Post Session: Quick Review

Local equity markets staged sharp recovery post previous sessions’ drubbing on Friday after presentation of optimistic Economy Survey 14-15, which highlighted the opportunity that India now had to reclaim double-digit economic growth. Besides, underscoring the government’s commitments towards adhering the fiscal deficit target of 4.1% of GDP in FY15, the survey that forecasted India's GDP growth for 2015-16 between 8.1-8.5%, buttressed the sentiment. Additionally, heavy buying by funds and retail investors on first trading session of March month derivative series also aided sentiment. By close of trade, both Sensex and Nifty rallying over 1.50% concluded past psychologically crucial 29,200 and 8,800 levels respectively. Meanwhile, broader indices also participating into the rally, went home with gains in the range of 1.30%-0.85%.

Notably, the gains of the bourses were despite negative global set-up since Asian shares ended mostly lower on Friday as falling oil prices and mixed U.S. and Japanese economic data kept investors on tenterhooks. Higher-than-expected U.S. inflation numbers, excluding food and energy, and business orders data revived confidence in the world's biggest economy, but bolstered the case for the U.S. Federal Reserve to raise interest rates this summer. Additionally, European stocks fell from their highest level since 2007, as a decline in chemical shares led by BASF SE outweighed better-than-expected financial results from companies including Airbus Group NV.

Closer home, most of the sectoral indices on BSE concluded in the green, and stocks on Realty, Capital Goods and Power counters outperformed. On the flip side, profit-booking was witnessed in stocks from FMCG counters, which were the losers of the session. Meanwhile, PSU bank stocks also rallied after finance ministry after trading hours yesterday, 26 February 2015, said that the Appointments Committee of Cabinet (ACC) has approved the criterion and method of selection of Managing Director and Chief Executive Officers of five PSU banks. Additionally, shares of defence equipment makers rose on expectations of increase in budgetary allocation to defence sector in Union Budget 2015-16 tomorrow, February 28, 2015. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1820:1059; while 123 shares remained unchanged.

The BSE Sensex concluded at 29220.12, up by 473.47 points or 1.65% after trading in a range of 28837.06 and 29254.02. 26 stocks advanced against 4 stocks declining on the index. (Provisional)

The broader indices outperformed larger peers; the BSE Mid cap index ended up by 1.84%, while Small cap index concluded with gains of 1.40%. (Provisional)The gaining sectoral indices on the BSE were Realty up by 4.25%, Capital Goods up by 3.80%, Power up by 3.17%, Metal up by 3.02%, Bankex up by 2.73% while, FMCG down by 0.21% was the only losing index on BSE. (Provisional)

The top gainers on the Sensex were Tata Power up by 5.43%, Larsen & Toubro up by 4.67%, ICICI Bank up by 4.25%, Sesa Sterlite up by 4.20% and Hindalco up by 3.67%. On the flip side, GAIL India down by 1.07%, ITC down by 0.47%, Wipro down by 0.36% and Hindustan Unilever down by 0.15% were the top losers. (Provisional)

Meanwhile, India’s per capita income, a gauge for assessing standard of living, rose by 37.6 per cent to Rs. 88,533 in the last four years to 2014-15. Compared with 2013-14, national income and per capita income at current prices during 2014-15 are estimated to have grown by 11.5 per cent and 10.1 per cent, respectively,

Minister of State for Statistics and Programme Implementation V K Singh replying to a query in the Rajya Sabha said that the per capita income was at Rs 64,316 in 2011-12; Rs. 71,593 in 2012-13; Rs. 80,388 in 2013-14 and Rs. 88,533 in the year 2014-15.

The national income in 2014-15 stood at Rs. 11,217,079 crore; Rs 10,056,523 crore in 2013-14; Rs 8,841,733 crore in 2012-13 and Rs 7,846,531 crore in 2011-12.

Recently, the government made changes in the national accounts calculation methodology by revising the base year to 2011-12 from 2004-05, accordingly India's per capita income, for 2013-14 was increased at Rs 6,699 per month for 2013-14 as against the earlier estimate of Rs 6,198.33. In 2012-13 and 2011-12, the per capita income per month was estimated at Rs 5,966.08 and Rs 5,359.67 respectively. To estimate the per capita income and per capita PFCE, the government used the population projections data on the basis of Census 2011.

The CNX Nifty settled at 8844.60, up by 160.75 points or 1.85% after trading in a range of 8717.45 and 8856.95. 46 stocks advanced against 4 stocks declining one’s the index. (Provisional)

The top gainers on Nifty were Bank of Baroda up by 5.63%, Tata Power up by 5.56%, Jindal Steel & Power up by 5.18%, Ultratech Cement up by 4.98% and Larsen & Toubro up by 4.82%. On the flip side, GAIL India down by 1.03%, Wipro down by 0.55%, ITC down by 0.49% and BPCL down by 0.21% were the top losers. (Provisional)

European markets were trading mostly lower; with Germany’s DAX trading lower by 14.76 points or 0.13% to 11,312.43;  France’s CAC edging lower by 6.83 points or 0.14% to 4,903.79 and UK’s FTSE 100 declining by 5.29 points or 0.08% to 6,944.44.

The Asian markets ended mostly in red on Friday, while Taiwan Stock Exchange was closed on account of ‘Peace Memorial Day’ holiday. Indonesia‘s central bank signaled that it is comfortable with the drop in the rupiah as it makes exports more competitive in Southeast Asia’s largest economy. Indonesia‘s economy posted its weakest growth in five years in 2014 as the end of the commodities boom and high interest rates dented investment and domestic demand. Bank of Japan Governor Haruhiko Kuroda repeated his latest outlook that a moderate rebound in crude oil prices will help anchor 2% inflation around fiscal 2015 but indicated a slip in longer-term public inflation expectations. The Governor repeated that a plunge in crude oil prices over the past year has filtered to prices, adding downward pressure, but they are expected to rise steadily going forward and, as the base year effect of lower energy costs fades.

Japanese households cut spending more than expected and retail sales fell for the first time in seven months in January, a sign the central bank’s radical stimulus has yet to convince consumers that inflation will take hold. Household spending fell a more-than-expected annual 5.1 percent in January in the 10th straight month of declines, the longest losing streak since the global financial crisis in 2009. Annual retail sales dropped a worse-than-expected 2.0 percent. Japanese Housing Starts rose to a seasonally adjusted -13.0%, from -14.7% in the preceding quarter. Thai Industrial Production fell to a seasonally adjusted -1.31%, from -0.35% in the preceding month.