Post Session: Quick Review

Indian equity benchmarks ended Thursday’s trade on an optimistic note, with gains of over half percent, tracking strong cues from global markets after US Federal Reserve Chairman Jerome Powell hinted at a rate cut soon. Key gauges traded on positive note since the beginning, as traders got some encouragement with Commerce and Industry Minister Piyush Goyal’s statement that foreign direct investments (FDI) into the country grew 3 per cent to $6.95 billion in April. During 2018-19, the country recorded the highest-ever total FDI inflow of $64.38 billion, which is 6 per cent higher as compared to 2017-18. The markets also drew some support with CBDT Chairman Pramod Chandra Mody’s statement that the government has re-calibrated and fixed the direct taxes collection target for this financial year at Rs 13.35 trillion, a task that is difficult, but achievable.

Markets extended their gains in afternoon session, as sentiments on the street improved further with Finance Minister Nirmala Sitharaman’s statement that the government is committed to the path of fiscal consolidation without compromising on public expenditure. She said several steps including enhancing investments in infrastructure, liberalisation in the foreign direct investment policy and lowering of corporate tax are being taken to make India a $5 trillion economy by 2024-25 as stated by government. Domestic sentiments were also buoyed with a report stating that India has the potential to become the world’s future investment hub and is expected to be the fastest-growing market for investment professionals over the next decade. Besides, appreciation in the Indian rupee too supported the markets.

On the global front, Asian markets ended higher, while European markets were trading in green, after Federal Reserve Chairman Jerome Powell bolstered expectations the Fed would cut US interest rates soon. Back home, Pharma stocks were in focus with Ind-Ra in its latest report stating that the US-focused domestic pharmaceutical companies need to step up their regulatory compliance to secure impeccable status as dependable suppliers and provide the targeted return on the ongoing and planned research and development (R&D) and capital investments over the next decade.

The BSE Sensex ended at 38797.16, up by 240.12 points or 0.62% after trading in a range of 38631.31 and 38892.50. There were 24 stocks advancing against 7 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.55%, while Small cap index was up by 0.41%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 1.81%, Auto up by 1.80%, Telecom up by 1.35%, Consumer Discretionary Goods & Services up by 1.18% and Realty up by 1.17%, while Capital Goods down by 0.18% and Consumer Durables down by 0.12% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hero MotoCorp up by 4.58%, Tata Motors - DVR up by 3.42%, Indusind Bank up by 3.38%, Tata Motors up by 3.14% and SBI up by 2.58%. (Provisional)

On the flip side, ICICI Bank down by 1.24%, Tech Mahindra down by 1.23%, Bajaj Auto down by 1.14%, TCS down by 0.30% and Larsen & Toubro down by 0.21% were the top losers. (Provisional)

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that foreign direct investments (FDI) into India grew 3 per cent to $6.95 billion in April 2019 as compared to $6.77 billion FDI inflows in April 2018. The country had recorded the highest-ever total FDI inflow of $64.38 billion during 2018-19, which was 6 per cent higher as compared to 2017-18.

He also said 59 FDI proposals were approved in 2018-19 and five in April this fiscal. Besides, he said the Enforcement Directorate is conducting investigation in 581 cases under the Foreign Exchange Management Act, 1999, (FEMA) for alleged violation of FDI norms. He added that disclosure of other details of these cases may not be in large public interest as the same may adversely impact the ongoing investigations.

Goyal further said there is no proposal under government’s consideration to increase FDI in the multi-brand retail sector. The country has received a FDI proposal in the sector from one foreign company of UK. According to the FDI policy, a foreign retailer can take 51 per cent stake in a domestic firm under government approval route.

The CNX Nifty ended at 11575.50, up by 76.60 points or 0.67% after trading in a range of 11519.50 and 11599.00. There were 38 stocks advancing against 12 stocks declining on the index. (Provisional)

The top gainers on Nifty were Zee Entertainment up by 6.87%, JSW Steel up by 4.86%, Hero MotoCorp up by 4.64%, Indusind Bank up by 3.41% and Tata Motors up by 2.97%. (Provisional)

On the flip side, Tech Mahindra down by 1.27%, ICICI Bank down by 1.20%, Bajaj Auto down by 1.11%, Titan Co down by 0.59% and UPL down by 0.59% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 19.14 points or 0.25% to 7,549.83, France’s CAC rose 18.57 points or 0.33% to 5,586.16 and Germany’s DAX was up by 21.67 points or 0.18% to 12,395.08.

Asian markets ended higher on Thursday, tracking gains on Wall Street after Federal Reserve Chairman Jerome Powell suggested the US central bank is ready to cut interest rates for the first time in a decade. Chinese shares inched up marginally on rising hopes for global central banks to step up support for economic growth, after Federal Reserve Chairman Jerome Powell set the scene for a July interest rate cut. Further, Japanese shares ended higher even as the yen strengthened on lower yields in reaction to Powell's downbeat tone on the economy.