Post Session: Quick Review

The theme of Tuesday’s trading session was of consolidation, as benchmark equity indices snapped the range-bound session of trade on flat note. However, hopes of an uptick in demand with the BJP-led NDA government promising to unveil reforms for boosting economic growth prevented any significant downtrend of the markets. However, some losses were in-evitable after previous three consecutive sessions’ bull-run, which underpinned market-participants to partially cash out their profits. But, the session clearly was yielding for broader indices, which outperforming larger counterparts, went home with massive gains in the range of 1.75%-3.10%. Meanwhile, both Sensex and Nifty snapped the session above the crucial 24,350 and 7250 levels respectively.

On the global front, Asian pacific shares concluded into negative territory weighed down by developments in Thailand, following news the army had declared martial law after six months of anti-government protests. Additionally, European shares were also dragged down by poor showing by Vodafone, which reported decline in its full year revenue due to lacklustre performance in the company’s European markets.

Closer home, however the optimism of few brokerage houses over bourses prevented sharp bouts of profit-booking that led to bourses end not far away from record high level. With the Narendra Modi-led Bharatiya Janata Party (BJP) set to form the central government after a landslide victory, several foreign brokerages, like US-based Goldman Sachs, Japan’s Nomura and Citibank have raised price targets for the country’s benchmark indices by as much as 15 per cent over the current levels. Meanwhile, some sense of comfort was also drawn from report from Morgan Stanley underscoring India emerging from stag-flationary stage, with its GDP growing in the range of 6%-8%.

Sectorally, Realty, Technology and Consumer Durables featured in the list of top performers for the session. Real estate and infrastructure companies rallied on the back of heavy volumes on expectations of change in policy environment. Unity Infrasprojects, Lanco Infratech, IL&FS Engineering and Constructions, Unitech, Oberoi Realty, Housing Development and Infrastructure (HDIL), Ansal Properties, Man Infraconstructions and Kolte Patil Developers rallied more than 10% each in intra-day trade. Additionally, IT stocks also made a comeback on some bargain buying activities after previous sessions’ drubbing and also after Rupee cooled off from eleven months high level on speculated RBI’s intervention. On the flip side, stocks from Oil & Gas, PSU and Banking counters were the worst performers of the session.  The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 2138:750, while 101 scrips remained unchanged. (Provisional)

The BSE Sensex gained 13.83 points or 0.06% to settle at 24376.88. The index touched a high and a low of 24587.16 and 24299.53 respectively. Among the 30-share Sensex, 17 stocks gained, while 13 stocks declined. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.74% and Small cap index was up by 3.06%. (Provisional)

On the BSE Sectoral front, Realty up by 4.89%, Teck up by 2.40%, Consumer Durables up by 2.37%, IT up by 2.11% and Metal up by 1.61% were the gainers while, Oil & Gas down by 3.26%, PSU down by 1.54%,and  Bankex down by 0.77% were the losers in the space. (Provisional)

The top gainers on the Sensex were SSLT up by 8.02%, Mahindra & Mahindra up by 3.57%, Tata Steel up by 3.40%, Bharti Airtel up by 2.87% and BHEL up by 2.85% while, Coal India down by 6.48%, ONGC down by 4.24%, RIL down by 3.82%, Hero MotoCorp down by 3.29% and Gail India down by 2.18% were the top losers in the index (Provisional).

Meanwhile, overseas direct investments by Indian companies rose to $5.58 billion in April from $5.23 billion in the previous month. However, the investment was much lower from $15.24 billion during the same month of previous year. The investments made by domestic corporate include equity, debt and bank guarantees. 

Total foreign direct investments from India in April included $1.15 billion in equity, $268.16 million in loans and $4.16 billion were through issuance of guarantees. Telecom major Bharti Airtel, Elder Pharmaceuticals, Haldia Coke and Serum Institute were among the major companies that made high investment in foreign markets in the month.

Elder Pharmaceuticals had raised $1.3 billion in the form of loans in its wholly owned subsidiary in the United Arab Emirates. Bharti Airtel issued guarantees of $2.11 billion and $55 million in its joint venture and a wholly-owned unit in the Netherlands and Singapore respectively. Among others, Haldia Coke and Chemicals had overseas investment of $2.14 billion by way of raising loans in its wholly owned unit in the US. While Serum Institute of India raised guarantees of $71.96 million in the company's wholly owned subsidiary in the Netherlands. Furthermore, Alok Industries had garnered $247.61 million in three different tranches in a mix of loans and guarantees.  India VIX, a gauge for markets short term expectation lost 6.77% at 19.23 from its previous close of 20.63 on Monday. (Provisional)

The CNX Nifty gained 11.95 points or 0.16% to settle at 7,275.50. The index touched high and low of 7,353.65 and 7,247.70 respectively. Out of 50 stocks in Nifty, 25 stocks ended in the green and 25 in red.

The major gainers of the Nifty were SSLT up 8.01%, NMDC up by 5.11%, BHEL up by 3.64%, Tata Steel up by 3.58% and Wipro up by 3.21%.  On the flip side, the key losers were Coal India down by 6.41%, ONGC down by 4.43%, Hero Moto Co down by 3.73%, Reliance down by 3.58% and Bank Baroda down by 3.12%. (Provisional)

European markets were trading in red; France’s CAC 40 was down by 0.36%, UK’s FTSE 100 was down by 0.45% and Germany’s DAX was down by 0.17%.

The Asian markets concluded Tuesday’s trade on a mixed note, with Hang Seng Index closing at a five-week high. Shanghai’s new home market continued on a weak trajectory last week despite a rebound in sales of mid- to low-end projects. The purchases of new residential properties, excluding government-subsidized affordable housing, rose 20.6% from the previous seven-day period to 150,800 square meters. The average price for the new homes was 25,860 yuan ($4,171) per square meter, a week-on-week decline of 3.4%. Japan’s All Industries Activity Index rose to a seasonally adjusted 1.5%, from -1.1% in the preceding month. Singaporean GDP fell to a seasonally adjusted 4.9%, from 5.1% in the preceding quarter.