Post Session: Quick Review

Local equity markets extended their free-fall for yet another session and settled with cuts in the range of 0.35%-0.50%, which dragged Sensex and Nifty below psychologically crucial 27,000 and 8,050 levels respectively. The market was entangled by global uncertainties due to fall in crude oil prices, Russian currency turmoil which sapping risk appetite, stoked fears of foreign investors pulling out their money from emerging markets’ assets. On Tuesday, FIIs sold cash shares worth Rs 1,247 crore, extending their selling streak to a sixth consecutive session.

In the extremely volatile session of trade, markets recovered most of the ground in early afternoon deals, but soon the recovery was sold off by investors, who preferred being on the sidelines ahead of Fed’s decision amidst speculation that the US central bank will end its commitment to keep interest rates low for a 'considerable period'. The US Fed policymakers expect the first rate hike in mid-2015, based on their median forecasts from September. Nevertheless, market recouped most of their losses in afternoon deals after state-run Life Insurance Corporation of India (LIC), a government entity, brought into domestic equities to arrest the plunge of markets.

On the global front, Asian stock markets managed a positive close on Wednesday, although nerves over the rouble crisis in Russia led to investors seeking safer assets. Meanwhile, European stocks were on the back foot as investors waited to see if turmoil in Russia’s financial markets linked to slumping oil prices will colour the US Federal Reserve’s thinking on when to tighten policy.

Closer home, most of the sectoral indices on BSE concluded into negative territory, nevertheless worst performers of the session were stocks from Healthcare, Auto and Realty counters. Auto stocks ran out of fuel after reports suggested that government would not extend excise duty beyond December 31, 2014. Meanwhile, the spillover effect of M&M stocks weighed on the counter. Mahindra & Mahindra (M&M) shares took a hit after the company as part of its efforts to align its production with sales requirements announced that it may observe on a need basis, 1 to 7 days in a month as 'No Production Days' at some of its automotive and/or tractor plants and/or Chakan plant of its wholly owned subsidiary Mahindra Vehicle Manufacturers during the period upto March 2015.

Besides, PSU OMCs too were beaten down in red as gains on account of lower Brent crude prices were offset by losses in rupee’s weakness as a weak rupee raises the cost of imports. On the flip side, maximum buying was witnessed by stocks from Metal, Oil & Gas and PSU counters were the prominent gainers of the session. Meanwhile, metal stocks, which were the top losers of the session, recovered on bargain buying in today’s session. The market breadth on the BSE remained in the favour of decliners, where advancing and declining stocks were in a ratio of 1024:1789, while 94 scrips remained unchanged. (Provisional)

The BSE Sensex ended at 26682.94, down by 98.50 points or 0.37% after trading in a range of 26469.42 and 26871.91. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in the in red; the BSE Mid cap index was down by 0.61%, while Small cap index down by 1.11%. (Provisional)

The gaining sectoral indices on the BSE were Metal up by 0.97%, Oil & Gas up by 0.80%, PSU up by 0.72%, INFRA up by 0.41% and Bankex up by 0.25% while, Healthcare down by 2.09%, Auto down by 1.61%, Realty down by 1.59%, Consumer Durables down by 1.43% and FMCG down by 1.40% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Sesa Sterlite up by 3.17%, Hindalco up by 2.28%, SBI up by 2.23%, ONGC up by 2.09% and Tata Steel up by 1.16%. On the flip side, ITC down by 2.67%, Cipla down by 2.64%, Bharti Airtel down by 2.57%, Hero MotoCorp down by 2.35% and Sun Pharma down by 2.28% were the top losers. (Provisional)

Meanwhile, In first of its kind initiative, Government is planning to come out with a six-month report card, with Prime Minister Narendra Modi ordering all ministers to submit details of their performances and achievements by this month end in the form of an e-booklet and a video clip.

Though the government has not yet decided how it would like to display its six months achievements before the nation, the emphasis would be to mass-scale publicity at the grass-root level. Reports suggest that government could hold press conferences or use social networking platform to illustrate its achievements and have instructed states and MPs to distribute booklets in their respective constituencies.

The plan to highlight the achievements of the government assumes importance for NDA government as several states are heading for assembly polls and bypolls.

In its six months in power, the Narendra Modi-led government at the Centre has taken some crucial administrative measures including opening up Foreign Direct Investment (FDI) in Railways, deregulating fuel and announcing mega missions like 'Make in India'.

India VIX, a gauge for markets short term expectation of volatility surged 4.16% at 16.98 from its previous close of 16.30 on Monday. (Provisional)

The CNX Nifty ended at 8029.80, down by 37.80 points or 0.47% after trading in a range of 7961.35 and 8082.00. There were 21 stocks advancing against 29 stocks declining on the index. (Provisional)

The top gainers on Nifty were Sesa Sterlite up by 3.77%, ONGC up by 2.22%, NMDC up by 2.16%, SBI up by 2.08% and Hindalco up by 1.62%. On the flip side, DLF down by 4.06%, Asian Paints down by 3.63%, Kotak Mahindra Bank down by 3.03%, Cipla down by 2.87% and Cairn India down by 2.74% were the top losers. (Provisional)

European Markets were trading in the red; UK’s FTSE 100 was down by 0.69%, Germany’s DAX was down by 0.78% and France’s CAC was down by 0.54%.

The Asian equity benchmarks ended mostly in green on Wednesday, with China’s benchmark stock index rose to a four-year high amid speculation the government will loosen monetary policy and ease capital requirements that may allow brokerages to boost margin lending. Japan’s exports grew for a third straight month in November from a year earlier, but much more slowly than expected and despite a sharp fall in the yen as slowing demand in Asia and Europe dampened trade. The 4.9 percent rise in exports was much weaker slowing from a 9.6 percent gain in October. Weakness in exports could compound April’s sales tax rise which pushed the economy into a recessionary second quarter of contraction through September. Japan’s trade balance rose to a seasonally adjusted -0.93T, from -0.99T in the preceding month whose figure was revised down from -0.98T.