Post Session: Quick Review

Intra-day trend reversal which took place in afternoon session of trade mainly put a halt to ‘Santa’ rally that been witnessed past few days. Bit of political uncertainty ahead of assembly elections results in Jharkhand, Jammu & Kashmir mainly kept investors at the sidelines, while volatility ahead of penultimate F&O expiry session also weighed on the sentiment. Nevertheless, sharp plunge of bourses were capped after early poll results indicated that Modi-led BJP gaining in elections in Jharkhand and Jammu and Kashmir (J&K). BJP victory will make Modi-led government stronger in upper house of Parliament which will lead to smoother roll out and execution of reforms to boost growth in Asia's third largest economy. However, reports suggest of BJP and the PDP being locked in a close contest to emerge as the largest party in Jammu & Kashmir as trends show no clear winner in the state. By close of trade, both Sensex and Nifty losing 3/4th of a percent, settled sub psychologically crucial 27,600 and 8,300 levels respectively. Meanwhile, broader indices too settled with losses in the range of 0.30%-0.65%.

On the global front, Asian markets concluded mostly in green on Tuesday after Wall Street indices closed at historic highs, but trade was largely thin as investor squared off their positions ahead of Christmas holidays and also as oil prices suffered a setback after Saudi Arabia quashed all thought of curbing supply. Meanwhile, European shares were trading mixed with investors reacting to slew of data amid low trading volumes. On the data front, France's final third-quarter figure for gross domestic product (GDP) came in unchanged at 0.4 percent (year-on-year) with consumer spending also rising by the same figure. While, In the U.K., third-quarter GDP came in at 0.7 percent, compared to the month before, unchanged from its first reading and below a forecast 0.8 percent.

Closer home, most of the sectoral indices on BSE concluded into negative territory, nevertheless stocks from FMCG counters were the only exceptions. On the flip side, much of the drubbing was witnessed by stocks from Metal, Capital Goods and Consumer Durables counters were the prominent losers of the session. The market breadth on the BSE remained in the favour of decliners, where advancing and declining stocks were in a ratio of 1070:1848, while 116 scrips remained unchanged. (Provisional)

The BSE Sensex ended at 27506.46, down by 195.33 points or 0.71% after trading in a range of 27475.13 and 27851.10. There were 10 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended in the in red; the BSE Mid cap index was down by 0.33%, while Small cap index down by 0.64%. (Provisional)

The only gaining sectoral indices on the BSE was FMCG up by 0.08% while, Metal down by 1.89%, Capital Goods down by 1.46%, Consumer Durables down by 1.39%, Oil & Gas down by 0.96% and IT down by 0.90% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 3.03%, Bajaj Auto up by 2.24%, Cipla up by 1.71%, Bharti Airtel up by 1.65% and Hero MotoCorp up by 0.88%. On the flip side, Tata Power down by 3.27%, Sesa Sterlite down by 3.13%, Tata Steel down by 2.28%, Coal India down by 1.92% and Larsen & Toubro down by 1.91% were the top losers. (Provisional)

Meanwhile, an advisory group, headed by railway minister Suresh Prabhu in its final report for ‘Integrated Development of Power, Coal, and Renewable Energy’ has made a strong case for opening the coal sector to supplement production by Coal India. The report lists suggestions for enhancing coal production in the short, medium and long terms, besides making suggestions for improvements required in state run Coal India and its subsidiaries including Central Mine Planning and Design Institute (CMPDI).

Emphasizing upon the need for round the clock power supply, the group has pressed for reform of electricity distribution, including privatisation and public-private partnerships, separation of carriage and content in distribution licences, and an enhanced role for and improvements in the working of the Central Electricity Authority.

Further, the report has also suggested salient aspects of the coal block auction process, coal linkage rationalization, swapping of coal linkages, need for urgent action on coal linkages to power plants already commissioned and likely to be commissioned by March 2015.

Moreover, the group has recommended phasing out old and inefficient thermal power plants that burn excessive fuel and encouraged the argument of setting up new coal based thermal plants to set up a renewable energy generation station.

Lastly, the group also has called for stringent penalties to improve quality of service and grid discipline, establishing regional regulators in consultation with states and a mechanism to review of the performance of regulatory commissions through a forum of regulators.

India VIX, a gauge for markets short term expectation of volatility surged 7.65% at 15.29 from its previous close of 14.21 on Monday. (Provisional)

The CNX Nifty ended at 8267.00, down by 57.00 points or 0.68% after trading in a range of 8252.85 and 8364.75. There were 17 stocks advancing against 33 stocks declining on the index. (Provisional)

The top gainers on Nifty were NTPC up by 2.84%, Cipla up by 1.92%, Bharti Airtel up by 1.83%, Bajaj Auto up by 1.69% and Power Grid up by 1.61%. On the flip side, Tata Power down by 3.33%, HCL Tech. down by 3.22%, Sesa Sterlite down by 3.13%, Tata Steel down by 2.29% and HDFC down by 1.91% were the top losers. (Provisional)

European Markets were trading mostly in the green; UK’s FTSE 100 was up by 0.33% and France’s CAC was up by 0.29% while, Germany’s DAX was down by 0.02%.

The Asian equity benchmarks ended mostly in green on Tuesday, with China’s stocks closing down, sending the benchmark index down by the most in two weeks, amid concern that recent gains were excessive and a slowing economy will curb earnings growth. Japan’s Stock Exchange was closed on account of ‘Emperor’s Birthday’ holiday. China’s private sector suitors are set to drive another strong year of Asian mergers and acquisitions in 2015 after deals hit a record this year, with consumer retail, financial services and technology seen as the most active sectors for deal-making. The IMF in its report stated that the recent drop in oil prices should persist, helping to boost global economic activity by up to 0.7% points next year. Lower oil prices should boost China’s gross domestic product growth by 0.4 to 0.7% points. In 2016, it could mean an extra 0.5 to 0.9% points of growth. Singapore’s headline inflation rate in November may turn negative for the first time in five years due partly to sliding oil prices, and a few economists see scope for the central bank to ease tight monetary policy to support economic growth.