Post Session: Quick Review

Indian equity markets finally recovered after three straight sessions of profit-booking on Friday, which lifted both Sensex and Nifty above psychologically crucial 27,050 and 8,050 levels respectively, with gains of around three tenths of a percent. In the extremely choppy session of trade, benchmark equity indices slipped several times below the neutral line only to recover later. Nevertheless, it was late-hour buying at lower levels that mainly aided the sentiment at Dalal Street. Meanwhile, broader indices outperforming larger peers were trading with gains in the range of 0.30%-0.80%. Notably, these gains came ahead of the release of macro-economic data such as July industrial output and August Retail inflation data, to be released after market hours on Friday. The street expects Industrial production to grow 1.8% from a year earlier in July, slower than June's 3.4% increase, while India's consumer price inflation, closely tracked by the Reserve Bank of India, is expected to edge lower to 7.80% in August from July's 7.96%. However, positive global cues were supporting the up-move of markets, which from the past three trading session were reeling under pressure. For the week, while Nifty added 0.20%, Sensex ended flat.

On the global front, Asia-pacific shares concluded mixed as investors awaited the release of Chinese economic statistics at the weekend and global sentiment was dampened by the upcoming Scottish independence vote and weak inflation data. The mixed performance in Asian markets came after US stocks finished little changed on Thursday as concerns about the September 18 referendum on Scottish independence and weak global inflation data weighed on sentiment. Additionally, Europe's main stock markets fell on Thursday, weighed down by jitters over the upcoming referendum on Scottish independence and the impact of fresh EU sanctions against Russia.

Closer home, most of the sectoral indices on BSE concluded into positive territory, however stocks from Consumer Durables, Fast Moving Consumer Goods and Healthcare counters were the prominent gainers of the session. On the flip side, only stocks from Power, Capital Goods and Metal counters were the prominent losers of the session. Auto stocks were in top gear after the government reportedly underscored that it was mulling at the proposal for extending excise duty concessions to the automobile sector beyond December. Further, towards this development, the Heavy Industries Ministry is likely to send a proposal to Finance Ministry regarding extension of excise duty concession till March 31, 2015. On the flip side, pharmaceuticals stocks extended previous sessions’ decline, which were triggered by reports that Sun Pharma's manufacturing facility in Halol, Gujarat is undergoing a surprise inspection by the US Food and Drug Administration (USFDA). The market breadth on the BSE remained in the favour of advances; advancing and declining stocks were in a ratio of 1715:1333, while 106 scrips remained unchanged. (Provisional)

The BSE Sensex ended higher by 66.66 points or 0.25% at 27062.53 after trading in a range of 26965.91 and 27096.87. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.11%, while Small cap index up by 0.31%. (Provisional)

The gaining sectoral indices on the BSE were Auto up by 0.67%, Consumer Durables up by 0.65%, FMCG up by 0.42%, TECK up by 0.33% and Bankex up by 0.29% while, Power down by 1.37%, Capital Goods down by 0.86%, Oil & Gas down by 0.24%, Realty down by 0.17% and Metal down by 0.16% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Cipla up by 5.97%, Bharti Airtel up by 2.28%, Maruti Suzuki up by 1.94%, Hero MotoCorp up by 1.55% and Sesa Sterlite up by 1.54%. On the flip side, Hindalco down by 2.17%, Sun Pharma Industries down by 2.03%, Tata Power down by 1.65% and NTPC down by 1.46% and BHEL down by 1.26% were the top losers. (Provisional)

Meanwhile, with an aim to attract high investment in inland waterways sector, government is planning to take various policy initiatives to make the sector economically viable for business. Minister for Road Transport, Highways and Shipping Nitin Gadkari has stated that, in order to build terminals, water ports and seaports, the government will provide all facilities, concessions to make waterways sector attractive for investors.

A waterway is a shipping route consists of one or several waterways include rivers, lakes, seas, oceans, and canals. Waterways are a fuel-efficient mode of transport with barely 55 paise a km charge for transportation as against Rs 1.5 on highways. Freight transportation by waterways is highly under-utilised in India compared to other large countries and geographic areas like the United States, China and the European Union. Waterways sector accounts for around 0.5 percent of total freight movement in the country whereas in China waterways contribute 20 percent of the total traffic in the country.

Nitin Gadkari further asserted that the government will give more importance to the waterways sector which will provide impetus to Indian economy. The government has earlier suggested utilising the entire potential of the Ganga by using it as a waterway from Gangotri to Kanpur, and Kanpur to Patna for transportation. The government is also planning to set up a Waterport Authority of India to facilitate plying of seaplanes.

India VIX, a gauge for markets short term expectation of volatility declined 1.21% at 12.36 from its previous close of 12.48 on Thursday. (Provisional)

The CNX Nifty edged higher by 19.80 points or 0.24% at 8105.50 after trading in a range of 8071.60 and 8114.30. There were 28 stocks advancing against 22 stocks declining on the index. (Provisional)

The top gainers on Nifty were Cipla up by 6.53%, Lupin up by 3.03%, Asian Paints up by 2.31%, Bank of Baroda up by 2.24% and PNB up by 1.97%. On the flip side, Hindalco down by 2.54%, Cairn India down by 2.24%, Sun Pharma Industries down by 1.97%, Power Grid Corporation down by 1.96% and Ultratech Cement down by 1.76% were the top losers. (Provisional)

European Markets were trading mostly in the red; France’s CAC was down by 0.22% and Germany’s DAX was down by 0.33%, while UK’s FTSE 100 was up by 0.05%.

Asian markets ended mixed on Friday, as Chinese lending data added to signs the region’s biggest economy is weakening. Japanese shares advanced for a fifth day to extend a six-year high as exporters rose with the yen trading near its weakest against the dollar since 2008. A report showed aggregate financing, China’s broadest measure of credit, trailed estimates in August, adding to the government’s challenge to meet its economic growth target amid a slumping property market and a pullback in manufacturing. Chinese M2 Money Stock fell to 12.8%, from 13.5% in the preceding month. Industrial production in Japan rose more-than-expected last month. The industrial production rose to a seasonally adjusted 0.4%, from 0.2% in the preceding month. South Korean Interest Rate Decision remained unchanged at a seasonally adjusted annual rate of 2.25%, compared to the preceding quarter while South Korean Unemployment Rate rose to a seasonally adjusted annual rate of 3.5%, from 3.4% in the preceding month.