Post Session: Quick Review

Indian equity benchmarks ended Friday’s trade in green terrain that marked a second straight day of gain for the markets. Sensex and Nifty closed above their crucial 37,550 and 11,100 levels, respectively. Key gauges traded on positive note since the beginning, amid reports that the government is likely to withdraw higher surcharge on foreign portfolio investors (FPIs). In this regard, Finance minister Nirmala Sitharaman will meet market participants, including senior officials of foreign portfolio investors and mutual funds, later in the day to ascertain views on current issues relating to financial markets. Key indices gathered further ground and hit fresh intraday high in afternoon trade, taking support from report that giving a relief to startups, the government has laid out a procedure to address pending angel tax assessments under which action would be taken only after approval of a supervisory officer. Traders took note of report that India Inc demanded a stimulus package of over Rs 1 lakh crore to kick-start investment cycle and revive the economy which is showing signs of a slowdown.

However, key indices gave up most of their gains in last leg of trade to come off their intraday high points, as market-men got anxious with India Ratings and Research (Ind-Ra) in its latest report stating that the huge Rs 3 trillion capital infusion by the government into Public Sector Banks (PSBs) between FY14 and FY19 has helped them cut losses but has failed to contribute meaningfully to credit growth. But, the trade remained in positive terrain, as some optimism remained among the investors with Agriculture Minister Narendra Singh Tomar’s statement that the deficit in southwest monsoon has narrowed and the sowing of summer (Kharif) crops is progressing well across the country.

On the global front, Asian markets ended mixed on Friday, while European markets were trading in red as investors digested key data from China and Japan, and on renewed concerns about the US-China trade dispute after a report that the White House is delaying a decision on allowing US companies to do business with China’s Huawei Technologies. Back home, select retail sector stocks ended in green as CARE Ratings expects the retail industry to register growth rate of about 12-14 percent over the next 3 years to $1,150 billion by 2021.

The BSE Sensex ended at 37566.87, up by 239.51 points or 0.64% after trading in a range of 37406.26 and 37807.55. There were 15 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.84%, while Small cap index was up by 1.05%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 2.22%, Consumer Durables up by 1.61%, Consumer Discretionary Goods & Services up by 1.45%, Bankex up by 1.02% and Realty up by 0.65%, while Metal down by 0.93%, PSU down by 0.48%, TECK down by 0.47%, IT down by 0.40% and Power down by 0.38% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 3.48%, Bajaj Finance up by 2.27%, HDFC Bank up by 2.01%, Hindustan Unilever up by 1.81% and Kotak Mahindra Bank up by 1.80%. (Provisional)

On the flip side, Yes Bank down by 7.80%, Tech Mahindra down by 2.59%, Tata Steel down by 1.50%, ITC down by 1.47% and Tata Motors down by 1.25% were the top losers. (Provisional)

Meanwhile, with an aim to revive Indian economy, which is going through a slowdown, Industry leaders have asked the government for a stimulus package of over Rs 1 trillion to restart investments. They also said the government will soon take action to boost economic growth. Besides, the government told the business leaders that the punitive penal provisions for non-compliance of CSR spending norms under the companies law would not be pursued.

The Associated Chambers of Commerce and Industry of India (Assocham) president B K Goenka has said ‘The economy requires a critical intervention by introducing a stimulus package. We have suggested for a package of over Rs one lakh crore.’

The Confederation of Indian Industry (CII) Vice-President T V Narendran said that the government sought views on ways to further stimulate the country's economic growth. He said ‘Across the board, we discussed the key issues’ and added that slowdown in the auto industry would have an implication on the steel sector.

Business lobby, the Federation of Indian Chambers of Commerce and Industry (FICCI) president Sandip Somany has said transmission of cut in interest rate to consumers by banks is a big issue. Banks must be encouraged to pass on the benefits of rate reduction to consumers and borrowers. He added ‘We are hopeful of further rate cut. It is encouraging that the RBI has reduced rates by cumulative 110 basis points.’

The CNX Nifty ended at 11111.05, up by 78.60 points or 0.71% after trading in a range of 11062.80 and 11181.45. There were 26 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indiabulls Housing Finance up by 14.77%, Eicher Motors up by 4.69%, Maruti Suzuki up by 3.35%, Bajaj Finserv up by 2.79% and Titan Co up by 2.49%. (Provisional)

On the flip side, Yes Bank down by 7.85%, Cipla down by 3.57%, Tech Mahindra down by 2.54%, Coal India down by 2.15% and Hindalco Industries down by 2.10% were the top losers. (Provisional)

European markets were trading in red; UK’s FTSE 100 decreased 24.24 points or 0.33% to 7,261.66, France’s CAC fell 48.25 points or 0.9% to 5,339.71 and Germany’s DAX was down by 114.04 points or 0.96% to 11,731.37.

Asian markets ended mixed on Friday as investors digested key data from China and Japan, and on renewed concerns about the US-China trade dispute after a report that the White House is delaying a decision on allowing US companies to do business with China’s Huawei Technologies. Chinese shares ended down after the release of mixed inflation data. Reports showed Consumer prices in China rose an annual 2.8 percent in July, slightly higher than expectations for 2.7 percent. On a monthly basis, consumer prices were up 0.4 percent after easing 0.1 percent in the previous month. Producer prices sank 0.3 percent year-on-year, beneath expectations for a flat reading that would have been unchanged from the previous month. Meanwhile, Japanese shares ended higher after data showed its economy grew at a faster than expected pace in the June-ended second quarter. Japan's GDP grew 0.4 percent sequentially in the second quarter of 2019, which beats expectations for an increase of 0.1 percent following the upwardly revised 0.7 percent gain in the previous three months. On an annualized basis, GDP gained 1.8 percent - again exceeding expectations for an increase of 0.5 percent following the upwardly revised 2.8 percent gain in the three months prior.