Post Session: Quick Review

After witnessing heavy drubbing in previous trading session, markets managed to stage some recovery, however the gains remained modest as market-participants didn't want to go gung-ho in equities as investors turned cautious ahead of three-day market holiday. The market will remain close on March 6 on account of ‘Holi’ followed by weekly holiday of Saturday and Sunday. Nevertheless, bit of bargain buying which got triggered in at lower levels mainly lifted both Sensex and Nifty higher above psychologically crucial 29,400 and 8,900 levels respectively, with gains of around two tenths of a percent. However, broader indices also outperforming larger counterparts went home with gains of over half a percent. Sentiments were bolstered after FII turned out to be net buyers. Foreign portfolio investors were net buyers in equities worth Rs 2786 crore while domestic institutional investors also bought shares worth Rs 17 crore, as per provisional stock exchange data.

On the global front, Asian market slipped on Thursday after Wall Street continued to pull back from record highs ahead of Friday's closely-watched U.S. jobs data, while the cautiousness ahead of European Central Bank's policy meeting also weighed on the sentiment. Sentiment also took a hit in Asian region after China announced an economic growth target for 2015 of around 7% on Thursday and said it would boost government spending, signalling that the lowest rate of expansion for a quarter of a century is the 'new normal' for the world's No 2 economy. However, European shares rose in early trading on Thursday, with batch of robust company results from firms including Carrefour and Schroders boosting sentiment.

Closer home, most of the sectoral indices on BSE concluded into negative territory, however stocks from Healthcare, Fast Moving Consumer Goods and Banking counters were the prominent gainers of the session. On the flip side, stocks from Metal, Technology and Capital Goods counters were notable losers of the session. In stock-specific action, shares of insurance companies advanced after the Lok Sabha passed the Insurance Laws (Amendment) Bill, 2015, that proposes to raise the foreign investment cap to 49% from 26% in the insurance sector. Additionally, Public sector oil marketing companies (PSU OMCs) advanced after the Ministry of Petroleum & Natural Gas announced that 81% active LPG consumers (11.74 crore) have joined the Direct Benefit Transfer for LPG (DBTL) scheme called PAHAL as on March 2, 2015. However, three telecom stocks fell after aggressive bidding was witnessed on day one for auction of 2G and 3G telecom spectrum on March 4, 2015. While Metal shares lost shine on back of weak economic forecast from China, the world's largest consumer of metals, gains of Sun Pharma lifted Healthcare stocks. Sun Pharma extended gains after the company announced that it has reached an agreement with GSK Pharma to acquire the latter's Opiates business in Australia. The overall market breadth on BSE was in the favour of decliners which thumped advances in the ratio of 1410:1451; while 117 shares remained unchanged.

The BSE Sensex concluded at 29448.95, up by 68.22 points or 0.23% after trading in a range of 29162.47 and 29518.32. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended green; the BSE Mid cap index was up by 0.74%, while Small cap index up by 0.66%. (Provisional)

The gaining sectoral indices on the BSE were Healthcare up by 2.54%, FMCG up by 1.07%, Bankex up by 0.56%, Auto up by 0.49% and Power up by 0.37% while, Metal down by 1.92%, TECK down by 0.61%, Capital Goods down by 0.60%, IT down by 0.58% and PSU down by 0.23% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Sun Pharma up by 3.69%, Hindustan Unilever up by 2.43%, HDFC Bank up by 2.05%, HDFC up by 1.90% and Cipla up by 1.90%. On the flip side, Hindalco down by 3.69%, Coal India down by 2.31%, TCS down by 1.90%, GAIL India down by 1.70% and Tata Steel down by 1.57% were the top losers. (Provisional)

Meanwhile, Prime Minister Narendra Modi, in a meeting with 35 first-time Maharashtra MLAs suggested that additional funds and resources disposal of states should be directed primarily towards nation building. The Minister, while highlighting the union government`s initiatives towards cooperative federalism, underscored that states have been allocated 62% of the total resources in the union budget, while only 38% have been left for use by the Centre.

Further, the minister also emphasized upon the government’s acceptance of the recommendations of the 14th Finance Commission regarding devolution of 42% of the divisible pool of taxes to states and expressed the desire of sharing the proceeds of coal auctions and the enhanced mineral royalties with states.

According to recommendations of the 14th Finance Commission, States will get a much higher share of central taxes, as the government accepted the 14th Finance Commission’s recommendation to devolve an unprecedented 42 per cent of the divisible pool to states during 20015-16 to 2019-20, against 32 per cent suggested by the previous commission. This means in 2015-16, states will receive Rs 5.79 lakh crore of the Centre’s expected gross tax receipts of Rs 15.67 lakh crore. The share of states will rise 51.55 per cent compared to the 2014-15 estimate of Rs 3.82 lakh crore.

India VIX, a gauge for markets short term expectation of volatility declined 5.77% at 14.32 from its previous close of 15.19 on Wednesday. (Provisional)

The CNX Nifty settled at 8937.75, up by 15.10 points or 0.17% after trading in a range of 8849.35 and 8957.55. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were Sun Pharma up by 3.22%, Lupin up by 2.85%, Hindustan Unilever up by 2.58%, Bank of Baroda up by 2.02% and HDFC up by 1.98%. On the flip side, NMDC down by 3.96%, Ultratech Cement down by 3.65%, Hindalco down by 3.27%, Grasim Industries down by 2.53% and Coal India down by 2.05% were the top losers. (Provisional)

European Markets were trading in the green; Germany's DAX rose 0.27%, UK's FTSE 100 jumped 0.16% and France's CAC was up by 0.37%.

The Asian markets ended mostly in red on Thursday, after Wall Street continued to pull back from record highs ahead of Friday’s closely-watched US jobs data. China set the lowest economic growth target in more than 15 years and flagged increasing headwinds as leaders tackle the side effects of a generation-long expansion that spurred corruption, fueled debt and hurt the environment. The goal of about 7% -- down from last year’s aspiration of about 7.5%  -- was given in Premier Li Keqiang’s work report at the annual meeting of the legislature in Beijing. Fiscal policy will remain proactive and monetary policy prudent, while the yuan exchange rate will be kept at a reasonable and balanced level. China cut its trade growth target for this year to around 6%, after it missed the goal in 2014 for the third consecutive year amid softened domestic and foreign demand. Philippines CPI rose to a seasonally adjusted annual rate of 0.1%, from 0.4% in the preceding quarter.