Post Session: Quick Review

First trading session of new month F&O series and last trading session of the week turned out to be extremely daunting for local equity markets, which nursing heavy losses of over 1.50% concluded below psychologically crucial 29,150 (Sensex) and 8,800 (Nifty) levels respectively. Meanwhile, broader indices capitulating to selling pressure, concluded with losses in the range of 0.30%-0.40%. For the week, both Sensex and Nifty ended with cut of around 0.305. On the broader front, BSE smallcap index ended with loss of around 0.30%, while CNX midcap index ended higher by 0.70%.

Markets after hitting fresh peaks in early deals witnessed bout of selling pressure, which kept on increasing with each passing hour of trade, dragging frontline indices at day’s low point by close of trade. Profit-booking by market-participants at higher level amidst somber global cues mainly led to downbeat session of trade at Dalal Street. Meanwhile, prevailing caution ahead of crucial RBI’s policy meeting in the coming week also kept traders at the sidelines. Street widely expects Central bank to pause during the February 2015 monetary policy review, while maintaining a dovish tone, and resume cutting the repo rate by a further 50 basis points (bps) after the presentation of the Union Budget.

On the global front, Asia pacific shares ended mostly lower as market-participants largely shrugged off data showing inflation slowing in December in Japan. However, Tokyo's gains were in line with a broad rally on Wall Street the day before, after the Federal Reserve signalled that growth and jobs in the world's top economy remained robust and a raft of generally solid US corporate earnings. Japanese government data released Friday showed that consumer inflation in the world's third largest economy slowed for a fifth month in December to 2.5% year-on-year, down from 2.7% in November, on the back of plummeting oil prices and weaker consumer spending. Additionally, European shares too were trading lower, however losses were limited by upbeat German retail sales, which posted their biggest annual rise in 2-1/2 years in December.

Closer home, most of the sectoral indices on BSE succumbed to selling pressure, but stocks from Bankex, Consumer Durables and Public Sector Undertaking (PSU) counters were the prominent losers of the session. On the flip side, much of the buying was witnessed by stocks from Realty, Power and Information Technology (IT) counters, which were the prominent gainers of the session. Banking stocks tanked in trade on account of slew of disappointing earnings from both ICICI bank and Bank of Baroda. India's second-biggest lender by assets, Bank of Baroda booked a 69 per cent fall in quarterly profit due to higher provisions for bad loans and a surge in tax expenses, sending its shares down more than 10 per cent. Meanwhile, ICICI Bank  shares plunged by 5% after India’s largest private sector Bank missed street expectations on Friday with the third quarter net profit rising 14 percent year-on-year to Rs 2,889 crore, aided by other income and net interest income. However, higher provisions restricted profit growth. The overall market breadth on BSE was in the favour of decliners, which thumped advances in the ratio of 1257:1603, while 115 shares remained unchanged (Provisional).

The BSE Sensex ended at 29182.95, down by 498.82 points or 1.68% after trading in a range of 29070.48 and 29844.16. There were 9 stocks advancing against 21 stocks declining on the index. (Provisional)

The broader indices ended in the red; the BSE Mid cap index was down by 0.30%, while Small cap index down by 0.43%. (Provisional)

The gaining sectoral indices on the BSE were Realty up by 2.17%, Power up by 0.88% and IT up by 0.20% while, Bankex down by 3.14%, Consumer Durables down by 1.85%, PSU down by 1.67%, Auto down by 1.21% and Metal down by 0.84% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Power up by 3.69%, BHEL up by 1.36%, NTPC up by 1.23%, Sesa Sterlite up by 0.95% and Wipro up by 0.94%. On the flip side, ICICI Bank down by 5.17%, SBI down by 5.07%, Dr. Reddys Lab down by 3.91%, Coal India down by 3.87% and HDFC down by 2.69% 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 surged 3.80% at 20.17 from its previous close of 19.43 on Thursday. (Provisional)

The CNX Nifty ended at 8808.90, down by 143.45 points or 1.60% after trading in a range of 8775.10 and 8996.60. There were 13 stocks advancing against 37 stocks declining on the index. (Provisional)

The top gainers on Nifty were HCL Tech up by 8.66%, Tata Power up by 2.67%, BPCL up by 2.04%, Lupin up by 1.98% and DLF up by 1.95%. On the flip side, Bank of Baroda down by 11.05%, SBI down by 5.52%, ICICI Bank down by 5.15%, PNB down by 4.75% and HDFC down by 4.03% were the top losers. (Provisional)

European Markets were trading mostly in the red; UK's FTSE 100 was down by 0.43% and France's CAC was down by 0.06%, while Germany's DAX was up by 0.10%.

The Asian equity benchmarks ended mostly in red on Friday, with Japanese stocks rising for a second week as investor sentiment recovered amid expectations of slower interest-rate increases in the US. The Bank of Japan has put monetary policy on hold and found backing for its wait-and-see stance from advisors to Prime Minister Shinzo Abe, who worry more easing could send the yen to damagingly low levels. Concerns about the yen, along with a belief among central bank officials - including Governor Haruhiko Kuroda - that coming wage increases will support higher prices, suggest the BOJ could hold policy steady until October.

China’s factory growth likely inched up from a 1-1/2-year low in January, helped by a slight pick-up in momentum the previous month, but the bounce is not expected to last due to unsteady exports and slowing investment. China’s fiscal revenue rose 8.6% from a year earlier to 14 trillion yuan ($2.24 trillion) while China’s fiscal expenditure increased 8.2% last year to 15.2 trillion yuan. Thailand’s Industrial Production rose to a seasonally adjusted -0.4%, from -3.5% in the preceding month. Philippines GDP rose to a seasonally adjusted annual rate of 6.9%, from 5.3% in the preceding month.