HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Post Session: Quick Review
Aug-20-2019

Indian equity benchmarks ended lower in volatile session on Tuesday with cut of around quarter a percent. Domestic indices began trading on a cautious note, as trading sentiments remained subdued on report that former Reserve Bank of India (RBI) Governor Raghuram Rajan has called slowdown in the economy very worrisome and said the government needs to fix the immediate problems in power and non-bank financial sectors and come out with a new set of reforms to energise private sector to invest. Traders also remained concerned with Care Ratings’ report that India's jobs scene -- with unemployment at a 45-year high -- is looking gloomy with hiring activity slowing across most sectors.

But, buying in last leg of trade helped markets to minimize their early losses, as traders found some support from Finance Minister Nirmala Sitharaman’s statement that corporate tax rate for companies with over Rs 400 crore turnover will be gradually cut to 25% and the government will support wealth creators. Traders took note of a report that a top American lawmaker has urged the Trump Administration to resolve the trade tension with India as soon as possible, saying the dispute benefits none. Market participants also drew some solace from RBI governor Shaktikanta Das’ statement the central bank is looking to formalise policies to link loan rates to an external benchmark like the repo so as to speed up transmission.

On the global front, Asian market ended mostly higher, on the back of hopes for central bank and government stimulus measures around the world, while investors were also cheered by further signs of easing tensions in the China-US trade war. European markets were trading mostly in green, with hopes for more stimulus measures from China and Germany as well as signs of a possible thaw in the ongoing trade war between the world's two largest economies helping underpin investor sentiment.

The BSE Sensex ended at 37316.63, down by 85.86 points or 0.23% after trading in a range of 37219.90 and 37511.55. There were 13 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index slipped 0.56%, while Small cap index was down by 0.59%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 1.27%, Auto up by 1.21%, TECK up by 1.01%, Consumer Durables up by 0.42% and Consumer Disc was up by 0.39%, while Metal down by 1.61%, PSU down by 1.38%, Energy down by 1.36%, Basic Materials down by 1.34% and Realty down by 1.03% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 3.81%, Tata Motors up by 2.61%, HCL Tech up by 1.96%, Infosys up by 1.93% and Hero MotoCorp was up by 1.41%. (Provisional)

On the flip side, Yes Bank down by 7.50%, IndusInd Bank down by 2.34%, ITC down by 1.95%, Axis Bank down by 1.92% and ICICI Bank was down by 1.61% were the top losers. (Provisional)

Meanwhile, with an aim to support Indian wealth creators, Finance Minister Nirmala Sitharaman has said corporate tax rate will be gradually cut to 25 per cent for companies with an annual turnover of over Rs 400 crore. Though, she did not give a timeframe for the reduction. She said the corporate tax reduction for the rest of corporates would be gradual. She added that Indian wealth creator entrepreneurs will be given all kind of support.

She said ‘I would like to underline the fact that we are conscious of that the Indian entrepreneurs are the ones who have been the wealth creators, job creators of this country. We are proud of them and we shall keep supporting them. Every attempt of the government will be towards promoting them, to understand them and also to facilitate them.’ She added that ‘only 0.7 per cent is left … Even for them gradually, hopefully, in the long run, we will be able to bring down the tax to the level of 25 per cent.’

In her maiden Budget, she had cut corporate tax for companies with annual turnover of up to Rs 400 crore to 25 per cent from 30 per cent earlier. Earlier, the then Finance Minister Arun Jaitley had cut the corporate income tax rate to 25 per cent for companies with a turnover of up to Rs 250 crore.

The CNX Nifty ended at 11018.85, down by 35.05 points or 0.32% after trading in a range of 10985.30 and 11076.30. There were 18 stocks advancing against 31 stocks declining, while 1 stock remained unchanged on the index. (Provisional)

The top gainers on Nifty were Maruti Suzuki up by 3.59%, Tata Motors up by 2.44%, Dr. Reddys Lab up by 2.03%, HCL Tech. up by 1.99% and Infosys was up by 1.96%. (Provisional)

On the flip side, Yes Bank down by 7.24%, Britannia down by 3.45%, Ultratech Cement down by 2.96%, Eicher Motors down by 2.85% and Indiabulls Housing was down by 2.65% were the top losers. (Provisional)

European markets were trading mostly in green, UK’s FTSE 100 increased 18.55 points or 0.26% to 7,208.20 and France’s CAC was up by 2.79 points or 0.05% to 5,374.35. On the other side, Germany’s DAX was down by 10.88 points or 0.09% to 11,704.49.

Asian markets ended mostly higher on Tuesday amid signs of a slight easing of US-China trade tensions and on growing expectations of fresh stimulus measures by major economies, such as Germany and China. Japanese share ended up after the Trump said that Apple CEO Tim Cook has made a ‘very compelling argument’ against trade tariffs. The Trump administration on Monday extended a reprieve that permits China’s Huawei Technologies to buy components from US companies by 90 days, to supply existing customers. Though, Chinese and Hong Kong shares ended slightly lower on profit taking after a strong rally as the People's Bank of China unveiled a major reform to its system of benchmark interest rates.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

2,880.00
-3.10
-0.11

Hang Seng

26,231.54
-60.30
-0.23

Jakarta Composite

6,295.74
-0.98
-0.02

KLSE Composite

1,602.75

6.30

0.39

Nikkei 225

20,677.22
114.06
0.55

Straits Times

3,135.95
7.50
0.24

KOSPI Composite

1,960.25
20.35
1.05

Taiwan Weighted

10,522.50
33.75
0.32
  RELATED NEWS >>
Most Viewed >>
April 19 , 2024
JPMorgan bullish on Indian stocks, suggests ma
April 19 , 2024
Is it time to take small bets in FMCG stocks?
April 18 , 2024
Mutual fund industry assets grow 35% in FY24
April 19 , 2024
Lok Sabha Elections 2024: How will they impact
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.