Post Session: Quick Review

Friday’s trading session turned out to be extremely sanguine for local equity markets, which going from strength to strength, concluded at day’s highest point, aided by robust earnings by some blue-chip firms. This was the second consecutive day of rise for the domestic markets, recapturing their crucial 11,400 (Nifty) and 37,950 (Sensex) bastions. Trading for the day began on a firm note, as traders remained optimistic with report that Finance Commission held discussions with the finance ministry on fiscal and economic management as well as rationalisation of expenditure related to centrally sponsored schemes. The 15th Finance Commission observed that the GDP numbers suggest continued high growth over the medium term even though there have been fluctuations within the overall global trend. The mood remained upbeat with a report that the ongoing trade war between the US and China will help India tap export opportunities in both the countries in areas such as garments, agriculture, automobile and machinery. 

Key indices continued their rally mood to reach at fresh intraday high points in last leg of trade, taking support from a private report that bilateral India-Mexico trade crossing $ 10.15 billion in 2018, India-Mexico Business Chamber (IMBC) has been inaugurated with the basic objective to strengthen the growing India Mexico economic and commercial linkages. Market participants also took a note of Union Commerce Minister Suresh Prabhu’s statement that there is a need to facilitate strategic investments based on clear sectorial analysis in a bid to increase India’s Gross Domestic Product (GDP) growth. Traders overlooked credit rating agency Ind-Ra’s latest report stating that the rise in US-China trade tensions could lead to dumping of Chinese goods and weaker flow of foreign investment from the United States to emerging markets, including India.

On the global front, Asian markets ended mostly lower on Friday despite the overnight gains on Wall Street for a third straight session following upbeat corporate earnings results and US economic data. European markets were trading in red, as Beijing ratcheted up its war of words with Washington over trade, weighing on risk appetite.

The BSE Sensex ended at 37960.07, up by 566.59 points or 1.52% after trading in a range of 37415.36 and 37969.63. There were 25 stocks advancing against 6 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 1.07%, while Small cap index was up by 0.49%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 2.55%, FMCG up by 2.32%, Bankex up by 2.10%, Consumer Discretionary Goods & Services up by 1.73% and Capital Goods up by 1.45%, while Healthcare down by 1.14%, IT down by 0.82%, TECK down by 0.41%, Metal down by 0.07% and Realty down by 0.07% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finance up by 6.27%, Hero MotoCorp up by 4.48%, Kotak Mahindra Bank up by 3.72%, Maruti Suzuki up by 3.69% and Bajaj Auto up by 3.34%. (Provisional)

On the flip side, Yes Bank down by 2.90%, Infosys down by 1.50%, Vedanta down by 1.44%, HCL Tech. down by 1.14% and TCS down by 0.83% were the top losers. (Provisional)

Meanwhile, the 15th Finance Commission, chaired by N K Singh, has observed that the Gross Domestic Product (GDP) numbers suggest continued high growth over the medium term despite there have been fluctuations within the overall global trend. Finance Commission held discussions with the finance ministry on fiscal and economic management as well as rationalisation of expenditure related to centrally sponsored schemes. The Commission also noted that the revenue projections on direct taxes are healthy though on indirect taxes, there have been periodic fluctuations.

On the expenditure trend, there were discussions with regard to rationalisation of the Centrally Sponsored Schemes in sync with the new life cycle, they being co-terminus with the finance commissions. Centrally sponsored schemes are schemes that are implemented by state governments but are funded by the Centre with some portion of funding being borne by states.

The Finance Commission has also held discussions over the last few months with the ministry on the issues related to UDAY and 7th Pay Commission, particularly in the context of the finances of the states. The ministry presented before the Commission some preliminary views of the government on the financial terms of reference of the Commission. The ministry's resource forecast included tax projections; and a comparative picture of tax growth and buoyancy. The expenditure projections made by the ministry included expenditure classifications and requirements; expenditure of the Centre during the tenure of the Commission.

The CNX Nifty ended at 11420.15, up by 163.05 points or 1.45% after trading in a range of 11259.85 and 11423.20. There were 37 stocks advancing against 13 stocks declining on the index. (Provisional)

The top gainers on Nifty were Zee Entertainment up by 9.00%, Bajaj Finance up by 6.17%, Bajaj Finserv up by 4.74%, Hero MotoCorp up by 4.43% and Kotak Mahindra Bank up by 3.65%. (Provisional)

On the flip side, Dr. Reddys Lab down by 2.93%, Yes Bank down by 2.79%, Vedanta down by 1.68%, Hindalco down by 1.21% and Adani Ports &SEZ down by 1.21% were the top losers. (Provisional)

European markets were trading in red; UK’s FTSE 100 decreased 18.05 points or 0.25% to 7,335.46, France’s CAC fell 10.87 points or 0.2% to 5,437.24 and Germany’s DAX was down by 82.36 points or 0.67% to 12,228.01.

Asian markets ended mostly lower on Friday despite the overnight gains on Wall Street for a third straight session following upbeat corporate earnings results and US economic data. Worries about US-China trade tensions continued to weigh on investor sentiment after the Trump administration banned Chinese telecom giant Huawei Technologies from buying US technology without prior approval from the US government. Chinese shares ended lower amid worries about the ongoing trade tensions between the US and China following US President Donald Trump's move to block Huawei. Though, Japanese shares closed higher, while the safe-haven yen weakened, lifting exporters' stocks.