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Indian markets end marginally higher on Friday
Aug-16-2019

Indian equity markets ended Friday’s session marginally higher. Indices made a negative start of the day, amid report that India Inc’s growth engine slowed in the June quarter amid sluggish demand across sectors and the base effect in the form of a strong expansion in the year-ago period, reflecting the overall slowdown in the economy. Sentiments remained lackluster with an another report stating that the current economic slowdown can be attributed to a combination of structural & cyclical factors, in addition to global uncertainties. It added that the country's economy is showing signs of slowdown, with hi-frequency indicators like industrial output posting subdued growth & automobile sales touching historical lows.

But, in the noon deals, markets staged recovery to settle the day in green terrain, on account of firm cues from global markets. Traders got relief, as the Central Board of Direct Taxes (CBDT) brought in concept of Document Identification Number (DIN), taking further steps to ensure transparency in Tax Administration.  All communications made by the tax department to assessees from October 1, 2019 will carry a computer-generated DIN in order to promote transparency. Some support also came with the government data showing that India’s merchandise exports rebounded and grew 2.25% in July, aided by higher shipments of organic goods, drugs and pharmaceuticals, while imports shrank, narrowing the trade deficit.

On the global front, European markets were trading in green, after Finland's current account surplus increased in June from previous month. The Statistics Finland reported that the current account surplus rose to EUR 791 million in June from EUR 626 million in May. In the same period last year, the deficit totaled EUR 1.07 billion. Asian markets ended in green, as Malaysia's economic growth accelerated in the second quarter on domestic demand. The data from the Bank Negara Malaysia showed that gross domestic product grew 4.9% year-on-year, faster than the 4.5% expansion seen in the first quarter. The rate was forecast to improve to 4.7%.

Back home, telecom sector stocks remained in watch, after industry body COAI urged the telecom regulator to come out with focused campaigns to create consumer awareness around the new framework for flagging pesky telemarketing calls, with telcos slated to soon start submission of monthly reports on user complaints. Stocks related to the automobile industry also remained in focus, with the auto industry body Society of Indian Automobile Manufacturers’ (SIAM) statement that even if it is for a short period of time, just to kick start the industry, there should be a reduction in goods and services tax (GST) from 28 percent to 18 percent.

Finally, the BSE Sensex gained 38.80 points or 0.10% to 37,350.33, while the CNX Nifty was up by 18.40 points or 0.17% to 11,047.80.

The BSE Sensex touched a high and a low of 37,444.45 and 36,974.41, respectively and there were 20 stocks advancing against 11 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.10%, while Small cap index was up by 0.11%.

The top gaining sectoral indices on the BSE were Utilities up by 1.50%, Auto up by 1.14%, Power up by 1.08%, Bankex up by 0.75% and PSU up by 0.63%, while IT down by 0.78%, Consumer Durables down by 0.60%, TECK down by 0.59%, Energy down by 0.59% and Metal down by 0.51% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 3.79%, Power Grid up by 2.85%, Maruti Suzuki up by 2.74%, Indusind Bank up by 2.70% and Axis Bank up by 1.86%. On the flip side, TCS down by 1.87%, Tata Motors - DVR down by 1.57%, Vedanta down by 1.54%, HCL Tech. down by 1.31% and HDFC down by 0.91% were the top losers.

Meanwhile, in order to ensure more transparency in Tax Administration, the Central Board of Direct Taxes (CBDT) has brought in concept of Document Identification Number (DIN). All communications made by the tax department to assessees from October 1, 2019 will carry a computer-generated DIN in order to promote transparency.

According to the tax regulator, although almost all notices & orders of Income Tax Department are being generated electronically on the Income Tax Business Application (ITBA) platform, there have been some instances in which the notice, order, summons, letter and any correspondence were found to have been issued manually, without maintaining a proper audit trail of such communication.

In order to prevent such instances and to maintain proper audit trail of all communication, the CBDT laid down parameters specifying the manner in which any communication issued by any income-tax authority relating to assessment, appeals, orders, statutory or otherwise, exemptions, enquiry, investigation, verification of information, penalty, prosecution, rectification, approval etc. to the assessee or any other person will be dealt with. All such communication issued on or after October 01, 2019 shall carry a DIN duly quoted in the body of such communication.

The CNX Nifty traded in a range of 11,068.65 and 10,924.30. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were UPL up by 4.51%, Power Grid up by 2.95%, Maruti Suzuki up by 2.65%, Yes Bank up by 2.55% and Grasim up by 2.46%. On the flip side, TCS down by 1.92%, Vedanta down by 1.67%, HCL Tech. down by 1.33%, BPCL down by 1.13% and Sun Pharma down by 0.90% were the top losers.

European markets were trading in green; UK’s FTSE 100 increased 25.11 points or 0.36% to 7,092.12, France’s CAC rose 39.33 points or 0.75% to 5,276.26 and Germany’s DAX was up by 82.85 points or 0.73% to 11,495.52.

Asian markets ended mostly higher on Friday on account of declining US Treasury yields. Further, Donald Trump said that United States is involved in favorable discussions with China, that may bring an end to the ongoing US-China trade dispute. However, up move was limited on tensions of global economic slowdown. Japanese shares closed higher on account of stability in Chinese and Hong Kong markets amid ongoing conflicts in Hong Kong.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

2,823.82
8.02
0.28

Hang Seng

25,734.22
238.76
0.94

Jakarta Composite

6,286.66
29.07
0.46

KLSE Composite

1,598.46

-1.83

-0.11

Nikkei 225

20,418.81
13.16
0.06

Straits Times

3,115.03
-11.06
-0.35

KOSPI Composite

1,927.17
-11.20
-0.58

Taiwan Weighted

10,420.89
93.76
0.91


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