Post Session: Quick Review

In volatile session of trade, Indian equity benchmarks recovered from day’s low points, but failed to erase all the losses and ended marginally in red on Friday, tracking weakness in Asian peers on concerns about global growth. Key indices opened with small losses, as traders remain concerned about a report that the government may be staring at higher-than-projected deficit for the current fiscal with country's direct tax revenue expected to fall short by Rs 60,000 to 70,000 crore over the revised target of Rs 12 lakh crore for FY19. As per the report, the direct tax revenue growth is at 12.2 per cent so far as against revised full year aim of 19.8 per cent.  Some pessimism also spread among the investors as CARE Ratings in its report said that India has of late seen a slight revival in the investment cycle, but that is primarily driven by the increased government spending, and not so much by the private sector. There are also concerns such as a sharp rise in number of investment projects dropped midway.

The indices declined further to hit fresh intraday low in early afternoon trade, as sentiment on the street weakened with a report that India’s goods trade surplus with the US actually shrank for a second straight year through 2018. However, key indices gave up most of their losses in last leg of trade and came off their intraday low points, on the back of buying by participants. Some solace came with Commerce and Industry Minister Suresh Prabhu’s statement that the country’s goods export will touch $330 billion in 2018-19, which will be the highest ever. He said the country's merchandise exports have seen high growth in the past six years through sector-specific interventions, focused export promotion initiatives, and quick resolution of issues. Traders also found some support with Confederation of Indian Industry’s (CII) report that the government are creating new livelihoods across existing and emerging sectors, with eight segments of the economy alone expected to create over 10 crore jobs by 2025.

On the global front, Asian markets ended lower on Friday, European markets were trading in red, after the European Central Bank slashed its growth forecasts and launched an emergency round of policy stimulus, leaving investors fearing the worst for the global economy. Investors also looked ahead to the release of the US Labor Department's closely-watched monthly jobs report for February later in the day. Back home, auto stocks ended lower with data released by the Society of Indian Automobile Manufacturers (SIAM) that domestic passenger vehicle (PV) sales declined 1.11 percent to 2,72, 284 units in February from 2,75,346 units in the same month previous year. 

The BSE Sensex ended at 36683.35, down by 42.07 points or 0.11% after trading in a range of 36592.93 and 36753.59. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index fell 0.04%, while Small cap index was down by 0.10%. (Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 1.03%, Power up by 0.91%, Consumer Durables up by 0.56%, Realty up by 0.34% and FMCG up by 0.18%, while Metal down by 1.39%, IT down by 0.85%, TECK down by 0.76%, Capital Goods down by 0.67% and Industrials down by 0.60% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 4.79%, Bajaj Auto up by 1.69%, Bajaj Finance up by 1.03%, Sun Pharma up by 0.74% and ITC up by 0.67%. (Provisional)

On the flip side, Tata Motors down by 4.12%, Tata Motors - DVR down by 3.69%, HCL Tech. down by 2.52%, Tata Steel down by 2.34% and Vedanta down by 1.93% were the top losers. (Provisional)

Meanwhile, expressing optimism over export growth, Commerce and Industry Minister Suresh Prabhu has said that India’s export of goods may touch $330 billion in 2018-19. He added that this will be the highest ever growth. He said the country's merchandise exports have seen high growth in the past six years through sector-specific interventions, focused export promotion initiatives, and quick resolution of issues.

With the structural reforms that have been put in place over the past five years by the ministry and action-oriented plans for major sectors, Prabhu said India is on the path to become the fifth-largest economy this year. He also said the Department of Commerce has identified nine sectors that are gems and jewellery, leather, textiles, engineering, electronics, chemicals, pharma, agriculture and marine products to achieve at least 16% growth in exports in 2018-19.

Besides, continuing its growth trajectory for the fourth straight month, India's exports grew by 3.74% to $26.36 billion in January, as exports of gems and jewellery, chemicals and pharmaceuticals increased. Cumulative value of exports for the period April- January 2018-19 was $271.80 billion as against $248.18 billion during the period April- January 2017-18, registering a positive growth of 9.52%.

The CNX Nifty ended at 11036.60, down by 21.60 points or 0.20% after trading in a range of 11008.95 and 11049.00. There were 24 stocks advancing against 26 stocks declining on the index. (Provisional)

The top gainers on Nifty were NTPC up by 3.97%, GAIL India up by 1.79%, Eicher Motors up by 1.70%, UPL up by 1.44% and Ultratech Cement up by 1.44%. (Provisional)

On the flip side, Tata Motors down by 4.49%, Wipro down by 4.22%, HCL Tech. down by 2.60%, Tata Steel down by 2.47% and Hindalco down by 2.27% were the top losers. (Provisional)

European markets were trading in red; UK’s FTSE 100 decreased 53.83 points or 0.75% to 7,103.72, France’s CAC dropped 24.87 points or 0.47% to 5,243.05 and Germany’s DAX was down by 73.04 points or 0.63% to 11,444.76.

Asian markets ended lower on Friday after the European Central Bank (ECB) downgraded its 2019 GDP forecast and China reported worse than expected trade data for the month of February. Investors also looked ahead to the release of the US Labor Department's closely-watched monthly jobs report for February later in the day. Chinese shares ended lower, after official data showed Chinese exports plummeted 20.7 percent in February from a year earlier, reflecting weaker demand and distortions from the Lunar New Year holiday. That was far below expectations for a 4.8 percent drop. Imports fell 5.2 percent after a 1.5 percent fall in January. Further, Japanese shares settled in red, as a downward revision of the ECB's growth/ inflation projections as well as weak Chinese data sapped investors' appetite for risk. Meanwhile, a raft of domestic data proved to be a mixed bag.