Post Session: Quick Review

Indian equity Markets traded with volatility for whole trading session and somehow managed to end in green terrain on Tuesday, on the back of buying by participants amid mostly positive trade in other Asian markets. With this, markets logged third record close, with Nifty and Sensex ending just shy of 11,950 and 39,800 marks respectively. Markets started off with marginal gains, as traders took some support with report that the commerce ministry is considering a major export promotion scheme to ensure expeditious refund of central and state taxes and levies to boost shipments in the wake of global challenges at trade front. However, gains were quickly pared and markets retreated to trade in negative range as traders turned cautious with the Federation of Indian Chambers of Commerce & Industry’s (FICCI) statement that India’s slowing economic growth is of serious concern and the country needs to urgently cut tax and interest rates to revive the economy. The economy grew 6.6 per cent in the three months to December - the slowest pace in five quarters. It added that the recent signs of a slowdown in the economy stem not only from slow growth in investments and subdued exports but also from weakening growth in consumption demand. Some cautiousness also came with rating agency Ind-Ra’s statement that India’s GDP growth during the fiscal 2018-19 is expected at 6.9 per cent, marginally lower than CSO’s advance estimate of 7 per cent. It also urged the new government to take short-term measures to arrest the slowdown in the economy. However, markets bounced back from their losses in dying hour of trade and managed to close the session in green, due to buying witnessed in IT and Energy stocks. Traders also found some solace with a report stated that Industry body Confederation of Indian Industry (CII) has called for lowering corporate tax rate, kick-starting government expenditure and rationalisation of dispute tax resolution mechanism.

On the global front, Asian markets ended mostly in green on Tuesday, with relief over EU election results and US President Donald Trump's softer approach on trade in his meeting with Japan's prime minister helping underpin investor sentiment. European markets were trading mostly in red, as concern about Italy’s budget overshadowed talks of a Fiat-Chrysler and Renault merger and the muted showing of nationalists in European Union parliamentary elections.

The BSE Sensex ended at 39793.91, up by 110.62 points or 0.28% after trading in a range of 39498.65 and 39813.38. There were 14 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.14%, while Small cap index was up by 0.43%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 1.57%, Energy up by 1.32%, TECK up by 1.31%, Metal up by 0.82% and Power up by 0.75%, while Telecom down by 1.23%, Capital Goods down by 0.77%, Auto down by 0.56%, Industrials down by 0.25% and Basic Materials down by 0.12% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Yes Bank up by 4.26%, Infosys up by 2.81%, Coal India up by 2.29%, Power Grid up by 1.92% and Vedanta up by 1.77%. (Provisional)

On the flip side, Bajaj Auto down by 2.90%, Hero MotoCorp down by 2.73%, Bharti Airtel down by 1.14%, Larsen & Toubro down by 1.11% and Bajaj Finance down by 1.08% were the top losers. (Provisional)

Meanwhile, few days after Prime Minister Narendra Modi's massive victory in India's national election, international rating agency S&P Global Ratings has said the reform potential of new government is likely to maintain buoyancy in local funding markets and improve the flow of foreign capital for corporates in India.

The rating agency also said that Indian corporates, especially the rated ones, remain hostage to a number of worries surrounding a slowdown in global growth and trade wars. But now, the continuity of government -- which was widely cited as an additional source of uncertainty in the run-up to the elections -- is no longer one of them.

According to the S&P Global Ratings, improvements in India's bankruptcy code, simplification of the country's tax regime and privatization of inefficient state-owned enterprises are all expected to create opportunities for private enterprises going forward. It further added that a focus on the revival of private consumption may boost growth in much-needed private investment.

The CNX Nifty ended at 11944.30, up by 19.55 points or 0.16% after trading in a range of 11864.90 and 11958.55. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were Zee Entertainment up by 5.82%, Yes Bank up by 4.50%, Infosys up by 3.28%, Coal India up by 2.52% and Power Grid up by 2.03%. (Provisional)

On the flip side, Bharti Infratel down by 4.10%, Bajaj Auto down by 3.09%, Grasim Industries down by 2.93%, Hero MotoCorp down by 2.53% and Ultratech Cement down by 1.74% were the top losers. (Provisional)

European markets were trading mostly in red; France’s CAC decreased 19.13 points or 0.36% to 5,317.06 and Germany’s DAX fell 29.14 points or 0.24% to 12,042.04, while UK’s FTSE 100 increased 3.16 points or 0.04% to 7,280.89.

Asian markets ended mostly in green on Tuesday, with relief over EU election results and US President Donald Trump's softer approach on trade in his meeting with Japan's prime minister helping underpin investor sentiment. Meanwhile, Trump said Monday that Washington was not ready to make a deal with Beijing but he expected one in the future. Chinese shares closed higher for a second straight session ahead of an increase in MSCI's weighting of Chinese mainland shares. Expectations of policy support also boosted sentiment. Further, Japanese shares ended up after Trump said a trade deal between Japan and the US would be struck in August. Japan's Economy Minister Toshimitsu Motegi said Trump's comments probably reflected his hope for quick progress in negotiations.