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Markets logs notable gains in choppy trade
Nov-15-2018

Key equity indices logged notable gains in Thursday’s choppy session, with Sensex regaining its crucial psychological level of 35,200. The markets made a volatile start but soon gained traction, with taking support from Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra’s statement that direct tax collection has already crossed Rs 5 lakh crore that is 44% of the net direct tax collection target and will exceed the budgeted target of Rs 11.5 crore set for the current fiscal. He further highlighted that so far the I-T department has issued refunds to 2.15 crore assessees amounting to Rs 1.15 lakh crore and from now onwards the net collections will increase. Domestic sentiments also got boost, with Assocham secretary general Uday Kumar Varma’s statement that expanding investment in infrastructure will generate jobs, promote tourism and play catalytic role in overall growth and development of Indian economy. He also said that the government’s vision for new and improved infrastructure that can serve the nation for a long time.

In the last leg of the trade, the markets trimmed some of their gains but managed to keep their heads in green terrain, amid reports report that finance ministry will seek immediate solutions to the issues of micro, small and medium enterprises (MSME) credit and NBFC liquidity in the central bank’s board meeting on November 19. The market participants also took some support with the Confederation of Indian Industry (CII) calling for a change in regulations to improve access to credit for micro, small and medium enterprises (MSME), which the lobby group says are facing increased risk of financial stress due to a liquidity crunch in the market. Some solace also came from top banker Uday Kotak’s statement that the country has been under a lot of pressure due to higher-than-$60 a barrel oil price in last one year but the latest retreat is giving a lot of comfort to India.

On the global front, European markets were trading mostly in green, even though Euro area economic growth halved in the third quarter. The latest estimates from the Eurostat confirmed that gross domestic product grew 0.2% from the second quarter, when the economy expanded 0.4%. The street also overlooked reports that Germany's economy contracted at a faster-than-expected pace in the third quarter, marking the first decline since the first three months of 2015 and the worst fall since early 2013. As per preliminary figures from the Federal Statistical Office, gross domestic product declined a seasonally and calendar-adjusted 0.2% in the three months to September, after expanding 0.5% in the second quarter. Asian markets ended in green, as industrial production in China was up 5.9% on year in October. That exceeded expectations of 5.8%, which would have been unchanged from the September reading.

Back home, metals stocks ended higher, supported by Steel Secretary Binoy Kumar’s statement that the Centre is committed to achieve 100 per cent quality regime in steel products. However, IT stocks ended lower, despite private report showing that information technology (IT) spending in India will grow at 6.7% in 2019 to $89.2 billion, driven by digital transformation investments by both public and private entities. Further, stocks related to oil and energy sector remained in focused amid reports that India and the US pledged to further strengthen economic cooperation and increase engagement in the oil and energy sector with a view to boost bilateral trade, while stocks related to agriculture sector remained in limelight on report that Agriculture Minister Radha Mohan Singh has launched Rs 1000 crore start-up scheme to encourage youth to join cooperative business ventures in agriculture and allied sectors.

Finally, the BSE Sensex gained 118.55 points or 0.34% to 35,260.54, while the CNX Nifty was up by 40.40 points or 0.38% to 10,616.70.

The BSE Sensex touched a high and a low of 35,402.00 and 35,118.42, respectively and there were 18 stocks advancing against 13 stocks declining on the index.

The broader indices ended mixed; the BSE Mid cap index surged by 0.74%, while Small cap index remain unchanged.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.60%, Realty up by 1.58%, Industrials up by 0.82%, Bankex up by 0.79% and Metal up by 0.66%, while Telecom down by 1.16%, Utilities down by 0.55%, FMCG down by 0.21%, Power down by 0.17% and Oil & Gas down by 0.16% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports & SEZ up by 4.19%, Kotak Mahindra Bank up by 2.93%, Hero MotoCorp up by 2.20%, Axis Bank up by 2.11% and Tata Motors up by 1.78%. On the flip side, Yes Bank down by 7.42%, NTPC down by 2.16%, ONGC down by 1.15%, Sun Pharma down by 1.04% and Coal India down by 0.96% were the top losers.

Meanwhile, in a bid to cater to needs and aspirations of the youth, the National Cooperative Development Corporation (NCDC) under the agriculture ministry has launched a youth-friendly scheme ‘Yuva Sahakar-Cooperative Enterprise Support and Innovation Scheme’ for attracting them to cooperative business ventures. It will be linked to NCDC’s Cooperative Startup and Innovation Fund (CSIF) that has an annual corpus of Rs 1000 crore.

The scheme would have more incentives for cooperatives of North Eastern region, aspirational districts and cooperatives with women members, schedule castes, schedule tribes or people with disabilities. The funding for the project will be up to 80% of the project cost for these special categories as against 70% for others. The scheme envisages 2% less than the applicable rate of interest on term loan for the project cost up to Rs 3 crore including 2 years moratorium on payment of principal. All types of cooperatives in operation for at least one year are eligible.  This scheme is expected to meet the needs of today’s youth.

The NCDC, being the most preferred financial institution in the world of cooperatives, has embarked on Sahakar 22, a Mission for Doubling Farmers’ Income by 2022. It has the unique distinction of being the sole statutory organisation functioning as an apex financial and developmental institution exclusively devoted to cooperative sector. It supports cooperatives in diverse fields apart from agriculture and allied sectors.

The CNX Nifty traded in a range of 10,646.50 and 10,557.50. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Adani Ports & SEZ up by 4.28%, Titan up by 3.29%, Eicher Motors up by 2.93%, Kotak Mahindra Bank up by 2.77% and Hero MotoCorp up by 2.53%. On the flip side, Grasim Industries down by 8.02%, Yes Bank down by 7.42%, Indiabulls Housing Finance down by 4.33%, NTPC down by 2.41% and Bharti Infratel down by 2.02% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 added 19.43 points or 0.28% to 7,053.22 and Germany’s DAX gained 1.06 points or 0.01% to 11,413.59, while France’s CAC was down by 16.48 points or 0.33% to 5,052.37.

Asian markets ended mostly higher on Thursday. Beijing's pledge of support for the economy and news that European Union leaders will meet on November 25 to endorse the divorce deal with Britain helped regional stock finish off their day's lows. Chinese shares closed sharply higher on hopes for possible government action to boost growth. Though, Japanese shares edged lower, dragged down by financials and Apple suppliers.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

2,668.17

35.93

1.35

Hang Seng

26,103.34

448.91

1.72

Jakarta Composite

5,955.74

97.45

1.64

KLSE Composite

1,694.21

5.80

0.34

Nikkei 225

21,803.62

-42.86

-0.20

Straits Times

3,054.53

11.34

0.37

KOSPI Composite

2,088.06

20.01

0.96

Taiwan Weighted

9,826.46

34.58

0.35
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