HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Post Session: Quick Review
Mar-20-2019

Indian equity benchmarks witnessed consolidation and ended almost flat on Wednesday after seven days of continuous rally. After a cautious start, key gauges traded in green for most part of the day, as traders took some support with Reserve Bank of India (RBI) governor Shakthikanta Das’ statement that the market response to the unconventional liquidity tool of dollar swap auction worth $5 billion has been received quite well. Markets gained traction for couple of times during the trade, as traders got some support after the Vice President of India, M. Venkaiah Naidu expressed the hope that ‘in all our countries, we would be able to translate economic growth into inclusive, sustainable development’ and referred to Indian government’s resolve to transform governance and ultimately the lives of the people. The market participants also got some comfort after the government given a major relief to startups by enhancing definition of startups. It has decided to relax angel tax norms for startups, including increasing the investment limit to Rs 25 crore for availing income tax concessions by startups.

However, traders booked profit whenever markets got traction during the day as some anxiety persisted with a report that Indian mutual funds and insurance firms, which scooped up shares while foreign institutional investors (FIIs) stayed away, turned net sellers of Rs 10,247.9 crore in March, even as FIIs returned to Indian markets. Some concerns also come with a report that there is a 70% chance of El Nino climate cycle forming towards the second half of this year, a forecast that does not augur well for the monsoon season in India. Meanwhile, economists raised concerns over a sharp slowdown in the Indian economy and pitched for a monetary policy boost to support growth at a meeting with the RBI chief on March 19. RBI governor Shaktikanta Das met more than a dozen economists to get their views on the economy ahead of the Monetary Policy Committee (MPC) decision due on April 4. Most economists expect the six-member MPC to cut the repo rate by 25 basis points for the second time in a row next month to 6.00 percent, a level last seen in August 2017.

Weak trade in European counters too dampened sentiments with all the European counters trading in red in early deals as Eurozone construction output fell in January after rising in the previous two months, reflecting declines in both building and civil engineering segments. The data from the statistical office Eurostat showed that construction output declined a calendar and seasonally adjusted 1.4 percent month-on-month in January, reversing a 1.1 percent rise in December. Asian markets exhibited mixed trend, following a series of conflicting reports on US-China trade that surfaced overnight.

Back home, real estate sector stocks remained buzzing as the all-powerful Goods and Services Tax (GST) Council approved a transition plan for the implementation of new tax structure for housing units. It has decided that builders can pick between paying 12% for non-affordable houses with ITC benefits or 5% without the tax rebates for under-construction houses. Likewise, for affordable housing projects, builders can choose between 8% with tax rebates or 1% without it. The new rates, without ITC benefits, will apply for all projects that begin construction only after April 1.

The BSE Sensex ended at 38388.47, up by 25.00 points or 0.07% after trading in a range of 38316.21 and 38489.81. There were 12 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index shed 0.33%, while Small cap index was down by 0.33%. (Provisional)

The top sectoral indices on the BSE were Realty up by 2.39%, IT up by 0.72%, Capital Goods up by 0.60%, TECK up by 0.39% and Consumer Durables was up by 0.15%, while Oil & Gas down by 2.28%, Utilities down by 1.71%, PSU down by 1.67%, Auto down by 1.51% and Power was down by 1.34% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Infosys up by 2.29%, Larsen & Toubro up by 1.57%, Sun Pharma up by 1.42%, HDFC Bank up by 1.34% and Yes Bank up by 1.22%. On the flip side, NTPC down by 4.29%, ONGC down by 3.44%, Maruti Suzuki down by 2.58%, Tata Steel down by 2.39% and Coal India down by 2.37% were the top losers. (Provisional)

Meanwhile, India's Ambassador to the US Harsh Vardhan Shringla has said that India's growth in last five years has been transformational and the country is all set to emerge as a $5 trillion economy in the next five years.  He said ‘we have made huge strides in the last five years. I think it has been transformational the way we have grown.’ He highlighted that in terms of fundamentals of the country's economy, its inflation has come down from over 10% five years ago to about 4.6%, the fiscal deficit has come down from almost 6% to 3% which are very important indicators.

He added inflation is seen as an unpaid tax on the middle class and the poor. So bringing down inflation, bringing down fiscal deficit is good governance and good management of the economy. Moreover, he mentioned that India has been successful in attracting $259 billion in Foreign Direct Investment, 90% of which has come through the automatic route.

Besides, he said India has already grown in the last five years from being the 11th largest economy in the world to the sixth. And this year it might as well become the fifth largest economy. Moreover, he stated ‘we see ourselves growing to a $5 trillion economy in the next five years to 2024 and eight years after that, we see ourselves as $10 trillion economy’. However, he mentioned that the India needs a high level of growth to achieve this goal. India also needs inclusive and sustainable growth. And for this, the focus needs to be on physical and social infrastructure.

The CNX Nifty ended at 11516.65, down by 15.75 points or 0.14% after trading in a range of 11503.10 and 11556.10. There were 16 stocks advancing against 34 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indiabulls Housing up by 5.09%, Hindalco up by 2.40%, Infosys up by 2.11%, Dr. Reddys Lab up by 1.82% and Larsen & Toubro up by 1.70%. On the flip side, HPCL down by 5.59%, Zee Entertainment down by 5.10%, BPCL down by 4.98%, NTPC down by 3.67% and ONGC down by 3.18% were the top losers. (Provisional)

All the European markets were trading in red; UK’s FTSE 100 decreased 4.18 points or 0.06% to 7,319.82, France’s CAC slipped 5.79 points or 0.11% to 5,420.11 and Germany’s DAX was down by 133.56 points or 1.13% to 11,654.85.

Asian markets ended mixed on Wednesday as investors fretted about Sino-US trade relations and looked ahead to the Fed's policy decision later in the day, with many expecting the central bank to reaffirm its dovish stance. Chinese shares closed lower in view of uncertainty over progress on the US-China trade talks. Meanwhile, Japanese shares ended modestly higher ahead of the Fed's policy decision later in the day and a public holiday on Thursday.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,090.64
-0.34
-0.01

Hang Seng

29,320.97
-145.31
-0.49

Jakarta Composite

6,482.71
2.43
0.04

KLSE Composite

1,684.21

-3.47

-0.21

Nikkei 225

21,608.92
42.07
0.20

Straits Times

3,207.66
-13.26
-0.41

KOSPI Composite

2,177.10
-0.52
-0.02

Taiwan Weighted

10,551.56
39.24
0.37
  RELATED NEWS >>
Most Viewed >>
April 22 , 2024
Invest lumpsum through systematic transfer pla
April 24 , 2024
Fund managers trim PSB exposure, see better va
April 22 , 2024
FPIs mount bearish bets as risk aversion grows
April 22 , 2024
FPIs withdraw over Rs 5,200 crore in April so
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.