Post Session: Quick Review

Markets consolidated for yet another session on Wednesday as cautiousness ahead of Budget 15-16, to be presented later in the week and a day ahead of Railway Budget prompted investors to square off their long positions. Markets erasing all the early gains managed just about a positive close as investors turned jittery ahead of F&O expiry, which is scheduled to take place on Thursday. Much of caution crept in after Global rating agency Moody's underscored that fiscal policies and structural reforms would determine India's sovereign credit profile, and not recent revisions to the economic growth data.

However, in the volatile session of trade, markets remained upbeat for most part of the session on surge of index heavyweight such as Reliance Industries, HDFC and Infosys among others. While, Reliance Industries was up 1% on short covering at lower levels after the stock witnessed profit taking in the previous few sessions, Infosys rallied after India’s second-largest information technology services firm announced that it would soon invest in a start-up that develops cloud-based air quality detectors. Sentiments were also bolstered after U.S. Federal Reserve Chair Janet Yellen suggested that Fed would not be rushing to hike interest rates. She added, however, that a rate increase is not likely for at least the next couple of meetings, and that the first hike would not necessarily come after the Fed removes the word 'patient' from its forward guidance. However, the early euphoria fizzled out, taking Sensex and Nifty below psychologically crucial 29,050 and 8,800 levels respectively by close of trade. Meanwhile, broader indices succumbing to selling pressure, ended with cut in the range of 0.20-0.40%.

On the global front, besides Janet Yellen’s comments, Asian markets also rose after activity in China's mammoth factory sector edged up to a four-month high in February even as export orders shrank at their fastest rate in 20 months. The flash HSBC/Markit Purchasing Managers' Index (PMI) inched up to 50.1 in February, a whisker above the 50-point level that separates growth in activity from a contraction on a monthly basis. Meanwhile, European shares dipped in early trading on Wednesday, pausing their recent sharp rally, with Weir Group falling 6 percent after warning about a significant reduction in revenue in 2015.

Closer home, most of the sectoral indices on BSE concluded into negative territory, nevertheless stocks from Technology, Information Technology and Fast Moving Consumer Goods counters were the prominent losers of the session. On the flip side, massive drubbing was witnessed by stocks from Healthcare, Banking and Capital Goods counters , which were the top losers of the session. Railway stocks slumped for another session ahead of Railway budget. The railway budget will presented by Suresh Prabhu, who quit the Shiv Sena and joined the Bharatiya Janata Party (BJP), to deliver on the promise to hit the ground running.

The BSE Sensex concluded at 29007.99, up by 3.33 points or 0.01% after trading in a range of 28967.61 and 29269.83. There were 12 stocks advanced against 18 stocks declining one’s on the index. (Provisional)

The broader indices concluded in red; the BSE Mid cap index was down by 0.22%, while Small cap index down by 0.40%. (Provisional)

The gaining sectoral indices on the BSE were TECK up by 0.47%, IT up by 0.45%, FMCG up by 0.36%, Realty up by 0.35%, Oil & Gas up by 0.29% while, Bankex down by 0.76%, Capital Goods down by 0.71%, Metal down by 0.51%, Power down by 0.49%, Consumer Durables down by 0.39% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were HDFC up by 2.43%, Infosys up by 1.75%, Wipro up by 1.71%, Bharti Airtel up by 1.36% and ITC up by 0.93%. On the flip side, Dr. Reddys Lab down by 2.48%, Tata Steel down by 2.30%, Sun Pharma Inds. down by 2.00%, Tata Power down by 1.83% and Hindustan Unilever down by 1.43% were the top losers. (Provisional)

Meanwhile, ahead of Budget, results of Business Confidence Survey, conducted by industry body FICCI showed a marginal dip in the proportion of respondents anticipating 'moderately to substantially better' performance over the near-term at economy, industry and firm level. Around 83% of the participants in the current survey cited a `moderately to substantially better` overall economic situation over the next six months, compared to 84% stating likewise in the last round.

The survey drew responses from about 150 companies with a turnover ranging from Rs 3 crore to Rs 10,000 crore and belonging to a wide array of sectors - chemicals, steel, paper products, textiles, automotive, electric machinery, pharmaceutical, food processing and hospitality.

Although the survey pointed better situation as compared to last year, it showed that sustainable turnaround remained elusive on investments, profits and exports. According to Ficci's poll, measures announced by the government over the course of last seven to eight months did have a positive impact on the sentiment of the business community, but continued implementation of these reforms were required by sustain the buoyancy.

The survey also found that the industry was confident about the government continuing pursuing its broad economic agenda to push reforms and take tangible steps towards its completion.

The CNX Nifty concluded at 8767.25, up by 5.15 points or 0.06% after trading in a range of 8751.40 and 8840.65. 23 stocks advanced against 26 stocks declining one’s on the index. (Provisional)

The top gainers on Nifty were ACC up by 2.33%, HDFC up by 2.30%, Infosys up by 1.97%, Bharti Airtel up by 1.91% and Ultratech Cement up by 1.82%. On the flip side, Dr. Reddys Lab down by 2.39%, Tata Steel down by 2.28%, Sun Pharma Inds. down by 2.16%, Tata Power down by 1.72% and HDFC Bank down by 1.42% were the top losers.(Provisional)

European markets were trading mostly higher; with Germany’s DAX trading higher by 1.65 points or 0.01% to 11,207.39; UK’s FTSE 100 trading lower by 18.84 points or 0.27% to 6,930.79 and  France’s CAC trading lower by 9.63 points or 0.2% to 4,876.81.

Asian markets ended mostly in green on Wednesday led by the overnight gains in the US markets, which surged on dovish testimony by Federal Reserve Chair Janet Yellen, where she indicated that the Fed is not likely to begin raising interest rates for at least the next couple monetary policy meetings. The Chinese market that opened after a week long holiday ended with marginal cut after a volatile session of trade on HSBC's latest factory activity report, which showed export orders in February had shrunk at their fastest rate in 20 months. Though, the Hang Seng market posted modest gains despite the region’s economy missing growth expectations for 2014, expanding by 2.3% compared with 2.9% a year earlier. Traders were encouraged by the budget of the country various licensing and administration fees for restaurants, hotels and travel agencies were waived to try to boost tourism. The Japanese market gave all its early gains to end mildly in red.