Post Session: Quick Review

Marking fourth consecutive session of gains, local equity markets ended upbeat on Friday, which took Sensex and Nifty above psychologically crucial 29,050 and 8,800 levels respectively, with gains of around 1.15% on sustained buying activities mainly on the back of firm trend overseas. The gains came after Finance Minister, Arun Jaitley underscored that his government will not let the Delhi election drubbing impact key economic policy changes.

Sentiments were buttressed with consumer prices for January coming within market expectations and well below the central bank's inflation target, thereby bolstering prospects for further interest rate cuts. Data showed that consumer prices rose an annual 5.11% compared with a 4.28% gain in December. However, the country's industrial production growth, slowing to 1.7% in December last year, limited gains to some extent. Throughout the session, the markets just kept gaining ground to conclude at day’s high point. The trend was similar for broader counterparts, which ended with gains of around 0.25%-0.75%. For the week, both Sensex and Nifty accumulated gains of over a percent.

On the global front, Asian shares soared on Friday on news of a ceasefire accord in Ukraine, while Sweden's surprise move to cut its main rate into negative territory and hopes of a resolution between debt-strapped Greece and its creditors burnished risk appetite. Meanwhile, European stock markets were on course to end a volatile week at seven-year highs, helped by signs of a modest improvement in the euro-zone economy and hopes that Greece can reach a deal with its creditors. The latest gain came after data on Friday showed the German economy grew faster than expected in the final quarter of 2014.

Closer home, most of the sectoral indices on BSE concluded into positive territory, nevertheless stocks from Realty and Technology counters were the only losers of the session. On the flip side, stocks from FMCG, Metal and Banking counters were the prominent gainers of the session. Market also gained strength after index heavyweight, SBI rallied over 7% after nation's top lender by assets, managed to stem rise in bad loans in its fiscal third quarter. The 208-year old lender, which accounts for about a quarter of loans and deposits in the country, gross bad loans as a percentage of total loans were 4.9% for the three months to December 31, compared with 4.89% a quarter earlier. Net NPA also came in at 2.8% compared to 2.73% q-o-q. Analysts had expected the number to be higher. The overall market breadth on BSE was in the favour of decliners, which thumped advances in the ratio of 1444:1421, while 111 shares remained unchanged (Provisional).

The BSE Sensex ended at 29094.93, up by 289.83 points or 1.01% after trading in a range of 28835.70 and 29154.67. There were 24 stocks advancing against 6 stocks declining on the index. (Provisional)

The broader indices ended in the red; the BSE Mid cap index was up by 0.74%, while Small cap index up by 0.35%. (Provisional)

The losing sectoral indices on the BSE were FMCG up by 1.77%, Healthcare up by 1.56%, Bankex up by 1.32%, Auto up by 1.08% and Metal up by 1.01% while, Realty down by 0.95%, Infrastructure down by 0.27% and Oil & Gas down by 0.16% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were SBI up by 8.14%, Mahindra & Mahindra up by 5.24%, TCS up by 3.18%, Coal India up by 2.37% and Wipro up by 2.10%. On the flip side, GAIL India down by 4.61%, BHEL down by 3.15%, ONGC down by 2.15%, HDFC Bank down by 1.22% and Infosys down by 0.88% were the top losers. (Provisional)

Meanwhile, moving forward in the process of coal block auctions, the government has found as many as 134 applications 'technically qualifiable' of the total 176 preliminary bids received for 21 coal blocks that have been put for electronic auction.

Sector major's like Jindal Steel and Power (JSPL), Bharat Aluminium Co (Balco), Essar Power M P, GMR Chhattisgarh Energy, GVK Power, JSW Energy, Reliance Cement Company, Ambuja Cement, Hindustan Zinc, Sesa Sterlite are among some of the other major companies whose bids have been found technically qualified.

Out of short-listed, top 50% of the bids or top 5 bidders, whichever less would go ahead for the final round of e-auction starting February 14. The selected authority for the coal e-auction would open the financial bids on Saturday to select the e-auction participants.

Notably while, low initial price offer (IPOs) would be shortlisted for bidding in coal blocks for power sector, higher IPOs would be selected for unregulated - steel, cement and captive power.

The government had initially planned to auction 23 mines in first lot but had put on hold bidding for two mines due to litigations. The Ministry would go ahead of with the auction of mines as per schedule though there have some court cases as a consequence of which there have been some changes.

India VIX, a gauge for markets short term expectation of volatility slipped 0.27% at 20.10 from its previous close of 20.11 on Thursday. (Provisional)

The CNX Nifty ended at 8805.50, up by 93.95 points or 1.08% after trading in a range of 8729.65 and 8822.10. There were 41 stocks advancing against 9 stocks declining on the index. (Provisional)

The top gainers on Nifty were SBI up by 7.97%, Mahindra & Mahindra up by 5.12%, Lupin up by 3.82%, Jindal Steel & Power up by 3.75% and TCS up by 3.11%. On the flip side, GAIL India down by 4.37%, BHEL down by 3.12%, DLF down by 2.24%, ONGC down by 1.99% and HDFC Bank down by 0.95% were the top losers. (Provisional)

European Markets were trading in the green; UK's FTSE 100 was up by 0.77%, France's CAC was up by 0.71% and Germany's DAX was up by 0.54%.

The Asian indices ended mostly in green on Friday, buoyed by news of an agreement to bring an end to Ukraine’s 10-month conflict and on hopes Greece would reach a deal to restructure its debt. The Indonesian rupiah may depreciate to a level that has not been seen since the 1998 Asian financial crisis by the end of this year, as investors may reduce inflow to the Southeast Asian country in line with United States’ economy regaining strength. Inflation in Japan is forecast to slow further in coming quarters pressured by the collapse in crude oil prices, but the Bank of Japan (BOJ) is set to sit tight for now as it assesses the broad impact of the oil slump on consumption and prices. BOJ is expected to embark on more stimulus later this year, to top up its latest round launched in October, to support economic growth and safeguard its 2% inflation target. Singaporean Retail Sales fell to a seasonally adjusted 2.6%, from 6.6% in the preceding month whose figure was revised up from 6.5%.