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EQUITY
Post Session: Quick Review
Jun-24-2019

Indian equity benchmarks ended lackluster day of trade marginally in red on Monday, following losses in global market and concerns of delayed monsoon. Markets started off with marginal gains, as traders took some support with report that investments in the Indian capital market through participatory notes increased by nearly Rs 1,400 crore to Rs 82,619 crore till May-end, a gain of 1.72 percent over the previous month. Also, the GST Council extended the tenure of the anti-profiteering authority by two years till November 2021 and allowed use of Aadhaar as proof for obtaining GST registration while referring tax cut on electric vehicles and their chargers to an officers' committee. However, gains were quickly pared, and markets retreated to trade in negative range, as sentiments turned pessimistic with the Finance Ministry’s report that government's total liabilities reached Rs 84.68 lakh crore at the end of March 2019, up 1.5 per cent over the preceding quarter. The total liabilities stood at Rs 83.40 lakh crore at end-December 2018.

Markets extended their fall in late afternoon trade, as some concern also came in with FICCI’s report that the outlook for the country's manufacturing sector in the April-June quarter of the current fiscal has moderated as only 41 per cent of respondents in its survey expected higher output growth during the ongoing quarter compared to 54 per cent in the January-March quarter. However, domestic bourses managed to pare most their losses in dying hour of trade as some optimism remained among the investors with Niti Aayog’s statement that expert panel for macroeconomics and employment came out with suggestions to achieve $5 trillion economy target during an interaction with Prime Minister Narendra Modi. Improvement of governance in PSU banks, enhancing growth rate of exports & employment generation were some of the key areas identified. 

On the global front, Asian markets ended mixed on Monday, while European markets were trading in red, as investors watched for movement in the China-US trade dispute ahead of a meeting between Presidents Donald Trump and Xi Jinping planned for later this week in Osaka, Japan, at the G-20 summit. Back home, insurance stocks were buzzing  with report that the government is exploring various consolidation options including the merger of state-owned general insurance companies with New India Assurance with a view to create synergy and unlock value.

The BSE Sensex ended at 39148.69, down by 45.80 points or 0.12% after trading in a range of 39021.70 and 39300.02. There were 17 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index fell 0.33%, while Small cap index was down by 0.17%. (Provisional)

The top gaining sectoral indices on the BSE were Power up by 0.47%, Capital Goods up by 0.25%, FMCG up by 0.20%, Industrials up by 0.11% and Consumer Durables up by 0.06%, while Oil & Gas down by 1.54%, Metal down by 1.40%, Energy down by 1.22%, Realty down by 1.13% and Basic Materials down by 0.41% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Yes Bank up by 1.92%, Mahindra & Mahindra up by 1.44%, TCS up by 1.24%, Tata Motors - DVR up by 1.24% and SBI up by 1.14%.  (Provisional)

On the flip side, ONGC down by 3.39%, Tata Steel down by 2.17%, Vedanta down by 2.06%, Bajaj Auto down by 1.95% and Tech Mahindra down by 1.55% were the top losers. (Provisional)

Meanwhile, the Department of Expenditure (DoE) in its latest data has showed that fiscal deficit, or the gap between the government's expenditure and revenue, for the month of April was at Rs 1,57,048 crore which is 22% of the budgeted estimate for the year 2019-20, slightly lower than 24% in the same period a year ago. The figures of Review of Accounts of April of the Controller General of Accounts (CGA) stated that as a percentage to the Gross Domestic Product (GDP), the fiscal deficit is at 0.75% and revenue deficit is 0.61%. For 2019-20, the fiscal deficit has been set at 3.4% of the GDP in the interim Budget.

For the month of April, the total expenditure of the government was Rs 2,54,679 crore or 9% of budget estimate, comprising revenue expenditure of Rs 2,24,091 crore - 9% of budget estimate and capital expenditure of Rs 30,588 crore - 9% of budget estimate. Total receipts were Rs 97,631 crore - 5% of the budget estimate. Gross tax was Rs 1,21,190 crore - 5% of the budget estimate. The net tax revenue to the Centre was of the order of Rs 71,637 crore – 4% of BE after deducting devolution to states (Rs 49,544 crore) and collections under National Calamity Contingent Duty (NCCD) to be transferred to National Disaster Relief Fund (NDRF) (Rs 9 crore).

Total receipts include Net Tax Revenue to Centre (Rs 71,637 crore), Non Tax Revenue (Rs 23,293 crore) and other receipts (Rs 2,701 crore). During the month of May, the plan releases for various schemes to the tune of Rs 2,012.70 crore were made to the states. A sum of Rs 49,543.62 crore was devolved to states as their share in Central Taxes and Duties. In addition, releases of the order of Rs 3,850.57 crore were made to the states in May, as recommended by the 14th Finance Commission. NDRF allocation was Rs 788.75 crore and Post Devolution Revenue Deficit (PDRD) was Rs 2,850.57 crore.

The CNX Nifty ended at 11702.70, down by 21.40 points or 0.18% after trading in a range of 11670.20 and 11754.00. There were 22 stocks advancing against 27 stocks declining on the index. (Provisional)

The top gainers on Nifty were UPL up by 5.38%, Yes Bank up by 1.64%, Mahindra & Mahindra up by 1.47%, TCS up by 1.19% and SBI up by 1.06%.  (Provisional)

On the flip side, JSW Steel down by 3.39%, Eicher Motors down by 3.27%, ONGC down by 3.07%, Zee Entertainment down by 2.50% and Tata Steel down by 2.36% were the top losers. (Provisional)

European markets were trading in red; UK’s FTSE 100 decreased 0.69 points or 0.01% to 7,406.81, France’s CAC decreased 10.42 points or 0.19% to 5,517.91 and Germany’s DAX decreased 64.94 points or 0.53% to 12,274.98.

Asian markets ended mixed on Monday as investors watched for movement in the China-US trade dispute ahead of a meeting between Presidents Donald Trump and Xi Jinping planned for later this week in Osaka, Japan, at the G-20 summit. US President Donald Trump said, on June 23, he was not seeking war with Tehran and is prepared to seek a deal to bolster Iran's flagging economy in an apparent move to defuse tensions. But, US Secretary of State Mike Pompeo said ‘significant’ sanctions on Iran would be announced as early as Monday aimed at further choking off resources that Tehran uses to fund its activities in the region.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,008.15
6.17
0.21

Hang Seng

28,513.00
39.29
0.14

Jakarta Composite

6,288.46
-26.98
-0.43

KLSE Composite

1,676.13

-6.10

-0.36

Nikkei 225

21,285.99
27.35
0.13

Straits Times

3,311.53
-9.87
-0.30

KOSPI Composite

2,126.33
0.71
0.03

Taiwan Weighted

10,779.45
-24.32
-0.23



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