Post Session: Quick Review

Indian equity benchmarks finished with modest gains on Monday, extending their winning streak to second consecutive session, on account of buying by market participants. The day began on a positive note for the markets, as traders took encouragement from Reserve Bank of India’s (RBI) report which showed that India’s foreign exchange reserves increased by $4.239 billion to hit a record high of $437.833 billion as on October 4. Some comfort also came in with a report that a high-level panel constituted by the government to suggest measures to augment GST revenue collection will hold its first meeting on October 15. Sentiments were also buoyed as India and China decided to set up a ministerial-level mechanism to resolve issues relating to trade, investment and services.

Markets extended their upside in the afternoon deals and were trading at intraday high points, as local investors cheered with a monthly survey report which showed that Wholesale prices based inflation eased to 0.33 per cent in September, as against 1.08 per cent in August due to fall in prices of non-food articles. The annual rate of inflation, based on monthly WPI, was at 5.22 per cent in September 2018.  Trades took a note of  report that Prime Minister Narendra Modi said Rs 25 lakh crore will be spent for infrastructural development in the villages across the country, in a big boost to strengthen rural infrastructure. However, markets trimmed most of their initial gains, as anxiety remained among traders with World Bank’s report that after a broad-based deceleration in the initial quarters of this fiscal, India’s growth rate is projected to fall to 6% in 2019-20, in what was the sharpest downward revisions of its growth projections for South Asian countries.

On the global front, Asian markets ended in green on Monday, as investors were heartened by announcement of a partial trade deal between the US and China. However, European markets were trading in red, as renewed uncertainty around the timing and nature of BREXIT as well as weak data from China prompted traders to book some profits after strong gains in the previous session.

The BSE Sensex ended at 38200.01, up by 72.93 points or 0.19% after trading in a range of 38066.13 and 38513.69. There were 24 stocks advancing against 7 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.39%, while Small cap index was up by 0.14%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 2.12%, Realty up by 1.84%, Auto up by 1.56%, Oil & Gas up by 1.20% and Metal was up by 1.08%, while IT down by 0.90%, TECK down by 0.51%, Capital Goods down by 0.25% and Power was down by 0.21% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were ONGC up by 5.19%, Tata Motors up by 4.99%, Tata Motors - DVR up by 4.74%, Bharti Airtel up by 2.86% and IndusInd Bank was up by 2.15%. (Provisional)

On the flip side, Infosys down by 3.60%, Bajaj Finance down by 2.57%, Power Grid down by 1.24%, Larsen & Toubro down by 0.45% and Kotak Mahindra Bank was down by 0.32% were the top losers. (Provisional)

Meanwhile, Bank credit at scheduled commercial banks rose at slower rate of 8.79 per cent on year-on-year basis. According to the fortnightly data released by the Reserve Bank of India (RBI), credit stood at Rs 97.71 lakh crore in the fortnight to September 27, 2019 as compared with Rs 89.82 lakh crore reported in the year-ago fortnight. Further, aggregate deposits at the scheduled commercial banks stood at Rs 129.06 lakh crore as on September 27, 2019.

As per the Reserve Bank’s data report, non-food credit, accounting for 99.39% of the share of the total credit, recorded a growth of 8.70%, YoY, at Rs 97.11 lakh crore as on September 27, 2019 as against a rise of 10.27% fortnight ago and 12.56% rise a year ago.

Earlier, bank credit at scheduled commercial banks had gone up by 10.26 per cent on year-on-year basis to Rs 97.01 lakh crore in the previous fortnight ending September 13, 2019 as compared with Rs 87.98 lakh crore reported in the fortnight ended September 14, 2018.

The CNX Nifty ended trading at 11333.50, up by 28.45 points or 0.25% after trading in a range of 11290.05 and 11420.45. There were 36 stocks advancing against 13 stocks declining on the index. (Provisional)

The top gainers on Nifty were ONGC up by 5.43%, Tata Motors up by 5.15%, Ultratech Cement up by 2.37%, Bharti Airtel up by 2.30% and Yes Bank was up by 2.27%. (Provisional)

On the flip side, Infosys down by 3.51%, Bajaj Finance down by 2.62%, Bajaj Finserv down by 1.23%, Power Grid down by 1.22% and Adani Ports was down by 0.68% were the top losers. (Provisional)

European markets were trading in red; UK’s FTSE 100 decreased 42.46 points or 0.59% to 7,204.62, France’s CAC decreased 56.95 points or 1.01% to 5,608.53 and Germany’s DAX decreased 111.28 points or 0.89% to 12,400.37.

Asian markets ended higher on Monday. Chinese shares ended higher as signs of improvement in trade relations between the United States and China helped investors shrug off concerns about the country's economic health. United States and China reached a phase 1 trade deal last week and US agreed to hold off on tariff hikes planned for this week, providing a temporary reprieve for global markets. Seoul shares closed up after Samsung Electronics last week posted better-than-expected third-quarter profit. Meanwhile, Japanese markets were closed for a holiday.