Post Session: Quick Review

Extending northward journey for third straight session, Indian equity benchmarks ended Tuesday’s session with gains of over half percent, on sustained buying, with Sensex and Nifty closing above their crucial 38,500 and 11,400 levels, respectively. Key gauges traded on positive note since the beginning, as traders got some encouragement with Minister of State for Finance Anurag Thakur’s statement that Indian economy is structurally and fundamentally very strong and the current slowdown, which is cyclical in nature, would not affect it much. He also exuded confidence that India would achieve the target of becoming $5 trillion economy by 2024-25. The markets also drew some comfort with Commerce Minister Piyush Goyal’s statement that India does not have any trade disputes with the US, and there is huge bilateral trade potential. He also said that a little uncertainty in any relation is also good for having healthy bilateral relations.

Domestic indices extended their upside in last hour of trade, taking support from Commerce and Industry Minister Piyush Goyal’s statement that the recent economic slowdown is a cyclic structural adjustment, and it is the right time to invest in India before growth bounces back. The street also took a note of the Finance Ministry’s statement that loans worth Rs 81,781 crore were disbursed during the nine-day outreach programme or loan mela organized by banks that began on October 1. Traders paid no heed towards data released by the Central Statistics Office (CSO) showing that India's retail inflation rate grew 3.99% in September which is very close to the Reserve Bank of India's (RBI) target level of 4%. The retail inflation for August was 3.21%.

On the global front, Asian markets ended mixed on Tuesday as investors adopted a cautious stance ahead of earnings results from the big US banks this week. European markets were trading mostly in green, as investors cheered comments from the European Union's chief Brexit negotiator that a deal with Britain over the terms of their divorce was still possible this week. Back home, infrastructure stocks were in focus as rating agency Ind-Ra revised the outlook for road sector to stable-to-negative from stable for the remaining part of 2019-20 fiscal due to subdued funding climate, economic growth-led deceleration in traffic volumes and uncertainty on the bidding model. Besides, select telecom sector stocks ended in green with industry body COAI stating that the government's assurance on undertaking reforms in the spectrum pricing will spell a ‘big relief’ for telecom companies.

The BSE Sensex ended at 38505.83, up by 291.36 points or 0.76% after trading in a range of 38238.27 and 38635.19. There were 26 stocks advancing against 5 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was up by 0.77%, while Small cap index was down by 0.05%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 2.37%, Metal up by 1.56%, Bankex up by 1.34%, PSU up by 1.32% and Consumer Discretionary Goods & Services, while Telecom down by 2.06%, TECK down by 0.80% and IT down by 0.67% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Vedanta up by 3.75%, Maruti Suzuki up by 2.64%, Hero MotoCorp up by 2.64%, Mahindra & Mahindra up by 2.61% and ONGC up by 2.33%. (Provisional)

On the flip side, Bharti Airtel down by 2.38%, Infosys down by 2.30%, Tata Motors down by 0.70%, HCL Technologies down by 0.28% and Tech Mahindra down by 0.07% were the top losers. (Provisional)

Meanwhile, Minister of State for Finance Anurag Thakur has said India's economy is structurally and fundamentally very strong and the current slowdown, which is cyclical in nature, will not affect it much. He mentioned said Narendra Modi-led government has taken several steps to boost the Indian economy.

He further exuded confidence that India would achieve the target of becoming $5 trillion economy by 2024-25. He stated that government has taken each such step which will boost the economy. Nobody could ever have imagined that the corporate tax rate will be slashed. Modi government did that in order to attract more investments into India. 

He added, currently, India has become an attractive investment destination in the world. When more investment takes place, the economy will expand and it will also boost employment generation. Besides, India’s economy had expanded at its slowest pace in over five years for the first quarter of fiscal year 2019-2020. The gross domestic product (GDP) growth rose just 5% for the quarter ended June 2019, in a development that reinforces concerns over a slowing down of the Indian economy.

The CNX Nifty ended at 11430.60, up by 89.45 points or 0.79% after trading in a range of 11342.10 and 11462.35. There were 41 stocks advancing against 9 stocks declining on the index. (Provisional)

The top gainers on Nifty were Eicher Motors up by 4.69%, Vedanta up by 4.03%, Zee Entertainment up by 3.23%, ONGC up by 2.70% and Hero MotoCorp up by 2.64%. (Provisional)

On the flip side, Bharti Airtel down by 2.86%, Infosys down by 2.18%, Bharti Infratel down by 1.27%, Tata Motors down by 1.02% and JSW Steel down by 0.88% were the top losers. (Provisional)

European markets were trading mostly in green; France’s CAC increased 30.26 points or 0.54% to 5,673.34 and Germany’s DAX rose 62.24 points or 0.5% to 12,548.80, while UK’s FTSE 100 decreased 9.89 points or 0.14% to 7,203.56.

Asian markets ended mixed on Tuesday as investors adopted a cautious stance ahead of earnings results from the big US banks this week. Investors also remained cautious over the partial US-China trade deal announced last week as well as renewed Brexit uncertainty dented sentiment. Chinese shares ended down after the reports showed that China inflation accelerated to the highest since 2013 on food prices, while factory gate prices eased further in September as trade disputes with the US and subdued demand weighed on the manufacturing sector. Consumer price inflation rose more-than-expected to 3 percent in September from 2.8 percent in August. Producer prices declined for the third straight month in September. Prices decreased 1.2 percent annually after falling 0.8 percent in August. Meanwhile, Japanese shares ended higher as traders returned to their desks after a long holiday weekend.