Post Session: Quick Review

Indian equity benchmarks ended flat with a positive bias on Tuesday. Key indices made a cautious start of the day, after the government data showed that Industrial production declined by 8% in August, mainly due to lower output of manufacturing, mining and power generation sectors. Also, retail inflation rose to 7.34% in September, mainly on account of higher food prices. But soon, markets turned positive and traded in green terrain during morning deals, as Finance Minister Nirmala Sitharaman announced a Rs 73,000 crore package, including advance payment of a part of wages to central government employees and cash in lieu of LTC, to stimulate consumer demand and investment in the economy damaged by the coronavirus pandemic.

Markets again turned volatile during noon deals but managed to end in green terrain, as industry body India Cellular and Electronics Association (ICEA) said it has set up a labour, human resource and training committee under Wistron India's Managing Director to work on reforms around labour norms to benefit both employees and employers. The government expects mobile phone manufacturing sector to create around 8 lakh new jobs in the next five years under the production linked incentives (PLI) and associated schemes which promise incentives of up to Rs 50,000 crore to the industry. Some support came in with Ficci President Sangita Reddy’s statement that there is a need for convergence between self-reliance and globalization.

On the global front, European markets were trading lower after the pause of a key coronavirus trial as traders waited for earnings from some of the world’s leading banks. Asian markets closed mostly higher on Tuesday, even after Malaysia's industrial production rose at a softer rate in August. The data from the Department of Statistics showed that industrial production rose 0.3 percent year-on-year in August, after a 1.2 percent increase in July. The growth in the production was mainly due to the rise in the manufacturing output. Factory output rose 2.4 percent yearly in August, after a 2.9 percent increase in the previous month.

The BSE Sensex ended at 40625.51, up by 31.71 points or 0.08% after trading in a range of 40461.97 and 40786.82. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.29%, while Small cap index was down by 0.12%. (Provisional)

The top gaining sectoral indices on the BSE were Energy up by 1.54%, IT up by 1.46%, TECK up by 1.04%, Power up by 0.67% and Metal up by 0.64%, while Healthcare down by 1.23%, Consumer Durables down by 1.18%, Bankex down by 0.79%, PSU down by 0.73% and Auto down by 0.55% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were HCL Tech. up by 3.94%, Kotak Mahindra Bank up by 2.40%, Infosys up by 2.27%, Reliance Industries up by 1.95% and Ultratech Cement up by 1.80%. On the flip side, Titan Co down by 2.53%, Sun Pharma down by 2.07%, ICICI Bank down by 1.91%, Axis Bank down by 1.66% and SBI down by 1.59% were the top losers. (Provisional)

Meanwhile, in order to work on reforms around labour norms to benefit both employees and employers, industry body India Cellular and Electronics Association (ICEA) has set up a labour, human resource and training committee under Wistron India's Managing Director.

As per ICEA, this committee has been formed to evaluate the employment environment and understand the need for the electronics and mobile handset and component industry. The committee has wide representation from industry and trade and also subject matter experts.

Further, ICEA Chairman Pankaj Mohindroo said that to make India 'Atmanirbhar' (self-reliant) it is imperative to upskill the population for diverse job roles in the budding electronics and mobile handset ecosystem. This committee will bring reforms and have seminars or webinars to educate both the employees as well as the employers.

The CNX Nifty ended at 11934.50, up by 3.55 points or 0.03% after trading in a range of 11888.90 and 11988.20. There were 19 stocks advancing against 31 stocks declining on the index. (Provisional)

The top gainers on Nifty were HCL Tech. up by 4.00%, Kotak Mahindra Bank up by 2.44%, Infosys up by 2.27%, Reliance Industries up by 1.95% and Ultratech Cement up by 1.78%. On the flip side, Cipla down by 3.26%, Titan Co down by 2.22%, Adani Ports & SEZ down by 2.17%, Divis Lab down by 2.12% and Sun Pharma down by 2.09% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 14.79 points or 0.25% to 5,986.59, France’s CAC decreased 16.78 points or 0.34% to 4,962.51 and Germany’s DAX was down by 34.35 points or 0.26% to 13,104.06.

Asian markets closed mostly higher on Tuesday, tracked by Wall Street's overnight gains on the back of a renewed tech rally and expectations of a corona virus relief package. Though, hopes for a vaccine for the corona virus were shaken after Johnson & Johnson said the Company had temporarily paused further dosing in all its Covid-19 vaccine candidate clinical trials including the Phase 3 ENSEMBLE trial due to an unexplained illness in a study participant. Chinese shares ended higher after China reported its exports jumped nearly 10% in dollar terms in September as its economy recovered from the pandemic. Japanese shares ended higher after reports that Japanese Prime Minister Yoshihide Suga will order his government to compile extra economic stimulus measures as early as in November. Trading in Hong Kong was suspended due to Typhoon Nangka.