Post Session: Quick Review

Continuing their record-breaking spree, Indian equity markets yet again scaled life time high level on Wednesday, by pocketing gains of over half a percent, thanks to broad based buying activities by funds and retail investors and shorts covering by speculators on the last session of April month Derivatives series. By close of trade, Sensex settled above the crucial 22,850 level and Nifty little short of 6850 mark. For the Series, both Sensex and Nifty puffed up gains of over 2.5%. On broader front, While CNX Midcap index jumped higher by 6% during the series, BSE Small-cap index spurted close to 10%.

On the global front, Asian stocks succumbed to selling pressure after a Chinese manufacturing report signaled persisting weakness in the world’s second-largest economy. Continuing to show contraction in manufacturing activity in the Asian economic giant, HSBC said its preliminary purchasing managers index (PMI) for China came in at 48.3 in April, up from 48.0 in March. Additionally, European shares slipped on Wednesday following signs of a slowdown in French business activity. France's CAC-40 dropped with France data showing manufacturing and services expanded more slowly than expected in April.

Closer home, rally at Dalal Street was led by stocks belonging to Capital Goods, Banking and Healthcare counters, however gain’s to some extent were offset by losses in Realty, Consumer Durables and Power counters. Banking stocks featured in investors’ buying list after Yes Bank stocks surged over 1.50% post reporting good set of Q4 numbers. Private sector lender Yes Bank beat street expectations by reporting fourth quarter (January-March) net profit at Rs 430 crore, up 18.8 percent, driven by non-interest income.  In non-sectoral gauge activity, Railway stocks, viz, Titagarh Wagons, Stone India, Kernex Microsystems and Kalindee Rail Nirman were up in trade for second consecutive session as traders bet that the sector would be revived if the Bharatiya Janata Party (BJP) led coalition comes to power. On the flip side, power stock witnessed massive drubbing after Appellate Tribunal (APTEL) issued notices to Central Electricity Regulatory Commission (CERC), Tata Power and Adani Power on NGO, Energy Watchdog's plea. Energy regulator moved Appellate against the CERC order which allowed Rs 1,200 crore compensatory tariff to two Mundra Projects of Tata Power and Adani Power in February this year.The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1484: 1346, while 141 scrips remained unchanged. (Provisional)

The BSE Sensex gained 118.17 points or 0.52% to settle at 22876.54. The index touched a high and a low of 22912.52 and 22780.13 respectively. Among the 30-share Sensex, 19 stocks gained, while 11 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 0.12% and 0.22% respectively. (Provisional)

On the BSE Sectoral front, Capital Goods up by 1.49%, Bankex up by 1.12%, Healthcare up by 0.44%, FMCG up by 0.41% and PSU up by 0.39% were the top gainers, while Realty down by 1.28%, Consumer Durables down by 0.88%, Power down by 0.53%, Oil & Gas down by 0.33% and IT down by 0.02% were the top losers in the space. (Provisional)

The top gainers on the Sensex were L&T up by 2.16%, Tata Steel up by 1.47%, Axis Bank up by 1.46%, Gail India up by 1.45% and HDFC Bank up by 1.44%. On the other hand, NTPC down by 1.25%, Hero MotoCorp down by 0.93%, Wipro down by 0.89%, Tata Motors down by 0.83% and SSLT down by 0.54% were the top losers in the index. (Provisional)

Meanwhile, the Planning Commission is going to hold a meeting soon to discuss a new policy framework for building new airports in the country under public-private partnerships (PPPs). The meeting is likely to be organized on April 29 and will be attended by top bureaucrats, industry experts, chairmen of leading financiers and prospective global investors. Planning Commission also urged the invitees to send their clause-wise comments for the formation of fresh policy. 

Planning Commission deputy chairman Montek Singh Ahluwalia has asseted that it is an official-level consultation and no final decisions are expected to be taken. Further, he added that the process to award the contracts will put on hold until a new government is formed after the general elections. Ahluwalia also cleared that this exercise is not about privatising existing airports but building new airports in various states and for those interested in greenfield airport priojects. The commission also highlighted that policy framework can also be applied to brownfield PPP projects where an existing airport is upgraded through PPPs with some modifications.

Planning Commission had earlier in the year 2009 published a model concession agreement for new airports via PPPs, but the aviation ministry rejected the proposal. Since then, the aviation sector has undergone a number of regulatory and policy changes.

India VIX, a gauge for markets short-term expectation volatility lost 6.66% at 31.13 from its previous close of 33.35 on Tuesday. (Provisional)

The CNX Nifty gained 33.55 points or 0.49% to settle at 6,848.90. The index touched high and low of 6,861.60 and 6,820.75 respectively. Out of the 50 stocks on the Nifty, 27 ended in the green, while 23 ended in the red. 

The major gainers of the Nifty were Bank of Baroda up 3.78%, Kotak Bank up by 3.21%, Ambuja Cements up by 2.52%, PNB up by 2.45% and L&T up by 1.85%. The key losers were Cairn down by 2.67%, DLF down by 2.58%, IDFC down by 1.47%, UltraTech Cement down by 1.46% and BPCL down by 1.20%. (Provisional)

The European markets were trading in red; France’s CAC 40 was down by 0.43%, Germany’s DAX was down by 0.29% and UK’s FTSE 100 down by 0.15%.

The Asian markets concluded Wednesday’s trade mostly in red, after Chinese manufacturing data signaled persistent weakness in the world’s second-largest economy. China’s factory activity shrank for the fourth straight month in April, signaling economic weakness into the second quarter. But the pace of decline eased, helped by policy steps to arrest the slowdown. The HSBC/Markit flash Purchasing Managers Index for April rose to 48.3 from March’s final reading of 48.0, still below the 50 line separating expansion from contraction. The initial sign of stabilization in the economy was due to the government’s targeted measures to underpin growth, but believe more policy support may be needed as structural reforms put additional pressures on activity.

Meanwhile, China collected 2.6 trillion yuan ($417 billion) in taxes in the first quarter of 2014, up 9.9% year on year. Taiwan’s stock exchange is seeking to create a cross-border stock trading platform with Singapore by this year to boost overseas access to the island's listed shares. In Hong Kong, overall consumer prices rose 3.9% year-on-year in March, the same as in February. Netting out the effects of the government’s one-off relief measures, the underlying inflation rate was 3.6%, also the same as in February.