Post Session: Quick Review

First trading session of F&O expiry week, not surprisingly, turned out to be choppy with barometer gauges giving away their entire gains by close, leading to somewhat flattish session of trade at Dalal Street after series of gains. Record breaking run of bourses in early deals mainly underpinned market-participants to book their profits amidst prevailing cautiousness across the globe after Fed Chair Yellen‘s less than expected dovish tone. Fed Chair Janet Yellen on Friday amid calls from policy hawks for a near-term rate hike, said that Federal Reserve should move cautiously in deciding when to raise interest rates given the US labour market remains bruised from the Great Recession. Nevertheless, absence of significant positive trigger also added to downbeat milieu of Indian equity markets. By close of trade, both Sensex and Nifty, despite giving away most of the gains earned during the session, concluded above 26,400 and 7,900 levels respectively. However, broader indices staging a degree of under-performance went home with losses in the range of 0.40%-0.60%.

On the global front, Asia stocks mostly gained on Monday after comments from U.S. Federal Reserve Chairwoman Janet Yellen at the weekend that signalled growth prospects and a more nuanced view on the timing of a possible hike in interest rates. Additionally, European shares rose in morning trading on Monday, with market sentiment improving after comments by European Central Bank President Mario Draghi raised expectations of further policy easing. Draghi, speaking at a global central banking conference in Jackson Hole, Wyoming, said late on Friday the bank was prepared to respond with all its 'available' tools should inflation drop further.

Closer home, benchmarks managed to scale fresh record high in earlier part of the session, after Finance Minister Arun Jaitley underscored that there would be huge opportunities for the corporate sector to invest once the country reached the take-off stage of economic advancement. However, latest RBI report stating that foreign direct investment inflows into India fell sharply from $23.47 billion in 2011-12 to $18.29 billion in 2012-13 and further to $16.05 billion in 2013-14, soured sentiment too some extent.Sectorally, Fast Moving Consumer Goods, Information Technology and Auto counters were the major pillars of markets’ strength, while those from Metal, Realty and Infrastructure counters endorsed the underlying weakness of bourses.  Gains of Maruti Suzuki, which scaled 52 week high after Credit Suisse raised its target price of stock, mainly powered the entire Auto pivotal. The brokerage has raised its FY16 earnings estimate by nearly 3 per cent and introduced FY17 estimates, which is 15 per cent higher than the street's.

However, power stocks, which edged higher after reports suggested that government has started the process for setting up four new ultra mega power projects in Bihar, Jharkhand and Odisha, which will together add 16,000 MW capacity to the country's power generation, succumbed to selling pressure by close of trade. Besides, Oil & gas sector stocks hogged limelight after reports suggested that four-member committee of secretaries (CoS) set up by the government, would review the gas-pricing formula will hold its first meeting with stakeholders. The market breadth on the BSE remained in the favour of decliners; advances and declining stocks were in a ratio of 1398:1622, while 79 scrips remained unchanged. (Provisional)

The BSE Sensex rose 17.47 points or 0.07% to settle at 26437.02. The index touched a high and a low of 26630.74 and 26401.64 respectively. 14 stocks gained against 16 declines on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.64%, while Small cap index down by 0.42%. (Provisional) 

On the BSE sectoral front, FMCG up by 1.02%, IT up by 0.97%, TECK up by 0.73% and Auto up by 0.42% while, Metal was down by 4.34%, Realty down by 2.01%, Infrastructure down by 1.24%, Power down by 1.24% and Bankex was down by 0.89% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were TCS up by 2.25%, Hindustan Unilever up by 2.09%, Maruti Suzuki up by 2.03%, Hero MotoCorp up by 1.74% and Dr. Reddys Lab was up by 1.62%. On the flip side, Hindalco down by 9.91%, Tata Steel down by 5.20%, Sesa Sterlite down by 4.22%, Tata Power down by 3.47% and ICICI Bank down by 1.34% were the top losers. (Provisional)

Meanwhile, according to Reserve Bank of India's (RBI) latest report, foreign direct investment inflows in Indian equity fell to $16.05 billion in 2013-14 from $18.29 billion in 2012-13 and $23.47 billion in 2011-12. However, during 2013-14, overall FDI inflows in India rose by 8% to $24.29 billion as against $22.42 billion in FY13.

Further, overall FDIs, during the first quarter of FY15, jumped by 34 percent to $7.23 billion from $5.39 billion recorded in the corresponding period of the previous fiscal. Country wise, maximum FDI during the reported period was received form Mauritius at $2.61 billion, followed by Singapore ($1.18 billion), the UK ($567 million), Japan ($695 million) and the US ($249 million).

The report also revealed that Singapore has overtaken Mauritius as the largest source of foreign equity inflows into India. Investments from Singapore amounted to $4.42 billion in 2013-14 as compared to $3.69 billion from Mauritius. During 2009-10, FDI inflows from Mauritius recorded at $9.8 billion.

FDI is considered crucial for India and to attract maximum FDI into the country, the government has been liberalizing the foreign investment policy. Recently, the government has raised the foreign investment limit to 49 percent in defence manufacturing and also relaxed the policy in railway and construction sector.  Furthermore, India requires around $1 trillion in the 12th five year plan (2012-2017), to overhaul its infrastructure sector such as ports, airports and highways to boost growth.  

India VIX, a gauge for markets short term expectation of volatility rose 1.13% at 13.77 from its previous close of 13.62 on Friday. (Provisional)

The CNX Nifty ended lower by 6.90 points or 0.09% to settle at 7906.30. The index touched high and low of 7968.25 and 7897.95 respectively. 21 stocks ended in the green against 29 stocks ending in red. (Provisional)

The top gainers on Nifty were TCS up by 2.35%, BHEL up by 2.09%, Dr. Reddys Lab up by 1.91%, Maruti Suzuki up by 1.85% and Hindustan Unilever was up by 1.78%. On the flip side, Jindal Steel & Power down by 13.91%, Hindalco down by 9.67%, Tata Steel down by 4.79%, Sesa Sterlite down by 3.99% and Tata Power was down by 3.52% were the top losers. (Provisional)

European markets were trading in the green; France’s CAC 40 was up by 0.89% and Germany’s DAX was up by 1.03%.

Asian markets ended mostly in green on Monday, as investors weighed earnings reports and comments from central bankers for clues to monetary policy. China’s stocks fell, capping the benchmark index’s biggest loss in a week, as concern that new bank lending isn’t picking up. While the International Monetary Fund has urged China to curb its credit expansion, last month’s loan figures sparked investor concern that growth in the world’s second-largest economy will falter without monetary stimulus. Bank of Japan Governor Haruhiko Kuroda stated at the symposium that the nation’s monetary policy was having its intended effect and that central banks must fight deflation by any and all means. He added that Japan should consider using foreign workers to help mitigate labor-force shortages. Hong Kong Trade Balance rose to a seasonally adjusted -42.1B, from -43.1B in the preceding month. Malaysian Unemployment Rate fell to a seasonally adjusted 2.80%, from 2.90% in the preceding month.