Post Session: Quick Review

Recovery which emerged after two straight sessions of massive sell-off at D-street, lifted both Sensex and Nifty above psychologically crucial 27,800 and 8,350 levels respectively with gains of around two tenths of a percent on Wednesday. Much of buying activity which was witnessed in last hour of trade led to positive close of markets. Meanwhile, broader indices outperforming larger counterparts by fat margins went home with gains in the range of 0.95%-1.05%. While, the previous session’s sell-off was mostly on account of somber regional peers along with dismal macro-economic data at domestic front, sentiments were buttressed in today’s trade after Finance Minister Arun Jaitley underscored that Current Account Deficit (CAD) was no cause for concern as forex reserves were comfortable.

However, further gains were limited on account of prevailing caution ahead of key macroeconomic data, i.e, consumer price index (CPI)-based inflation and Index of Industrial Production (IIP) data on Friday. While, the street expects CPI inflation to be around 4.4% in November compared with 5.52% in October, IIP is expected to grow 2.7% in October compared with 2.5% in September. Markets will also await trade deficit data for November, which can be announced any time this month.

On the global front, most of the Asia pacific shares ended mostly higher even after data from both China and Japan pointed to continued weakness in the world's second and third-largest economies. Japan's benchmark Nikkei 225 slipped over 2% after a government survey showed deterioration in business sentiment in the current quarter, especially among smaller companies, while China’s consumer price index rose 1.4 percent in November, the slowest pace in five years, and a sign of weak domestic demand. Meanwhile, receiving positive handover from Asian peers, European shares clawed back losses from previous day’s sell-off.

Closer home, most of the sectoral indices on BSE concluded into positive territory, nevertheless stocks from Consumer Durables, banking and Public Sector Undertaking counters were top gainers. On the flip side, stocks from Information Technology, Fast Moving Consumer Goods and Technology counters were the top losers of the session. Meanwhile, metal and power stocks, which fell the most in yesterday's trade, witnessed some buying today as reports suggested that cabinet could decide upon coal auction floor price today. Supreme Court on Monday dismissed nearly 20 applications of power and steel companies seeking exemption from its judgment, which cancelled 204 coal mining licences issued since 1993.

In stock-specific activity, shares of jewellery maker such as Gitanjali Gems, Tribhovandas Bhimji Zaveri (TBZ), PC Jeweller, Rajesh Exports and Titan Company were trading higher by up to 7% in otherwise subdued market on reports that the government may change gold-import rules for trading houses. Reports also suggest that the government could change rules made last year mandating that all imports be paid fully with cash margins. Additionally, insurance stocks too hogged limelight for yet another session after reports suggested that Congress has dropped its opposition to the insurance bill with the select committee of Rajya Sabha proposing an increase in the foreign equity investment to 49% from the present 26%, paving the way for possible passage of the 10-year-old reform legislation during the current session.

Besides, telecom stocks edged higher, with an exception of Idea Cellular shares, even after Inter-ministerial panel Telecom Commission has recommended 23% higher base price for the premium 900 MHz frequency band and 17% base price for CDMA band than price recommended by telecom regulator, TRAI. The overall market breadth on BSE was in the favour of advances, which thumped declines in the ratio of 1665:1268; while 94 shares ended unchanged. (Provisional)

The BSE Sensex concluded at 27831.10, up by 34.09 points or 0.12% after trading in a range of 27710.03 and 27905.25. 13 stocks advanced against 17 stocks declining one’s on the index. (Provisional)

The broader indices concluded in green; the BSE Mid cap index was up by 0.93%, while Small cap index up by 1.06%. (Provisional)

The top gaining sectors on the BSE were Consumer Durables up by 2.43%, INFRA up by 1.40%, PSU up by 1.12%, Bankex up by 1.01%, Power up by 0.74% while, Capital Goods down by 0.99%, IT down by 0.22%, FMCG down by 0.15%, TECK down by 0.09%, Metal down by 0.07% were the losers on BSE. (Provisional)

The top gainers on the Sensex were SBI up by 3.06%, ONGC up by 2.44%, Tata Power up by 1.87%, Tata Motors up by 1.53% and Cipla up by 1.48%. On the flip side, BHEL down by 2.30%, GAIL India down by 2.01%, Hindustan Unilever down by 1.79%, Bajaj Auto down by 1.45% and Larsen & Toubro down by 1.01% were the top losers. (Provisional)

Meanwhile, in yet another trouble for Telecom industry, Inter-ministerial panel Telecom Commission has recommended a base price of Rs 3,693 crore per megahertz for the premium 900 MHz frequency band, which is 23% higher than the price recommended by telecom regulator, TRAI for the spectrum auction in February.

Further, the commission has finalized a base price of Rs 3,646 crore per Mhz for CDMA band, nearly 17% higher than the price suggested by TRAI. Telecom regulator had recommended that base price for 900 Mhz band price be kept at Rs 3,004 crore per Mhz, for 1800 Mhz at Rs 2,138 crore and for CDMA spectrum at Rs 3,104 crore.

With this development, the recommended base prices now would be placed before Telecom Minister Ravi Shankar Prasad for final approval and after that Cabinet might be approached for certain issues.

Auction of spectrum in 900 Mhz band would be held for 18 telecom circles and buying one Mhz in each of these circles would cost Rs 3,693-crore to the bidder. Similarly, spectrum in 1800 Mhz band is being auctioned in 20 circles while 800 Mhz band (CDMA) spectrum is on pan-India basis.

In the 900 Mhz band about 184 Mhz of spectrum is likely to be auctioned, while in 1800 Mhz, the government has proposed to auction 104 Mhz of spectrum which would include spectrum held by licences that are expiring in 2015-16 and unsold airwaves in February auction.

The CNX Nifty settled at 8355.65, up by 14.95 points or 0.18% after trading in a range of 8317.00 and 8376.80. There were 28 stocks advancing against 22 stocks declining on the index. (Provisional)

The top gainers on Nifty were SBI up by 3.07%, Jindal Steel & Power up by 2.58%, ONGC up by 2.56%, PNB up by 2.29% and Bank Of Baroda up by 2.15%. On the flip side, BHEL down by 2.39%, NMDC down by 2.32%, GAIL India down by 2.11%, Hindustan Unilever down by 1.86% and Tech Mahindra down by 1.56% were the top losers. (Provisional)

European markets were trading into positive territory; however stocks from  UK’s FTSE 100 inched higher by 16.68 points or 0.26% to 6,546.15; France’s CAC added 21.46 points or 0.5% to 4,285.40 and  Germany’s DAX advanced by 75.55 points or 0.77% to 9,869.26.

The Asian equity benchmarks ended mostly in green on Wednesday, while Japanese stocks fell the most in three weeks as investors looking for safe-haven assets drove the yen higher for a third day. China’s factory-gate deflation deepened and consumer prices climbed at the slowest pace since 2009, signaling room for further monetary easing. Chinese CPI fell to an annual rate of 1.4%, from 1.6% in the preceding month while Chinese PPI fell to an annual rate of -2.7%, from -2.2% in the preceding month. Falling oil and metals prices have cut costs for China’s factories, leading to lower export prices and adding to dis-inflation threats across the world. The People’s Bank of China has more room to free up the world’s biggest central-bank balance sheet now that it’s scaling back purchases of foreign exchange. To prevent the extra yuan from fueling inflation, the PBOC requires banks to set aside 20% of deposits as reserves.

Japanese Household Confidence rose to a seasonally adjusted annual rate of 37.7, from 38.9 in the preceding month while Japan’s Corporate Goods Price Index fell to a seasonally adjusted annual rate of 2.7%, from 2.9% in the preceding month. South Korean Unemployment Rate fell to a seasonally adjusted annual rate of 3.4%, from 3.5% in the preceding month.