Post Session: Quick Review

Indian equity Markets traded between green and red terrain throughout the session and somehow managed to close Friday’s session slightly in green terrain, on the back of buying by participants and encouraging earnings by some blue-chip firms. Domestic indices made a slightly positive start as traders took some support with the finance ministry stating that public sector banks (PSBs) have extended support of Rs 2.56 lakh crore to NBFCs by way of credit and pooled buyout since September 2018 as part of efforts to provide much-needed liquidity to the sector. But traders soon turned cautious due to weak domestic fiscal deficit data and macroeconomic data. The fiscal deficit stood at Rs 6.52 lakh crore till September-end 2019, compared to Rs 5.95 lakh crore in the same period of the previous fiscal year. Low revenue collections have become a reason to worry about the fiscal deficit. Besides, the output of eight core infrastructure industries contracted by 5.2% in September, the lowest in the decade, indicating the severity of economic slowdown. Besides, India’s fiscal deficit has widened in the first half of the current fiscal year.

The sentiments remained in lackadaisical mood in afternoon deals, as anxiety remained among the local traders with a monthly survey showing that manufacturing activity in the country continued to weaken in October, with factory orders and production rising at the weakest rates in two years. The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) fell to a two-year low of 50.6 in October from 51.4 in September. But, markets managed to close the session in green, as some support came with State Bank of India’s report that credit growth in the system has picked up rapid pace beginning September 2019 after lagging behind for several months in a row, on the back of demand from housing, non-banking financial companies (NBFC) and micro, small and medium enterprises (MSME) sectors.

On the global front, Asian markets ended mixed on Friday amid fresh doubts about the likelihood of a U.S.-China trade deal. European markets were trading in green, as the Euro area economy grew more than expected in the third quarter, despite a global slowdown and uncertainties surrounding Brexit. Back home, sugar stocks were in focus with report that India's 2019-20 sugar production should fall to 26.9 million tonnes, 1.3 million tonnes below an August projection, due to unfavorable weather conditions.

The BSE Sensex ended at 40169.14, up by 40.09 points or 0.10% after trading in a range of 40014.23 and 40283.30. There were 16 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.19%, while Small cap index was up by 0.27%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 2.48%, Telecom up by 1.76%, Basic Materials up by 1.03%, Bankex up by 0.88% and Realty up by 0.59%, while Consumer Durables down by 1.22%, Capital Goods down by 0.97%, Auto down by 0.76%, Industrials down by 0.76% and IT down by 0.69% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 5.64%, Indusind Bank up by 5.04%, Vedanta up by 3.37%, Tech Mahindra up by 2.81% and ONGC up by 1.91%.(Provisional)

On the flip side, Yes Bank down by 6.03%, TCS down by 3.00%, Mahindra & Mahindra down by 2.79%, Asian Paints down by 2.52% and Tata Motors down by 1.77% were the top losers. (Provisional)

Meanwhile, the Controller General of Accounts (CGA) in its latest data has showed that India's fiscal deficit reached nearly 93% of the Budget Estimate (BE) at Rs 6.52 lakh crore in the first half (April-September) of the current fiscal year (2019-20). In absolute terms, the fiscal deficit or the gap between expenditure and revenue was Rs 6,51,554 crore as on September 30, 2019. The deficit had stood at 95.3% of the 2018-19 BE in the corresponding month a year ago.

The government has pegged the fiscal deficit for the current financial year at Rs 7.03 lakh crore, aiming to restrict the deficit at 3.3% of the gross domestic product (GDP). Low revenue collections have become a reason to worry about the fiscal deficit. The government has let go of revenues to the tune of Rs 1.45 lakh crore by announcing cuts in corporate tax in September with a view to boosting the faltering economy.

As per the CGA data, revenue receipts of the government during the April-September 2019-20 period rose to 41.6% of the BE compared to 40.1% in the corresponding period last year. In absolute terms, revenue receipts stood at Rs 8,16,467 crore at the end of September. For the entire 2019-20, the revenue receipts have been pegged at Rs 19.62 lakh crore.

Besides, the capital expenditure was 55.5% of the BE as compared to 54.2% in the year-ago period. Total expenditure during April-September stood at Rs 14.88 lakh crore or 53.4% of the BE, same as the corresponding period of the previous financial year. The government has pegged its total expenditure for the financial year 2019-20 at Rs 27.86 lakh crore.

The CNX Nifty ended at 11893.20, up by 15.75 points or 0.13% after trading in a range of 11843.35 and 11918.30. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Zee Entertainment up by 19.61%, Bharti Infratel up by 7.33%, Tata Steel up by 5.37%, Indusind Bank up by 5.03% and JSW Steel up by 3.75%. (Provisional)

On the flip side, Yes Bank down by 5.82%, Mahindra & Mahindra down by 2.85%, Indian Oil Corp. down by 2.83%, TCS down by 2.78% and Eicher Motors down by 2.49% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 27.41 points or 0.38% to 7,275.79, France’s CAC rose 19.91 points or 0.35% to 5,749.77 and Germany’s DAX was 39.01 points or 0.3% to 12,905.80.

Asian markets ended mixed on Friday due to fresh uncertainty surrounding the Sino-US trade deal. Investors were worried by a report saying Chinese officials are unwilling to budge on the thorniest issues and have cast doubts about reaching a comprehensive long-term trade agreement. Japanese shares ended lower after survey data from IHS Markit showed that Japan's manufacturing sector moved deeper into contraction in October largely due to a sharp fall in new orders. At 48.4, the reading reached its lowest level in nearly three-and-a-half years. Meanwhile, Chinese shares ended higher on the back of upbeat data from IHS Markit showing that China's manufacturing sector expanded at the fastest pace since early 2017 in October. The manufacturing PMI rose to 51.7 from 51.4 in September, signaling an improvement in operating conditions for three months running.