Post Session: Quick Review

After witnessing consolidation in previous session of trade, local equity markets resumed their winning streak and ended upbeat for nine out of ten trading session with gains of around half a percent, which lifted both Sensex and Nifty above psychologically crucial 29,650 and 8,950 levels respectively. Intra-day trend reversal which was witnessed in last hour of trade mainly led to positive session of trade as market-participants rolled over positions in the futures & options (F&O) segment from the near month January 2015 series to February 2015 series on the final session of F&O expiry. However, broader indices succumbing to selling pressure ended mixed, with Midcap index settling with cut of around 0.35% and Smallcap index ending higher with gains of around one tenth of a percent.

On the global front, Asian shares extended losses on Thursday after the Federal Reserve took an upbeat view on the U.S. economy and signaled that it remains firmly on track to raise interest rates this year, despite an uncertain global outlook. Meanwhile, European shares continued to reel under pressure with Greek stocks taking a hammering after the country's new anti-austerity government pressed home demands for debt relief and rolled back the privatisation programme.

Closer home, most of the sectoral indices on BSE concluded into positive territory, however maximum demand was witnessed by stocks from Realty, followed by Oil & Gas and Fast Moving Consumer Goods counter. On the flip side, maximum drubbing was witnessed by stocks from Public Undertaking Unit (PSU), Infrastructure and Metal counters. In stock-specific action, telecom stocks rang-off in trade after the government approved a higher base price for 3G spectrum auction. The Cabinet approved a base price of Rs 3,705 crore per megahertz (MHz) for 3G spectrum auction, which was 11% higher than the price paid by telecos in 2010, and also 36% higher than TRAI recommended price. Meanwhile, Coal India dropped in volatile trade after the government announced that it will sell up to 10% stake in the state-run coal major through the stock exchanges mechanism on January 30, 2015. The share sale price will likely be at a discount to the current market price to attract investors. Retail investors will get another 5% discount on the bid price. The overall market breadth on BSE was in the favour of decliners, which thumped advances in the ratio of 1426:1455, while 126 shares remained unchanged (Provisional).

The BSE Sensex ended at 29681.77, up by 122.59 points or 0.41% after trading in a range of 29378.30 and 29740.63. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.35%, while Small cap index up by 0.08%. (Provisional)

The gaining sectoral indices on the BSE were Realty up by 3.14%, Oil & Gas up by 1.55%, FMCG up by 1.07%, Consumer Durables up by 1.08% and Capital Goods up by 0.82% while, PSU down by 0.74%, Infrastructure down by 0.54%, Metal down by 0.21% and TECK down by 0.11% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Dr. Reddys Lab up by 4.17%, HDFC Bank up by 3.37%, BHEL up by 2.55%, Reliance Industries up by 2.33% and ITC up by 2.10%. On the flip side, HDFC down by 3.04%, SBI down by 2.48%, Mahindra & Mahindra down by 1.93%, Coal India down by 1.31% and Maruti Suzuki down by 1.28% were the top losers. (Provisional)

Meanwhile, in a move which would help the government garnering over Rs 1 lakh crore along with sale of other mobile frequencies, the Cabinet, accepting inter-ministerial panel Telecom Commission's (TC) suggestion, approved a base price of Rs 3,705 crore per megahertz (MHz) for 2100 MHz band, used for 3G mobile services.

Meanwhile, the reserve prices for other bands, 800 MHz, 900 Mhz and 1,800 MHz have already been finalized by the Cabinet for the auction, which is scheduled to start from March 4 along with the 3G spectrum band. The combined proceeds from auction of all the four bands are estimated to fetch the government over Rs 100,000 crore.

Notably, the base price suggested by the Commission is approximately 11% higher than price paid by telecom firms in the 2010 auction. It is also 36% higher than sectoral regulator TRAI's recommendation of Rs 2,720 crore per Mhz.

This development comes right after the Department of Telecommunications (DoT) deferred Spectrum auction in 800, 900, 2100 and 1800 MHz band, originally slated to start from February 25 by a week to March 4.

India VIX, a gauge for markets short term expectation of volatility declined 1.70% at 19.43 from its previous close of 19.77 on Wednesday. (Provisional)

The CNX Nifty ended at 8952.35, up by 38.05 points or 0.43% after trading in a range of 8861.25 and 8966.65. There were 29 stocks advancing against 21 stocks declining on the index. (Provisional)

The top gainers on Nifty were BPCL up by 3.91%, Dr. Reddys Lab up by 3.84%, HDFC Bank up by 3.46%, BHEL up by 3.10% and Ambuja Cement up by 2.77%. On the flip side, PNB down by 3.68%, Asian Paints down by 3.18%, Bank of Baroda down by 2.86%, Coal India down by 2.31% and SBI down by 2.27% were the top losers. (Provisional)

European Markets were trading in the red; Germany's DAX was down by 0.39%, UK's FTSE 100 was down by 0.87% and France's CAC was down by 0.25%.

The Asian equity benchmarks ended in red on Thursday, with Chinese stocks falling for a third day, sending the benchmark index to a one-week low, amid speculation increased regulatory scrutiny of margin loans will spur some leveraged investors to reduce holdings. Bank of Japan Governor Haruhiko Kuroda stated that he was focusing on the long-term inflation trend, which showed the country remained on track to hit his ambitious price target. Kuroda added that while consumer inflation may slow in the short-term due to slumping oil prices, it will accelerate in the latter half of the next fiscal year beginning in April as companies raise wages and an economic recovery pushes up prices. Japan’s retail sales fell to a seasonally adjusted annual rate of 0.2%, from 0.4% in the preceding month. Thai Industrial Production rose to a seasonally adjusted -0.4%, from -3.5% in the preceding month.

A Philippine official stated that the country no longer deserves to be branded the ‘sick man of Asia’ after its economy grew more than 6% for a third consecutive year. Hampered by natural disasters, growth of the $300 billion economy slowed to 6.1% in 2014, but still outpaced most other countries in Asia. The 2014 performance ranks the Philippines as the second fastest growing Asian country behind China. Philippines GDP rose to a seasonally adjusted annual rate of 6.9%, from 5.3% in the preceding month.