Post Session: Quick Review

Markets witnessing drubbing for third successive session on Friday settled with a cut of around four tenths of a percent on Friday, which dragged both Sensex and Nifty below their psychologically crucial 25,150 and 7,550 levels respectively by close of trade. Iraq turmoil which weighed on the risk appetite of market-participants for yet another session, in absence of any positive trigger, dragged the markets lower. Additionally, fall of the markets could also be partially attributed to squaring off positions by select market-participants ahead of F&O expiry week. While, sentiment to some extent were soured after reports suggested of monsoon covering half of India's landmass was four days behind the usual schedule, failing to recover from a late start that has slowed sowing of summer crops in a country where half of the farmland still lacks irrigation. In the dismal session of trade, broader indices too settled with a cut in the range of 0.35%-0.65%.

On the global front, Asia pacific shares ended mostly in red as investors preferred booking profits ahead of the release of provisional manufacturing data from China, Europe and the United States next week. Meanwhile, European shares headed for weekly advances on Friday as dovish comments from Federal Reserve Chairwoman Janet Yellen earlier in the week continued to push indexes closer to multiyear highs.

Closer home, most of the sectoral indices on BSE surrendering to selling pressure, ended lower; however stocks from Realty, Fast Moving Consumer Goods and Infrastructure counters outperformed. On the flip side, Auto, Healthcare and Public Sector Undertaking (PSU) counters were the prominent losers of the session. Additionally, Oil& Gas stocks took a heavy beating ahead of Oil Minister Dharmendra Pradhan's meeting with Prime Minister, Narendra Modi on gas pricing issue. Nevertheless, in today’s trading session, IT stocks after standing tall for past few sessions were down and out on profit-booking. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1305:1662, while 96 scrips remained unchanged. (Provisional)

The BSE Sensex lost 89.89 points or 0.36% to settle at 25111.91. The index touched a high and a low of 25276.31 and 25056.18 respectively. Among the 30-share Sensex, 8 stocks gained, while 22 stocks declined. (Provisional)

The broader indices too traded ended the session in the red; the BSE Mid cap index was down by 0.36% and Small cap index was down by 0.65%. (Provisional)

On the BSE Sectoral front, Consumer Durables up by 3.63%, Realty up by 0.91%, FMCG up by 0.11% and Infrastructure up by 0.07% were the top gainers while, Auto down by 1.14%, Healthcare down by 0.94%, Power down by 0.83%, PSU down by 0.79% and Capital Goods down by 0.74%, were the top losers in the space. (Provisional)

The gainers on the Sensex were Axis Bank up 1.42%, Bharti Airtel up by 0.52%, Bajaj Auto up by 0.44%, TCS up by 0.22% and Tata Steel up by 0.12%. On the flip side, the key losers were M&M down by 3.20%, Tata Power down by 2.64%, Hindalco down by 2.39%, Sun Pharma down by 1.55% and ICICI Bank down by 1.09%. (Provisional)

Meanwhile, with a view to boost Indian industrial production, the government is planning to exempt the National Investment and Manufacturing Zones (NIMZs) from certain restrictive labour laws. India's labour market is over regulated and some provisions are not well suited with the modernized business.

The proposal to exempt NIMZs came after the commerce and industry ministry has expressed the need to resolve issues related to the few provisions of the labour laws which have been impacting the growth of manufacturing sector. Over the past two fiscal years, manufacturing sector has been struggling with slowdown and high borrowing cost and weak investment due to policy uncertainty were the leading factors responsible for low industry output growth. 

The industrial, having around 25% share in the economy, grew by 0.35% to Rs.15 lakh crore in FY14 as compared to 1% growth in previous year.  Within industrial sector, manufacturing contracted by 0.7% in the reported fiscal year as against a marginal growth of 1.1% in FY13. Mining continued to witness contraction at 1.4% in FY 14 as against 2.2% de-growth in the FY13.

Meanwhile to boost India’s manufacturing sector, the government has set the National Manufacturing Policy (NMP), which aimed at raising the share of manufacturing to 25 percent of GDP by 2022 from the current 16 percent. The NMP envisages setting up of NIMZs, which are industrial townships, benchmarked to the best manufacturing hubs in the world.

India VIX, a gauge for markets short term expectation surged 0.56% at 18.84 from its previous close of 18.74 on Thursday. (Provisional)

The CNX Nifty declined 29.70 points or 0.39% to settle at 7,511.00. The index touched high and low of 7,560.55 and 7,497.30 respectively. Out of 50 stocks in Nifty, 12 stocks ended in the green and 38 in red. (Provisional)

The major gainers of the Nifty were McDowell up 3.61%, Cairn up by 1.32%, Axis Bank up by 1.26%, Kotak Bank up by 1.23% and DLF up by 1.06%. On the flip side, the key losers were M&M down by 3.07%, Tata Power down by 2.69%, Hindalco down by 2.53%, BPCL down by 2.49% and Sun Pharma down by 1.95%. (Provisional)

European markets were trading in green; UK’s FTSE 100 up by 0.31%, Germany’s DAX up by 0.30% and France’s CAC 40 was up by 0.03%.

The Asian markets concluded Friday’s trade mostly in red, with Nikkei ending slightly lower as investors tended to lock in gains from recent surges, despite optimism over the global economy. Moody’s Investors Service stated that the prolonged effects of China’s property market slowdown could hurt economic growth, but reforms to balance the economy will offset the negative impact. China’s gross domestic product growth may slow to 5-6 percent from 7-7.5 percent this year if property sales and building construction both fall by 10%. Indonesia’s outgoing finance minister stated that the next president will need to discard election rhetoric and focus on raising fuel prices and luring foreign investment to address the budget and current- account deficits. Southeast Asia’s biggest economy is struggling to contain a persistent current-account deficit that helped make the rupiah Asia’s worst performer last year, while ballooning fuel subsidy costs have increased the 2014 budget shortfall and forced a reduction in state spending. Japan’s All Industries Activity Index fell to a seasonally adjusted -4.3%, from 1.5% in the preceding month.