Post Session: Quick Review

Indian equity benchmarks ended Tuesday’s trade on an optimistic note that marked a second straight day of gain for the markets. Key indices made a cautious start but managed to keep their head above water as traders took some support with data showing that the growth of India's eight core sectors has improved to 5.1% in May 2019 against 4.1% in the same month last year, helped by rise in output in steel and electricity. However, the gains were quickly pared and the benchmarks retreated to trade in negative as sentiments turned pessimistic with report that Goods and Services Tax (GST) receipts in June fell to Rs 99,939 crore, down from over Rs 1 trillion in the previous month. The total gross GST revenue collected in the month of June, 2019 was Rs 99,939 crore of which Central-GST was Rs 18,366 crore, State-GST was Rs 25,343 crore, Integrated-GST was Rs 47,772 crore (including Rs 21,980 crore collected on imports) and cess was Rs 8,457 crore (including Rs 876 crore collected on imports).

However, buying counters were buzzing in late afternoon deals, helping markets not only recover losses but also end the session on a positive note, taking support from Finance Minister Nirmala Sitharaman's statement that economic growth is high on the agenda of the Narendra Modi 2.0 government and various steps are being taken to accelerate the GDP. The mood remained optimistic with Former finance minister Arun Jaitley’s statement that policymakers could merge the 12% and 18% slabs under the goods and services tax going forward as revenue increases, thereby effectively making it a two-tier tax.

On the global front, Asian markets ended mixed on Tuesday, while European markets were trading mostly in red as weak global manufacturing data rekindled worries on slowing growth and the US proposed new tariffs on European goods as part of a continuing dispute over aircraft subsidies. Back home, stocks related to steel sector were in focus after the Ministry of Steel has released draft steel scrap policy, which is aimed at promoting circular economy in the steel sector and produce high-quality ferrous scrap for quality steel production thus reducing dependence on imports.

The BSE Sensex ended at 39832.11, up by 145.61 points or 0.37% after trading in a range of 39499.19 and 39838.49. There were 18 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices were trading mixed; the BSE Mid cap index rose 0.38%, while Small cap index was down by 0.02%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.13%, Energy up by 1.02%, IT up by 0.91%, Utilities up by 0.86% and TECK up by 0.85%, while Realty down by 1.69%, Healthcare down by 0.64%, Bankex down by 0.40% and Industrials down by 0.05% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were ONGC up by 2.76%, Bharti Airtel up by 1.62%, HDFC up by 1.56%, HCL Tech. up by 1.31% and Infosys up by 1.17%. (Provisional)

On the flip side, Yes Bank down by 8.11%, Tata Motors - DVR down by 2.51%, Tata Motors down by 2.44%, Sun Pharma down by 2.30% and Axis Bank down by 1.02% were the top losers. (Provisional)

Meanwhile, the Reserve Bank has released the quarterly house price index (HPI) (base: 2010-11=100) for Q4 of last financial year (Q4FY19), based on transaction data received from housing registration authorities in ten major cities (Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow and Mumbai). It showed that on a year-on-year basis, the growth in all-India HPI continued to moderate and stood at 3.6 per cent in Q4FY19 as against 5.1 per cent in the previous quarter and 6.7 per cent a year ago.

Barring Jaipur and Kanpur, all the cities recorded an increase in HPI on an annual basis. The annual growth or contraction in HPI ranged from 19.5 per cent (in Kochi) to (-)11.4 per cent (in Jaipur).

Besides, on a year-on-year basis, the all-India HPI had recorded a growth of 5.7% in Q2FY19 as against 5.3% in the previous quarter and 7.4% a year ago. Except Kanpur, all other cities recorded a rise in housing prices on an annual basis. The annual growth/contraction in HPI ranged from 20.8% (in Kochi) to (-) 3.0% (in Kanpur), indicating large divergences in city-wise housing price movements. City-wise, large variance was observed, with Chennai recording the highest rise 6.2% and Kanpur recording the maximum contraction (-) 5.6%.

The CNX Nifty ended at 11913.75, up by 48.15 points or 0.41% after trading in a range of 11814.70 and 11917.45. There were 32 stocks advancing against 17 stocks declining on the index. (Provisional)

The top gainers on Nifty were UPL up by 3.94%, Indiabulls Housing Finance up by 2.89%, ONGC up by 2.86%, Indian Oil Corp. up by 2.11% and Eicher Motors up by 2.01%. (Provisional)

On the flip side, Yes Bank down by 8.20%, Tata Motors down by 2.50%, Sun Pharma down by 2.42%, Axis Bank down by 1.05% and Dr. Reddys Lab down by 0.94% were the top losers. (Provisional)

European markets were trading mostly in red; France’s CAC decreased 7.31 points or 0.13% to 5,560.60 and Germany’s DAX shed 28.99 points or 0.23% to 12,492.39, while UK’s FTSE 100 was up by 29.85 points or 0.4% to 7,527.35.

Asian markets ended mixed on Tuesday as weak global manufacturing data rekindled worries on slowing growth and the US proposed new tariffs on European goods as part of a continuing dispute over aircraft subsidies. Chinese shares ended little changed with a negative bias after US President Donald Trump said on Monday that trade talks with China have ‘already begun’ but any deal would need to be somewhat tilted in Washington's favor. Meanwhile, Japanese shares ended marginally higher on skepticism over whether the United States and China can reach a deal to end their bitter trade dispute.