Post Session: Quick Review

After dilly-dallying for the entire part of the session, local equity markets concluded flat in absence of any major substantial buying activity which could lift the markets higher. By close of trade, both Sensex and Nifty oscillating in a tight band, concluded above the crucial 28,400 and 8,500 levels respectively. However, the session clearly belonged to broader indices, which hogging maximum limelight, went home with hefty gains of around a percent.

Nevertheless, a sharp slide was prevented in larger counterparts on prevailing positive sentiment in the markets after RBI in its fifth monetary policy review underscored that it could ease monetary policy early next year. Additionally, good macro-economic data also buttressed the sentiment to an extent, if not triggered any gain. On the macro-front, the activity in Indian services sector, which accounts for around 60% of country’s GDP, rose to five-month high at 52.6 in the month of November from 50 in October.

On the global front, Asia pacific shares ended mixed even after surveys which showed that China's services sector grew slightly faster in November, did not banish fears of the Chinese economy softening. Meanwhile, European stocks rose in early trading on Wednesday, with Nordic telecom operators Telenor and TeliaSonera rallying after agreeing to merge their Danish operations.

Closer home, most of the sectoral indices on BSE concluded mostly positive, though stocks from Information Technology, TECK counters were the only losers of the session. On the flip side, stocks from Auto, Realty and Power counters were the top gainers of the session. In stock-specific activity, Railway stocks advanced in trade after reports suggested that railway ministry has called for an investors' meet on December 5 and those likely to attend include financials such as HSBC, Morgan Stanley and JP Morgan. Meanwhile, shares of companies engaged in insurance business, i.e. Max India, Bajaj Finserv, Reliance Capital and Aditya Birla Nuvo hogged limelight on hopes of FDI in sector.

The BSE Sensex ended at 28442.71, down by 1.30 points or 0.00% after trading in a range of 28370.73 and 28504.65. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices outperforming peers ended with hefty margins; the BSE Mid cap index up by 1.39%, while Small cap index up by 1.64%.(Provisional)

The gaining sectoral indices on the BSE were Auto up by 1.34%, Realty up by 1.32%, Power up by 1.06%, Oil & Gas up by 0.99%, Capital Goods up by 0.96% while, IT down by 0.19%, TECK down by 0.16% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Cipla up by 3.12%,  ONGC up by 2.98%, BHEL up by 2.50%, NTPC up by 1.67% and M&M up by 1.57%. On the flip side, Dr. Reddys Lab down by 2.43%, HDFC down by 1.83%, Bharti Airtel down by 1.72%, Hindalco down by 1.49% and HDFC Bank down by 1.09% were the top losers.(Provisional)

Meanwhile, the activity in Indian services sector, which accounts for around 60% of country’s GDP, expanded at a faster pace in November as order books filled up at a faster rate. The HSBC services Purchasing Managers’ Index (PMI), based on the survey of around 350 private service sector companies, rose to five-month high at 52.6 in the month of November from 50 in October, above 50 mark indicating a seventh consecutive monthly expansion in service sector output.

The HSBC Survey highlighted that business activity was driven higher by faster growth of new business in November and the pace of expansion was solid overall and the quickest since July. The new business sub-index accelerated to 52.5 in November, signaling improving demand. Among the six monitored sub-sectors, Post &Telecommunications was the best performing of the broad areas monitored, while contractions in activity were registered in Financial Intermediation and Hotels & Restaurants. Indicating expansion in business activity overall, the HSBC India Composite Output Index, which measures activity in both the manufacturing and services sector, increased to 53.6 in November from 51 in the previous month. In spite of significant growth of activity and new business, workforce numbers in sector declined for the first time in four months. Amid rising demand and declining employment level, backlogs of work held by Indian services companies increased for the second consecutive month in November. However, the rate of increase eased from the previous month and was moderate overall.

On inflation front, the Survey indicated that input costs for services providers fell for the first time since March 2009 and the rate of decline was the second-quickest in the survey’s nine-year history. Subsequently, prices charged by Indian services firms deteriorated for the first time in more than four years in November. Despite the uptick in order flows, new business optimism index slipped to the weakest since mid-2007, suggesting that continued policy action that addresses investor concerns is needed to sustain growth momentum.

The CNX Nifty concluded at 8537.65, up by 12.95 points or 0.15% after trading in a range of 8546.95 and 8508.35. There were 31 stocks advancing against 18 stocks declining on the index, while 1 stock ended unchanged. (Provisional)

The top gainers on Nifty were Jindal Steel & Power up by 8.20%, ONGC up by 3.04%, BHEL up by 2.52%, Asian Paints up by 2.51% and NTPC up by 1.92%. On the flip side, Dr. Reddys Lab down by 2.14%, HDFC down by 1.81%, Zee down by 1.69%, Bharti Airtel down by 1.52% and Hindalco down by 1.43% were the top losers. (Provisional)

Most of European markets were trading in green, France’s CAC 40 was up by 0.21% and Germany’s DAX was up by 0.29%, while United Kingdom’s FTSE 100 was down by 0.05%. (Provisional)

Asian markets ended mixed on Wednesday with some of the regional indices rallying following slew of impressive US data that helped the dollar march towards the 120-yen mark for the first time in seven years. Chinese shares rose, led by brokerages and property developers, as investors bet on further stimulus from the central bank. China’s bonds extended declines after the government sold debt at a higher yield than analysts forecast, a sign of weakening demand for the securities. The growth in China's services sector quickened in November, easing concerns about the economic recovery after recent sluggish manufacturing data. The Japanese stocks market rose on a weaker yen and fairly strong sales data from automakers.