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EQUITY
Post Session: Quick Review
Nov-21-2019

Indian equity benchmarks ended the volatile day of trade marginally in red on Thursday, tracking weak cues from global equities as US-China impasse continued to weigh on investors’ sentiment. The markets started the day on a positive note but soon turned negative, as traders were worried with a private report stating that India’s economic growth probably hit a new low last quarter, with early forecasts showing expansion below 5%. The sentiments remained in lackadaisical mood with Commerce and Industry Minister Piyush Goyal’s statement that the government did not join the mega free trade agreement RCEP as the grouping did not address the outstanding issues and concerns of India.

However, losses remain capped as traders found some solace with the retirement fund body, Employment Provident Fund Organisation’s (EPFO) latest ‘Provisional Estimate of Net Payroll’ data report showing that India created 9,98,051 new jobs in the month of September 2019 as against revised figure of 9,41,800 in August 2019. Support also came with the Reserve Bank of India’s (RBI) latest data report which stated that bank credit rose by 8.07 percent to Rs 98.47 trillion, while deposits grew 9.92 percent to Rs 129.98 trillion in the fortnight ended November 6. Meanwhile, the government has approved amendments proposed to the Toll Operate Transfer (TOT) model for national highways. The Centre approved the Code on Industrial Relations (IR) Bill, 2019 - considered to be the most contentious labour law amendments. 

On the global front, Asian markets ended lower on Thursday, while European markets were trading in red, after U.S. legislation on Hong Kong fueled more worries that a 'phase one' trade deal between Washington and Beijing would not be formed anytime soon. Back home, select telecom stocks ended in green as the Union Cabinet has approved two years' moratorium on spectrum payment dues. Sugar stocks were in focus with a report that India's sugar production declined 64% to 4.85 lakh tonnes till November 15 in the current marketing year that started last month as mills in Maharashtra have not yet begun their operations.

The BSE Sensex ended at 40577.75, down by 73.89 points or 0.18% after trading in a range of 40534.12 and 40744.85. There were 11 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index fell 0.76%, while Small cap index was down by 0.41%.(Provisional)

The few gaining sectoral indices on the BSE were Realty up by 0.49%, Capital Goods up by 0.26% and IT up by 0.07%, while Metal down by 2.27%, Oil & Gas down by 2.21%, Telecom down by 2.18%, Basic Materials down by 1.28% and Energy down by 1.21% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindustan Unilever up by 1.08%, Bajaj Auto up by 0.90%, SBI up by 0.88%, Larsen & Toubro up by 0.84% and HDFC Bank up by 0.74%. (Provisional)

On the flip side, Tata Steel down by 3.26%, Bharti Airtel down by 2.60%, Yes Bank down by 2.58%, ITC down by 2.17% and ONGC down by 1.98% were the top losers. (Provisional)

Meanwhile, with an aim to boost the Indian economy, the Union Cabinet has approved a bill to replace an ordinance promulgated to reduce corporate tax to 22 per cent. Finance Minister Nirmala Sitharaman has said decision has been taken to bring the bill to replace the ordinance. The bill is likely to be introduced in Parliament during the ongoing Winter Session.

Earlier, Sitharaman had said the revenue foregone on reduction in corporate tax and other relief measures would be Rs 1.45 lakh crore annually. Following the decision, the corporate tax rate has come down to 22 per cent for domestic companies if they do not avail any incentive or concession. Also, companies opting for 22 per cent income tax slab would not have to pay minimum alternative tax (MAT). The tax rate has been reduced to 15 per cent for new domestic manufacturing companies incorporated after October 1.

The government had also announced not to levy enhanced surcharge introduced in the Budget on capital gains arising from sale of equity shares in a company liable for securities transaction tax (STT). Besides, the government had decided that listed companies which have announced buyback of shares prior to July 5 will not be charged with super-rich tax.

The CNX Nifty is currently trading at 11966.60, down by 32.50 points or 0.27% after trading in a range of 11956.90 and 12028.20. There were 17 stocks advancing against 33 stocks declining on the index. (Provisional)

The top gainers on Nifty were Zee Entertainment up by 12.38%, Eicher Motors up by 2.13%, Dr. Reddys Lab up by 1.51%, Adani Ports &SEZ up by 1.40% and Hindustan Unilever up by 0.96%. (Provisional)

On the flip side, BPCL down by 5.71%, Coal India down by 3.32%, Tata Steel down by 3.17%, Bharti Airtel down by 2.58% and Yes Bank down by 2.51% were the top losers. (Provisional)

European markets were trading in red; UK’s FTSE 100 decreased 52.73 points or 0.73% to 7,209.76, France’s CAC fell 23.99 points or 0.41% to 5,870.04 and Germany’s DAX was down by 54.00 points or 0.41% to 13,104.14.

Asian markets ended lower on Thursday as trade experts have warned the completion of a ‘phase one’ US-China trade deal could slip into next year. Adding to the tensions between the world's two biggest economies, the US House of Representatives on Wednesday passed two bills to back protesters in Hong Kong and send a warning to China about human rights, with President Donald Trump expected to sign the legislation passed by both chambers of Congress. Japanese shares closed lower on concerns of delay in US-China trade deal, but pared losses after China’s vice premier, Liu He, reportedly said he was ‘cautiously optimistic’ about getting to a preliminary phase One trade pact with the United States.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

2,903.64
-7.41
-0.25

Hang Seng

26,466.88
-422.73
-1.57

Jakarta Composite

6,117.36
-37.75
-0.61

KLSE Composite

1,592.19

-8.95

-0.56

Nikkei 225

23,038.58
-109.99
-0.48

Straits Times

3,192.21
-37.57
-1.16

KOSPI Composite

2,096.60
-28.72
-1.35

Taiwan Weighted

11,558.27
-72.93
-0.63

 
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