Post Session: Quick Review

Local equity markets snapping two consecutive sessions’ losing streak, managed to end in green, albeit with slender gains which led Sensex and Nifty conclude above psychologically crucial 28,950 and 8,750 levels respectively on lower level buying activities by market-participants thanks to positive global set-up. However, gains were limited on lack of appetite ahead of Budget 2015-16, which is scheduled to take place on February 28, while prevailing caution ahead of F&O expiry on Thursday which too prompted participants to square their long positions, weighed on the sentiment. Besides, warning from global rating agency, S&P that India’s weak fiscal and debt indicators coupled with low income levels could "constrain" the sovereign rating also provided a ceiling to the gains of local equity markets. The session turned out to be disappointing for broader indices, which went home with losses of around 0.20%-0.75%.

On the global front, Asian share markets ended mostly higher on Tuesday as Tokyo scored another 15-year peak despite caution to what Federal Reserve Chair Janet Yellen might say later in the day about the likely lift-off date for US rate hikes. Meanwhile, Greek shares outperformed flat European indices on Tuesday after new government in Athens sent in a list of economic reforms that would pave the way for a four-month extension of its bailout, which was received favourably by the European Commission.

Closer home, most of the sectoral indices on BSE ended the session in red, nevertheless, stocks from Oil & Gas, Metal and PSU counters were the worst performers of the session. On the flip side, massive buying was witnessed by stocks from FMCG, followed by Capital Goods and Realty counters which were the top gainers of the session.

Meanwhile, telecom stocks range off after Telecom Regulatory Authority of India (TRAI) in a move to boost fixed line phone connections in the country, removed charges that a landline service provider has to pay to the other service providers for transmitting its customers' phone calls. Additionally, shares of companies whose fortunes are linked to orders from Indian railways edged lower. Moreover, PSU bank stocks led decline in bank stocks after the bank employees' unions and bank managements, under the aegis of the Indian Banks' Association (IBA), at a meeting held yesterday, 23 February 2015, agreed 15% wage hike as part of an industry-wide wage settlement. The overall market breadth on BSE was in the favour of decliners, which thumped advances in the ratio of 1152:1721, while 114 shares remained unchanged (Provisional).

The BSE Sensex ended at 29004.66, up by 29.55 points or 0.10% after trading in a range of 28875.94 and 29130.67. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in the red; the BSE Mid cap index was down by 0.19%, while Small cap index down by 0.78%. (Provisional)

The gaining sectoral indices on the BSE were FMCG up by 1.45%, Capital Goods up by 1.09%, Realty up by 0.56%, IT up by 0.37% and Infrastructure up by 0.29% while, Oil & Gas down by 1.15%, Metal down by 1.10%, PSU down by 0.52%, Auto down by 0.30% and Bankex down by 0.10% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindustan Unilever up by 3.15%, Larsen & Toubro up by 2.03%, BHEL up by 1.78%, ITC up by 1.37% and Cipla up by 1.23%. On the flip side, Sesa Sterlite down by 3.49%, ONGC down by 2.98%, Tata Steel down by 2.08%, Tata Motors down by 1.55% and Reliance Industries down by 1.10% were the top losers. (Provisional)

Meanwhile, addressing the joint sitting of Parliament at the start of the Budget Session, President Pranab Mukherjee underscored that NDA government was committed to optimum utilization and transparency in allocation of natural resources, including coal, the auction for which have started and would reduce the power costs in the country since this would provide adequate fuel to increase power generation.

He further stated that this auction, would provide huge resources from allotment of mines to the mineral and coal bearing states particularly in eastern areas for accelerated development of the region and had it not been for swift and timely decision of the government to auction these mines, several mines would have been shut down and would have rendered thousand jobless.

He further said that the government in the coming years would make focused efforts to expand exploration capacity and to increase domestic coal production to 1,000 million tonnes per annum (MTPA).

So far, the government has sold 19 coal blocks in the first phase of coal auctions, which is expected to fetch six states over Rs 1 lakh crore. The auction that started on February 14 and concluded on February 22 is expected to benefit States like Jharkhand, Chhattisgarh, Odisha, West Bengal, and MP the most. Lastly, the second round of auction in which government has put on sale 21 mines will begin from February 25.

India VIX, a gauge for markets short term expectation of volatility slipped 0.38% at 21.55 from its previous close of 21.63 on Monday. (Provisional)

The CNX Nifty ended at 8762.10, up by 7.15 points or 0.08% after trading in a range of 8726.75 and 8800.50. There were 28 stocks advancing against 21 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindustan Unilever up by 3.11%, Kotak Mahindra Bank up by 2.54%, Zee Entertainment up by 2.44%, BPCL up by 2.39% and Larsen & Toubro up by 2.02%. On the flip side, Jindal Steel & Power down by 4.24%, Sesa Sterlite down by 3.73%, Cairn India down by 3.55%, Bank of Baroda down by 3.07% and ONGC down by 3.02% were the top losers. (Provisional)

European Markets were trading in the red; France's CAC declined 0.25%, Germany's DAX dropped 0.23% and UK's FTSE 100 was down by 0.02%.

The Asian indices ended mostly in green on Tuesday, while China is in the last day of a week-long Lunar New Year holiday, with investors eyeing Greece to pass reforms needed to secure further euro zone loans. Hong Kong Financial Secretary John Tsang will present the 2015-16 Budget to the Legislative Council tomorrow. The key proposals will be available for collection at the Home Affairs Department’s 20 Public Enquiry Service Centres, and at a counter at the footbridge entrance to the Central Government Offices at Tamar opposite Admiralty Centre. Indonesian fixed income markets are signaling that policy rates will be cut at least once more within the next few months - even if economists remain divided over the prospect. Bank Indonesia surprised last week when it cut policy rates, saying the drop in oil prices had helped ease concerns about inflation. Japan’s Corporate Services Price Index (CSPI) fell to a seasonally adjusted annual rate of 3.4%, from 3.5% in the preceding month whose figure was revised down from 3.6%.