Post session - Quick review

All the gloom-and-doomsayers were taken aback by the ferocity of Indian equity markets, as the benchmark equity indices capitalizing on the momentum rallied for the second consecutive session, which besides yanking the benchmark indices higher, led to the sanguine conclusion of  January month’s F&O series. The trade which started on a spirited note ended cheerfully a day after the RBI indicated that it would support growth, thereby raising expectations for more foreign fund investments.

Sustained buying by foreign funds and retail investors tracing the positive cues from the global market also provided legs to the rally in the Indian equity markets. Although US stocks ending a five-day rally for the S&P 500,edged lower  on Tuesday  as talks to resolve Greece's debt crisis hit a snag and earnings from a number of blue chips disappointed investors. But Asian stocks came as a respite to the local bourses. Asian stocks rose, with the regional benchmark index near the highest close in almost three months, after the yen fell and Apple Inc. reported quarterly profit more than doubled. Meanwhile, opening of European share market also came as a positive to Dalal Street.

Back on the home turf, the sentiments were also bolstered amidst hopes that RBI would begin slashing interest rate from March 2012. However, the RBI put the government on watch on fiscal consolidation, stating that the absence of the latter may constrain the rate cutting cycle.

Gains into Indian equity markets were led by the stocks belonging to the Information Technology (IT), Technology counters and metal counters. On the flip side, profit booking in Capital Goods space kept gains under check. Capital Goods pivotal was the only index which went home with loss.

From the result front, Biocon lost over 3% after reporting its Q3 numbers. India's top-listed biotechnology company fell, after its December quarter net profit declined by 15 percent on lower licensing income. The Bangalore-based drug maker’s consolidated net profit fell to Rs 84.8 crore, much below estimates, in the fiscal third quarter ended December 31 from Rs 101 crore a year ago. While, shares of Bank of Baroda too lost over 1% on profit booking despite reporting good set of Q3 numbers. Bank of Baroda posted a growth of 20.7% in the net profit for the third quarter ended December, 2011 at Rs 1,290 crore on strong fee income.

On the flip side, Indiabulls Real Estate gained over 1% despite reporting a contraction of 46% in its Q3 consolidated net profit. On the consolidated basis the group posted a net profit fall of 45.46% to Rs 41.78 crore for the quarter ended December 31, 2011 as compared to Rs 76.61 crore in the same quarter last year.

Thus, the Bombay Stock Exchange's Sensex accumulating over 75 points ended at a sniffing distance of 17100 level. The National Stock Exchange's Nifty ended above 5100 mark, with gains of over 25 points. The broader indices surpassing the frontlines went home with sparkling gains of over 1% each.

The BSE Sensex advanced 81.41 points or 0.48% and settled at 17,077.18. The index touched a high and a low of 17,130.24 and 17,016.69 respectively. 18 stocks advanced against 12 declining ones on the index (Provisional).

The BSE Mid-cap index surged 1.25% while Small-cap index soared by 1.11%. (Provisional)

On the BSE Sectoral front, Metal up 1.79%, PSU up 1.24%, TECk up 1.20%, Auto up 1.15% and Consumer Durables up 1.12% were the top gainers while Capital Goods down 0.33%, was the only loser.

The top gainers on the Sensex were Coal India up 3.90%, Tata Motors up 3.76%, Tata Steel up 2.97%, Sterlite up 2.47% and Maruti Suzuki up 2.44%.

On the flip side, Tata Power down 2.09%, Jindal Steel down 1.67%, Hero MotoCorp down 1.43%, L&T down 1.35% and Hindalco down 1.08% were the top losers in the index. (Provisional)

Meanwhile, the International Monetary Fund (IMF) in its World Economic Outlook (WEO) has said that the euro area would fall into a mild recession in 2012 after the euro area crisis entered a “perilous new phase” toward the end of last year. This is likely to affect other parts of the world including the emerging and developing economies (EDEs). The report said in 2012-13, growth in EDEs is expected to average 5¾ %, and about ½ percentage point lower than projected in the September 2011 WEO.

The slowdown is expected to be due to the deterioration in the global environment, as well as the slowdown in domestic demand in key emerging economies. However, Asia is still projected to grow most rapidly at 7½ percent on average in 2012-13. Growth projections for India have also been lowered. Indian economy is expected to grow at 7 % this year and 7.3 % in 2013. Both figures are lesser than its September estimates of 7.5% and 8.1% respectively.

The report suggests that in emerging and developing economies, the near-term focus should be on responding to moderating domestic demand and slowing external demand from advanced economies, while dealing with volatile capital flows. Those economies that suffer from both relatively high inflation and public debt, including India and various economies in the Middle East, may need to take a more cautious stance on any policy easing.

India VIX, a gauge for market’s short term expectation of volatility plunged 1.86% to 21.02 from its previous close. (Provisional)

The S&P CNX Nifty gained 30.95 points or 0.60% to settle at 5,158.30. The index touched high and low of 5,174.15 and 5,130.25 respectively. 29 stocks advanced against 21 declining ones on the index. (Provisional)

The top gainers on the Nifty were REL Infra up 6.89%, Sesa Goa up 5.78%, BPCL up 4.97%, Tata Motors up 3.83% and SAIL up 3.10%.

On the other hand, Hero Moto down 2.48%, Jindal Steel down 2.02%, Tata Power down 2%, L&T down 1.95% and HCL Tech down 1.88% were the top losers. (Provisional)

The European markets were trading on a negative note, with France's CAC 40 down 0.42%, Germany's DAX down 0.45% and Britain’s FTSE 100 down 0.43%.

Sentiments remained jubilant for yet another day in the Asian region wherein most of the indices ended the trade in green on Wednesday, underpinned by strong earnings from US technology giant Apple, stabilizing European money markets and falling euro zone debt yields, with investors shifting their focus from Europe to the US Federal Reserve. The Nikkei average climbed to a fresh three-month high on Wednesday, boosted by gains in blue-chip exporters such as Toyota Motor, while market attention turned to a Federal Reserve meeting later in the day from stalled talks on Greek debt.

Nikkei 225 was up 98.36 points or 1.12% to 8,883.69, Straits Times was up 42.26 points or 1.48% to 2,891.64 and Seoul Composite was up by 2.34 points or 0.12% to 1,952.23.

On the flip side, Jakarta Composite was down by 30.98 points or 0.78% to 3,963.60.

Stock markets in China, Hong Kong and Taiwan remained closed on Wednesday in observance of Lunar New Year holiday.