Post Session: Quick Review

Friday’s session was of consolidation, dragging Sensex and Nifty below the psychological 24,250 and 7,250 levels respectively, albeit with slender loss of over one tenth of a percent. Growing caution ahead of Q4GDP data and RBI’s monetary policy review on Tuesday for outlook on inflation and expectations on the new government's budget, mainly kept market-participants at the bay. However, a sharp slide was restricted on account of bottom fishing by select market-participants, which used dips as an opportunity for entering the markets. The session turned out to be yielding for broader indices that outperforming larger peers, went home with gains of over three tenths of a percent.

On the global front, Asian shares undid all their early gains and ended the session with loss on account of caution ahead of European Central Bank’s meeting next week, which was also mirrored in European equities that took a turn for the worse after an unexpected increase in German unemployment and a deceleration in the euro zone money supply.

Closer home, gains in Healthcare, Realty and FMCG counters were offset by losses in Consumer Durables, Banking and Public Sector Undertaking counters. Banking stocks’ fall were led by stocks of State Bank of India and HDFC Bank, which tumbled of over 2% in today’s trading session. On the flip side, FMCG stocks were in demand on renewed buying, with Hindustan Unilever, Britannia Industries (up 1.05%), Colgate-Palmolive (India), Dabur India and Marico gaining in the range of 1%-8%.Besides, Defence stocks made merry at Dalal Street as the new government spearheaded by Narendra Modi swinging into action begun work on allowing up to 100% foreign investment in the sector, which took stocks like BEL, BEML, Pipavav Defence,  BHEL  and  L&T rallying over 3%-11% intraday on Friday after commerce minister gave a nod to cabinet note on hiking defence FDI cap. Besides, The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1585: 1399, while 120 scrips remained unchanged. (Provisional)

The BSE Sensex lost 16.81 points or 0.07% to settle at 24217.34. The index touched a high and a low of 24353.59 and 24163.62 respectively. Among the 30-share Sensex, 16 stocks gained, while 14 stocks declined. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.39% and Small cap index was up by 0.34%. (Provisional)

On the BSE Sectoral front, Health Care up by 2.59%, Realty up by 2.00%, FMCG up by 1.34%, Power up by 0.78% and TECK up by 0.52% was the gainer while, Consumer Durables down by 1.78%, Bankex down by 1.59%, PSU down by 0.53% and Oil & Gas down by 0.14% were the losers in the space. (Provisional)

The top gainers on the Sensex were Hindustan Unilever up 6.80%, NTPC up by 5.75%, Mahindra & Mahindra up by 4.38%, Sun Pharma up by 3.30% and Tata Power up by 3.16%.  On the flip side, the key losers were SBI down by 2.69%, HDFC Bank down by 2.28%, ICICI Bank down by 2.04%, Tata Motors down by 1.92% and Maruti Suzuki down by 1.91%. (Provisional)

Meanwhile, Prime Minister Narendra Modi has unveiled a 10-point agenda for good governance. Assigning maximum importance to bureaucratic empowerment and good governance, Prime Minister told ministers to prepare a detailed action plan for the first 100 days in office and resolve all issues left pending by the previous government on a priority basis.

Ministries should give focus on delivery and implementation and agenda for governance should be embedded into day-to-day functioning and policy making, he added. Prime Minister’s latest agenda for good governance highlighted 10-point framework include build up confidence in bureaucracy, give priority to education, health, water and power, mechanism for inter-ministerial issues, addressing concerns about economy, stability and sustainability in government policy, give bureaucrats independence to work without pressure, transparency in governance, infrastructure development, implement policy in time bound manner and people orientated system for better addressing people’s problems. 

Narendra Modi has also reiterated the importance of dealing with states' problems on a priority basis and told cabinet ministers to share their workload with junior ministers such as state ministries. In order to strengthen the federal structure, there is a need to take the states along with the Centre, he added. Prime Minister has started the process of scrutinizing bills which have lapsed in the Lok Sabha and Rajya Sabha and need to be revived.India VIX, a gauge for markets short term expectation lost 2.12% at 16.33 from its previous close of 16.69 on Thursday. (Provisional)

The CNX Nifty lost 12.15 points or 0.17% to settle at 7,223.50. The index touched high and low of 7,272.50 and 7,118.45 respectively. Out of 50 stocks in Nifty, 24 stocks ended in the green and 26 in red.

The major gainers of the Nifty were HUL up by 7.18%, NTPC up by 5.95%, M&M up by 5.20%, Sun Pharma up by 3.78% and Dr Reddy up by 3.60%. On the flip side, the key losers were Bank Baroda down by 4.13%, BPCL down by 3.39%, Power Grid down by 2.84%, SBI down by 2.69% and HDFC Bank down by 2.25%. (Provisional)

The European markets were trading mostly in green, with France’s CAC 40 was down by 0.25% while, UK’s FTSE 100 up by 0.03% and Germany’s DAX was up by 0.22%.

The Asian markets concluded Friday’s trade mostly in red, with the regional benchmark index paring its biggest monthly advance since September. Thailand Trade Balance fell to a seasonally adjusted -0.56B, from 3.48B in the preceding month. Japan’s industrial production fell to a seasonally adjusted -2.5%, from 0.7% in the preceding month while the percentage of the total work force that is unemployed and actively seeking employment during the previous month remained unchanged at a seasonally adjusted 3.6%. Japanese Housing Starts fell to a seasonally adjusted -3.3%, from -2.9% in the preceding quarter while Japanese Household Spending fell to a seasonally adjusted -4.6%, from 7.2% in the preceding month. Japan’s National Core CPI rose to a seasonally adjusted 3.2%, from 1.3% in the preceding month while Tokyo’s core CPI, which excludes fresh food costs rose to at an annualized rate of 2.8%, from 2.7% in the preceding month.