Closing Bell

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27-Jan-2020   16:34 Hrs IST Markets witness bloodbath on Monday <p align="justify">Indian equity benchmarks witnessed a bloodbath on Monday's trading session by falling over a percent. After a weak start, markets remained under a grip of bears for the whole day, amid a private report indicating that the country's fiscal deficit for 2019-20 is expected to widen to 3.8% and the upcoming Budget may set a target of 3.5% for 2020-21. Some concerns also came with a report stating that India plans to increase import duties on more than 50 items including electronics, electrical goods, chemicals and handicrafts, targeting about $56 billion worth of imports from China and elsewhere.</p><p align="justify">In the last leg of the trade, losses got extended on the streets, as Nobel laureate and economist Abhijit Banerjee said that the banking sector in the country is ‘stressed' and the government is in no position to bail it out. He said the demand slowdown in the automobile sector also shows that people are lacking confidence in the economy. Market participants paid no heed towards the Reserve bank of India (RBI) Governor Shaktikanta Das' statement that structural reforms and fiscal measures may have to be continued and further activated to provide a durable push to demand and boost growth.</p><p align="justify">On the global front, European markets were trading in red, as Finland's manufacturing sentiment deteriorated in January. The survey data from the Confederation of Finnish Industries showed that the manufacturing confidence index decreased to -8 in January from -5 in December. The reading was well below its long-term average of +1. Asian markets ended lower, with most countries in the Asia-Pacific region celebrating the lunar New Year holiday. Most of the regional stock are also closed for the holiday, including South Korea, Malaysia, Singapore, Taiwan, China and Hong Kong, among others.</p><p align="justify">Back home, the infrastructure sector stocks remained in focus, on the back of the Union minister Nitin Gadkari's statement that the government plans to complete three of the 22 expressways and green corridors in the next three years, including the flagship Delhi Mumbai Expressway being built at a new alignment.&nbsp;Stocks related to the jewellery industry also remained in watch, amid the commerce ministry's data report showing that gold imports fell 6.77% to $23 billion during the April-December period of the current financial year.</p><p align="justify">Finally, the BSE Sensex slipped 458.07 points or 1.10% to 41,155.12, while the CNX Nifty was down by 129.25 points or 1.06% to 12,119.00.</p><p align="justify">The BSE Sensex touched high and low of 41,516.27 and 41,122.48, respectively and there were 09 stocks advancing against 21 stocks declining.</p><p align="justify">The broader indices ended mixed; the BSE Mid cap index lost 0.40%, while Small cap index was up by 0.03%.</p><p align="justify">The lone gaining sectoral index on the BSE was Healthcare up by 1.43%, while Metal down by 3.25%, Telecom down by 1.75%, Power down by 1.48%, PSU down by 1.37% and Bankex down by 1.18% were the top losing indices on BSE.</p><p align="justify">The top gainers on the Sensex were Mahindra &amp; Mahindra up by 1.85%, Ultratech Cement up by 1.05%, Tech Mahindra up by 0.50%, ICICI Bank up by 0.45% and Axis Bank up by 0.37%. On the flip side, Tata Steel down by 4.31%, Indusind Bank down by 3.37%, HDFC Bank down by 2.51%, SBI down by 2.42% and Power Grid down by 2.26% were the top losers.</p><p align="justify">Meanwhile, the government is likely to soon decide on allowing Indian companies to list their equity shares in foreign countries. Overseas listing of shares would help is providing an additional fund raising avenue for the corporates looking to expand and boost their business activities along with help in bringing more capital into the country. Many companies are interested in listing their equity shares in foreign countries.</p><p align="justify">Presently, quite a few Indian companies have American Depository Receipts (ADRs) that are traded in the US. Some other corporates have their Global Depository Receipts (GDRs). The corporate affairs ministry and markets regulator SEBI are in favour of allowing Indian firms to list their equity shares overseas. Other departments and regulators are also expected to be on board.</p><p align="justify">A decision is likely soon and changes would need to be done in the companies law and SEBI regulations for permitting listing of domestic companies overseas. Further, only public companies are likely to be given permission for overseas listing of equity shares. A depository receipt is a foreign currency denominated instrument, listed on an international exchange, issued by a foreign depository to a domestic custodian and includes GDRs.</p><p align="justify">The CNX Nifty traded in a range of 12,216.60 and 12,107.00. There were 11 stocks advancing against 39 stocks declining on the index.</p><p align="justify">The top gainers on Nifty were Dr. Reddy's Lab up by 5.56%, Mahindra &amp; Mahindra up by 1.87%, Cipla up by 1.17%, Ultratech Cement up by 0.93% and Eicher Motors up by 0.77%. On the flip side, Vedanta down by 4.84%, Tata Steel down by 4.73%, JSW Steel down by 4.25%, Indusind Bank down by 3.12% and Hindalco down by 2.63% were the top losers.</p><p align="justify">European markets were trading in red; UK's FTSE 100 decreased 167.24 points or 2.2% to 7,418.74, France's CAC fell 121.18 points or 2.01% to 5,903.08 and Germany's DAX was down by 255.02 points or 1.88% to 13,321.66.</p><p align="justify">Asian markets ended lower on Monday amid lingering worries over the potential impact of a new coronavirus that has killed at least 80 people in China. Trading volumes were thin as several markets including China, Hong Kong, Malaysia, Singapore, South Korea and Taiwan were closed for public holidays. Japanese shares ended down as the coronavirus infection has spread to France, Nepal, Australia, and Malaysia, with investors nervously watching reports about the increasing number of patients. Investors also shifted their focus to corporate earnings results that will be out this week.</p><table width="100%"><tbody><tr><td><p align="left"><strong>Asian</strong><span>&nbsp;</span><strong>Indices</strong></p></td><td><p align="left"><strong>Last Trade&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</strong></p></td><td><p align="left"><strong>Change in Points</strong></p></td><td><p align="left"><strong>Change in %</strong></p></td></tr><tr><td><p align="justify">Shanghai Composite</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td></tr><tr><td><p align="justify">Hang Seng</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td></tr><tr><td><p align="justify">Jakarta Composite</p></td><td><p align="justify">6,133.21</p></td><td><p align="justify">-110.90</p></td><td><p align="justify">-1.78</p></td></tr><tr><td><p align="justify">KLSE Composite</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td></tr><tr><td><p align="justify">Nikkei 225</p></td><td><p align="justify">23,343.51</p></td><td><p align="justify">-483.67</p></td><td><p align="justify">-2.03</p></td></tr><tr><td><p align="justify">Straits Times</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td></tr><tr><td><p align="justify">KOSPI&nbsp;Composite</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td></tr><tr><td><p align="justify">Taiwan Weighted</p></td><td><div align="justify">-</div></td><td><div align="justify">-</div></td><td><div align="justify">-</div></td></tr></tbody></table><p align="justify"><br></p>
27-Jan-2020   15:55 Hrs IST Post Session: Quick Review <p align="justify">Local equity markets, snapping two-session of gaining streak, ended lower on Monday with losses of over a percent. The selling intensified during late afternoon session and dragged the key benchmark indices BSE Sensex and NSE Nifty below their crucial 41,200 and 12,150 levels, respectively. Benchmark indices kicked off the crucial week with a gap-down opening, following subdued global cues. Sentiments remained down-beat with a private report indicating that the country's fiscal deficit for 2019-20 is expected to widen to 3.8%and the upcoming Budget may set a target of 3.5% for 2020-21. Traders also reacted negatively to another a report stating that India plans to increase import duties on more than 50 items including electronics, electrical goods, chemicals and handicrafts, targeting about $56 billion worth of imports from China and elsewhere.&nbsp; </p><p align="justify">Markets extended southward moment in the last leg of trade, as traders remained cautious ahead of Budget announcements due later this week. Sentiments were further dampened with Nobel laureate and economist Abhijit Banerjee's statement that the banking sector in the country is ‘stressed' and the government is in no position to bail it out. He said the demand slowdown in the automobile sector also shows that people are lacking confidence in the economy. Anxiety too persisted with private report that India's corporate and income tax collection for the current year is likely to fall for the first time in at least two decades, amid a sharp fall in economic growth and cut in corporate tax rates.</p><p align="justify">On the global front, Asian markets ended lower on Monday, while European markets were trading in red as growing concerns over the potential economic damage from a fast-spreading coronavirus sapped demand for riskier assets. Back home, infra stocks were in focus with Union minister Nitin Gadkari's statement that the government plans to complete three of the 22 expressways and green corridors in the next three years, including the flagship Delhi Mumbai Expressway being built at a new alignment. Jewellery stocks also were in focus with the commerce ministry data showing that gold imports fell 6.77% to $23 billion during the April-December period of the current financial year.<br></p><p align="justify"><p align="justify">The BSE Sensex ended at 41152.49, down by 460.70 points or 1.11% after trading in a range of 41144.34 and 41516.27. There were 9 stocks advancing against 21 stocks declining on the index. (Provisional)<p align="justify">The broader indices ended mixed; the BSE Mid cap index fell 0.42%, while Small cap index was up by 0.04%. (Provisional)<p align="justify">The lone gaining sectoral index on the BSE was Healthcare up by 1.46%, while Metal down by 3.22%, Telecom down by 2.00%, Power down by 1.37%, PSU down by 1.33% and Bankex down by 1.14% were the top losing indices on BSE. (Provisional)<p align="justify">The top gainers on the Sensex were Mahindra &amp; Mahindra up by 1.71%, Ultratech Cement up by 0.65%, ICICI Bank up by 0.62%, Tech Mahindra up by 0.43% and Axis Bank up by 0.31%. (Provisional)<p align="justify">On the flip side, Tata Steel down by 4.37%, Indusind Bank down by 3.42%, HDFC Bank down by 2.56%, SBI down by 2.42% and HDFC down by 2.21% were the top losers. (Provisional)<p align="justify">Meanwhile, amid the current economic slowdown, the chairman of PM's Economic Advisory Council Bibek Debroy has said that India can end up with a real Gross Domestic Product (GDP) growth of 5% this financial year (FY20) excluding the inflation rate. He added that next year, the GDP growth rate could be anything between 6-6.5%. He also said that in the present scenario achieving a 9% GDP growth will be difficult, the aspirational growth rate could be between 6.5-7%.<p align="justify">He said that at present, Indian economy is growing in an environment which is somewhat protectionist and has declining exports. He said the period during which the country grew at high GDP growth rates like 9%, the exports-to-GDP ratio was 20%. But now with developed countries resorting to protectionism and after the collapse of the WTO, contribution of exports to GDP in a large way does not seem possible. He further said with India being strong in services and not manufacturing, the country will have to give some to get some. It is a quid pro quo situation particularly in a regional trade bloc kind of arrangement.<p align="justify">Regarding taxation regime, Debroy said that the country is moving towards stable direct tax regime without any exemption. Goods and Services Tax (GST) is still work in progress. GST was supposed to be revenue neutral. But the government has lost revenue post-GST implementation, which is not tenable. He added that when both direct tax and GST rates get stabilised in future, a day might come when there would be no need to present budgets in the Parliament. On the high cost of capital, he said it will continue to be so as it is a scarce resource in India.<p align="justify">The CNX Nifty ended at 12112.70, down by 135.55 points or 1.11% after trading in a range of 12107.15 and 12216.60. There were 13 stocks advancing against 37 stocks declining on the index. (Provisional)<p align="justify">The top gainers on Nifty were Dr. Reddys Lab up by 5.51%, Mahindra &amp; Mahindra up by 1.88%, Cipla up by 1.25%, Ultratech Cement up by 0.91% and Eicher Motors up by 0.77%. (Provisional)<p align="justify">On the flip side, Vedanta down by 4.87%, Tata Steel down by 4.54%, JSW Steel down by 4.10%, Hindalco down by 3.82% and Indusind Bank down by 3.37% were the top losers. (Provisional)<p align="justify">European markets were trading in red; UK's FTSE 100 decreased 167.24 points or 2.2% to 7,418.74, France's CAC fell 121.18 points or 2.01% to 5,903.08 and Germany's DAX was down by 255.02 points or 1.88% to 13,321.66.<p align="justify">Asian markets ended lower on Monday amid lingering worries over the potential impact of a new coronavirus that has killed at least 80 people in China. Trading volumes were thin as several markets including China, Hong Kong, Malaysia, Singapore, South Korea and Taiwan were closed for public holidays. Japanese shares ended down as the coronavirus infection has spread to France, Nepal, Australia, and Malaysia, with investors nervously watching reports about the increasing number of patients. Investors also shifted their focus to corporate earnings results that will be out this week.<p align="justify"><table width="100%" border="1" cellspacing="1" cellpadding="1"><tbody><tr><td><p align="left"><strong>Asian</strong> <strong>Indices</strong></p></td><td><p align="left"><strong>Last Trade&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </strong></p></td><td><p align="left"><strong>Change in Points</strong></p></td><td><p align="left"><strong>Change in %</strong></p></td></tr><tr><td><p align="justify">Shanghai Composite</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td></tr><tr><td><p align="justify">Hang Seng</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td></tr><tr><td><p align="justify">Jakarta Composite</p></td><td><p align="justify">6,133.21</p></td><td><p align="justify">-110.90</p></td><td><p align="justify">-1.78</p></td></tr><tr><td><p align="justify">KLSE Composite</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td></tr><tr><td><p align="justify">Nikkei 225</p></td><td><p align="justify">23,343.51</p></td><td><p align="justify">-483.67</p></td><td><p align="justify">-2.03</p></td></tr><tr><td><p align="justify">Straits Times</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td></tr><tr><td><p align="justify">KOSPI&nbsp;Composite</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td><td><p align="justify">-</p></td></tr><tr><td><p align="justify">Taiwan Weighted</p></td><td><div align="justify">-</div></td><td><div align="justify">-</div></td><td><div align="justify">-</div></td></tr></tbody></table><p align="justify">&nbsp;<p align="justify"></p>
24-Jan-2020   16:45 Hrs IST Bourses sustain robust gaining rally on Friday
24-Jan-2020   15:53 Hrs IST Post Session: Quick Review
23-Jan-2020   16:39 Hrs IST Bourses back in green on Thursday with significant gains
23-Jan-2020   15:56 Hrs IST Post Session: Quick Review
22-Jan-2020   16:38 Hrs IST Bourses pain deepen on Wednesday
22-Jan-2020   15:54 Hrs IST Post Session: Quick Review
21-Jan-2020   16:41 Hrs IST Bears hold grip over Dalal Street on Tuesday
21-Jan-2020   16:01 Hrs IST Post Session: Quick Review