Post Session: Quick Review

Selling which emerged in last hour of trade dragged markets lower on Tuesday with frontline gauges ending below their crucial 11,500 (Nifty) and 38,300 (Sensex) levels. Markets started the session on optimistic note and traded in green for most part of the session as traders took some encouragement with a private report that if the BJP-led National Democratic Alliance (NDA) gets a second term, it will provide liquidity support to non-banking financial companies (NBFCs) that are facing cash crunch for a year now. Sentiment on the street also remained positive on report that in order to resolve outstanding trade issues by exploring mutually beneficial suitable solutions, Commerce Minister Suresh Prabhu and US Commerce Secretary Wilbur Ross have agreed to engage regularly at various level. Both sides agreed to deepen economic cooperation and bilateral trade by ensuring greater cooperation amongst stakeholders, including Government, businesses and entrepreneurs.

However, selloff in last leg of trade played spoil sports for Indian markets and dragged them into red terrain as markets remained under pressure after weak volume growth reported by consumer staple companies in Q4, FY19 underlines the slowdown seen in housing over the past five to six years and automobiles over the past year. The next government may have its task cut out to revive flagging economic growth. Traders shrugged off report that while the tax department’s e-filing website showed returns filed in 2018-19 fell to 6.68 crore from 6.74 crore in the previous fiscal, the Central Board of Direct Taxes (CBDT) in a statement clarified that the returns filed included those of previous assessment years, excluding which returns filed in 2018-19 showed an almost 19 per cent rise. But the tax department had in the past taken returns filed in a fiscal year as a composite number to show a year-on-year increase.

Weak opening in European counters too dampened sentiments as an escalating Sino-US trade dispute threatens to derail global economic growth. The US has accused China of backtracking on commitments in trade talks, but a Chinese negotiating team will still travel to Washington this week to continue the stalled trade talks. Back in Asia, the Japanese and South Korean markets, which resumed trading after holidays, fell sharply while markets elsewhere across the region regained some ground after steep losses in the previous session.

Back home, power sector edged lower with rating agency Crisil’s report that total debt of state-owned discoms is set to increase to pre-Uday levels of Rs 2.6 trillion by the end of this fiscal year, as many states have limited fiscal headroom to continue to support them. The report noted that improvement in operations may face challenges because the focus on new rural connections without adequate tariff hikes can increase losses. However, Jewellery stocks excelled after Jewellers in India are lining up discounts to entice consumers on the second-biggest gold-buying day in the Hindu calendar.

The BSE Sensex ended at 38276.63, down by 323.71 points or 0.84% after trading in a range of 38236.18 and 38835.54. There were 7 stocks advancing against 24 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.98%, while Small cap index was down by 0.85%. (Provisional)

The few gaining sectoral indices on the BSE were IT up by 0.19%, Capital Goods up by 0.19%, Consumer Durables was up by 0.04%, while Telecom down by 2.44%, Energy down by 2.23%, Oil & Gas down by 1.36%, Realty down by 1.32% and Bankex was down by 1.25% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindustan Unilever up by 1.35%, Larsen & Toubro up by 1.11%, Infosys up by 1.00%, Power Grid Corporation up by 0.79% and ONGC up by 0.76%. On the flip side, Tata Motors down by 5.05%, Tata Motors - DVR down by 4.97%, ICICI Bank down by 3.74%, Bharti Airtel down by 3.10% and Reliance Industries down by 3.03% were the top losers. (Provisional)

Meanwhile, in order to resolve outstanding trade issues by exploring mutually beneficial suitable solutions, Commerce Minister Suresh Prabhu and US Commerce Secretary Wilbur Ross have agreed to engage regularly at various level. Both sides agreed to deepen economic cooperation and bilateral trade by ensuring greater cooperation amongst stakeholders, including Government, businesses and entrepreneurs. Both the countries are locked in a tariff dispute with the US deciding to end preferential trade treatment to Indian exports, while India proposing to impose retaliatory duties on American goods.

Meanwhile, the two countries also complimented the new bilateral private sector led Small Business Interaction initiative, the US-India SME Forum, held on May 6. This is the first event of its kind and it will pave the way for collaboration and partnership between the US and Indian small and medium enterprises (SMEs) in the areas of manufacturing and services.

Besides, both sides expressed satisfaction over the progress made during the year 2018, with bilateral trade in goods and services registering a 12.6 per cent rise to $142 billion, compared to $126 billion in 2017.

The CNX Nifty ended at 11497.90, down by 100.35 points or 0.87% after trading in a range of 11484.45 and 11657.05. There were 14 stocks advancing against 36 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindustan Unilever up by 1.71%, Wipro up by 1.03%, Larsen & Toubro up by 1.03%, ONGC up by 0.91% and Infosys up by 0.86%. On the flip side, Zee Entertainment down by 4.80%, Tata Motors down by 4.43%, ICICI Bank down by 3.69%, Reliance Industries down by 2.99% and BPCL down by 2.95% were the top losers. (Provisional)

European markets were trading in red, France’s CAC decreased 36.18 points or 0.66% to 5,447.34, Germany’s DAX declined 67.29 points or 0.55% to 12,219.59 and UK’s FTSE 100 was down by 71.74 points or 0.97% to 7,308.90.

Asian markets ended higher on Tuesday. Chinese shares ended higher after the People's Bank of China announced it would reduce the required reserve ratio for some small and medium-sized banks. China's commerce ministry said that Vice Premier Liu He would visit the United States on May 9 and May 10 for bilateral trade talks at the invitation of senior US officials. The Japanese and South Korean markets, which resumed trading after holidays, fell sharply while markets elsewhere across the region regained some ground after steep losses in the previous session.