Post Session: Quick Review

Indian equity markets ended higher for the second consecutive day on Thursday ahead of the industrial production data for the month of October and CPI inflation for November which will be released later in the day. The day began on a positive note, as traders took engorgement with a report that Union Cabinet approved changes to the insolvency law, including a provision to ring-fence successful resolution applicants from criminal proceedings with regard to offences committed by previous promoters of a company. The amendments to the Insolvency and Bankruptcy Code (IBC) are aimed at removing certain difficulties being faced during insolvency resolution process to realise the objects of the Code and to further ease doing of business. Some comfort also came with Former President Pranab Mukherjee’s statement that ‘certain things’ that are happening would have its impact and he was not worried over the economic slowdown. Mukherjee, further said there is nothing wrong in public sector banks needing capital infusion. Sentiments remained on the positive side ahead of GST Council meeting, headed by Finance Minister Nirmala Sitharaman, which is schedule on December 18 in the backdrop of lower-than-expected GST collection and pending compensation to many states.

Key indices continued their rally mood to reach at fresh intraday high points in the afternoon deals. Market participants took note of a US diplomat’s statement that India needs to demonstrate to the international community its willingness to become a part of the global supply chain by taking steps towards resolving larger market access issues. However, in the last hour of the trade markets trimmed some of the gains as traders turned cautious with a private report that India's economy is expected to grow at 4.3 percent in December quarter this year amid concerns over crisis in the NBFC sector.

On the global turf, European markets were trading higher, as investors awaited a policy meeting by European Central Bank (ECB) and the outcome of the UK election, with polls predicting a narrow Conservative win. Beside, Asian markets ended mostly in green, after the Federal Reserve kept interest rates steady, putting an end to the year's series of rate cuts. Back home, NBFCs stocks remained in focus, as CRISIL in its latest report has said that asset growth of non-banking finance companies (NBFCs) and housing finance companies (HFCs) is expected to hit a decadal low of 6-8 percent during current fiscal year (FY20) from a high 15 percent last fiscal year.

The BSE Sensex ended at 40553.06, up by 140.49 points or 0.35% after trading in a range of 40490.69 and 40712.65. There were 23 stocks advancing against 8 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.62%, while Small cap index was up by 0.58%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 2.21%, Industrials up by 1.48%, PSU up by 1.45%, Capital Goods up by 1.29% and BANKEX was up by 1.22%, while IT down by 1.78%, TECK down by 1.66% and Telecom was down by 0.81% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Motors - DVR up by 7.08%, Tata Motors up by 7.02%, Yes Bank up by 5.49%, Vedanta up by 3.57% and Tata Steel was up by 3.03%. (Provisional)

On the flip side, Infosys down by 2.50%, ONGC down by 1.56%, HCL Tech down by 1.43%, Bharti Airtel down by 1.15% and TCS was down by 0.78% were the top losers. (Provisional)

Meanwhile, with an aim to boost economy, Commerce Minister Piyush Goyal has said that the government has carried out a number of reforms in various sectors and it is a continuous process for improvement in the economy. He mentioned that some of the reforms were by way of amendments in various acts such as the Finance (Amendment) Bills, the Special Economic Zones (Amendment) Bill, amendments in the Goods and Services Tax Act and the Insolvency and Bankruptcy Code.

He said as regards reforms in the tax system, it is stated that through the Taxation Laws (Amendment) Ordinance, 2019 (the Ordinance), corporate tax rates were reduced to 22% plus the applicable surcharge and cess for all domestic corporate persons not claiming any deduction or incentive.

Further, he stated that an option was given to any new domestic manufacturing company incorporated on or after October 1, 2019 to avail lower corporate tax rates of 15%, with the applicable surcharge and cess, without claiming any deduction or incentive as per sub-section (2) of section 115BAB of the Act, provided they commence manufacturing or production of an article or thing by March 31, 2023.

The CNX Nifty ended at 11965.90, up by 55.75 points or 0.47% after trading in a range of 11934.00 and 12005.50. There were 37 stocks advancing against 13 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Motors up by 7.01%, Yes Bank up by 5.49%, Vedanta up by 3.68%, Tata Steel up by 2.96% and SBI was up by 2.81%. (Provisional)

On the flip side, Infosys down by 2.55%, ONGC down by 1.60%, HCL Tech. down by 1.38%, Bharti Airtel down by 1.21% and Bharti Infratel was down by 0.96% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 41.30 points or 0.57% to 7,257.55, France’s CAC increased 25.06 points or 0.43% to 5,885.94 and Germany’s DAX increased 62.71 points or 0.48% to 13,209.45.

Asian markets ended mostly higher on Thursday after reports showed that US and Chinese negotiators are moving closer to agreeing on the amount of tariffs that would be rolled back in a phase one trade deal. Chinese shares closed higher after US President Donald Trump said trade talks with China were going very well, sounding more positive than, when he said a trade deal might have to wait until after the 2020 US presidential election. Moreover, Japanese shares ended up after Prime Minister Shinzo Abe announced a $120 billion fiscal package to support stalling growth in the world's third-largest economy.