Post Session: Quick Review

Indian equity benchmarks recovered initial losses to register new record highs on Wednesday. After a cautious start, key indices remained weak for the most part of the session. Traders got cautious, as the committee, comprising senior central and state tax officers, is looking to further tighten the Goods and Services Tax (GST) registration process and work out other legal measures including necessary law amendment required in the GST Act to curb the menace of fake invoicing. Also, the provisions related to deemed registration under GST law may be tightened to prevent the misuse of such provisions by fake dealers and the provisions related to the suspension of registration may also be streamlined to make the procedure of suspension and cancellation of registration more efficient and faster, so that such fraud operators can be prevented in time from continuing to pass on fake credit down the chain.

In the last hours of trade, markets cut losses to end in green terrain, taking support with Prime Minister Narendra Modi’s statement that his government will leave no stone unturned to make India a preferred global investment destination as he pitched for foreign investment to modernise urban centres, offering a business friendly climate and a huge market. As the nation rebuilds post pandemic, he said COVID-19 has given governments the chance to accelerate the 'process of making cities more liveable for people.  Some support also came after private report upgraded its India GDP forecast to a contraction of 10.3 per cent in FY21, as against its earlier estimate of a negative growth of 14.8 per cent. The US-based firm said developments on the vaccine front -- where two candidates have posted satisfactory progress -- will be very helpful in the recovery.

On the global front, European markets were trading mostly in red as a global market rally falters following a spate of positive coronavirus vaccine news. Asian markets ended mostly higher on Wednesday, after Japan posted a merchandise trade surplus of 872.899 billion yen in October. The Ministry of Finance said that exceeded forecasts for a surplus of 250 billion yen following the 675 billion yen surplus in September. Exports were down 0.2 percent on year at 6.566 trillion yen, beating expectations for a loss of 4.5 percent following the 4.9 percent drop in the previous month. Imports were down an annual 13.3 percent at 5.693 trillion yen versus expectations for a loss of 9.9 percent following the 17.2 percent tumble a month earlier.

The BSE Sensex ended at 44180.05, up by 227.34 points or 0.52% after trading in a range of 43785.78 and 44215.49. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.22%, while Small cap index was up by 0.90%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 3.72%, Auto up by 3.11%, Industrials up by 2.97%, Realty up by 2.07% and Bankex up by 2.04%, while FMCG down by 1.10%, IT down by 1.04%, TECK down by 1.01%, Telecom down by 0.61% and Healthcare down by 0.52% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 10.76%, Larsen & Toubro up by 6.15%, Indusind Bank up by 5.67%, Bajaj Finserv up by 5.62% and SBI up by 4.93%. On the flip side, Hindustan Unilever down by 2.07%, ITC down by 1.74%, Titan Co down by 1.57%, TCS down by 1.51% and Bharti Airtel down by 1.26% were the top losers. (Provisional)

Meanwhile, in order to boost exports, Apparel Export Promotion Council (AEPC) has urged the commerce ministry to start negotiations for a preferential trade agreement with the UK. AEPC Chairman A Sakthivel said that the agreement would help in removing the customs duty disadvantages faced by domestic players in the UK.

Under a preferential trade pact, two countries significantly reduce or eliminate customs duties on certain numbers of goods to promote trade ties. AEPC Chairman also said that India has been losing out to its competitors in the UK and hence request to initiate discussions for an early trade pact.

As per the chairman, apparel exports to UK, which is India's third largest export destination after the US and UAE, have been facing a tariff disadvantage of 9.6 per cent as against countries like Bangladesh due to the EU's Generalised Scheme of Preferences (GSP), which the UK plans to continue offering to the LDCs.

The CNX Nifty ended at 12938.25, up by 64.05 points or 0.50% after trading in a range of 12819.35 and 12948.85. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Mahindra & Mahindra up by 10.75%, Tata Motors up by 9.81%, Larsen & Toubro up by 6.22%, Bajaj Finserv up by 5.76% and Indusind Bank up by 5.63%. On the flip side, BPCL down by 2.94%, Hindustan Unilever down by 2.09%, ITC down by 1.76%, Dr. Reddys Lab down by 1.68% and Titan Co down by 1.68% were the top losers. (Provisional)

European markets were trading mostly in red, UK’s FTSE 100 decreased 18.98 points or 0.3% to 6,346.35 and France’s CAC was down by 4.15 points or 0.08% to 5,478.85. On the flip side, Germany’s DAX was up by 0.50 points or 0% to 13,133.97.

Asian markets ended mostly higher on Wednesday. Chinese shares ended higher after the Chinese government hinted at additional policy measures to aid the economic recovery. Premier Li Keqiang said that China will promote economic growth to a reasonable range while pursuing higher quality development. Seoul stocks ended marginally higher, despite the South Korea would tighten physical distancing rules for Seoul and its surrounding areas from Thursday. The South Korean government saying its anti-corona virus efforts is facing a crisis as it works to contain increases in new cases in and around the capital. Though, Japanese shares ended down amid concerns over resurgence in corona virus infections, with the Nikkei business daily reported that the Tokyo government was considering raising its infection alert to the highest of four levels as early as Thursday.