Post Session: Quick Review

Indian equity benchmarks sustained their uptrend for the third consecutive session to end Monday’s trade at fresh record closing high levels, as investors cheered exit poll results that showed a likely win for the ruling NDA in the general elections. Both the indices posted a biggest single session gain since 2009. Markets made a fabulous start, taking support from the Reserve Bank of India’s (RBI) data showing that the country's foreign exchange reserves rose by $1.368 billion to reach $420.055 billion in the week to May 10 on account of a rise in foreign currency assets. In the previous week, the reserves had increased by $171.9 million to $418.687 billion. Traders also reacted positively to report that the RBI's 'Payment Systems Vision 2021' document would act as a catalyst for promoting digital economy and instill confidence among the general public. Traders took note of report that the GST Council is likely to consider next month a proposal for setting up a national bench of the Appellate Authority for Advance Ruling (AAAR) to reconcile the contradictory orders on similar issues passed by AARs in different states, a move aimed at providing certainty to taxpayers.

Buying, which intensified in final hours of trade, took markets at their intraday highs, as traders remained in a jubilant mood amid reports that the government is considering various options to adequately empower the Reserve Bank of India (RBI) to deal with banks' stressed assets under the Insolvency and Bankruptcy Code following the Supreme Court order, quashing February 12 circular of the central bank. The street remained buoyed with a private report stated that Indian retail real estate sector attracted private equity investment worth $1.2 billion during 2017-18 calendar years, double from the previous two years. The consultant attributed the sharp rise in private equity (PE) inflow to further liberalisation in FDI policies such as 51 per cent FDI in multi-brand retail and 100 per cent FDI in single-brand retail under the automatic route. Traders ignored India Meteorological Department (IMD) data showing that pre-monsoon rainfall from March to May, a phenomenon vital to agriculture in several parts of the country, has recorded a deficiency of 22%. The IMD recorded 75.9 millimetres of rainfall from March 1 to May 15 as against the normal rainfall of 96.8 millimetres, which comes to around minus 22%.

On the global front, Asian markets ended mixed on Monday, while European markets were trading in red as trade worries persisted, offsetting a surprise election victory for Australia's pro-coal ruling Coalition and upbeat Japanese GDP data. Back home, shipping sector were in limelight with the Indian Ports Association (IPA) data showing that the 12 major ports in India recorded a growth of 5.65 percent and together handled 60.07 million tonnes (MT) of cargo during the period April 2019 as against 56.86 MT handled during the corresponding period of previous year. The growth in the cargo traffic was mainly attributed to increase in demand from various sectors, including coal, containers and petroleum, oil and lubricants (POL).

The BSE Sensex ended at 39357.52, up by 1426.75 points or 3.76% after trading in a range of 38570.04 and 39412.56. There were 29 stocks advancing against 2 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 3.62%, while Small cap index was up by 3.59%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 5.69%, Industrials up by 5.67%, PSU up by 5.38%, Realty up by 5.27% and Bankex up by 4.67%, while there were no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Indusind Bank up by 8.82%, SBI up by 8.14%, Tata Motors up by 7.41%, Yes Bank up by 6.95% and Larsen & Toubro up by 6.57%. (Provisional)

On the flip side, Bajaj Auto down by 1.14% and Infosys down by 0.16% were the few losers. (Provisional)

Meanwhile, India Meteorological Department (IMD) in its latest report has indicated that pre-monsoon rainfall in the country from March to May recorded a deficiency. Pre-monsoon rainfall is a phenomenon vital to agriculture in several parts of the country. The IMD recorded 75.9 millimetres of rainfall from March 1 to May 15 as against the normal rainfall of 96.8 millimetres, which comes to around minus 22%. The deficiency this week seems to have fallen over the last fortnight due to rains over east and northeast India. Besides, from March 1 to April 24, the IMD recorded a deficiency of 27%. It added that the southwest monsoon has advanced into South Andaman Sea and conditions are favourable for it to reach the North Andaman Sea and the Andaman Islands in the next 2-3 days.

Of the four meteorological divisions of the IMD, the south peninsula, which comprises all the southern states, has recorded pre-monsoon deficiency of 46%, the highest in the country. This was followed by 36% in the northwest subdivision that covers all the north Indian states - it was 38% from March 1 to April 24, but has dropped by 2% due to rainfall across several parts. The deficiency in the east and northeast region that covers eastern states of Jharkhand, Bihar, West Bengal, Odisha and northeastern states was seven per cent. There was no deficiency in the central region which comprises states of Maharashtra, Goa, Chhattisgarh, Gujarat and Madhya Pradesh.

However, from March 1 to April 24 the pre-monsoon rainfall recorded in the central division was 5% than normal. The region has also been witnessing intense heat waves and several dams in the Marathwada region of Maharashtra have reached zero storage level. Pre-monsoon rainfall is important for horticulture crops in some parts of the country. In states like Odisha, ploughing is done in the pre-monsoon season, while in parts of northeast India and the Western Ghats it is critical for plantation of crops.

The CNX Nifty ended at 11828.60, up by 421.45 points or 3.69% after trading in a range of 11591.70 and 11845.20. There were 45 stocks advancing against 5 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indiabulls Housing Finance up by 10.56%, Adani Ports &SEZ up by 9.58%, Indusind Bank up by 8.84%, SBI up by 7.92% and Grasim Industries up by 7.23%. (Provisional)

On the flip side, Dr. Reddys Lab down by 5.50%, Zee Entertainment down by 2.92%, Bajaj Auto down by 1.11%, Tech Mahindra down by 0.64% and Infosys down by 0.23% were the top losers. (Provisional)

European markets were trading in red; UK’s FTSE 100 decreased 24.55 points or 0.33% to 7,324.07, France’s CAC fell 39.14 points or 0.72% to 5,399.09 and Germany’s DAX shed 68.95 points or 0.56% to 12,169.99.

Asian markets ended mixed on Monday as trade worries persisted, offsetting a surprise election victory for Australia's pro-coal ruling Coalition and upbeat Japanese GDP data. Markets remained fragile after Chinese foreign minister Wang Yi told US Secretary of State Mike Pompeo in a call that negotiating on an equal footing is the only way to solve pressing trade issues. Chinese shares closed lower as trade war fears simmered. China's offshore yuan strengthened after the country's central bank said that it would maintain the stability of its yuan within a reasonable and balanced range. Further, Japanese shares ended higher as Q1 GDP data topped forecasts. Growth in the nation's economy unexpectedly accelerated at an annualized 2.1 percent in the first quarter, defying expectations for a 0.2 percent contraction. However, the surprise expansion was mostly caused by imports declining faster than exports. Meanwhile, the markets in Malaysia and Singapore were closed in observance of Vesak Day.