Post Session: Quick Review

After witnessing consolidation in previous trading session, bulls went berserk on bourses on Monday, which led to Sensex and Nifty concluding at all time high 28,300 and 8,450 levels respectively, with hefty gains of around a percent. Sustained buying activities by funds and retail investors thanks to spate of upbeat U.S. data, which contrasted with signs of spreading weakness in China and Europe, revived risk appetite across the globe and mainly led to record high close of local equity markets. Meanwhile, broader indices acting contrary to the trend ended down with marginal loss. In the steady session of trade, markets kept gaining momentum to conclude at day’s high levels, which were also their all time record high levels. Notably, these gains came ahead of Winter Session of Parliament that commences next week and also central bank's monetary policy review on December 2, 2014.

On the global front, Asian shares’ gains were underpinned by data in US which showed that initial U.S. weekly jobless claims fell, while factory activity in the U.S. mid-Atlantic region grew at its fastest pace in two decades and existing home sales strengthened. Moreover, European shares rose on Friday as dovish comments by European Central Bank chief Mario Draghi reignited speculation the ECB will inject more monetary stimulus into the euro zone economy. Speaking at a congress in Frankfurt, Draghi highlighted weak economic activity indicators from the bloc earlier this week and said the ECB would broaden the size, pace and composition of its asset purchase programme if needed.

Closer home, most of the sectoral indices on BSE concluded into positive territory, nevertheless stocks from Banking, Capital Goods and Fast Moving Consumer Goods counters were the prominent gainers of the session. ING Vysya Bank-Kotak Mahindra Bank merger deal mainly powered banking counter.

On the flip side, stocks from Information Technology, Technology and Healthcare counters were the weak links of trade. Besides, sugar stocks also turned sour after Food Minister Ram Vilas Paswan said that the government is yet to take a call on extending sops for overseas sale of sugar in the 2014/15 marketing year that started in October. Additionally, Healthcare stocks lost fervor even after reports suggested that Govt would roll out industry friendly bulk drug policy in two weeks, which could help the sector in growing manifold over the next 5-7 years. Given the Indian Prime Minister’s fanaticism to shape up the sector, so as to meet its future growth both in terms of production and exports, the policy will be released by himself in next two week’s time at the most. The market breadth on the BSE remained in the favour of decliners, where advancing and declining stocks were in a ratio of 1367:1645, while 118 scrips remained unchanged. (Provisional)

The BSE Sensex ended at 28334.63, up by 267.07 points or 0.95% after trading in a range of 28038.40 and 28360.66. There were 23 stocks advancing against 7 stocks declining on the index. (Provisional)

The broader indices ended in the in red; the BSE Mid cap index was down by 0.08%, while Small cap index down by 0.10%. (Provisional)

The gaining sectoral indices on the BSE were Bankex up by 2.37%, Capital Goods up by 1.32%, FMCG up by 0.90%, Oil & Gas up by 0.86% and Consumer Durables up by 0.84%, while IT down by 0.72%, TECK down by 0.46% and Healthcare down by 0.33% were the fewlosing indices on BSE. (Provisional)

The top gainers on the Sensex were ICICI Bank up by 3.13%, BHEL up by 3.12%, SBI up by 2.74%, Hindalco up by 2.53% and Axis Bank up by 2.15%. On the flip side, Infosys down by 1.88%, Tata Power down by 1.73%, Sun Pharma down by 1.25%, Hindustan Unilever down by 0.93% and Tata Steel down by 0.74% were the top losers. (Provisional)

Meanwhile, the Government will be rolling out a new industry friendly pharma policy for bulk drugs in 10-15 days, which could help the sector in growing manifold over the next 5-7 year. Given the Prime Minister Modi’s fanaticism to shape up the sector so as to meet its sufficient for future growth both in terms of production and exports, the policy will be released by himself in next two week’s time at the most.

Further, the committee and task force set up by the government for this purpose have finalized their recommendations which have been sent to Prime Minister’s Office (PMO) for final approval.

The new policy is expected to eliminate all the existing irritants and prevailing ills that have overtaken the pharma sector in the last few years. It would have multiple concessions for all stakeholders of the pharmaceuticals sector so that it is put on the growth trajectory, matching its potential as the government realizes that it has done little for the sector and that whatever growth it has clocked, the credit entirely went to the private sector.

With this policy, the pharma sector which is of Rs 1.8 lakh crore in size at present is likely to grow by 4-5 times in next 5-7 years with both its domestic production and exports rising phenomenally.

India VIX, a gauge for markets short term expectation of volatility declined 2.20% at 13.85 from its previous close of 14.16 on Thursday. (Provisional)

The CNX Nifty ended The CNX Nifty is currently ended at 8477.35, up by 75.45 points or 0.90% after trading in a range of 8398.60 and 8489.80. There were 39 stocks advancing against 11 stocks declining on the index. (Provisional)

The top gainers on Nifty were Kotak Mahindra Bank up by 3.67%, SBI up by 2.83%, Hindalco up by 2.76%, BHEL up by 2.62% and PNB up by 2.60%. On the flip side, Jindal Steel & Power down by 2.26%, Infosys down by 1.88%, Tata Power down by 1.45%, Sun Pharma down by 1.18% and Hindustan Unilever down by 1.08% were the top losers. (Provisional)

European Markets were trading mostly in the green; France’s CAC was up by 0.93%, Germany’s DAX was up by 1.30% and UK’s FTSE 100 was up by 0.59%.