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EQUITY
Post Session: Quick Review
Jun-21-2019

Indian equity benchmarks ended Friday’s trade on a lower note with losses of around a percent, on the back of sustained selling activities by market-participants amid global growth concerns. Markets traded in red since the beginning, as traders remained concern with the Reserve Bank of India’s (RBI) report that both bank credit and deposits slowed to 9.92 percent and 12.31 percent at Rs 96.52 lakh crore and Rs 125.40 lakh crore, respectively, for the fortnight ending June 7. The street remained disappointed with Reserve Bank of India Governor Shaktikanta Das’ statement that the Indian economy has been clearly losing traction and needs a decisive monetary policy to promote growth. He also favoured shifting the stance of monetary policy from neutral to accommodative to send a clear signal, indicating that more measures could be taken in the near future to boost growth.

Local barometer gauges added losses in last hour of trade, as sentiments on the street weakened further with report indicating that the merger and acquisition activity recorded an 87 percent fall in terms of value and a 27 per cent drop in volume last month, due to weakness in the rupee, spike in crude oil prices and indecisiveness among investors until results of the general elections. The markets participants paid no heed towards report that the United States is not considering capping the number of annual H-1B work visas for countries that force foreign companies to store local data locally. Meanwhile, the RBI said foreign exchange trading platform (FX-Retail) for retail participants is ready for rollout by the Clearing Corporation of India (CCIL) on August 05. 

On the global front, Asian markets ended mixed on Friday as US-Iran tensions and anxieties over China-US trade talks left markets in the region struggling to match the euphoria on Wall Street over a possible US interest rate cut next month. European markets were trading in green, as the euro area private sector expanded at the fastest pace in seven months in June, as growth in the service sector offset the fall in manufacturing. Back home, infrastructure stocks remained buzzing amid report that terming infrastructure as pivotal in propelling prosperity and growth, President Ram Nath Kovind said the government's endeavour is to build 35,000 km of highways, besides expressways, by 2022 and to lay a strong foundation for urban infrastructure that will encourage employment generation.

The BSE Sensex ended at 39219.72, down by 381.91 points or 0.96% after trading in a range of 39121.30 and 39617.95. There were 4 stocks advancing against 27 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index fell 0.30%, while Small cap index was up by 0.17%. (Provisional)

The top gaining sectoral indices on the BSE were Basic Materials up by 0.23%, Power up by 0.21%, Utilities up by 0.13% and PSU up by 0.04%, while Telecom down by 1.34%, Energy down by 1.19%, Auto down by 1.16%, Oil & Gas down by 0.92% and FMCG down by 0.88% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were SBI up by 1.39%, Indusind Bank up by 0.81%, Vedanta up by 0.61% and NTPC up by 0.07%. (Provisional)

On the flip side, Yes Bank down by 4.41%, Maruti Suzuki down by 3.10%, HDFC down by 2.64%, Hindustan Unilever down by 2.26% and Hero MotoCorp down by 2.11% were the top losers. (Provisional)

Meanwhile, the Reserve Bank of India (RBI) in its latest data has showed that both bank credit and deposits slowed for the fortnight ending June 7. Bank credit grew by 9.92 percent to Rs 96.52 lakh crore and deposits by 12.31 percent to Rs 125.40 lakh crore. Besides, Non-food credit increased 11.9 percent in April from 10.7 percent in April 2018.

In the year-ago fortnight, bank credit was at Rs 85.94 lakh crore, while deposits were at Rs 114.08 lakh crore. In the previous fortnight ending May 24, advances grew 12.70 percent to Rs 96.22 lakh crore and deposits increased 10.09 percent to Rs 124.98 lakh crore.

As per the data, loans to agriculture and allied activities rose 7.9 percent in April compared to 5.9 percent growth in the same month of 2018. Advances to the services sector expanded 16.8 percent compared to an increase of 20.7 percent in April 2018. Personal loans growth slowed to 15.7 percent from 19.1 percent during the reporting month. Credit to the industry rose 6.9 percent in April as against a meagre 1 percent growth in the year-ago period.

The CNX Nifty ended at 11733.60, down by 98.15 points or 0.83% after trading in a range of 11705.10 and 11827.95. There were 14 stocks advancing against 36 stocks declining on the index. (Provisional)

The top gainers on Nifty were UPL up by 2.27%, Indiabulls Housing Finance up by 2.19%, Tech Mahindra up by 2.01%, Hindalco up by 1.85% and SBI up by 1.41%. (Provisional)

On the flip side, Yes Bank down by 4.32%, Maruti Suzuki down by 2.77%, HDFC down by 2.62%, Hindustan Unilever down by 2.28% and Hero MotoCorp down by 2.15% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 8.40 points or 0.11% to 7,432.84, France’s CAC rose 23.63 points or 0.43% to 5,559.20 and Germany’s DAX added 25.96 points or 0.21% to 12,381.35.

Asian markets ended mixed on Friday as escalating tensions between the US and Iran and renewed trade uncertainty kept investors on the sidelines ahead of the weekend. After Iran shot down a US military drone over the Strait of Hormuz, US President Donald Trump declined to say whether the US would retaliate against Iran for the shooting. Media reports suggest that Trump has abruptly pulled back the decision to carry out military strikes against the country after previously approving it. Chinese shares ended higher on expectations that China's monetary authorities may moderately ease their overall prudent policy stance in the second half of the year. Meanwhile, Japanese shares ended down as weak manufacturing data dented sentiment and investors looked forward to US-China trade talks for direction.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,001.98
14.86
0.50

Hang Seng

28,473.71
-76.72
-0.27

Jakarta Composite

6,315.44
-20.26
-0.32

KLSE Composite

1,682.23

6.80

0.41

Nikkei 225

21,258.64
-204.22
-0.95

Straits Times

3,321.40
6.89
0.21

KOSPI Composite

2,125.62
-5.67
-0.27

Taiwan Weighted

10,803.77
18.76
0.17
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