Bulls make comeback over Dalal Street on Monday

Bulls made a comeback over Dalal Street on Monday, with the Sensex and the Nifty ending higher by around 1.30% each. The start of the day was firm, after the share of foreign portfolio investments (FPI) in domestic capital markets through participatory notes (P-notes) jumped to Rs 76,773 crore at the end of October from Rs 76,611 crore at September-end. Adding some comfort among market participants, a survey by the National Statistical Office (NSO) showed that urban unemployment rate dropped to the lowest level in four quarters at 9.3 per cent during January-March 2019.

Extending their earlier gains, key equity benchmarks settled the trading session near their intraday high points, on account of firm cues from European markets. Domestic sentiments got a boost, as the Organisation for Economic Cooperation and Development (OECD) forecasted Indian economy to grow 6.2% in 2020 and further to 6.4% in 2021. Further, investors also remained encouraged, with the Commerce and industry minister Piyush Goyal’s statement that reform momentum towards self-certification, labour laws and environment clearance will boost investment and production.

On the global front, European markets were trading in green, after Turkey manufacturing capacity utilization rate rose further in November. The figures from the Turkish central bank showed that the capacity utilization rate rose to 77.2 percent in November from 76.4 percent in October. Asian markets ended mixed, as Japan's leading index remained unchanged in September after falling in the previous month. The final data from the Cabinet Office showed that the leading index, which measures the future economic activity, came in at 91.9 in September, same as in August. The initial estimate was 92.2.

Back home, the banking sector stocks ended in green terrain, after credit rating agency, Moody’s in its latest report said that to allow bankruptcy proceedings against non-banking financial companies (NBFCs) is positive for banks as its paves the way for orderly resolution of stressed shadow banks. Further, stocks related to the jewellery industry remained in limelight, amid reports that the government is working on an integrated gold policy, which is expected to be released soon. The policy is aimed at promoting growth of the yellow metal industry and exports of jewellery.

Finally, the BSE Sensex rose 529.82 points or 1.31% to 40,889.23, while the CNX Nifty was up by 159.35 points or 1.34% to 12,073.75.

The BSE Sensex touched high and low of 40,931.71 and 40,393.90, respectively and there were 29 stocks advancing against 02 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index gained 1.17%, while Small cap index was up by 0.81%.

The top gaining sectoral indices on the BSE were Telecom up by 6.78%, Metal up by 3.34%, Realty up by 2.04%, Basic Materials up by 2.02% and Auto up by 1.85%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Bharti Airtel up by 7.20%, Tata Steel up by 4.99%, Indusind Bank up by 3.49%, Axis Bank up by 3.10% and Vedanta up by 2.74%. On the flip side, ONGC down by 2.17% and Yes Bank down by 1.70% were the only top losers.

Meanwhile, Minister of State for Finance and Corporate Affairs Anurag Thakur said the government has raised anxiety over fake invoices being generated in the business-to-business (B2B) segment which is impacting Goods and Services Tax (GST) mop-up. He also said this under-reporting has become a challenge for the government. Citing the recent faceless assessment of income tax started by the government, he assured the industry that the government would bring more transparency in the system.

The minister further said 'i promise you more changes in the system, which would be transparent and more accountability. We would be more than happy to help the industry to grow, to make more transparent system in place and I am sure you can also help us by bringing more investments.' He also said “Real estate to automobile to manufacturing, we have taken landmark decisions and will continue to support sectors across the spectrum to achieve the target of a $5 trillion economy.'

Meanwhile, Thakur asked the appliances and consumer electronics industry to tackle e-waste generated from products. He noted that India generates 1.85 million tonnes of e-waste annually. He stated that the role of companies does not end when a product is sold and added that corporates have a responsibility towards tackling the issue of e-waste which is a global challenge.

The CNX Nifty traded in a range of 12,084.50 and 11,919.75. There were 44 stocks advancing against 06 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 8.13%, Bharti Infratel up by 7.37%, Tata Steel up by 5.25%, Hindalco up by 4.47% and Grasim Industries up by 3.69%. On the flip side, Zee Entertainment down by 5.33%, ONGC down by 2.28%, Yes Bank down by 1.39%, BPCL down by 0.42% and GAIL India down by 0.29% were the top losers.

European markets were trading in green; UK’s FTSE 100 increased 49.25 points or 0.67% to 7,376.06, France’s CAC rose 27.67 points or 0.47% to 5,920.80 and Germany’s DAX was up by 53.92 points or 0.41% to 13,217.80.

Asian markets ended mixed on Monday as positive comments from both the Washington and Beijing renewed hopes of a Sino-US interim trade deal to end their 16-month long tariff dispute, while the dollar dipped after its latest rally on the back of strong US economic data. US President Donald Trump said a long-negotiated trade deal with China is ‘potentially very close’, while Chinese President Xi Jinping said China wants to work toward a phase-one trade agreement with the US to de-escalate their trade war. Further, Hong Kong shares ended higher after pro-democracy candidates recorded a landslide victory in Hong Kong's district council elections.