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Markets end near day’s high points
Jun-20-2019

Indian equity benchmarks bounced back to end the trading session near their intraday high points on Thursday. The markets made a negative start of day, amid reports that the United States has told India it is considering caps on H-1B work visas for nations that force foreign companies to store data locally. The US government plan to cap H-1B visas issued each year to Indians at between 10% and 15% of the annual quota. There is no current country-specific limit on the 85,000 H-1B work visas granted each year and an estimated 70% go to Indians. But, key indices soon staged recovery, taking encouragement with Commerce and Industry Minister Piyush Goyals’ statement that the government will not allow foreign companies to operate in multi-brand segment and necessary action will be taken against people indulging in predatory pricing.

Bourses extended their gains in the second half of the session, tracking firm global markets. Domestic sentiments remained positive as Central Board of Indirect Taxes and Customs (CBIC) informed that all genuine exporters will continue to get their Indirect Goods and Services Tax (IGST) refunds in a timely manner in a fully automated environment. Traders also took encouragement with President Ram Nath Kovind’s statement that the government will soon announce a new industrial policy aimed at promoting the growth of industries and creation of jobs. The street overlooked report that DBS Bank revised India's GDP growth for fiscal year 2020 downwards to 6.8 per cent year-on-year (YoY) from 7 per cent projected earlier, citing headwinds for exports amidst challenging trade outlook.

On the global front, European markets were trading in green, as Dutch consumer confidence improved in June. The data from the Central Bureau of Statistics showed that the consumer confidence index came in at zero in June from minus 3 in May. The economic climate index improved to plus 2 in June from minus 2 in May and the indicator for willingness to buy increased slightly to minus 2 from minus 3. Asian markets ended in green, after the Bank of Japan (BoJ) maintained its ultra-loose monetary policy as widely expected and kept its forward guidance unchanged. The Policy Board of the BoJ voted 7-2 to maintain interest rate at -0.1 percent on current accounts that financial institutions maintain at the bank.

Back home, pharma sector stocks ended higher, aided by Indian Pharmaceutical Alliance’s (IPA) statement that the pharmaceutical sector in the country is aiming to grow to the size of $120-130 billion by the year 2030 from the existing $38 billion. Further, stocks related to the gems and jewellery sector remained in focus, amid report that the government is looking at promoting the common facility centres, with an aim to boost the gems and jewellery sector. Presently, there are total 10,000 units across India with over 1.2 million skilled workforces, readily available for the MSME's of the gems and service sector.

Finally, the BSE Sensex rose 488.89 points or 1.25% to 39,601.63, while the CNX Nifty was up by 140.30 points or 1.20% to 11,831.75.

The BSE Sensex touched a high and a low of 39,638.64 and 38,933.78, respectively and there were 27 stocks advancing against 04 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index surged 1.64%, while Small cap index was up by 1.05%.

The top gaining sectoral indices on the BSE were Auto up by 2.46%, Capital Goods up by 2.36%, Healthcare up by 2.27%, Telecom up by 2.11% and Consumer Durables up by 2.08%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Yes Bank up by 10.94%, Sun Pharma up by 4.01%, Indusind Bank up by 3.80%, Larsen & Toubro up by 3.36% and ICICI Bank up by 3.20%. On the flip side, Hindustan Unilever down by 0.26%, HDFC Bank down by 0.16%, ITC down by 0.07% and NTPC down by 0.04% were the few losers.

Meanwhile, with an aim to promote electric vehicles (EVs) in India, the government has decided to waive registration charges for electric vehicles. The move comes at a time when the country plans high penetration of such vehicles by 2030. Issuing the draft notification to amend the Central Motor Vehicles Rules (CMVR), 1989, the road transport and highways ministry said battery-operated vehicles shall be exempted from the payment of fees for the purpose of issue or renewal of registration certificate and assignment of new registration mark. The exemption will apply to all category of vehicles, including two-wheelers.

The ministry has issued the draft notification for amendments in CMVR where the amendments in Rule 81 are proposed for such waiver. The amendments will be done in exercise of the powers conferred on the central government under various sections of the Motor Vehicles Act, 1988.

The said draft rules shall be taken into consideration after the expiry of a period of 30 days from the date on which the copies of this notification as published in the Gazette of India, are made available to the public. The objections or suggestions that may be received from any person with respect to the said draft rules before the expiry of the aforesaid period will be considered by the central government.

The CNX Nifty traded in a range of 11,843.50 and 11,635.05. There were 42 stocks advancing against 07 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Yes Bank up by 11.43%, Indiabulls Housing Finance up by 8.55%, Indusind Bank up by 4.10%, Sun Pharma up by 3.68% and JSW Steel up by 3.45%. On the flip side, UPL down by 8.45%, Wipro down by 2.48%, Adani Ports & SEZ down by 1.34%, Britannia down by 1.31% and Tech Mahindra down by 1.20% were the top losers.

European markets were trading in green; UK’s FTSE 100 added 33.47 points or 0.45% to 7,437.01, France’s CAC increased 42.71 points or 0.77% to 5,561.16 and Germany’s DAX was up by 120.31 points or 0.98% to 12,428.84.

Asian markets ended mostly higher on Thursday after the US Federal Reserve left interest rates unchanged overnight but opened the door to rate cuts on the horizon. Chinese shares ended higher on hopes that US President Donald Trump and Chinese President Xi Jinping can make progress on easing trade tensions at the G20 summit in Japan next week. Further, Japanese shares ended up despite a stronger yen weighing on exporter stocks.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

2,987.12
69.32
2.38

Hang Seng

28,550.43
348.29
1.23

Jakarta Composite

6,335.70
-3.56
-0.06

KLSE Composite

1,675.43

8.89

0.53

Nikkei 225

21,462.86
128.99
0.60

Straits Times

3,314.51
26.34
0.80

KOSPI Composite

2,131.29
6.51
0.31

Taiwan Weighted

10,785.01
9.67
0.09
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