Post Session: Quick Review

Indian stock markets traded firmly in green during F&O expiry session on Thursday and ended at their fresh record closing levels, with Sensex settling above crucial 39,850 mark, while Nifty ended just shy of 11,950 mark. Markets started off with marginal gains, as traders took some support with a report that the Department for Promotion of Industry and Internal Trade (DPIIT) has proposed to formulate a national retail policy to support growth of domestic trade. A national retail policy will be formulated to support development of the sector that would benefit 65 million small traders. Buying further crept in with a report that the Reserve Bank of India (RBI) extended minimum holding period requirement for Non-banking financial companies (NBFCs) to raise funds via loan securitisation to help the sector overcome liquidity shortage. NBFCs have been permitted to securitise loans of over five-year maturity after holding them for six months on their books.

Key indices gained further strength in second half of the session, taking support from data showing that investments in the domestic capital market through participatory notes, led by equity allocation, rose to Rs 81,220 crore at the end of April on hopes of favourable market conditions. Out of the total investments made till April-end, Rs 58,820 crore was invested in the equities segment, Rs 21,542 crore in debt and Rs 123 crore in derivatives market. Traders also remained optimistic with report that the commerce and industry ministry is gearing up to boost exports through e-commerce at a time when the government is expected to reframe the proposed e-commerce policy, yet again.

On the global front, Asian markets ended mostly in red on Thursday, as rhetoric from Beijing and Washington over trade matters kept alive investor concerns about the tariff war’s impact on global economic growth. European markets were trading in green, as investors navigate the latest escalations in the U.S.-China trade war. Back home, Airline stocks ended in green despite the International Air Transport Association (IATA) in its passenger traffic data indicating that India’s domestic air traffic recorded negative growth rate for the first time in over five years during the month of April 2019, largely due to the demise of Jet Airways.

The BSE Sensex ended at 39831.64, up by 329.59 points or 0.83% after trading in a range of 39500.56 and 39911.92. There were 21 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.45%, while Small cap index was up by 0.28%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 1.73%, Power up by 1.60%, Utilities up by 1.51%, TECK up by 1.07% and IT up by 0.97%, while Auto down by 0.61%, Metal down by 0.32%, Realty down by 0.20% and Consumer Discretionary Goods & Services down by 0.08% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 3.48%, Bharti Airtel up by 2.66%, Bajaj Finance up by 2.19%, Yes Bank up by 2.11% and TCS up by 2.03%. (Provisional)

On the flip side, Sun Pharma down by 2.42%, Mahindra & Mahindra down by 1.78%, ONGC down by 1.22%, Indusind Bank down by 1.11% and Vedanta down by 0.90% were the top losers. (Provisional)

Meanwhile, with an aim to support growth of domestic trade, the Department for Promotion of Industry and Internal Trade (DPIIT) has proposed to formulate a national retail policy. This proposal is part of the 100-day action plan prepared by the department, under the commerce and industry ministry, for the new government. The national retail policy will be formulated to support development of the sector that would benefit 65 million small traders.

In February, the subject of domestic or internal trade was shifted to DPIIT from the consumer affairs ministry, which was earlier the nodal agency for regulating the fast-growing sector. The department is already in the process of formulating guidelines on e-commerce and, hence, it would be appropriate for the ministry to come out with norms for retail trade.

Domestic traders' body Confederation of All India Traders (CAIT) has time and again requested the government for the policy. It has said these steps will not only strengthen the domestic trade but also improve export performance of the country. According to CAIT, over 6.5 crore small businesses are engaged in the sector across the country.

The CNX Nifty ended at 11945.70, up by 84.60 points or 0.71% after trading in a range of 11859.40 and 11968.55. There were 31 stocks advancing against 19 stocks declining on the index. (Provisional)

The top gainers on Nifty were NTPC up by 3.28%, Bharti Airtel up by 2.79%, Yes Bank up by 2.47%, Bajaj Finance up by 2.25% and BPCL up by 2.05%. (Provisional)

On the flip side, Eicher Motors down by 2.72%, Sun Pharma down by 2.64%, Mahindra & Mahindra down by 1.80%, Zee Entertainment down by 1.76% and Bharti Infratel down by 1.45% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 31.12 points or 0.43% to 7,216.42, France’s CAC rose 20.54 points or 0.39% to 5,242.66 and Germany’s DAX was up by 69.69 points or 0.59% to 11,907.50.

Asian markets ended mostly in red on Thursday, tracking overnight decline in the US and European markets as investors fretted about trade war tensions, slowing global growth and uncertainty over Britain's departure from the European Union. Chinese shares ended lower after a senior Chinese diplomat said that provoking trade disputes is ‘naked economic terrorism’, ramping up the rhetoric against Washington. Meanwhile, markets in Indonesia were closed for public holidays.