Post Session: Quick Review

Indian equity benchmarks ended the volatile day of trade marginally in red on Friday, as caution set in ahead of key macro data - index of industrial production (IIP) for May and consumer price index-based inflation for June scheduled to be released later today. Benchmark indices saw a positive opening but soon slipped into red terrain, as traders remained cautious with former finance minister P Chidambaram’s statement that the Union Budget 2019-20 does not chalk out a clear roadmap to take India on the path of high economic growth and lacks bold steps and structural reforms.

But, markets once again entered into green terrain in late afternoon session, taking support from report that as rainfall in the first 11 days of this month was 24% more than ‘normal’, the overall season’s rain deficit came down to 12%, from 33% witnessed in June. The report said continuance of the current spell of showers for another week may help the farmers to complete the kharif sowing operations which were down by 27% until last week from the year-ago level. Some optimism also came in with Finance Minister Nirmala Sitharaman’s statement that the big picture presented in the Budget is backed with a plan to increase investment without compromising on the fiscal consolidation roadmap. However, key indices failed to sustain early gains and ended in red terrain as some anxiety remained among the investors with US Commerce Secretary Wilbur Ross’ statement that India must recognize that its protectionist policies and tariff rules are hurting its companies and are a big impediment to attracting foreign direct investment.

On the global front, Asian markets ended mixed on Friday as underlying sentiment remained cautious as investors awaited China trade, lending and growth data, and as worries over Sino-US trade tensions deflated optimism rooted in expectations of a Federal Reserve rate cut this month. European markets were trading mostly in green, lifted by financial and mining stocks. Back home, textile stocks were in focus with the Cotton Association further lowering its crop estimate by 3 lakh bales to 312 lakh bales for the 2018-19 season, mainly due to poor rainfalls in the South.

The BSE Sensex ended at 38748.73, down by 74.38 points or 0.19% after trading in a range of 38684.85 and 39021.84. 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 0.40%, while Small cap index was up by 0.16%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 0.84%, Basic Materials up by 0.59%, Realty up by 0.50%, Healthcare up by 0.46% and IT up by 0.43%, while Capital Goods down by 1.09%, Oil & Gas down by 0.93%, Telecom down by 0.92%, PSU down by 0.79% and Power down by 0.77% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Vedanta up by 2.44%, Yes Bank up by 2.44%, Asian Paints up by 2.40%, Sun Pharma up by 2.34% and Hero MotoCorp up by 2.23%. (Provisional)

On the flip side, ONGC down by 2.39%, Bajaj Finance down by 1.91%, Larsen & Toubro down by 1.68%, Power Grid down by 1.63% and Indusind Bank down by 1.59% were the top losers. (Provisional)

Meanwhile, CFA Institute in its latest report titled ‘Investment Professional of the Future’ stated 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. It said as the investment industry undergoes accelerating change, the investment professional of the future must adapt and embrace new challenges and opportunities for career.

The report said expectations are for a 1.5% compound annual growth rate (CAGR) in head count over the next 10 years for ‘core investment professionals’, defined as those working in investment industry roles involved with making investment decisions and understanding client needs. India is expected to have the highest growth rate - 2.9% CAGR. India - because of the increasing demand for financial services, its strong economic growth, and its number of capable engineers - could become the world’s investment hub.

CFA Institute said in addition to benefiting from the country’s strong economic growth and the population’s increasing demand for financial services, India enjoys strong tail winds in the form of favorable globalisation and technology trends. The report said 77% of investment leaders expect the industry’s world of work - overall workplace features, roles and skills, work methods, and compensation and incentives - to change more than it did in the past 10 years.

Besides, 60% of industry leaders surveyed expect firms to increase training and development. Benefits of providing ongoing learning opportunities include higher-quality analytical work, deeper client engagements, retention of a firm’s best people, and a stronger bench of talent. CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials.

The CNX Nifty ended at 11555.90, down by 27.00 points or 0.23% after trading in a range of 11538.60 and 11639.55. There were 21 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were Yes Bank up by 2.49%, Vedanta up by 2.47%, Asian Paints up by 2.31%, Sun Pharma up by 2.29% and Hero MotoCorp up by 2.16%. (Provisional)

On the flip side, Wipro down by 3.12%, ONGC down by 2.48%, Coal India down by 1.98%, Bajaj Finance down by 1.83% and NTPC down by 1.74% were the top losers. (Provisional)

European markets were trading mostly in green; UK’s FTSE 100 increased 20.47 points or 0.27% to 7,530.29 and France’s CAC rose 25.99 points or 0.47% to 5,577.94, while Germany’s DAX decreased 6.25 points or 0.05% to 12,325.87.

Asian markets ended mixed on Friday as underlying sentiment remained cautious as investors awaited China trade, lending and growth data, and as worries over Sino-US trade tensions deflated optimism rooted in expectations of a Federal Reserve rate cut this month. US President Donald Trump on Thursday accused China of backsliding on its promises to increase purchases of American farm products. Japanese shares ended higher in choppy trade ahead of a holiday on Monday and quarterly earnings results from US and Japanese companies due next week.