Post Session: Quick Review

Extending their record-setting spree for the third straight session, local equity markets puffed up gains of around half a percent, which lifted both Sensex and Nifty above psychologically crucial 29,000 and 8,750 levels respectively by close of trade. Already propped-up by overall macro scenario amid strong FII inflows into Indian equities, the investors’ optimism in today’s trading session was further boosted by upbeat global markets on high expectations of quantitative easing from the European Central Bank (ECB) later in the day. Besides, optimism over encouraging Q3 earnings by blue-chip companies so far, also buoyed trading sentiments. Additionally, encouraging statement that India has a roadmap to cut down fiscal deficit to below 3 pct of GDP in next few years by Finance Minister, also did its bit behind driving gains of Dalal Street. Meanwhile, the session just about turned out to be positive for broader indices, which went home with gains in the range of 0.10%-0.25%.

On the global front, shares across globe were in jubilant mood as the European Central Bank (ECB) prepared to take the plunge into full-scale quantitative easing. Report suggest that the bank's Executive Board, which met on Tuesday, has proposed the ECB should buy 50 billion euros ($58 billion) of bonds each month from March, though it was unclear how long for.

Closer home, with broad-based buying activities taking place during the session all the sectoral indices on BSE concluded the session into positive territory, however stocks from Consumer Durables and Oil & Gas counters were the spoilsports of the session. On the flip side, stocks from Healthcare, Capital Goods and Auto counters were the top gainers of the session. Meanwhile, banking stocks were up for yet another session on hopes of further rate cut by Reserve bank of India in its upcoming monetary policy meeting on February 3, 2015. Besides, shares of real estate developers and cement companies were in demand after the Prime Minister's Office (PMO) announced that Prime Minister Narendra Modi has directed all concerned departments to immediately finalize the programme and finalise the financing models for alternate sets of housing requirements with regard to the government's Housing for All Mission. The overall market breadth on BSE was in the favour of decliners, which thumped advances in the ratio of 1346:1576, while 111 shares remained unchanged (Provisional).

The BSE Sensex ended at 29006.02, up by 117.16 points or 0.41% after trading in a range of 28892.23 and 29060.41. There were 17 stocks advancing against 12 stocks declining on the index. (Provisional)

The broader indices ended in the green; the BSE Mid cap index was up by 0.07%, while Small cap index up by 0.23%. (Provisional)

The gaining sectoral indices on the BSE were Healthcare up by 1.69%, Capital Goods up by 1.12%, Auto up by 0.72%, Metal up by 0.67% and Realty up by 0.54% while, Consumer Durables down by 0.96%, Oil & Gas down by 0.77% and Infrastructure down by 0.27% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Axis Bank up by 3.54%, Sun Pharma up by 3.38%, Tata Motors up by 2.65%, ONGC up by 2.04% and Cipla up by 1.56%. On the flip side, Reliance Industries down by 2.17%, NTPC down by 2.02%, Hero MotoCorp down by 1.27%, Maruti Suzuki down by 1.01% and GAIL India down by 0.39% were the top losers. (Provisional)

Meanwhile, ahead of the Budget 2014-15, the Expenditure Management Commission (EMC), headed by Bimal Jalan, has recommended the government to cut fiscal deficit to 3.6% of the GDP during 2015-16. The commission reviewed the major areas of central government expenditure and suggested ways to create fiscal space required to meet developmental expenditure needs.

The panel report, which was submitted to government on January 17, suggested ways to achieve a reduction in financial costs through better cash management, greater use of information technology and improved financial reporting systems. It also entrusted with designing a framework to improve operational efficiency of expenditures through focus on utilisation, targets and outcomes.

The government subsidy bill stands at around 2 lakh crore, playing an important role for widening the fiscal deficit. The subsidy bill on food, petroleum and fertilisers is estimated at Rs 2,51,397 crore for 2014-15, up 2.47 percent over the previous fiscal.  The government has pegged total fertiliser subsidy higher at Rs 72,970.30 crore for full fiscal than Rs 67,970 crore proposed in the interim budget.  The government has allocated Rs 1,15,000 crore for food security, which include a provision of Rs 88,500 crore for implementation of National Food Security Act.

India VIX, a gauge for markets short term expectation of volatility surged 4.81% at 18.56 from its previous close of 17.71 on Wednesday. (Provisional)

The CNX Nifty ended at 8761.40, up by 31.90 points or 0.37% after trading in a range of 8727.00 and 8774.15. There were 33 stocks advancing against 17 stocks declining on the index. (Provisional)

The top gainers on Nifty were Sun Pharma up by 3.85%, DLF up by 3.41%, Axis Bank up by 3.20%, IDFC up by 2.76% and Tata Motors up by 2.72%. On the flip side, Reliance Industries down by 2.54%, NTPC down by 2.30%, PNB down by 1.48%, Tech Mahindra down by 1.37% and HCL Tech. down by 1.28% were the top losers. (Provisional)

European Markets were trading mostly in the red; France's CAC was up by 0.13%, while Germany's DAX was down by 0.27% and UK's FTSE 100 was down by 0.27%.

The Asian equity benchmarks ended mostly in green on Thursday, as investors awaited a European Central Bank decision on quantitative-easing strategy. Chinese shares rallied as the People’s Bank of China pumped funds into the financial system. The PBOC conducted its first reverse-repurchase operation in a year, adding money to the financial system after saying it rolled over a 269.5 billion yuan ($43.4 billion) lending facility to banks ahead of next month’s Chinese New Year holiday. Premier Li Keqiang, in a speech at the World Economic Forum in Davos, stated that China will avoid a hard landing and will ensure an appropriate pace of growth. The nation’s economic expansion in 2014 slowed to its weakest pace in 24 years and a real-estate developer’s failure to meet an interest payment is raising the specter of a pickup in debt defaults. Japan’s central bank expects the world’s third largest economy to rebound in the coming fiscal year after contracting 0.5% this fiscal year, in an upbeat assessment that scuttled hopes for fresh stimulus. The Bank of Japan ended a policy meeting without any major change to its ultra-loose monetary policy. Japan’s All Industries Activity Index rose to a seasonally adjusted 0.1%, whose figure was revised up from -0.1%.