up by 2.10%, ONGC up by 1.52%, Axis Bank up by 0.99% and NTPC up by 0.95%. (Provisional)

On the flip side, Indiabulls Housing Finance down by 3.47%, TCS down by 2.98%, Yes Bank down by 2.56%, Bajaj Finserv down by 2.41% and Reliance Industries down by 2.25% were the top losers. (Provisional)

European markets were trading in red; UK’s FTSE 100 decreased 19.84 points or 0.27% to 7,216.84, France’s CAC fell 0.56 points or 0.01% to 5,152.63 and Germany’s DAX was down by 21.70 points or 0.19% to 11,278.10.

Asian markets ended in green on Monday after reports that United States-China trade talks will continue in Washington this week. After five days of negotiations in Beijing, a statement from the White House noted that high level US-China trade talks last week led to ‘progress between the two parties’, but ‘much work remains’. Japanese shares ended higher as risk appetite buying underpinned after better than expected domestic core machinery orders and growing expectations that the latest Sino-US talks would ease trade tensions between the two economic superpowers. The Cabinet Office said that the value of core machine orders in Japan eased 0.1 percent month on month in December, exceeding expectations for a decline of 1.0 percent following a flat reading in November. Further, Chinese shares hit over six-month high after US President Donald Trump indicated he might extend the tariff deadline for a deal. Positive bank lending data also bolstered investor confidence in the economy.