Post Session: Quick Review

Gaining for fifth straight session, Indian equity benchmarks ended volatile day of trade in green terrain on Monday, with Sensex hitting record closing high and Nifty settling above crucial 11,900 mark. Trading for the day began on a firm note, tracking strong gains in Asian peers. Traders took encouragement with Prime Minister Narendra Modi’s statement that the country is among the top 10 destinations for foreign direct investment (FDI) in the world and had received $286 billion of FDI in the last five years. Traders also got boost with the Reserve Bank of India’s (RBI) data showing that India's forex reserves increased by $1.832 billion to a new lifetime high of $442.583 billion in the week ended October 25, helped by a jump in core currency assets and value of gold.

However, key indices gave up most of their gains in afternoon deals to come off their intraday high points, as market-men got anxious with Centre for Monitoring Indian Economy’s report which highlighted that India’s unemployment rate rose to 8.5% in October 2019, the highest level since August 2016. Some concern also came in with the Confederation of Indian Industry (CII) stating that not being part of the proposed mega trade deal Regional Comprehensive Economic Partnership (RCEP) will harm India's exports and investment flow in the future by cutting off the country from the trading bloc comprising 15 other nations in terms of preferential access.  But, key indices regained traction in the last leg of trade as optimism remained among traders with reports that India is likely to make a strong pitch for exports of its Pharma, IT and agricultural products among others at China's second International Import Expo (CIIE) to be opened at Shanghai on November 5.

On the global front, Asian markets ended mostly in green, while European markets were trading in green, as growing optimism over U.S.-China trade talks and upbeat U.S. job data boosted global investors' appetite for riskier assets. Back home, power stocks were in focus with report that power producers' total outstanding dues owed by distribution companies rose around 37% to Rs 69,558 crore in September 2019 over the same month last year, reflecting stress in the sector.

The BSE Sensex ended at 40288.99, up by 123.96 points or 0.31% after trading in a range of 40186.29 and 40483.21. There were 13 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index fell 0.02%, while Small cap index was up by 0.15%.(Provisional)

The top gaining sectoral indices on the BSE were Metal up by 2.91%, Telecom up by 2.10%, Basic Materials up by 1.30%, IT up by 0.86% and TECK up by 0.83%, while Auto down by 1.29%, Consumer Discretionary Goods & Services down by 0.80%, Realty down by 0.65%, FMCG down by 0.59% and Consumer Durables down by 0.49% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Infosys up by 2.83%, Vedanta up by 2.68%, ONGC up by 2.64%, HDFC up by 2.33% and ICICI Bank up by 1.90%. (Provisional)

On the flip side, Maruti Suzuki down by 2.58%, Hero MotoCorp down by 2.42%, Indusind Bank down by 1.92%, Tata Motors down by 1.54% and Power Grid down by 1.47% were the top losers. (Provisional)

Meanwhile, the finance ministry in its latest report has showed that the Goods and Services Tax (GST) collection declined by 5.29 per cent to Rs 95,380 crore in the month of October 2019, as against Rs 1,00,710 crore in the same month a year ago. Though, GST collection has increased by 3.77 per cent in comparison to September 2019, when it was Rs 91,916 crore. This is the third consecutive month when GST mop-up remained below the Rs 1 lakh crore mark, despite October being a festive month.

Out of gross GST collection of Rs 95,380 crore, CGST was Rs 17,582 crore, SGST was Rs 23,674 crore, IGST was Rs 46,517 crore (including Rs 21,446 crore collected on imports), and cess was Rs 7,607 crore (including Rs 774 crore collected on imports). The data also showed that the total number of GSTR 3B returns (summary of self-assessed return) filed for the month of September (up to October 30) was 73.83 lakh.

Besides, the government has settled Rs 20,642 crore to CGST and Rs 13,971 crore to SGST from IGST as regular settlement. The total revenue earned by Central Government and the State Governments after regular settlement in the month of October, 2019 is Rs 38,224 crore for CGST and Rs 37,645 crore for the SGST. Although GST collection declined on annual basis in October 2019, the domestic component showed growth of 6.74 per cent growth year-on-year during April-October period.

The CNX Nifty ended at 11937.35, up by 46.75 points or 0.39% after trading in a range of 11905.35 and 11989.15. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bharti Infratel up by 6.20%, JSW Steel up by 5.01%, Bajaj Finserv up by 4.30%, Coal India up by 3.79% and Infosys up by 3.36%. (Provisional)

On the flip side, Zee Entertainment down by 4.75%, Indian Oil Corporation down by 2.87%, Maruti Suzuki down by 2.52%, Hero MotoCorp down by 2.44% and Indusind Bank down by 2.03% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 54.39 points or 0.74% to 7,356.81, France’s CAC rose 47.00 points or 0.82% to 5,808.89 and Germany’s DAX added 124.60 points or 0.96% to 13,085.65.

Asian markets ended mostly higher on Monday as growing optimism over US-China trade talks and strong US job data boosted global investor sentiment. The United States and China both said on Friday that they had made progress in talks aimed at defusing their protracted trade war, and US officials said a deal could be signed this month. While, the Chinese Commerce Ministry said the world's two largest economies had reached ‘consensus on principles’ during a ‘serious and constructive’ telephone call between their main trade negotiators. Chinese shares ended higher, encouraged by Beijing's increasing efforts to open up its financial markets, investors awaited China President Xi Jinping's planned keynote speech at the Shanghai international import exhibition for further direction. Meanwhile, the Japanese markets were closed for the Culture Day holiday.