Post Session: Quick Review

Snapping seven consecutive sessions’ winning streak, Indian equity markets ended in doldrums with cut of over 3/4 of a percent, which dragged both Sensex and Nifty below psychologically crucial 29,250 and 8,800 levels respectively. Trade right from the start of the session remained dismal in absence of any positive catalyst which otherwise could have lifted the markets higher. However, broader indices managed to eke out decent gains in lackluster session of trade. While, midcap index ended higher with gains of around 0.05%, smallcap index ended higher with gains of around half a percent. Sentiment for blue-chip stocks was hit after foreign investors sold index derivatives. Index heavyweights such as ICICI Bank, Reliance Industries declined after overseas funds sold index derivatives worth $132.75 million on Thursday, according to NSE data. Meanwhile, prevailing caution ahead of upcoming budget 15-16, which would be Modi’s government first full budget after coming into power in May last year, also weighed on the sentiment. Further, while F&O expiry in the coming week also promoted market-participants to go light on their positions.

On the global front, Asian stocks ended into green on Friday after Greece made a formal request for an extension to its loan agreements. However, many of the region's markets including China, Hong Kong, Malaysia, South Korea, Singapore and Taiwan remained closed for the Lunar New Year holiday. Meanwhile, European shares were steady on Friday morning, with a benchmark index hovering just below a seven-year high, ahead of a meeting of euro zone finance ministers on Greece's bailout programme. A crucial third meeting of euro zone finance ministers will be held in Brussels later today after Germany swiftly rejected the Greek request for a six-month extension to its bailout program, saying the letter does not meet the criteria agreed upon in the euro-group on Monday.

Closer home, most of the sectoral indices on BSE concluded into negative territory, nevertheless stocks from Oil & Gas, Information Technology and Technology counters were the top losers of the session. Software services exporters fell on lingering concerns about waning overseas interest in the sector after a report showed some of the IT companies were among the top-10 underweight stocks for foreign institutional investors. Among IT stocks, Infosys fell 1.6% and Wipro lost 1.5%. On the flip side, stocks from Realty, FMCG and Consumer Durable counters were the prominent gainers of the session. The overall market breadth on BSE was in the favour of advances, which thumped decliners in the ratio of 1491:1428, while 112 shares remained unchanged (Provisional).

The BSE Sensex ended at 29231.41, down by 230.86 points or 0.78% after trading in a range of 29178.26 and 29462.09. There were 7 stocks advancing against 23 stocks declining on the index. (Provisional)

The broader indices ended in the green; the BSE Mid cap index was up by 0.03%, while Small cap index up by 0.45%. (Provisional)

The losing sectoral indices on the BSE were Realty up by 0.91%, FMCG up by 0.75%, Consumer Durables up by 0.25% and PSU up by 0.19% while, Oil & Gas down by 1.79%, IT down by 1.24%, TECK down by 1.21%, Infrastructure down by 0.70% and Metal down by 0.51% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were BHEL up by 5.20%, ITC up by 2.03%, Hindalco up by 1.12%, Mahindra & Mahindra up by 0.45% and Dr. Reddys Lab up by 0.34%. On the flip side, Reliance Industries down by 3.15%, ICICI Bank down by 2.35%, Tata Power down by 2.15%, Infosys down by 1.91% and Bharti Airtel down by 1.78% were the top losers. (Provisional)

Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) has approved over Rs 8,639.14 crore of highway projects in Uttar Pradesh, Odisha and Chhattisgarh. The work for these approved road projects will be under the National Highways Development Project (NHDP) Phase-V and would be carried out on the design, build, finance, operate and transfer (DBFOT) basis in the build, operate and transfer (BOT) toll collection mode.

The CCEA approved the six-laning of Chakeri-Allahabad section of National Highway (NH)- 2 in Uttar Pradesh under the NHDP phase V. The total cost of this project is estimated to be Rs 1999.85 crore and total length of the road will be approximately 145 kms. In Uttar Pradesh another project of six-laning of the Handia-Varanasi section of National Highway was approved at an estimated cost of Rs 2378.59 crore and total length of the road will be approximately 72.4 kms.

In Odisha the CCEA approved six laning of the Baleshwar-Chandikhole section of NH- 5, under NHDP phase-V. The project cost is estimated to be Rs 2296.82 crore and total length of the road will be approximately 137 kms.

The CCEA also approved the development of four to six laning of the Raipur-Bilaspur section of National Highway in Chhattisgarh. The cost of the project is estimated to be Rs 1,963.88 crore and total length of the road will be approximately 127 kms.

India VIX, a gauge for markets short term expectation of volatility surged 4.13% at 21.24 from its previous close of 20.40 on Thursday. (Provisional)

The CNX Nifty ended at 8833.60, down by 61.70 points or 0.69% after trading in a range of 8816.30 and 8899.95. There were 15 stocks advancing against 35 stocks declining on the index. (Provisional)

The top gainers on Nifty were BHEL up by 5.42%, Bank of Baroda up by 2.86%, ITC up by 2.21%, Indusind Bank up by 1.71% and Zee Entertainment up by 1.44%. On the flip side, Reliance Industries down by 3.24%, ICICI Bank down by 2.39%, HCL Tech down by 2.35%, Tata Power down by 2.27% and Bharti Airtel down by 1.98% were the top losers. (Provisional)

European Markets were trading in the red; UK's FTSE 100 was up by 0.04% while, France's CAC was up down 0.28% and Germany's DAX was down by 0.23%.

The only major Asian markets trading today ‘Japanese stock exchange’ and ‘Jakarta Composite’ ended in green on Friday, on optimism about the Japanese economy recovery. Bank of Japan Governor Haruhiko Kuroda stated that aggressive via massive purchases of Japanese government bonds is not causing any problems in the market. Kuroda added that he doesn’t see any problems about implementing the quantitative and qualitative easing. By absorbing nearly all of the new government debt in the secondary market every month, the BoJ has kept long-term interest rates at record lows. The BoJ launched aggressive easing in April 2013 aimed at overcoming years of deflation and anchoring 2% inflation in about two years from then.

Separately, Japanese Economics Minister Akira Amari stated that it will take more time for Japan’s economy to escape from chronic trade deficits because of energy imports. Amari stated that there are finally signs that a weakening in the yen is benefiting exports, a phenomenon often known as the J-curve. Japan’s index of leading economic indicators rose to a seasonally adjusted 105.6, from 105.2 in the preceding month.

Nikkei 225 increased 67.51 points or 0.37% to 18,332.30 and Jakarta Composite increased 9.66 points or 0.18% to 5,400.11.