Benchmarks snap seven day losing streak

Snapping seven day losing streak, Indian equity benchmarks ended the volatile session of trade with a gain of around half a percent. After trading firmly for most part of the session, key gauges entered into the red terrain in last leg of trade, as investors booked profit at higher levels, however instant recovery was witnessed and markets moved higher once again in dying hour to end-up into green. Sentiments remained up-beat on sustained buying by funds and retail investors, after the government’s projection of economy to grow at a faster pace of 7.4 per cent in the current fiscal as against 6.9 per cent in 2013-14. According to the latest revised GDP numbers, based on the new gross value added (GVA) methodology, Indian economy grew at a much faster pace of 6.9 per cent in fiscal year 2014, compared with 4.7 per cent using the old method.

Meanwhile, Finance Minister Arun Jaitley has said that the government will make efforts to keep fiscal deficit within the targeted limit even as investments remain a challenge. Further, Indian corporate leaders have welcomed the landslide victory of the Aam Admi Party in New Delhi and said that the change will lead to good governance. Indian corporate CEOs are hoping that the new Chief Minister will abandon confrontationist approach towards the corporates and make it easier for companies to do business in the capital city.

On the global front, European markets were trading mostly in the green in early deals on Tuesday, while the Asian equities indices ended mostly in the red as nervousness over Greece was potentially withdrawing from the euro and escalating conflict in Ukraine sapped the risk appetite, while the dollar lost steam after its payrolls-inspired rally.

Back home, appreciation in Indian rupee too supported the sentiments. The partially convertible rupee was trading at 62.12 per dollar at the time of equity market closing against the Monday’s close of 62.16 on the Interbank Foreign Exchange. Meanwhile, rally in auto counter too supported the sentiments after Society of Indian Automobile Manufacturers (SIAM) reported that domestic passenger car sales increased 3.14% to 1,69,300 units in January 2015, while two-wheeler sales in January rose 1.07% to 13,27,957 units. Vehicle sales across categories registered an increase of 1.66% to 16,50,382 units from 16,23,429 units in January 2014. Additionally, banking stockstoo remained on buyers’ radar after the Government announced infusion of Rs 6,900 crore in nine public sector banks. This additional capital has been given on the basis of new criteria that comprise of efficiency parameters.

The NSE’s 50-share broadly followed index Nifty rose by around forty points and ended above the psychological 8,550 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex surged by around one hundred and thirty points to finish above the psychological 28,300 mark. Broader markets struggled to get traction and ended the session mixed. The market breadth remained in favor of decliners, as there were 1,333 shares on the gaining side against 1,102 shares on the losing side while 110 shares remain unchanged.

Finally, the BSE Sensex surged by 128.23 points or 0.45% to 28355.62, while the CNX Nifty gained 39.20 points or 0.46% to 8565.55.

The BSE Sensex touched a high and a low of 28633.72 and 28044.49, respectively. The BSE Mid cap index was up by 0.38%, while Small cap index down by 0.11%.

The top gainers on the Sensex were Tata Motors up by 4.01%, ICICI Bank up by 3.34%, Tata Steel up by 2.80%, SBI up by 2.65% and Sesa Sterlite up by 2.64%. On the flip side, TCS down by 2.87%, Sun Pharma down by 2.33%, HDFC down by 2.05%, Reliance Industries down by 1.63% and Hindustan Unilever down by 1.17% were the top losers.

On the BSE Sectoral front Bankex up by 1.76%, Auto up by 1.75%, Metal up by 1.68%, Consumer Durables up by 1.46% and Infrastructure up by 1.28% while, Oil & Gas down by 0.94%, IT down by 0.74%, TECK down by 0.65% and Healthcare down by 0.10% were the few losing indices on BSE.

Meanwhile, a Parliamentary panel has invited suggestions on the proposed amendment to the Electricity Act, which seeks to provide choice of power suppliers to consumers and propel growth in the sector, for examination. The Standing Committee on Energy (Sixteenth Lok Sabha) under the Chairpersonship of Kirit Somaiya, Member of Parliament, has referred the Electricity Amendment Bill, 2014 for examination and presenting a report to Parliament.

Considering the importance of the subject, the committee has invited suggestions, views and suggestions from stakeholders, individuals, experts, institutions/and organisations interested in the subject within 10 days of publication of communique of February 10.

The amendments have been suggested in order to promote competition, efficiency and improvement in the supply of electricity resulting in capacity addition and benefiting consumers.

While, the Cabinet, in December, approved various amendments to the existing Electricity Act 2003, Power and Coal Minister Piyush Goyal had earlier indicated that amendments to the Electricity Act, 2014 should come into effect by April.

The CNX Nifty touched a high and low of 8646.25 and 8470.50 respectively.

The top gainers on Nifty were Tata Motors up by 3.95%, ACC up by 3.57%, ICICI Bank up by 3.44%, Tata Steel up by 2.96% and Grasim Industries up by 2.83%. On the flip side, HCL Tech down by 3.06%, TCS down by 2.86%, Sun Pharma down by 2.33%, Tech Mahindra down by 2.05% and HDFC down by 2.03% were the top losers.

European Markets were trading mostly in the green; Germany's DAX was up by 0.11%, and France's CAC was up by 0.29% while, UK’s FTSE 100 was down by 0.50%.

The Asian indices ended mostly in red on Tuesday, tailing the negative cues from Wall Street amid worries about Greece. China’s annual consumer inflation hit a five-year low in January while factory deflation deepened, underscoring persistent weakness in the economy and heaping more pressures on policymakers to step up their efforts to support growth. The risk of deflation is rising as the world’s second-largest economy faces headwinds from a property market downturn and widespread factory overcapacity, and the situation may have worsened by falling global commodity prices. The consumer price index rose 0.8% in January from December. That was the weakest reading since November 2009, when consumer prices rose 0.6% from a year earlier. Philippines Industrial Production fell to a seasonally adjusted annual rate of 4.2%, from 7.5% in the preceding month. Malaysian Industrial Production rose to a seasonally adjusted annual rate of 7.4%, from 4.7% in the preceding month.