Post Session: Quick Review

Local equity markets managed to shut-shop into positive territory, albeit with modest gains of one tenth of a percent, which took both Sensex and Nifty above psychologically crucial 27,200 and 8,200 levels respectively. Nevertheless, the session was productive for broader indices, which went home with gains. However, trading volumes were low on the first trading day for the new derivatives contract as investors preferred to stay light ahead of the year-end holidays, while muted sentiment across the region also weighed. In the extremely lackluster session of trade, barometer gauges witnessed sharp recovery in the last hour of trade as select traders covered their pending short positions, while some lower level buying also aided the sentiment in holiday thinned trade.

Gains remained limited on concerns over the fiscal deficit after reports suggested that a discussion between finance ministry officials and economists debated the roadmap of fiscal consolidation after few pegged fiscal deficit to e around 4% in 2015/16.

On the global front, Asian markets managed to close positive in holiday thinned trade. However, trade was muted in Asia as stock exchanges in Hong Kong, Australia, New Zealand, the Philippines and Indonesia were closed for a public holiday.

Closer home, most of the sectoral indices concluded in positive territory, nevertheless stocks from Realty, Information Technology and Technology counters were the prominent gainers of the session. Rupee weakness mainly lifted IT counter higher since these companies derive lion share of their revenue from exports. On the flip side, stocks from FMCG, Consumer Durables and Power counters were the worst performers of the session. The overall market breadth on BSE was in the favour of declines, which thumped advances in the ratio of 1397:1428, while 126 shares remained unchanged.

The BSE Sensex ended at 27241.78, up by 33.17 points or 0.12% after trading in a range of 27091.38 and 27370.63. There were 13 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.41%, while Small cap index up by 0.02%. (Provisional)

The gaining sectoral indices on the BSE were Realty up by 0.93%, IT up by 0.85%, TECK up by 0.66%, Infrastructure up by 0.64% and Metal up by 0.58% while, FMCG down by 0.81%, Consumer Durables down by 0.50%, Power down by 0.16% and Auto down by 0.04% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were TCS up by 1.16%, HDFC up by 0.99%, Larsen & Toubro up by 0.89%, Hindalco up by 0.83% and Sun Pharma Inds. up by 0.83%. On the flip side, Maruti Suzuki down by 1.49%, BHEL down by 1.41%, ITC down by 1.05%, Hindustan Unilever down by 0.63% and Cipla down by 0.54% were the top losers. (Provisional)

Meanwhile, with an aim to boost the domestic economic growth, the government has approved key insurance, coal and pharma sector reforms which were stuck in Parliament logjam.  A Union Cabinet committee, headed by Prime Minister Narendra Modi, approved promulgation of the ordinance on Insurance Bill, re-promulgation of the Coal ordinance and allowing 100 per cent FDI in medical devices sector under the automatic route.

The government is of the view that hiking of the foreign investment cap in the insurance sector to 49 per cent will result in capital inflow of $6-8 billion. While, the Coal Mines (Special Provisions) Bill, 2014 will facilitate e-auction of coal blocks for private companies for captive use and allot mines directly to state and central PSUs. The government has decided to auction or allot 101 cancelled coal blocks in the first round of auction. Out of which 65 mines will be allocated to private players while 36 other blocks will be directly allotted to state-owned companies.  Both bills were approved by the Lok Sabha during the session and also got approval from the Standing Committee, as well as the Select Committee of the Rajya Sabha. However, the bills were not permitted to be taken up for discussions in the Rajya Sabha because of disturbances in the upper House.

To encourage manufacturing of equipments, including diagnostic kits and other devices, the government also allowed 100 percent FDI under automatic route in medical devices sector. The move will encourage FDI inflows in the sector and help domestic companies to enhance their global competitiveness.  As per estimates, India imports about 70 percent of its requirement of medical devices. Present industry size stands at around $7 billion in the countryIndia VIX, a gauge for markets short term expectation of volatility declined 2.91% at 14.63 from its previous close of 15.07 on Wednesday. (Provisional)

The CNX Nifty ended at 8200.70, up by 26.60 points or 0.33% after trading in a range of 8147.95 and 8234.55. There were 33 stocks advancing against 17 stocks declining on the index. (Provisional)

The top gainers on Nifty were DLF up by 3.46%, Jindal Steel & Power up by 2.16%, Tech Mahindra up by 1.95%, HCL Tech up by 1.62% and HDFC up by 1.48%. On the flip side, BHEL down by 1.18%, Zee Entertainment down by 0.96%, Maruti Suzuki down by 0.96%, ITC down by 0.93% and Hindustan Unilever down by 0.88% were the top losers. (Provisional)

The Asian equity benchmarks ended in green on Friday, with China’s stocks rallying sending the benchmark index to its biggest two-day gain in five years, on a drop in money-market rates and speculation that government will take more measures to bolster the economy. Hong Kong Stock Exchange was closed on account of ‘The first weekday after Christmas Day’ holiday while Indonesia Stock Exchange was closed on account of ‘National Leave’ holiday. Japanese annual core consumer inflation slowed for a fourth straight month in November due largely to sliding oil prices, highlighting the challenges the central bank faces in achieving its 2% inflation target. Factory output unexpectedly fell and household spending remained weak, suggesting that any rebound in the economy from recession will be mild and fragile. The core consumer price index (CPI), which excludes volatile fresh food but includes oil products, rose 2.7% in November from a year earlier, matching a median market forecast.

Japanese Statistics Bureau stated that the percentage of the total work force that is unemployed and actively seeking employment during the previous month remained unchanged at a seasonally adjusted 3.5% compared to the preceding month. Japan’s industrial production fell to a seasonally adjusted -0.6%, from 0.4% in the preceding month while Japan’s Average Cash Earnings fell to a seasonally adjusted -1.5%, from 0.2% in the preceding quarter whose figure was revised down from 0.5%. Japanese Household Spending rose to a seasonally adjusted -2.5%, from -4.0% in the preceding month. Singaporean Industrial Production fell to an annual rate of -2.8%, from -0.2% in the preceding month.