Post Session: Quick Review

In the extremely range-bound session of trade, local equity markets ended downbeat with loss of around quarter of a percent, which dragged Sensex and Nifty below the psychologically crucial 26,600 and 7,950 levels respectively. Absence of buying triggers amidst disappointing macro-economic reports on home front and somber global cues, mainly contributed to yet another down-session of performance at Dalal Street. Additionally, winding up of long positions by the market-participants on the final trading session of the holiday truncated week also added to negative milieu. Selling pressure also was felt by broader indices, which concluded with cut in the range of 0.20%-0.35%. On the macro-front, sentiment first took a hit after India’s fiscal deficit figures crossed half the budget estimate (BE) for 2014-15 in the first three months of the financial year and later after business activity in Indian manufacturing sector, although improving for the eleventh consecutive month, expanded at its weakest pace in nine months, i.e. since December 2013, for the month of September.

On the global front, Asian counterparts slumped due to continued civil unrest in Hong Kong and as downbeat day on Wall Street sapped confidence. Further, trading in Asia was subdued with China closed for National Day and investors warily monitored Hong Kong's pro-democracy unrest, as thousands of protesters stepped up pressure on the city's pro-Beijing government. Meanwhile, European shares too got off to a negative start ahead of a batch of euro zone data expected to show relatively weak manufacturing activity.

Closer home, almost all the sectoral indices on BSE concluded into negative territory, however stocks from Information Technology and Technology counters were the only exceptions. Shares of defensive sectors, mainly export oriented sectors like information technology (IT) rallied for yet another session as investors do not expect the Reserve Bank of India (RBI) to cut rates in a hurry after India’s apex bank cited upside risks to medium term inflation target of 6% by Jan 2016 to hold rates in its forth bi-monthly monetary policy review on Tuesday. On the flip side, major brunt of selling pressure was witnessed by stocks from Oil & Gas, followed by Fast Moving Consumer Goods (FMCG) and Infrastructure counters. Meanwhile, Auto stocks concluded lackluster on reporting monthly sales figure, however losses were limited as petrol prices were reduced by 54 paise a litre on the back of softening international oil rates. In a related development, Besides, Airline stocks were up after ATF price was cut by an average of nearly 3 percent across cities in India. The market breadth on the BSE remained in the favour of decliners; where advancing and declining stocks were in a ratio of 875:2148, while 79 scrips remained unchanged. (Provisional)

The BSE Sensex ended lower by 77.44 points or 0.29% at 26553.07 after trading in a range of 26548.22 and 26683.70. There were 10 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.21%, while Small cap index down by 0.42%. (Provisional)

The only gaining sectoral indices on the BSE were IT up by 1.88% and TECK up by 1.25% while, Oil & Gas down by 1.60%, FMCG down by 1.20%, Capital Goods down by 0.80%, Infrastructures down by 0.75% and Consumer Durables down by 0.74% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Wipro up by 3.35%, Infosys up by 2.49%, Mahindra & Mahindra up by 2.11%, TCS up by 1.31% and Hero MotoCorp up by 1.13%. On the flip side, Maruti Suzuki down by 3.34%, Tata Steel down by 2.53%, Tata Power down by 2.29%, GAIL India down by 2.26% and Reliance Industries down by 2.02% were the top losers. (Provisional)

Meanwhile, alongside the revision of petrol price, the non-subsidized cooking gas (LPG) price also was reduced by Rs 21 per cylinder on the back of declining international oil prices. This reduction marks the third straight reduction in rates of non-subsidized LPG since July. With this, a non-subsidized 14.2-kg cooking gas cylinder will now cost Rs 880, down from Rs 901, in Delhi, while subsidized LPG cylinder in country’s capital will costs Rs 414.

Besides, prices of price of aviation turbine fuel (ATF), or jet fuel, at Delhi was cut by Rs 2,077.62 per kilolitre, or 2.98%, to Rs 67,525.63 per kl. Meanwhile, In Mumbai, jet fuel costs Rs 69,610.50 per kl as against Rs 71,829.42 per kl previously

A cut in the price of jet fuel, which constitutes over 40% of the airline’s operating costs, will ease the financial burden of the cash strapped carriers. However, this revision is usual practice followed by three fuel retailers -- IOC, Hindustan Petroleum and Bharat Petroleum Corp - which revise jet fuel and non-subsidised LPG prices on the first of every month, based on the average international prices in the preceding month.

India VIX, a gauge for markets short term expectation of volatility declined 1.10% at 13.00 from its previous close of 13.14 on Tuesday. (Provisional)The CNX Nifty ended lower by 19.25 points or 0.24% at 7945.55 after trading in a range of 7936.70 and 7977.50. There were 15 stocks advancing against 35 stocks declining on the index. (Provisional)

The top gainers on Nifty were Wipro up by 3.18%, Infosys up by 2.66%, Mahindra & Mahindra up by 2.12%, HCL Tech up by 1.48% and TCS up by 1.43%. On the flip side, Indusind Bank down by 3.17%, Maruti Suzuki down by 3.00%, Tata Power down by 2.71%, Cairn India down by 2.60% and GAIL India down by 2.35% were the top losers. (Provisional)

European Markets were trading mostly in the green; UK’s FTSE 100 was down by 0.42% and France’s CAC was down by 0.36%, while Germany’s DAX was up by 0.11%.

Asian markets ended mostly in red on Wednesday, with Hong Kong bracing for bigger protests as Chinese holidays started. Shanghai Stock Exchange and Hong Kong Stock Exchange were closed today on account of ‘National Day’ holiday. Growth in China’s manufacturing sector held up in September but remained subdued in a sign that the world’s second-largest economy is still struggling to recover its growth momentum. The official Purchasing Managers’ Index (PMI) hovered at 51.1, indicating a modest expansion in activity and a touch ahead of forecasts for a 51.0 reading. The data came a day after China cut mortgage rates for the first time since the 2008 global financial crisis to boost its flagging economy, and reinforced a view among some analysts that sluggish domestic demand and a cooling property market were dragging on activity. Indonesian Inflation rose to a seasonally adjusted 4.53%, from 3.99% in the preceding month. South Korean CPI fell to -0.1%, from 0.2% in the preceding month.

The Bank of Japan released its quarterly Tankan business survey for September, showing depreciation of the yen supports the Tokyo stock market, but that higher costs are also hitting household spending. The September Tankan showed that sentiment among major manufacturers rose to plus 13 in September from plus 12 in June, showing that negative effects of weak exports and domestic demand were offset by the yen’s drop. The BoJ is expected to maintain the pace of its asset purchases at its next policy meeting on October 6-7, expecting the economy to continue to recover moderately.