Post Session: Quick Review

Bulls dominated the trade for the entire trading session on Friday as investors and funds poured in their money into local equities on the auspicious occasion of ‘Dhanteras’, tailing the hectic FIIs’ buying activity during October. However, host of negative macro-economic reports managed to taper bourses’ gains. On the macro-front, while, core sector sprang up positive surprise by growing 8% in September, H1 Fiscal deficit touched 76% of full-year target. Additionally, factory output continued to shrink for third consecutive month in October.

On the global front, Asian shares ended mixed on Friday, as surveys showing improvement in Chinese manufacturing activity were eclipsed by anxiety over when the US Federal Reserve will start to taper its massive stimulus. China’s manufacturing sector grew at the fastest pace in 18 months in October, with the official Purchasing Managers' Index (PMI) rising to 51.4 last month from September's 51.1, beating economists' consensus forecast of 51.2. Meanwhile, European shares dropped as investors awaited data that may show US manufacturing growth slowed.

Closer home, slew of good earnings also bolstered sentiment at Indian equity markets. While, Hero MotoCorp shares gained over one and a half a percent, Berger Paints gained close to a percent on reporting 17% rise in Q2 consolidated net profit . While the secular move of the bourses was led by across the board rally, stocks from Realty, Banking, Metal counters outperformed. Meanwhile, Auto stocks also hogged limelight on reporting October sales figure. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1398: 1053, while 169 scrips remained unchanged. (Provisional)

The BSE Sensex gained 32.29 points or 0.15% to settle at 21196.81.The index touched a high and a low of 21293.88 and 21141.32 respectively. Among the 30-share Sensex, 19 stocks gained, while 11 stocks declined. (Provisional)

The BSE Sensex gained 32.29 points or 0.15% to settle at 21196.81.The index touched a high and a low of 21293.88 and 21141.32 respectively. Among the 30-share Sensex, 19 stocks gained, while 11 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 1.13% and 0.78% respectively. (Provisional)

On the BSE Sectoral front, Realty up by 2.55%, Metal up by 1.27%, Bankex up by 1.26%, Auto up by 1.21% and Capital Goods up by 1.07% were the top gainers, while FMCG down by 0.94%, Consumer Durables down by 0.83%, IT down by 0.51%, Oil & Gas down by 0.46% and Teck down by 0.30% were the only losers in the space. (Provisional)

The top gainers on the Sensex were SBI up by 4.28%, Mahindra & Mahindra up by 4.14%, Jindal Steel up by 2.83%, SSLT up by 2.25% and Coal India up by 2.04%, while, NTPC down by 1.82%, ONGC down by 1.77%, ITC down by 1.62%, Gail India down by 0.88% and Infosys down by 0.87% were the only losers in the index. (Provisional)

Meanwhile, foreign direct investment (FDI) in India has surged by about 35 percent to $13.6 billion during the first half of 2013 with merger and acquisitions (M&A) accounting for the bulk of inflows. The United Nations Conference on Trade and Development (UNCTAD) report said that foreign investment through M&A registered a growth of 65.7 percent during the first half of 2013 to $1.8 billion as against $1.1 billion in January-June 2012. However, FDI in new projects has declined by 48.7 percent to $8.8 billion during the period.

Increasing FDI inflows into the country reflect that the government’s measures to enhance foreign investment has have started yielding. FDI is considered crucial for economic development of a country and to attract maximum FDI into the country, the government has been liberalizing the foreign investment policy. The government has relaxed FDI norms in around 12 sectors which include telecom, tea, pension and petroleum and natural gas. India would require around $1 trillion in the 12th five year plan (2012-2017), to overhaul its infrastructure sector such as ports, airports and highways to boost growth.

Further, the UNCTAD report highlighted that foreign fund inflows into India has pushed the total figures for the South Asian Association for Regional Cooperation (SAARC). In terms of FDI inflows among BRICS (Brazil, Russia, India, China and South Africa) countries, India stood at fourth position, above South Africa. Developing Asian region continues would absorb more than half of the FDI directed to developing economies and one quarter of global FDI flows.

Among the world's largest recipients of FDI during the reported period, UK topped the chart followed by China with $67 billion foreign inflows. The report further said that global foreign direct investment witnessed a 4 percent rise to $745 billion in the first half of 2013. The FDI inflow to the developed countries has declined. Meanwhile the decline was offset by a rise in flows to developing and transition economies, which accounted for more than 60 percent of the global FDI. 

India VIX, a gauge for markets short term expectation of volatility gained 1.35% at 18.64 from its previous close of 18.39 on Thursday. (Provisional)

The CNX Nifty gained 2.50 points or 0.04% to settle at 6,301.65. The index touched high and low of 6,332.60 and 6,286.95 respectively. Out of the 50 stocks on the Nifty, 30 ended in the green, while 20 ended in the red.

The major gainers of the Nifty were IDFC up 6.48%, PNB up by 4.79%, Bank of Baroda up by 4.59%, SBI up by 4.35% and M&M up by 4.30%. The key losers were Power Grid down by 3.41%, ONGC down by 2.01%, NTPC down by 1.95%, ITC down by 1.85% and Infosys down by 1.15%. (Provisional)

Most of the European markets were trading in red with, Germany’s DAX down by 0.20%, the United Kingdom’s FTSE 100 down by 0.08% and France’s CAC 40 down by 0.41%.

The Asian markets concluded Friday’s trade on a mixed note despite an official gauge of Chinese factory activity last month showed encouraging sign. Pressure is rising on China to show it can maintain a recent stabilization of economic growth after a worrying slowdown in the first half of the year. The HSBC China Manufacturing Purchasing Managers’ Index, a gauge of nationwide manufacturing activity rose to a final reading of 50.9 in October, a seven-month high, from 50.2 in September. A reading below 50 indicates a contraction in manufacturing activity from the previous month, whereas a reading above indicates expansion. Output at manufacturing plants in China increased for the third consecutive month in October, and at the quickest pace since April. The expansion of output reflected stronger demand both at home and abroad, with new orders and new export orders rising at faster rates in October.

South Korea’s exports rose sharply in October due to a jump in overseas demand, after shrinking in the preceding month. Exports in October rose a much better-than-expected 7.3% from a year earlier to $50.511 billion, following a 1.5% decline in September. Imports gained 5.1% on year to $45.612 billion in October. The October trade surplus of $4.899 billion surpassed the projection of a $4.32 billion surplus. The trade balance has been in the black since February 2012. Indonesia’s trade deficit narrowed in the third quarter as imports fell back due to slowing domestic demand and a weakening rupiah. The country posted a trade deficit of $2.9 billion in Q3, less than the $3.1 billion posted in the April to June period. Inflation eased slightly in October as food and clothing prices edged down. The consumer price index advanced by 8.3 percent last month, after climbing 8.4 percent a month earlier. This was the second month inflation had fallen back after peaking at 8.8 percent in August following the cut in the government’s fuel subsidy.