Post Session: Quick Review

Indian equity benchmarks ended Friday’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, as traders took encouragement with the International Monetary Fund (IMF) stating that the country has been one of the fastest growing large economies in the world, with growth averaging about 7% over the past five years. Some support also came with report that Finance Minister Arun Jaitley has made a case for setting up GST Council-like federal institutions to promote healthcare, rural development and agriculture sectors by optimally utilising resources of the centre and states. He said agriculture, rural development and healthcare is one area where the central government spends a lot of money on supporting farmers, creating infrastructure and building health centres for poor population.

However, markets soon wiped out all of their early gains to enter into negative territory, as traders turned wary after Fitch Ratings in its latest report cut India’s economic growth forecast for the next financial year starting April 1, to 6.8% from its previous estimate of 7%, on weaker than expected momentum in the economy. Some anxiety also came in with a report that India expressed concern over the widening trade deficit with China which has ballooned to over $58 billion, with the country’s new envoy saying that addressing the issue would be his top priority. Local barometer gauges added losses and were hovering at the intraday low points in last hour of trade, as sentiment on the street weakened further with a private report that the liquidity crisis in the non-banking finance companies (NBFC) space triggered by the default of infrastructure ending major IL&FS last September is continuing to have an impact on mutual fund (MF) deployments in the sector. The overall exposure of debt MFs to NBFCs stood at Rs 2.2 lakh crore in February, a drop of Rs 45,386 crore since July 2018 when the liquidity stress first emerged.

On the global front, Asian markets ended mostly higher on Friday after upbeat US data and optimism in the tech sector helped calm some of the jitters sparked by the Federal Reserve's cautious outlook on the world's biggest economy. European markets were trading in red, as worse-than-expected economic data intensified concerns around slowing global growth. Back home, sugar sector stocks were in focus with report that the food ministry has asked states to ensure that sugar mills are not selling the sweetener at below the minimum selling price (MSP), which has been increased recently to Rs 31 a kilogram from Rs 29. It said all mills have to sell sugar at Rs 31 a kg plus GST and transportation charges and action may be taken against mills selling sugar below floor price.

The BSE Sensex ended at 38214.94, down by 171.81 points or 0.45% after trading in a range of 38089.36 and 38564.71. There were 10 stocks advancing against 21 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index fell 0.56%, while Small cap index was down by 0.43%. (Provisional)

The top gaining sectoral indices on the BSE were Power up by 1.19%, Utilities up by 0.82%, Realty up by 0.81%, Capital Goods up by 0.61% and Basic Materials up by 0.08%, while Energy down by 1.91%, Auto down by 1.29%, Telecom down by 1.24%, Oil & Gas down by 1.21% and PSU down by 1.01% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 4.99%, Larsen & Toubro up by 1.49%, Asian Paints up by 1.18%, Tata Steel up by 0.87% and Power Grid up by 0.79%. (Provisional)

On the flip side, Tata Motors - DVR down by 2.75%, Tata Motors down by 2.59%, Reliance Industries down by 2.30%, Coal India down by 2.15% and SBI down by 1.81% were the top losers. (Provisional)

Meanwhile, emphasizing on several key reforms carried out by India in the last five years, the International Monetary Fund (IMF) stated that the country has been one of the fastest growing large economies in the world, with growth averaging about 7% over the past five years. But, it also said that more needs to be done on the reforms front.

IMF said important reforms have been implemented and it feel that more reforms are needed to sustain this high growth, including to harness the demographic dividend opportunity, which India has. Besides, details about the Indian economy would be revealed in the upcoming World Economic Outlook (WEO) survey report to be released by the IMF ahead of the annual spring meeting with the World Bank next month.

The WEO will go into more details. But amongst the policy priorities, it would include accelerate the cleanup of banks and corporate balance sheets, continue fiscal consolidation, both at centre and state levels, and broadly maintain the reform momentum in terms of structural reforms in factor markets, labour, land reforms and further enhancing the business climate to achieve faster and more inclusive growth.

The CNX Nifty is currently trading at 11462.60, down by 58.45 points or 0.51% after trading in a range of 11434.55 and 11572.80. There were 18 stocks advancing against 32 stocks declining on the index. (Provisional)

The top gainers on Nifty were NTPC up by 3.75%, Larsen & Toubro up by 1.76%, Asian Paints up by 1.03%, JSW Steel up by 0.96% and Infosys up by 0.82%. (Provisional)

On the flip side, BPCL down by 3.12%, Bharti Infratel down by 3.00%, Tata Motors down by 2.75%, HPCL down by 2.51% and Indian Oil Corp. down by 2.36% were the top losers. (Provisional)

All the European markets were trading in red; UK’s FTSE 100 decreased 66.37 points or 0.9% to 7,288.94, France’s CAC fell 49.64 points or 0.92% to 5,329.21 and Germany’s DAX was down by 51.70 points or 0.45% to 11,498.26.

Asian markets ended mostly higher on Friday, even though the initial euphoria over Fed's dovish stance faded and investors looked ahead to a new round of high-level US-China trade negotiations beginning in Beijing next week for direction. Brexit developments also remained in spotlight after EU leaders agreed on a plan to delay the Article 50 process. Japanese shares ended tad higher as chipmakers rallied amid the buzz that Apple is preparing to release the AirPower sometime soon. On the economic front, the latest survey from Nikkei revealed that the manufacturing sector in Japan continued to contract at a steady pace, with a manufacturing PMI score of 48.9. That's unchanged from the February reading.