Post Session: Quick Review

Domestic equity benchmarks have snapped 2 days losing streak and ended higher on Wednesday, with Sensex recouping from its psychological level of 37,400 amid buying in the major Metal and Auto stocks. Markets made a gap-down opening, as traders remained cautious with a private report that despite the policymakers' efforts to revive the sagging growth momentum, the economy is set to print in a 5.7 percent uptick in the June quarter and is likely to bottom out from there. It noted that India presents a picture of short-term despair and medium term hope. Investors maintained cautious approach on a private survey report which stated that reflecting subdued sentiments, India has been ranked fourth globally in terms of business optimism, as only 64 per cent of corporates are optimistic about the country's economic growth over the next 12 months.

However, value buying witch witnessed in last hour of trading helped the markets to turn in green and ended with gains of around quarter a percent, as market participants took some solace with government data showing that India received the highest-ever FDI inflow of $64.37 billion during the fiscal ended March 2019. According to the Annual Report 2018-19 of the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investments (FDI) worth $286 billion were received in the country in past five years. Traders also took some support from report that the Reserve Bank of India (RBI) has relaxed end-use provisions under the external commercial borrowings (ECBs) framework for corporates and NBFCs. The NBFCs can raise 10 year forex debt for on-lending for working purposes and 7 year forex loans for domestic CAPEX.

On the global front, Asian markets ended mostly lower, after President Donald Trump poured cold water over optimism for a trade deal as negotiations between the US and China resumed. However, European markets were trading mostly in green, as traders awaited the release of Eurozone GDP, inflation and unemployment data for the second quarter due later in the day.

The BSE Sensex ended at 37487.36, up by 90.12 points or 0.24% after trading in a range of 37128.26 and 37576.37. There were 23 stocks advancing against 8 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.88%, while Small cap index was up by 0.43%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 2.53%, Basic Materials up by 1.50%, PSU up by 1.37%, Auto up by 1.30%, Oil & Gas was up by 1.09%, while Telecom down by 1.66%, Consumer Durables down by 0.44%, Energy down by 0.25% and Realty was down by 0.13% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were IndusInd Bank up by 5.79%, Yes Bank up by 5.75%, Hero MotoCorp up by 4.56%, Tata Steel up by 4.04% and Sun Pharma was up by 3.96%. (Provisional)

On the flip side, Axis Bank down by 4.37%, Bharti Airtel down by 2.26%, Reliance Industries down by 1.29%, Maruti Suzuki down by 0.82% and NTPC was down by 0.67% were the top losers. (Provisional)

Meanwhile, hitting a new all-time high, India received the foreign direct investments (FDI) inflow of $64.37 billion during the financial year 2018-19 (FY19). According to the Annual Report 2018-19 of the Department for Promotion of Industry and Internal Trade (DPIIT), FDI worth $286 billion were received in the country in past five years. FDI brings in resources, the latest technology and best practices to push economic growth on to a higher trajectory.

The DPIIT under the commerce and industry ministry further said path-breaking reform measures undertaken during the last financial year have resulted in India surpassing the FDI received in 2016-17 and registering an inflow of $60.98 billion during 2017-18. The FDI inflows were $45.14 billion during 2014-15 when Prime Minister Narendra Modi-led NDA government assumed power. The inflows were $55.55 billion in the following year.

Besides, the DPIIT said an action plan for promotion of Indian 'geographical indications' (GIs) has been prepared. This can help supplement the incomes of Indian farmers, weavers, artisans and craftsmen. A logo and tagline for all Indian GIs has been prepared through crowd-sourcing. The government regularly reviews the FDI policy, with a view to make it more investor-friendly.

The CNX Nifty ended at 11121.45, up by 36.05 points or 0.33% after trading in a range of 10999.40 and 11145.30. There were 38 stocks advancing against 12 stocks declining on the index. (Provisional)

The top gainers on Nifty were Yes Bank up by 5.46%, IndusInd Bank up by 5.38%, Indian Oil Corp. up by 4.57%, Hero MotoCorp up by 4.48% and Tata Steel was up by 4.16%. (Provisional)

On the flip side, Zee Entertainment down by 5.46%, Axis Bank down by 4.54%, Bharti Airtel down by 2.52%, Titan Company down by 1.92% and Reliance Industries was down by 1.34% were the top losers. (Provisional)

European markets were trading mostly in green, France’s CAC increased 7.05 points or 0.13% to 5,518.12 and Germany’s DAX was up by 25.04 points or 0.21% to 12,172.28. On the other side, UK’s FTSE 100 was down by 29.00 points or 0.38% to 7,617.77.

Asian markets ended mostly lower on Wednesday as North Korea conducted its second weapons test in less than a week and a trade threat from US President Donald Trump to China cast a shadow over the fate of the latest round of trade talks taking place in Shanghai. Investors also awaited the outcome of a two-day US Federal Reserve meeting later in the day as well as Chairman Jerome Powell's post-meeting press conference for clues on the policy path. Chinese shares ended lower after official data showed the country's factory activity contracted for the third straight month in July amid a tariff war with Washington and weak domestic demand. The official manufacturing PMI for the month came in at 49.7. The non-manufacturing index fell to 53.7 from 54.2 in June while the composite index came in with a score of 53.1, up marginally from 53.0 in the previous month. Besides, Japanese shares closed down as investors watched developments on the trade front and the latest batch of corporate earnings. Moreover, Seoul shares declined notably amid an intensifying trade row with Japan and rising security tension on the Korean Peninsula after North Korea launched two short-range ballistic missiles into the sea Wednesday morning, the second launch of missiles in a week.