HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Key Indices end higher with decent gains
Nov-16-2018

Key Indian equity indices ended the last trading day of week with decent gains, tracking firm global cues. The markets made a positive opening, as India’s exports rose by 17.86% to $26.98 billion in October 2018 as compared to $22.89 Billion in October 2017. Exports bounced back in October to high double-digit figures after the mild contraction in September as engineering goods, pharmaceutical and chemical shipments picked up the pace. During the April-October period of the current financial year, exports grew by 13.27% to $191 billion. Optimism also spread on the street, with Fitch indicating that India’s strong growth outlook continues to stand out among peers and upgraded its real GDP growth forecast at 7.8% for the current financial year ending March 2019 (2018-19) from 7.3% forecasted earlier in April this year. Market sentiments also got boosted with a private report stating that with bilateral trade between India and the South American country Peru touching an all-time high of $1.60 billion, the next round of talks for the free trade agreement (FTA) between the two countries is scheduled to take place next month.

In the second half of the session, rally continued on the street, supported by Commerce and Industry Minister Suresh Prabhu’s statement that huge opportunities exist for startups in agri sector to promote the growth of the segment. He also said that innovation in agri sector was important for reducing wastage, increase production, and cutting fertiliser use to enhance soil fertility. Investors took note of Secretary of the Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek’s statement that the government will soon unveil a new industrial policy which may include a dedicated chapter on the importance of design. The street paid no heed towards a report showing that the trade deficit for the month of October 2018 widened to $17.13 billion v/s $13.98 billion in September on account of import growth again picked up. The deficit widened despite a decline of 42.9% in gold imports to $1.68 billion. Imports during the month also rose by 17.62% to $44.11 billion, leading to widening of trade deficit.

On the global front, European markets were trading in green, even though UK retail sales declined for a second straight month in October, defying expectations for an increase, amid a sharp decrease in sales of household goods. The preliminary data from the Office for National Statistics showed that sales volume including automotive fuel dropped 0.5% from September, when they fell 0.4%, revised from a 0.8% slump. On a year-on-year basis, retail sales volume grew 2.2% in October, which was the slowest pace in six months. Besides, investors remained focused on the political turmoil in the UK after four ministers, including Brexit Minister Dominic Raab resigned in protest to Prime Minister Theresa May's draft Brexit agreement. Asian markets ended higher, as investors gauge whether China and the US can de-escalate their trade spat before the G-20 summit later this month.

Back home, the pharmaceutical sector stocks ended higher, as Minister of State for Chemicals and Fertilisers Mansukh Mandaviya said after the implementation of GST, the pharmaceutical sector grew 6% to Rs 1.31 trillion on a year-on-year basis till May 31. Further, sugar stocks remained in sweet spot on report that Indian sugar mills have produced 10.80 lakh tonne sugar till November 13 as against 19 lakh tonnes they had produced during same period of previous year. The country is expected to produce 324 lakh tonnes of sugar during 2018-19. Besides, stocks related to jewellery industry remained in limelight, after Food and Consumers Affairs Minister Ram Vilas Paswan said that the government is planning to soon make hallmarking mandatory for gold jewellery sold in the country.

Finally, the BSE Sensex gained 196.62 points or 0.56% to 35,457.16, while the CNX Nifty was up by 65.50 points or 0.62% to 10,682.20.

The BSE Sensex touched a high and a low of 35,545.85 and 35,324.37, respectively and there were 19 stocks advancing against 12 stocks declining on the index.

The broader indices ended mixed; the BSE Mid cap index rose 0.04%, while Small cap index was down by 0.43%.

The top gaining sectoral indices on the BSE were Telecom up by 6.27%, Energy up by 1.47%, TECK up by 1.07%, Healthcare up by 0.51% and FMCG up by 0.47%, Metal down by 1.59%, Oil & Gas down by 0.50%, Basic Materials down by 0.44%, Utilities down by 0.40% and PSU down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 9.81%, Reliance Industries up by 2.79%, Hero MotoCorp up by 1.81%, SBI up by 1.75% and HDFC up by 1.67%. On the flip side, Yes Bank down by 7.14%, Tata Steel down by 2.47%, Maruti Suzuki down by 2.02%, ONGC down by 1.48% and Axis Bank down by 1.41% were the top losers.

Meanwhile, calling loan waiver and free power supply to the farm sector as mere ‘transitory and populist’ steps, Vice-President Venkaiah Naidu has said that the government should focus on long-term solutions such as remunerative price, infrastructure support and cheap credit to improve the agriculture sector. He also called for suitable changes in the laws governing the cooperative sector in view of changed techno-economic and business scenarios to make the cooperative institutions viable and vibrant.

Naidu has stated that since agriculture was becoming unviable, people were moving to urban areas from rural parts. He said “you cannot reverse urbanisation, even if you want to ... Even today, 56 per cent people depend on agriculture.” According to him, the best method of improving agriculture is the strengthening of the cooperative movement. Besides, he noted that this has to be understood by all including the planners, NITI Aayog, political parties, Parliament, people and media.

Vice-President further said that the prime minister promised to double farmers' income by 2022. He noted that this is a noble idea, but it is not simple. He also indicated that the government has raised the minimum support prices (MSPs) of most of the crops. He added that cooperatives can help small and marginal farmers in taking the benefits of higher MSPs.

The CNX Nifty traded in a range of 10,695.15 and 10,631.15. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 9.10%, Eicher Motors up by 3.55%, HCL Tech. up by 3.36%, Bajaj Finance up by 3.06% and Reliance Industries up by 2.57%. On the flip side, Yes Bank down by 6.49%, Indiabulls Housing Finance down by 4.95%, JSW Steel down by 2.64%, Hindustan Petroleum down by 2.61% and Tata Steel down by 2.50% were the top losers.

European markets were trading in green; UK’s FTSE 100 added 15.65 points or 0.22% to 7,053.66, France’s CAC rose 22.47 points or 0.44% to 5,056.09 and Germany’s DAX was up by 66.20 points or 0.58% to 11,419.87.

Asian markets ended mostly higher on Friday. Chinese shares rose to hit a fresh one-month high after Beijing reportedly delivered a written response to US trade demands, raising hopes of a thaw in trade relations. However, anxiety around Brexit and conflicting reports about progress in US-China trade talks keeping investors nervous. Investors remained focused on the political turmoil in the UK after four ministers--including Brexit Minister Dominic Raab resigned in protest to Prime Minister Theresa May's draft Brexit agreement. Japanese shares ended lower as Nvidia's worse-than-expected earnings pulled down semiconductor-related stocks.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

2,679.11

10.94

0.41

Hang Seng

26,183.53

80.19

0.31

Jakarta Composite

6,012.35

56.61

0.94

KLSE Composite

1,706.38

12.17

0.72

Nikkei 225

21,680.34

-123.28

-0.57

Straits Times

3,083.60

29.07

0.94

KOSPI Composite

2,092.40

4.34

0.21

Taiwan Weighted

9,797.09

-29.37

-0.30
  RELATED NEWS >>
Most Viewed >>
May 04 , 2024
AIFs can now issue offshore derivative instrum
May 03 , 2024
Sensex ends 128 pts higher, Nifty above 22,650
May 04 , 2024
Equity markets end with losses; Nifty retreats
May 04 , 2024
Manage high valuations and market volatility w
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.