Post Session: Quick Review

Indian equity benchmarks swung between green and red for most part of the day and ended Thursday’s trade with marginal losses, as key corporate results remained in focus. Markets have made a cautious start and traded almost flat as traders remain concerned after India Ratings and Research marginally lowered country's Gross Domestic Product (GDP) growth projection for 2019-20 fiscal to 7.3% mainly due to below normal monsoon prediction and loss of momentum in industrial output. It had earlier projected India's GDP growth at 7.5%. However, domestic markets soon turned positive, taking support from a report that the overall goods and services tax (GST) collections for the first month of the financial year 2019-20 came in at Rs 1.13 lakh crore, the highest level for any month since the comprehensive indirect tax’s launch in July 2017 and exactly in keeping with the Centre’s budget projection for the year. The markets also drew some comfort with report that the growth of eight core sectors improved marginally to 4.7% in March 2019 against 4.5% in the same month last year.

But, benchmarks failed to sustain early gains and once again dropped into red in late trade, as anxiety remained among the investors with a monthly survey showing that India's manufacturing sector performance eased to an eight-month low in April as new business growth moderated, curbed by the elections and a challenging economic environment. The Nikkei India Manufacturing Purchasing Managers' Index declined from 52.6 in March to 51.8 in April, reflecting weakest improvement in business conditions since August 2018.

On the global front, Asian markets ended mixed on Thursday as the Federal Reserve's latest monetary policy statement cooled investor expectations for a rate cut and investors watched ongoing negotiations between the US and China. European markets were trading mostly in red amid another active earnings session and ahead of a mid-day rate decision in London from the Bank of England. Back home, Cement sector stocks were in focus with ICRA’s report stating that the domestic cement demand is likely to grow by 8% this fiscal which may push the capacity utilisation to 71%. It added that the growth in demand will be driven by a likely 18-20 million tonnes per annum (mtpa) of additional production capacity during the fiscal.

The BSE Sensex ended at 38978.94, down by 52.61 points or 0.13% after trading in a range of 38882.99 and 39189.95. There were 15 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index fell 0.65%, while Small cap index was down by 0.27%.(Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 1.93%, Energy up by 0.47%, Capital Goods up by 0.28%, Power up by 0.24% and Metal up by 0.03%, while IT down by 1.84%, TECK down by 1.50%, Consumer Durables down by 0.92%, Healthcare down by 0.89% and FMCG down by 0.69% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Yes Bank up by 3.51%, Power Grid up by 1.99%, HDFC Bank up by 1.77%, Hero MotoCorp up by 1.52% and Bajaj Auto up by 1.34%. (Provisional)

On the flip side, Tata Motors - DVR down by 3.52%, Tata Motors down by 3.36%, ICICI Bank down by 3.13%, Indusind Bank down by 2.84% and Infosys down by 2.66% were the top losers. (Provisional)

Meanwhile, India Ratings and Research (Ind-Ra) in its latest report has marginally lowered India’s gross domestic product (GDP) growth projection to 7.3% for fiscal year 2019-20 (FY20), from its earlier projection of 7.5%. The key reasons for the downward revision are the prediction of lower-than-normal monsoon for 2019 and continued agrarian distress, and the loss of momentum in the industrial output growth, especially manufacturing and electricity.

Besides, the slow progress on cases referred to the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016, was another reason cited by the rating agency for lowering the growth forecast. It said inability to bring the stuck capital back into the production process will have implications for investment recovery. Therefore, investment expenditure growth, as measured by gross fixed capital formation (GFCF), has been downwardly revised to 9.2% for 2019-20 from the earlier forecast of 10.3%.

Following the monsoon forecast, Ind-Ra estimates agricultural gross value added growth at 2.5% (earlier forecast was 3%) for FY20 compared with the 2.7% recorded for FY19. The key support to the gross value added growth in FY20 is likely to come from services, followed by industry. On the prices front, the rating agency expects wholesale and retail inflation to remain benign at 3.4% and 4% in FY20, respectively.

The CNX Nifty ended at 11723.60, down by 24.55 points or 0.21% after trading in a range of 11699.55 and 11789.30. There were 21 stocks advancing against 27 stocks declining on the index. (Provisional)

The top gainers on Nifty were Yes Bank up by 3.48%, Bharti Infratel up by 3.22%, Power Grid up by 2.07%, HDFC Bank up by 1.72% and Hero MotoCorp up by 1.52%. (Provisional)

On the flip side, Britannia Industries down by 3.97%, Zee Entertainment down by 3.57%, Tata Motors down by 3.31%, Indusind Bank down by 2.96% and ICICI Bank down by 2.94% were the top losers. (Provisional)

European markets were trading mostly in red; UK’s FTSE 100 decreased 3.36 points or 0.05% to 7,381.90 and France’s CAC was down by 21.64 points or 0.39% to 5,564.77, while Germany’s DAX increased 42.53 points or 0.34% to 12,386.61.

Asian markets ended mixed on Thursday as the Federal Reserve's latest monetary policy statement cooled investor expectations for a rate cut and investors watched ongoing negotiations between the US and China. The manufacturing sector in South Korea moved back into expansion territory in April, the latest survey from Nikkei revealed with a manufacturing PMI score of 50.2, up from 48.8 in March. Investors shrugged off a government report showing that the total number of building permits issued in New Zealand fell a seasonally adjusted 6.9 percent month-on-month in March. Meanwhile, stock markets in Japan and China were closed for public holidays.