Post Session: Quick Review

Snapping two-session losing run, Indian equity benchmarks ended Friday’s trade on an optimistic note with gains of over half a percent, recapturing their crucial 11,000 (Nifty) and 37,350 (Sensex) bastions. Markets made good start as traders took encouragement with Union Finance Minister Nirmala Sitharaman’s statement that the Centre will announce two more big steps in the coming days to give momentum to industry. The government has decided to increase spending and has announced a slew of measures to arrest the sluggishness in the automobile market. Traders took note of report that executing confidence that India will become a five trillion dollar economy in the next five years, Union Minister Prakash Javadekar said that good governance and zero corruption are needed for sustainable economic development in the country. He added that real growth can be seen now with low inflation of three-four per cent.

In early afternoon deals, markets shrugged off their gains and started trading in negative route, as investors have maintained cautious approach ahead to the April-June quarter (Q1FY20) Gross Domestic Product (GDP) numbers to be out later in the day. Some concerns also came in with a private report stating that India's economy likely expanded at its weakest pace in more than five years in April-June, as consumer demand and private investment weakened at a time global trade frictions have dampened business sentiment. Though, markets staged splendid recovery to enter into green in late trade, as optimism spread on the street with Union Home Minister Amit Shah’s statement that India's macroeconomic fundamentals are quite strong and its economy is currently growing at the fastest pace in the world.

On the global front, Asian equity ended mostly in green on Friday, European markets were trading in green, as the United States and China showed a willingness to resolve their trade dispute by returning to the negotiating table, though lingering recession fears tempered some of the enthusiasm. Back home, auto stocks were in focus with ICRA's report that passenger vehicle sales in India is likely to decline in the range of 4-7% this fiscal saying agricultural output, revival in economic and industrial growth would be critical for auto sector's growth despite recent government measures to rekindle demand.

The BSE Sensex ended at 37380.30, up by 311.37 points or 0.84% after trading in a range of 36829.81 and 37397.97. There were 23 stocks advancing against 8 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 1.09%, while Small cap index was up by 0.89%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 2.13%, Healthcare up by 2.03%, FMCG up by 2.01%, Realty up by 1.55% and Basic Materials up by 1.23%, while Capital Goods down by 0.42%, Power down by 0.41%, PSU down by 0.20% and Utilities down by 0.09% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Yes Bank up by 5.67%, Sun Pharma up by 4.27%, Indusind Bank up by 3.47%, Tata Steel up by 3.35% and Hindustan Unilever up by 3.05%. (Provisional)

On the flip side, Power Grid down by 1.81%, ONGC down by 1.42%, Kotak Mahindra Bank down by 1.32%, HCL Tech. down by 1.20% and Larsen & Toubro down by 1.10% were the top losers. (Provisional)

Meanwhile, executing confidence that India will become a five trillion dollar economy in the next five years, Union Minister Prakash Javadekar has said that good governance and zero corruption are needed for sustainable economic development in the country. He said good governance is the basis of good economy. Zero corruption and low inflation are two important keys for any kind of sustainable economic development. Real growth can be seen now with low inflation of three-four per cent.

He also said that policy paralysis never allows sustainable growth. On the other hand, decisive leadership gives real support and momentum to the economy. He added that the Goods and Services Tax (GST) initiative was a real example of ‘cooperative federalism’. A big revolutionary move of GST was taken to bring transparency and make tax compliance better. He also emphasised on infrastructure and agricultural development for economic growth. The stronger the infrastructure, the faster will be the economic growth. He said every year Rs 20 lakh crore have been kept aside for infrastructure development.

Highlighting the government's contribution to boost agriculture sector, the minister said ‘we are helping out farmers by depositing Rs 6,000 every year in the account of over 14 crore farmers across the country. This is a big move. This means farmers will have money to repair degraded land, get good seeds and use better technology.’ He also said ‘We need to increase agriculture productivity. 40 per cent people's livelihood is dependent on agriculture. To increase agriculture credit and trigger growth, government has initiated various schemes.’

The CNX Nifty ended at 11033.85, up by 85.55 points or 0.78% after trading in a range of 10874.80 and 11042.60. There were 36 stocks advancing against 14 stocks declining on the index. (Provisional)

The top gainers on Nifty were Yes Bank up by 5.23%, Sun Pharma up by 4.03%, Zee Entertainment up by 3.84%, Indusind Bank up by 3.48% and Tata Steel up by 3.32%. (Provisional)

On the flip side, Bharti Infratel down by 3.23%, Coal India down by 2.35%, Eicher Motors down by 1.68%, ONGC down by 1.66% and Power Grid down by 1.64% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 22.91 points or 0.32% to 7,207.23, France’s CAC rose 43.66 points or 0.8% to 5,493.63 and Germany’s DAX was up by 117.87 points or 1% to 11,956.75.

Asian shares ended mostly higher on Friday, supported by signs that the US and China are set to resume trade talks in September. China's commerce ministry said on Thursday Beijing and Washington were discussing the next round of face-to-face talks scheduled for September, but added it was important for Washington to cancel a tariff increase. US President Trump also said some discussions were taking place on Thursday, ahead of a looming deadline for additional US tariffs on September 1. Japanese shares ended higher as the yen weakened following positive developments in the in the Sino-US trade war and investors digested a raft of mixed local economic data. Reports showed Industrial production in Japan rose a seasonally adjusted 1.3% sequentially in July, and beats forecasts for a 0.3% gain following the 3.3% drop in June. Japan's retail trade declined 2.3% in the month, and the jobless rate dipped to its lowest level in 27 years while overall consumer prices in the Tokyo region were up 0.6% year on year in August. Chinese shares ended down amid the ongoing mass protests in Hong Kong calling for political freedom and self-determination for the semi-autonomous territory, while investors awaited manufacturing data for directional cues.