Post Session: Quick Review

Indian equity benchmarks erased all of their gains and ended Thursday’s session on lower note, as investors rushed to book profits. Markets have made a gap-up opening and traded at record high levels as trends showed Prime Minister Narendra Modi-led National Democratic Alliance (NDA) leading on over 300 seats. Some support also came with report that the finance ministry has prepared 100-day agenda for the new government with an aim to push the economy which has slipped to 6.6% in the third quarter of 2018-19, as the Lok Sabha election process coming to an end. Among other things, the agenda is likely to focus on increasing private investment, employment generation and giving relief to the farm sector. Besides, the agenda also include improving direct and indirect tax collection. Simplification of tax procedure especially with regards to the goods and services tax is also on the cards. Sentiments also remain energized with India Inc expressing hope that a stable government at the centre will boost growth in the country and lead to higher foreign fund inflows as trends pointed to BJP and allies returning to power with a thumping majority. However, the market failed to hold the altitude and sink in negative zone due to selling witnessed in FMCG, Metal and IT stocks. Trading sentiments also got hit with a private report stating that the value of merger and acquisition deals announced in April stood at $735 million (over Rs 5,100 crore), a decline of 96 per cent from the year-ago period. According to a report, in April last year, the total M&A deal value stood at $19,142 million.

On the global front, Asian markets ended mostly lower on Thursday, while European markets were trading in red, amid ongoing U.S.-China trade concerns and political uncertainty across the EU. Back home, select aviation sector stocks ended lower with Directorate General of Civil Aviation (DGCA) data indicating that the domestic air passenger count fell 4.50% in the month of April 2019. Domestic airlines flew 109.95 lakh passengers in April 2019, as against 115.13 lakh passengers carried in the same month of last year.

The BSE Sensex ended at 38886.26, down by 223.95 points or 0.57% after trading in a range of 38651.61 and 40124.96. 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 0.06%, while Small cap index was down by 0.07%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 0.97%, Capital Goods up by 0.84%, Industrials up by 0.76%, Realty up by 0.75% and Power up by 0.48%, while FMCG down by 1.84%, Metal down by 1.64%, Consumer Durables down by 0.99%, IT down by 0.78% and Auto down by 0.42% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Indusind Bank up by 5.30%, Yes Bank up by 2.03%, Hero MotoCorp up by 2.01%, Coal India up by 1.50% and Power Grid up by 1.24%. (Provisional)

On the flip side, Vedanta down by 5.44%, ITC down by 3.54%, HDFC Bank down by 2.42%, Tata Motors down by 1.98% and Sun Pharma down by 1.82% were the top losers. (Provisional)

Meanwhile, with an aim to push the economy, which has slipped to 6.6% in the third quarter of 2018-19, the finance ministry has prepared 100-day agenda for the new government. The agenda is likely to focus on increasing private investment, employment generation and giving relief to the farm sector. Besides, the agenda include improving direct and indirect tax collection. Simplification of tax procedure especially with regards to the goods and services tax is also on the cards.

Moreover, reinvigorating industrial growth, increasing credit growth, consolidation in the banking sector and funding the unfunded would also be part of the 100-day agenda. Also, there would be emphasis on raising corporate governance in the banking sector including a more diversified board structure.

The finance ministry in the process of further improving its EASE (Enhanced Access and Service Excellence) focusing on six themes of customer responsiveness, responsible banking, credit off take, PSBs as Udyami Mitra, deepening financial inclusion and digitalisation and developing personnel for brand of public sector banks.

The CNX Nifty ended at 11674.90, down by 63.00 points or 0.54% after trading in a range of 11614.50 and 12041.15. There were 24 stocks advancing against 26 stocks declining on the index. (Provisional)

The top gainers on Nifty were Zee Entertainment up by 5.71%, Indusind Bank up by 5.47%, Adani Ports &SEZ up by 5.44%, Grasim Industries up by 3.45% and Cipla up by 2.16%. (Provisional)

On the flip side, Vedanta down by 5.53%, Eicher Motors down by 4.00%, ITC down by 3.70%, Hindalco down by 3.23% and Bajaj Finserv down by 2.57% were the top losers. (Provisional)

European markets were trading in red; UK’s FTSE 100 shed 99.57 points or 1.36% to 7,234.62, France’s CAC fell 94.83 points or 1.76% to 5,284.15 and Germany’s DAX was down by 230.80 points or 1.9% to 11,937.94.

Asian markets ended lower on Thursday as fears that the US-China trade conflict was spiraling into a technology cold war dashed hopes of a deal before or at the G20 summit to be held next month in Japan. Chinese shares ended lower amid the stand-off between the world's two largest economies. Further, Japanese shares edged lower as tech stocks sold off heavily on reports the United States was considering sanctions on video surveillance firm Hikvision.