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EQUITY
Post Session: Quick Review
Nov-20-2019

Extending their gaining streak for second straight session, Indian equity benchmarks ended Wednesday’s trade on an optimistic note, despite Asian peers ending mostly lower amid uncertainty over the US-China trade deal. Markets made gap-up opening and traded firm with Union minister Piyush Goyal’s statement that the government has strengthened several trade remedial measures, with an aim to provide a level-playing field for the domestic industry and protect it from unfair trade practices in a time-bound manner. Traders also took note of report that the government categorically stated that it does not intend to revise its fiscal deficit target of 3.3 percent of gross domestic product (GDP) for the current financial year notwithstanding the slowdown in economic activities. Minister of State for Finance Anurag Thakur said expenditure of various ministries and departments of the government is as per the estimates approved by Parliament.

Key bourses added more gains in the afternoon deals and traded near intraday high levels, taking support from report that the Centre is planning to set up a dedicated cell for agriculture startups and small entrepreneurs. National Rainfed Area Authority (NRRA) CEO Ashok Dalwai said there are numerous areas where startups can help farmers reduce cost and increase income. However, markets trimmed some of their initial gains in dying hour of trade, as market-men got anxious with ratings agency CARE Ratings’ report that the pace of employment growth in India has slowed down in the past two years, to 3.9 percent in 2017-18 and 2.8 percent in 2018-19 as the core industries have observed virtually, negative growth in hiring.

On the global front, Asian markets ended mostly lower on Wednesday, while European markets were trading in red after U.S. President Donald Trump threatened to raise U.S. tariffs on Chinese goods if a deal could not be reached with Beijing. Back home, telecom stocks were in focus with report that the telecom regulator will wait for operators to report their new tariffs to the authority before taking a view on whether the revised pricing is within the regulatory framework. Besides, select auto stocks ended in green with Minister of Heavy Industries and Public Enterprises Prakash Javadekar terming the current downturn in the automobile sector as cyclical and said the government is taking various steps including release of funds worth Rs 70,000 crore to the public sector banks to help the sector. 

The BSE Sensex ended at 40636.69, up by 166.99 points or 0.41% after trading in a range of 40575.96 and 40816.38. There were 14 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.23%, while Small cap index was up by 0.05%. (Provisional)

The top gaining sectoral indices on the BSE were Energy up by 2.03%, Healthcare up by 1.91%, Oil & Gas up by 1.35%, Industrials up by 0.70% and Capital Goods up by 0.65%, while Realty down by 1.34%, Consumer Durables down by 0.62%, Power down by 0.29%, Telecom down by 0.28% and Utilities down by 0.11% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Sun Pharma up by 5.57%, Indusind Bank up by 5.18%, Yes Bank up by 2.65%, Reliance Industries up by 2.38% and Maruti Suzuki up by 1.28%. (Provisional)

On the flip side, Kotak Mahindra Bank down by 1.60%, Tata Steel down by 1.07%, Tata Motors - DVR down by 0.90%, HDFC down by 0.77% and SBI down by 0.58% were the top losers. (Provisional)

Meanwhile, the government has categorically stated that it does not intend to revise its fiscal deficit target of 3.3% of gross domestic product (GDP) for the current financial year (FY20) despite slowdown in economic activities. Minister of State for Finance Anurag Thakur has said expenditure of various ministries and departments of the government is as per the estimates approved by Parliament.

In the first half of the financial year, 53.4% of Budget Estimates was spent by various ministries and departments. Thakur also pointed out the steps taken by the government to boost economic activities. Besides, the real GDP growth slowed to an over six-year low of 5% in the first quarter of the current financial year.

Besides, the Controller General of Accounts (CGA) in its latest data had showed that India's fiscal deficit reached nearly 93% of the Budget Estimate (BE) at Rs 6.52 lakh crore in the first half (April-September) of the current fiscal year (2019-20). In absolute terms, the fiscal deficit or the gap between expenditure and revenue was Rs 6,51,554 crore as on September 30, 2019.

The CNX Nifty ended at 11992.65, up by 52.55 points or 0.44% after trading in a range of 11966.05 and 12038.60. There were 28 stocks advancing against 22 stocks declining on the index. (Provisional)

The top gainers on Nifty were Zee Entertainment up by 8.45%, Sun Pharma up by 5.31%, Indusind Bank up by 4.91%, BPCL up by 4.83% and Dr. Reddys Lab up by 3.10%. (Provisional)

On the flip side, Bharti Infratel down by 3.53%, Indian Oil Corp. down by 1.50%, Kotak Mahindra Bank down by 1.39%, Eicher Motors down by 1.21% and Tata Steel down by 0.91% were the top losers. (Provisional)

European markets were trading in red; UK’s FTSE 100 decreased 73.15 points or 1% to 7,250.65, France’s CAC fell 39.55 points or 0.67% to 5,869.50 and Germany’s DAX was down by 117.13 points or 0.89% to 13,103.99.

Asian markets ended mostly lower on Wednesday amid fresh worries about a Sino-US trade deal after US President Donald Trump threatened higher tariffs on Chinese goods if a trade deal is not reached between the two countries. Hong Kong shares ended down on intensified tensions in the city even as the US Senate unanimously passed legislation supporting Hong Kong protesters, drawing criticism from China’s foreign ministry. Moreover, Japanese shares declined as the safe-haven yen strengthened on concerns over Sino-US trade deal, while Japan’s merchandise trade surplus for October missed expectations also dampened market sentiment.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

2,911.05
-22.94
-0.78

Hang Seng

26,889.61
-204.19
-0.75

Jakarta Composite

6,155.11
3.02
0.05

KLSE Composite

1,601.14

-4.17

-0.26

Nikkei 225

23,148.57
-144.08
-0.62

Straits Times

3,229.78
-9.09
-0.28

KOSPI Composite

2,125.32
-27.92
-1.30

Taiwan Weighted

11,631.20
-25.20
-0.22

 

 
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