Post Session: Quick Review

After suffering a sharp set-back in previous session, Indian equity markets just about consolidated on Monday, ending flat at its previous closing levels which were above the crucial 25,000 (Sensex) and 7,450 (Nifty) marks respectively. Barometer gauges, in absence of any positive triggers continued trading frail and ended the extremely choppy session of trade, flat with negative bias. However, positive global set-up and four-month low June WPI data mainly restricted any kind of market’s slide.

Though, markets witnessed a sharp-sell, in a knee jerk-reaction to June headline inflation data, which showed April WPI getting revised to 5.5% as against 5.20% earlier and core inflation remaining sticky at 3.9%, but soon regained the lost territory by the close of trade. Otherwise in encouraging development, India's main inflation gauge, based on monthly WPI, softened to four-month low of 5.43% for the month of June as compared to 6.01% in the previous month and 5.16% during the corresponding month of the previous year. Nevertheless, some amount of caution ahead of June CPI, which kept investors on the tenterhooks, prevented any kind of uptrend. Meanwhile, broader indices too failed to negotiate a positive close, which led Midcap index ending flat with negative bias and Small-cap index dropping close to half a percent by close of trade.

On the global front, Asian shares rose on Monday as investors put aside concerns about euro zone banks and looked forward to corporate earnings and a raft of global economic events, including testimony from the head of the Federal Reserve. Meanwhile, European shares rose on Monday, boosted by M&A activity in the pharmaceutical sector and rallying from near two-month lows after their biggest weekly loss in four months.

Closer home, with most of the sectoral indices ending into positive territory, stocks from Capital Goods, Auto and Metal counters outperformed the peers, nevertheless stocks from Consumer Durables, IT and TECk counters were the top losing indices. Shares in metal refiners rose with Hindalco Industries settling higher over 4 percent on optimism ahead of China GDP data due on Wednesday. According to estimates, China's economy probably steadied in the second quarter with annual growth holding firm at 7.4%. On the flip side, IT shares slid dragged by the plunge of Infosys shares by 3%.  The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1127: 1690, while 110 scrips remained unchanged. (Provisional)

The BSE Sensex slipped 17.37 points or 0.07% to settle at 25006.98. The index touched a high and a low of 25095.76 and 24892.00 respectively. Among the 30-share Sensex, 13 stocks gained, while 17 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended lower by 0.02% and 0.47% respectively. (Provisional) 

On the BSE sectoral front, Capital Goods up by 1.14%, Auto up by 0.99%, Metal up by 0.97%, Power up by 0.76% and Infrastructure up by 0.55% were the top gainers, while Consumer Durables down by 2.24%, IT down by 1.27%, TECk down by 0.99%, Realty down by 0.78% and Healthcare down by 0.53% were the top losers in the space. (Provisional)

The top gainers on the Sensex were Hindalco up 4.54%, Tata Steel up by 3.20%, Tata Power up by 3.19%, Tata Motors up by 2.63% and L&T up by 1.94%. On the flip side, the key losers were Infosys down by 3.00%, HUL down by 2.95%, Wipro down by 1.95%, HDFC down by 0.80% and ICICI Bank down by 0.78%. (Provisional)

Meanwhile, Finance Secretary Arvind Mayaram has defended the government’s budget target to contain fiscal deficit at 4.1% of GDP in current fiscal to be achievable. During budget 2014-15, the government has stated that it will focus on attracting investment rather than reining in spending in order to balance India`s books and revive a weak economy, an approach that fell short of expectations of rating agencies.

Mayaram added that the government would be able to exceed the $9.7 billion divestment target in current fiscal by selling government stakes in both state-owned and private companies as  India`s stock markets were stronger this year than they had been last year. By adding further, he said the government is taking measures for increasing investments in the country to boost economic growth which in turn will enhance tax revenue for the government.

India’s fiscal deficit narrowed to 4.5% of GDP in the financial year 14, as compared to 4.89% of GDP in the FY13. High fiscal deficit has adverse impact on country’s economy as it leads to three macro economic problems such as a balance of payments crisis, high interest rates because of crowding out and high inflation owing to the currency depreciation.

India VIX, a gauge for markets short term expectation declined 1.01% at 15.56 from its previous close of 15.72 on Friday. (Provisional)

The CNX Nifty dipped 5.45 points or 0.07% and concluded at 7,454.15. The index touched high and low of 7,478.45 and 7,422.15 respectively. Out of 50 stocks in Nifty, 24 stocks ended in the green and 26 in red. (Provisional)

The major gainers of the Nifty were Hindalco up 4.35%, Asian Paints up by 3.89%, PNB up by 3.72%, Tata Power up by 3.48% and Bank of Baroda up by 2.68%. On the flip side, the key losers were HCL Tech down by 3.29%, HUL down by 3.09%, Infosys down by 3.06%, Wipro down by 2.32% and ACC down by 1.87%. (Provisional)

European markets were trading in green; UK’s FTSE 100 up by 0.67%, Germany’s DAX up by 0.81% and France’s CAC 40 was up by 0.55%.

The Asian markets concluded Monday’s trade mostly in green their first gain in five days. China’s stocks rose the most in a month as automakers got a boost from the government’s pledge to buy more alternative-energy cars, while utilities and consumer-staples shares gained on speculation profit will beat estimates. Hong Kong stocks rose, with the benchmark index climbing after capping its biggest weekly drop since May. The Bank of Japan started a two-day policy meeting today with all 34 economists surveyed expecting the monetary authority will maintain the pace of its monthly bond-buying. Thirty-two percent of economists in a separate survey forecast the BOJ will expand stimulus on October 31. Japan’s industrial production rose to a seasonally adjusted 0.7%, from 0.5% in the preceding month.

Singapore’s economy unexpectedly contracted in the second quarter as higher labor costs and company moves to shift production overseas hurt manufacturing. Gross domestic product fell an annualized 0.8% in the three months through June from the previous quarter, when it expanded a revised 1.6%. Singaporean GDP fell to a seasonally adjusted 2.1%, from 4.7% in the preceding quarter whose figure was revised down from 4.9%.