Post Session: Quick Review

Local equity markets, gaining ground for third consecutive session, ended upbeat on Monday on late hour buying activities which took Sensex and Nifty above psychologically crucial 27, 550 (Sensex) and 8, 300 (Nifty) levels respectively, with gains of around half a percent. Notably, uptick witnessed in last hour of trade mainly heaved the markets for yet another session. Otherwise, markets after making a flat start, lost ground in afternoon deals as slide in oil prices helped offset the positive impact after data on Friday showing U.S. wages fell by the most since the series began in 2006 raised hopes the Federal Reserve would be patient in raising interest rates. Traders were cautious ahead of key retail inflation and industrial output data due later in the day. On the macro-front, street widely expects consumer price index to accelerate to 5.4% in December from 4.4 % in November, still within the central bank’s comfort zone. However, reports suggesting of foreign institutional investors turning net sellers of $311.79 million worth shares this month, limited the gains in frontline indices. Meanwhile, broader indices also ended upbeat with gains of around half a percent.

On the global front, stocks in Asia ended mostly lower on Monday with Japan, the region’s largest stock market, closed for a public holiday. Declines in the region followed a downbeat session on Wall Street on Friday. The S&P 500 stock index slumped 0.8% to 2044.81 despite a stronger-than-expected labor report as investors fretted over persistently sluggish wage growth for U.S. workers. Meanwhile, European equities gained on Monday, led by rising healthcare stocks, after Shire agreed to buy NPS Pharmaceuticals for $5.2 billion and Roche also struck a deal.

Closer home, most of the sectoral indices on BSE concluded in the positive territory, however stocks from Metal, Power and Realty counters were the top losers of the session. On the flip side, bourses’ gains were led by shares from Capital Goods, Fast Moving Consumer Goods (FMCG) and Information Technology (IT) counters were the top gainers of the session. In stock specific action, Telecom stocks were in focus after the Department of Telecommunications (DoT) issued notice inviting applications (NIA) for auction of spectrum in 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands. Additionally, Oil exploration firms declined along with fall in crude oil prices. The overall market breadth on BSE was in the favour of advances, which thumped decliners in the ratio of 1644:1259, while 121 shares remained unchanged (Provisional).

The BSE Sensex ended at 27585.27, up by 126.89 points or 0.46% after trading in a range of 27323.74 and 27620.66. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in the green; the BSE Mid cap index was up by 0.58%, while Small cap index up by 0.83%. (Provisional)

The gaining sectoral indices on the BSE were Capital Goods up by 1.55%, FMCG up by 1.42%, IT up by 1.32%, TECK up by 0.91% and Bankex up by 0.90% while, Metal down by 1.68%, Oil & Gas down by 1.19%, PSU down by 0.42%, Infrastructure down by 0.24% and Realty down by 0.03% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindustan Unilever up by 3.98%, Larsen & Toubro up by 2.31%, Infosys up by 1.82%, HDFC up by 1.60% and BHEL up by 1.53%. On the flip side, Coal India down by 4.34%, Hindalco down by 2.68%, Bharti Airtel down by 2.08%, Bajaj Auto down by 1.95% and Hero MotoCorp down by 1.44% were the top losers. (Provisional)

Meanwhile, Global Consultancy, PwC, in its study, underscored that even as China witnessed economic slowdown, it expected India's economic growth to shoot up to 7% in 2015. In its report, the consultancy pointed that with turnaround being at the corner, economy is likely to resume growing at more than '6%' on the back of structural reforms.

The global consultancy, like most financial firms, highlighted that in the short term, low oil prices were likely to increase GDP growth, ease the pressures of India's high current account deficit and help bring down inflation. But, it pointed that 'Budget 2015', which could see India take a step towards implementing new structural reforms that will boost the economy, as a factor responsible for country's medium term economic prospects.

For the rest of the globe, while PwC expects China to make the biggest contribution to global growth this year, even at the projected growth rate of 7.2%, which would be its slowest since 1990, it sees US to witness fastest growth in a decade. Separately, for euro, it anticipates quantitative easing programme, involving the purchase of government bonds.

PwC pointed that oil prices, hard landing in China and escalation of geopolitical risks were the three factors that business should look out for. It pegged oil prices to an average between $60-70 over the course of 2015 and conclude around $80 by the end of this fiscal.

India VIX, a gauge for markets short term expectation of volatility rose 0.67% at 16.06 from its previous close of 15.95 on Friday. (Provisional)

The CNX Nifty ended at 8323.00, up by 38.50 points or 0.46% after trading in a range of 8245.60 and 8332.60. There were 26 stocks advancing against 22 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindustan Unilever up by 3.70%, Indusind Bank up by 3.42%, Tech Mahindra up by 2.91%, Larsen & Toubro up by 2.18% and Infosys up by 2.00%. On the flip side, Coal India down by 4.28%, Cairn India down by 2.96%, Hindalco down by 2.52%, Jindal Steel & Power down by 2.26% and Bharti Airtel down by 1.98% were the top losers. (Provisional)

European Markets were trading in the green; UK's FTSE 100 was up by 0.38%, France's CAC was up by 1.08% and Germany's DAX was up by 1.12%.

The Asian equity benchmarks ended mostly in red on Monday, with Chinese stocks falling for a third day, the longest losing streak since November, amid concern a rally for the world’s best-performing equities market over the past year has been excessive relative to the outlook for the economy. Japan’s Stock Exchange was closed on account of ‘Coming of Age (Adults) Day’ holiday. Japan’s government will propose a record budget for next fiscal year of more than $800 billion but cut borrowing for a third year as Prime Minister Shinzo Abe seeks to maintain growth while curbing the heaviest debt burden in the industrial world. Shinzo Abe stated that Japan is on course to meet his promise of halving the primary budget deficit - excluding new bond sales and debt servicing - in the next fiscal year. Japanese Economics Minister Akira Amari notified that he expects real wages to turn positive in the fiscal year starting April as the economy recovers from nearly two decades of mild deflation. Japan’s index of leading economic indicators rose to a seasonally adjusted 103.8, from 104.5 in the preceding month whose figure was revised up from 104.0.