Post Session: Quick Review

Indian equity Markets traded with volatility for whole trading session and somehow managed to end in green terrain on Friday, on the back of buying by participants. The market indices snapped a six-session losing run, with Nifty and Sensex ending just shy of 11,300 and 37,900 marks respectively. Markets started off with marginal losses, tracking feeble global cues. Traders remained cautious with private report that despite heavy buying by foreign investors in the last month of 2018-19 (FY19), foreign portfolio investors remained net sellers of $5.5 billion in the market. An announcement of increase in surcharge on the super-rich in the Union Budget FY20 has weighed on portfolio investors and witnessed outflows, especially in the equity segment.

However, markets reversed early weakness and managed to trade above their neutral lines in afternoon deals, as sentiments turned optimistic with Niti Aayog CEO Amitabh Kant’s statement that India was pursuing a policy of import substitution so far, and in future, the country's policy will essentially focus on export-led growth. He said India has huge potential to become a global manufacturing hub for electronics products. Some support also came in with the Employees' State Insurance Corporation (ESIC) payroll data showing that around 12.66 lakh jobs were created in May, a tad higher than 11.15 lakh jobs in April this year. But, further up-ward move got restricted as some anxiety spread among traders with a private report stating that India Inc's deal activity in the first six months of this year encompassing both M&A and private equity transactions, stood at $32.1 billion, down 57 per cent over last year.

On the global front, Asian markets ended mostly in red on Friday amid expectations the US Federal Reserve could be less aggressive than expected with monetary policy when it meets next week. European markets were trading in green, as solid earnings at several US companies helped investors overcome the disappointment of the European Central Bank's failure to deliver immediate policy easing.

The BSE Sensex ended at 37890.09, up by 59.11 points or 0.16% after trading in a range of 37690.47 and 37978.07. There were 18 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.51%, while Small cap index was up by 0.23%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 2.06%, Bankex up by 1.14%, Consumer Discretionary Goods & Services up by 1.06%, Healthcare up by 0.90% and Capital Goods up by 0.89%, while Energy down by 0.93%, IT down by 0.86%, TECK down by 0.67%, Oil & Gas down by 0.61% and Utilities down by 0.42% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Yes Bank up by 9.18%, Bajaj Finance up by 7.14%, Hero MotoCorp up by 3.34%, Tata Motors up by 3.19% and Mahindra & Mahindra up by 3.12%. (Provisional)

On the flip side, Vedanta down by 4.03%, HDFC down by 1.60%, Reliance Industries down by 1.40%, Tech Mahindra down by 1.33% and Bharti Airtel down by 1.30% were the top losers. (Provisional)

Meanwhile, expressing optimism over export growth, Niti Aayog CEO Amitabh Kant has said India was pursuing a policy of import substitution so far, and in future, the country's policy will essentially focus on export-led growth. He also said India has huge potential to become a global manufacturing hub for electronics products.

Kant said the National Policy for Electronics 2019 has already identified exports of electronics from India to the world and added that mobile devices will be the largest segment, almost accounting for 1/3rd of the manufacturing sector. He noted that “We will try and push this huge impetus to growth in the context of the Prime Minister's vision to make India $5 trillion economy by 2024 and we will give it the great export orientation to the sector”.

Besides, the government has constituted a committee which includes the Niti Aayog CEO, the finance secretary, DIPP secretary, secretary MEITY. Niti Aayog CEO further said “We are all working together to see, how we can do large scale manufacturing, how to make India very integral part of the global supply chain”. He emphasized that the government remains committed to creating a very conducive environment for manufacturing electronics products in India.

The CNX Nifty ended at 11297.70, up by 45.55 points or 0.40% after trading in a range of 11210.05 and 11307.60. There were 31 stocks advancing against 19 stocks declining on the index. (Provisional)

The top gainers on Nifty were Yes Bank up by 9.01%, Bajaj Finance up by 7.40%, Bajaj Finserv up by 7.33%, Eicher Motors up by 4.19% and Bharti Infratel up by 3.44%. (Provisional)

On the flip side, Vedanta down by 4.29%, Indian Oil Corp. down by 3.27%, Bharti Airtel down by 1.61%, HDFC down by 1.38% and ONGC down by 1.29% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 33.57 points or 0.45% to 7,522.62, France’s CAC rose 21.12 points or 0.38% to 5,599.17 and Germany’s DAX was up by 37.84 points or 0.31% to 12,399.94.

Asian markets ended mostly lower on Friday as waning expectations of a hefty rate cut by the Fed dampened investor sentiment. Investors pared expectations for aggressive Federal Reserve interest rate cuts after the European Central Bank unexpectedly held rates steady and noted that the risk of recession was relatively low. Japanese shares ended lower as investors elected to book profit on following a weak lead from Wall Street overnight and on mixed earnings reports. Further, Seoul shares closed down as weak earnings, concerns over trade uncertainty with Japan, and ECB President Draghi's less dovish stance dented sentiment. Though, Chinese shares ended higher on expectations that a less-regulated market for initial public offerings (IPOs) and stock trading could help keep China's economy competitive at a time of trade tensions with the US.