Post Session: Quick Review

Indian equity benchmarks bounced back from their losses to end Monday’s session with mild gains, on the back of buying by participants, despite weak global cues. It was a negative start to the markets, as traders remained pessimistic with report that the US and Indian trade negotiators ended talks on Friday without making major progress on a range of disputes over tariffs and other protectionist measures imposed by both sides that are straining bilateral ties. As per the report, Friday's talks were more about understanding each other's positions in various disputes. Market-men were also concerned as a private report massively cut its GDP forecast for India to a low 4.9 percent for the year from 5.7 percent earlier, saying the economy is going through a deeper trough and even a sub-par recovery is at least a year away. The street remained disappointed with reports that presence of multiple regulators with disparate priorities is hindering the growth of the all important corporate bond market (CBM) in India. However, markets recovered in dying hour of trade, as traders found some solace with India Inc stating that Indian economy possesses strong fundamentals and will revive on account of various reform measures taken by the government.

On the global front, Asian markets ended lower on Monday on doubts about when the world's two largest economies may end a 16-month trade war. European markets were trading mostly in red, as a fresh round of protests in Hong Kong, worrying data from China and Moody's warning on Britain's sovereign debt made for a gloomy start to the week. Back home, select auto stocks ended in green, with data released by the Society of Indian Automobile Manufacturers (SIAM) showing that domestic passenger vehicle sales witnessed a marginal increase of 0.28 percent to 2,85,027 units in October from 2,84,223 units in the year-ago period.

The BSE Sensex ended at 40347.23, up by 23.62 points or 0.06% after trading in a range of 40150.97 and 40417.44. There were 15 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.30%, while Small cap index was up by 0.19%. (Provisional)

The top gaining sectoral indices on the BSE were Bankex up by 1.26%, PSU up by 1.10%, Telecom up by 0.94%, Realty up by 0.94% and Oil & Gas up by 0.94%, while IT down by 0.82%, FMCG down by 0.54%, Auto down by 0.48%, Energy down by 0.45% and TECK down by 0.45% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Yes Bank up by 6.09%, Tata Motors - DVR up by 2.38%, Tata Motors up by 1.83%, Indusind Bank up by 1.69% and ICICI Bank up by 1.68%. (Provisional)

On the flip side, Hero MotoCorp down by 2.12%, Vedanta down by 1.80%, TCS down by 1.64%, Reliance Industries down by 1.20% and Maruti Suzuki down by 1.15% were the top losers. (Provisional)

Meanwhile, without any breakthrough, the US and Indian trade negotiators have ended their talks on November 08 regarding disputes over tariffs and other protectionist measures imposed by both sides that are damaging bilateral ties. Besides, many of the toughest questions on agricultural commodities, e-commerce, and steel and aluminum, have been put off until commerce and industry minister Piyush Goyal goes to Washington for talks with United States Trade Representative Robert Lighthizer next month. There is hope that some of the issues will be resolved when Goyal goes to Washington.

In the meeting, the US sought the rollback of Indian tariffs imposed on some agricultural products, such as almonds. Those tariffs were imposed by the Indian government in response to the Trump administration's decision to remove trade privileges from Indian products under the Generalized System of Preferences (GSP). India has asked for those privileges, effectively zero tariffs on a range of Indian products entering the United States, to be reinstated. India did not commit to any changes to foreign investment rules for foreign e-commerce firms such as Walmart's Flipkart and Amazon. The rules have forced the two American companies to rework their business strategies for India.

The two sides resumed talks after US President Donald Trump and Prime Minister Narendra Modi met on the sidelines of the G20 summit in June where they agreed to seek to deepen the two countries' relationship. Trump had said that ‘there would be a ‘very big trade deal’ with India, though he set no timeline, and has only this week used Twitter to attack what he says are high Indian tariffs on American goods as unacceptable’.

The CNX Nifty ended at 11913.20, up by 5.05 points or 0.04% after trading in a range of 11853.95 and 11932.65. There were 23 stocks advancing against 26 stocks declining on the index. (Provisional)

The top gainers on Nifty were Zee Entertainment up by 6.66%, Yes Bank up by 6.09%, GAIL India up by 2.72%, BPCL up by 2.71% and Tata Motors up by 1.89%. (Provisional)

On the flip side, Nestle down by 2.53%, Hero MotoCorp down by 2.08%, Cipla down by 2.04%, Vedanta down by 1.86% and Hindalco down by 1.77% were the top losers. (Provisional)

European markets were trading mostly in red; UK’s FTSE 100 decreased 34.52 points or 0.47% to 7,324.86 and Germany’s DAX fell 39.91 points or 0.3% to 13,188.65, while France’s CAC increased 0.72 points or 0.01% to 5,890.42.

Asian markets ended lower on Monday on doubts about when the world's two largest economies may end a 16-month trade war. Chinese shares ended down on concerns over slowing growth and uncertainty around a proposed US-China trade deal after comments by President Trump that he hasn't agreed to a tariff rollback with China. Meanwhile, inflation data from China proved to be a mixed bag, with the consumer price index rising at its fastest pace in almost eight years, while a measure of producer prices fell the most in more than three years in October. Besides, Hong Kong shares closed lower after political tensions flared up in the city once again. Moreover, Japanese shares declined after data showed the country's core machinery orders fell for a third straight month in September, raising doubts over whether the recent strength in capital goods shipments would last.