Post Session: Quick Review

Indian equity benchmarks ended lower on Wednesday’s trading session. After a positive start of the trading day, key indices remained higher during first half of the session, taking support with ICRA’s report that India's current account will swing to a surplus of $30 billion or 1.2 percent of GDP in FY21, due to slowdown in imports during the pandemic, making it clear that it will be a temporary phenomenon. Some support also came with report that the government aims to catapult India to among the top 10 countries in World Bank's ease of doing business rankings with the comprehensive labour reforms which are likely to be completed after Parliament approves three draft codes in the ongoing session.

In noon deals, markets turned negative, as the United Nations Conference on Trade and Development (UNCTAD) projected India’s economy to contract 5.9 per cent in 2020, and warned the country to not repeat its past mistake of announcing austerity measures. It forecast the economy to grow 3.9 per cent next year. However, markets trimmed most of losses in last hour of trade, after industry body CII urged the government to extend the export incentive scheme MEIS till December 31 in its present form to help exporters. CII also suggested that the ambit of coverage under the Emergency Credit Line Guarantee Scheme (ECGLS) should be extended to the extent of any unutilised amount for revival of stressed sectors, including civil aviation, hospitality and tourism.

On the global front, European markets were trading higher with US futures as equity markets built upward momentum after the September selloff cut valuations. The dollar extended its rebound. Asian markets ended mixed on Wednesday, after the manufacturing sector in Japan continued to contract in September, albeit at a barely slower pace, the latest survey from Jibun Bank revealed on Wednesday with a manufacturing PMI score of 47.3. That's up marginally from 47.2 in August, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. Individually, production and new orders fell markedly again, although the rate of job shedding was the softest in four months. Business confidence rose to its strongest level in more than two years.

The BSE Sensex ended at 37668.42, down by 65.66 points or 0.17% after trading in a range of 37313.09 and 38140.07. There were 8 stocks advancing against 22 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.33%, while Small cap index was down by 0.07%. (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.77%, Realty up by 0.56%, Energy up by 0.49%, Consumer Disc up by 0.31% and Bankex up by 0.13%, while Telecom down by 7.36%, Power down by 2.13%, Utilities down by 1.39%, TECK down by 1.37% and Healthcare down by 1.20% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Infosys up by 0.96%, Hindustan Unilever up by 0.75%, Nestle up by 0.73%, Titan Co up by 0.57% and Asian Paints up by 0.18%. On the flip side, Bharti Airtel down by 9.34%, Tata Steel down by 4.60%, Indusind Bank down by 3.70%, NTPC down by 3.25% and TCS down by 3.06% were the top losers. (Provisional)

Meanwhile, in its suggestions list, Industry body the Confederation of Indian Industry (CII) has said that the government should extend the export incentive scheme Merchandise Exports from India Scheme (MEIS) till December 31 in its present form to help exporters.

As per the CII, the extension will help address the accounting problem of exporters as they can book the receivables under the Merchandise Exports from India Scheme in the current financial year. The government has capped export incentives under MEIS at Rs 2 crore per exporter on outbound shipments made during the period from September 1 to December 31, 2020.

Industry body also suggested that the ambit of coverage under the Emergency Credit Line Guarantee Scheme should be extended to the extent of any unutilised amount for revival of stressed sectors, including civil aviation, hospitality and tourism.

The CNX Nifty ended at 11131.85, down by 21.80 points or 0.20% after trading in a range of 11024.40 and 11259.55. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were Axis Bank up by 1.88%, GAIL India up by 1.84%, Hindustan Unilever up by 1.27%, Coal India up by 1.25% and Hindalco up by 1.22%. On the flip side, Bharti Airtel down by 7.89%, Bharti Infratel down by 7.46%, Tata Steel down by 3.43%, NTPC down by 2.96% and Indusind Bank down by 2.93% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 118.55 points or 2.03% to 5,948.01, France’s CAC increased 87.72 points or 1.84% to 4,860.56 and Germany’s DAX was up by 210.49 points or 1.67% to 12,804.88.

Asian markets ended mixed on Wednesday, despite strong Wall Street gains overnight after Federal Reserve Chairman Jerome Powell said the US central bank is committed to helping the economy. Japanese shares ended lower as traders returned to their desks after a long weekend, with concerns over surging corona virus pandemic infections in Europe and a delay in US fiscal stimulus. The latest survey from Jibun Bank revealed that the manufacturing sector in Japan continued to contract in September, albeit at a barely slower pace, with a manufacturing PMI score of 47.3. However, Chinese shares ended higher on gains in healthcare shares after the state planner said the country would accelerate development of corona virus vaccine innovation, diagnostic, testing reagents and antibody drugs.