HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Post Session: Quick Review
May-21-2019

Indian equity benchmarks reversed previous session’s gains and ended Tuesday’s trade with steep losses, with Sensex and Nifty 50 index surrendering their crucial 39,000 and 11,750 levels respectively. Selling activity which took place during late afternoon session forced the markets to close the session near of the day’s low. Key indices began the session on a positive note, as traders remained optimistic with IHS Markit report stating that India’s economic policy will continue to focus on maintaining strong economic growth and creating jobs for the country’s large and growing population. It added that the government will also focus on the expansion of already announced policies including infrastructure investment, the Goods and Services Tax (GST) rationalisation and financial sector regulations. Sentiments also remained positive with the Retirement fund body, Employment Provident Fund Organisation’s (EPFO) latest ‘Provisional Estimate of Net Payroll’ data report which showed that India created 8.15 lakh new jobs in the month of March 2019. According to the data report, 9962 new jobs were created in less than 18 age group category, while 214699 jobs in 18-21 age group category.

However, markets reversed all of their gains and fell into negative territory in late afternoon session, as traders turned cautious with report that rising trade tensions have prompted the World Trade Organization (WTO) to dim its prospect for trade growth in the second quarter of the 2019 calendar year. The WTO said world trade growth is likely to remain weak into the second quarter of 2019. Some cautiousness also came with a report that eminent Indian experts in the US believe that the next Indian government to be formed after the declaration of the election results on May 23 faces crucial foreign policy decisions, particularly in the economic realm. The markets breadth remained pessimistic with Trade Promotion Council of India’s (TPCI) statement that the proposed Regional Comprehensive Economic Partnership (RCEP) agreement may hurt India's export competitiveness as the trade balance is already skewed.

On the global front, Asian markets ended mixed on Tuesday, while European markets were trading in green, after tensions eased slightly in the escalating trade war between the U.S. and China. Back home, the BSE Sensex ended at 38954.15, down by 398.52 points or 1.01% after trading in a range of 38884.85 and 39571.73. There were 3 stocks advancing against 28 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index fell 0.84%, while Small cap index was down by 0.58%. (Provisional)

The only gaining sectoral indices on the BSE were Consumer Durables up by 0.79% and Energy up by 0.17%, while Auto down by 2.51%, PSU down by 1.93%, Telecom down by 1.63%, Bankex down by 1.54% and TECK down by 1.51% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Reliance Industries up by 1.02%, Bajaj Finance up by 0.92% and Hindustan Unilever up by 0.70%. (Provisional)

On the flip side, Tata Motors down by 6.74%, Tata Motors - DVR down by 6.08%, Indusind Bank down by 3.29%, Maruti Suzuki down by 3.12% and Bharti Airtel down by 2.60% were the top losers. (Provisional)

Meanwhile, Alyssa Ayres from the Council on Foreign Relations think tank has believed that the next Indian government to be formed after the declaration of the election results on May 23 faces crucial foreign policy decisions, particularly in the economic realm. She said ‘No matter who forms the next government, India faces crucial foreign policy decisions particularly in the economic realm’.

Ayres said although the US-India relationship has made solid strides across governments in defence and security, there are increased tensions on the trade and economic front. She added that ‘I would also expect to see increased attention in the United States (particularly among members of Congress) to issues of religious freedom in India, especially given the tenor of the elections these past few weeks’.

The senior fellow at the Carnegie Endowment for International Peace Ashley Tellis has stated that Prime Minister Narendra Modi, who the exit polls predicted to be reelected, will have to confront serious external challenges both around India's periphery and farther beyond. He said if India is to realise its great power ambitions in the decades to come, the next government will have to accelerate economic reforms domestically, strengthen India's institutions, preserve its constitutional ethos and protect the nation's internal cohesion, all of which have floundered dangerously in recent years.

The CNX Nifty ended at 11711.70, down by 116.55 points or 0.99% after trading in a range of 11682.80 and 11883.55. There were 7 stocks advancing against 43 stocks declining on the index. (Provisional)

The top gainers on Nifty were Dr. Reddys Lab up by 2.80%, Bharti Infratel up by 2.24%, Britannia Industries up by 1.75%, Titan Co up by 1.40% and Reliance Industries up by 1.01%. (Provisional)

On the flip side, Tata Motors down by 6.68%, Zee Entertainment down by 4.30%, BPCL down by 4.03%, Indusind Bank down by 3.29% and Adani Ports &SEZ down by 3.19% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 45.39 points or 0.62% to 7,356.27, France’s CAC rose 23.56 points or 0.44% to 5,382.15 and Germany’s DAX added 108.19 points or 0.9% to 12,149.48.

Asian markets ended mixed on Tuesday after Washington temporarily eased trade restrictions imposed last week on China’s Huawei, although fears of a further escalation in tensions kept investors on edge. Chinese shares ended higher as the easing of US trade restrictions on Chinese telecoms firm Huawei brought relief to investors, lifting sentiment battered by a bruising trade war between the world’s two largest economies. Though, Japanese shares closed lower, tracking global economic concerns as investors fret over the latest flare-up in the China-US trade war involving Chinese tech giant Huawei and concerns about the future course of the global economy.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

2,905.97
35.37
35.37

Hang Seng

27,657.24
-130.37
-0.47

Jakarta Composite

5,951.37
44.25
0.75

KLSE Composite

1,603.74

-1.62

-0.10

Nikkei 225

21,272.45
-29.28
-0.14

Straits Times

3,183.26

-22.20

-0.69

KOSPI Composite

2,061.25
5.54

0.27

Taiwan Weighted

10,464.50
66.09
0.64
  RELATED NEWS >>
Most Viewed >>
April 19 , 2024
JPMorgan bullish on Indian stocks, suggests ma
April 19 , 2024
Is it time to take small bets in FMCG stocks?
April 18 , 2024
Mutual fund industry assets grow 35% in FY24
April 19 , 2024
Lok Sabha Elections 2024: How will they impact
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.