Post Session: Quick Review

Markets after vaulting over 2% post surprise rate cut in previous trading session, managed to end positive yet again, with gains in the range of 0.15%-0.25%, which lifted both Sensex and Nifty above psychologically crucial 28,100 and 8,500 levels respectively. The session turned out to be fairly productive one for local equity markets, which despite slipping several times below the negative territory, recovered ground to end near day’s high point. However, the gains remained limited as market-participants took a flight to safety from emerging markets assets after the Swiss National Bank (SNB) unexpectedly abandoned its minimum exchange rate versus the euro currency, which in turn bolstered the demand for safe haven assets. Meanwhile, broader indices ended on mix note, while BSE Midcap index ended 0.30% higher, Smallcap index went home with cuts of around 0.05%.

On the global front, Asian shares mostly stumbled after Switzerland’s unexpected move to abandon its currency cap jolted markets already roiled by plunging commodities prices. Meanwhile, European shares fell from a one month high, trimming a weekly advance as a slump in Swiss shares deepened.

Closer home, gains on bourses were mainly on account of surge in index heavyweights such as Reliance Industries, L&T and HDFC Bank among others. On the BSE sectoral front, stocks from Consumer Durables, Healthcare and Power counters were the prominent gainers of the session, however some profit-booking was witnessed by stocks from Banking counter, which vaulted after surprise rate cut by RBI in previous trading session. Additionally, IT counter too witnessed cut of around two tenth of a percent on the back of disappointing earnings of TCS. Tata Consultancy Services' (TCS) third quarter net profit grew 2.94 percent sequentially to Rs 5,444 crore, aided by other income. The profit was slightly lower than street expectations while revenue and operational performance was in line.

The overall market breadth on BSE was in the favour of decliners, which thumped advances in the ratio of 1373:1552, while 102 shares remained unchanged (Provisional).

The BSE Sensex ended at 28121.89, up by 46.34 points or 0.17% after trading in a range of 27945.31 and 28176.10. There were 16 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was up by 0.32%, while Small cap index down by 0.04%. (Provisional)

The gaining sectoral indices on the BSE were Consumer Durables up by 1.98%, Healthcare up by 1.41%, Power up by 1.36%, Capital Goods up by 1.23% and FMCG up by 1.17% while, IT down by 0.24%, TECK down by 0.07% and Bankex down by 0.01% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Sun Pharma up by 3.22%, Coal India up by 2.99%, Hindustan Unilever up by 2.76%, Mahindra & Mahindra up by 2.51% and BHEL up by 2.18%. On the flip side, Hindalco down by 2.01%, Hero MotoCorp down by 1.92%, Bharti Airtel down by 1.83%, SBI down by 1.42% and Tata Motors down by 1.02% were the top losers. (Provisional)

Meanwhile, highlighting RBI’s rate cut move, Finance Minister Arun Jaitley has stated that the repo rate cut by 25 basis points to 7.75% is a positive development for economy and will make funds cheaper which in turn will have borrowers to pay lesser interest rate.  Further, it will lead to more money in the hands of the consumers and result in greater spending.

By adding further, the Minister has asserted that the latest move will certainly help in reviving investment cycle that the government seeks to restore. Industry Inc also welcomed the latest RBI’s move. CII Director-General, Chandrajit Banerjee stated that a rate cut would propel investment demand and spur spending in rate-sensitive consumer durables and give fillip to construction activity. CII expects that going forward RBI would shift its stance in favour of growth, given that the trend in inflation is clearly subdued.

In a big surprise, the Reserve Bank of India (RBI) has cut repo rate by 25 basis points to 7.75% with immediate effect. This was first rate cut by RBI since January 2014. Keeping inflation battle at the top of agenda, central bank had been keeping interest rate at 8%, which has impacted the economic growth as well as investments.

India VIX, a gauge for markets short term expectation of volatility declined 4.18% at 16.52 from its previous close of 17.22 on Wednesday. (Provisional)

The CNX Nifty ended at 8513.80, up by 19.65 points or 0.23% after trading in a range of 8452.25 and 8530.75. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Zee Entertainment up by 4.45%, Power Grid up by 3.08%, Sun Pharma up by 2.89%, Coal India up by 2.88% and HCL Tech up by 2.87%. On the flip side, PNB down by 2.38%, Hindalco down by 2.36%, Cairn India down by 2.17%, Bharti Airtel down by 1.86% and Hero MotoCorp down by 1.79% were the top losers. (Provisional)

European Markets were trading in the red; UK's FTSE 100 was down by 0.33%, France's CAC was down by 0.32% and Germany's DAX was down by 0.61%.

The Asian equity benchmarks ended mostly in red on Friday, while Chinese stocks rose, sending the benchmark index to its longest weekly winning streak in almost eight years, amid speculation the government will take more steps to boost economic growth. China announced fresh support measures for its slowing economy after data showed a worrying drop in bank lending and foreign investment growth falling to a two-year low. The central bank stated that it would lend 50 billion yuan ($8.1 billion) to banks at discounted rates to allow them to re-lend the money to farmers and small businesses - areas of the economy that are usually short of cash. China’s foreign direct investment (FDI) rose at its slowest pace in two years in 2014, underscoring a cooling economy which is spurring more Chinese businesses to plough money overseas in a trend that is soon set to overtake inbound investment. The shifts were evident in China’s foreign direct investment (FDI) for 2014, which rose an annual 1.7% to a record $119.56 billion, while outbound direct investment (ODI) surged 14.1% to a new high of $102.9 billion. Japanese tertiary industry activity index rose to a seasonally adjusted 0.2%, from -0.1% in the preceding month whose figure was revised up from -0.2%.