Post Session: Quick Review

Markets ended lower for third successive session on Wednesday as mood failed to lift in absence of any positive trigger amidst prevailing caution ahead of the release of crucial macro-economic data. The street would be eagerly eyeing February CPI and January IIP data, which is scheduled to be released on Thursday. Somber global cues after strong US jobs data which fanned expectation of Fed hiking interest rates soon continued to weigh on risk-appetite of participants across the globe for yet another session. However, losses to some extent remained capped on account of narrower Q3FY15 CAD data, which though doubled than the deficit seen in the same quarter of the previous year, but narrowed down at $8.2 billion or 1.6% of gross domestic product for October-December quarter. Meanwhile, broader indices also succumbed to selling pressure and ended lower with cut of around 0.40%.

On the global front, sell-off was witnessed in China as volatility from overseas returned, but Japan ended in positive territory after the yen hit a fresh seven year low against the dollar. Meanwhile, In China, shares also ended higher ahead of a spate of economic data after the release of  industrial output data. Meanwhile, European equities were higher in morning trade on Wednesday, dismissing global market jitters and rebounding from heavy losses seen in the previous session.

Closer home, most of the sectoral indices on BSE succumbed to selling pressure, nevertheless stocks from Metal, Oil & Gas and Healthcare counters were the prominent losers of the session. On the flip side, stocks from Infrastructure, Realty and Technology counters were the top gainers of the session. In stock-specific action, shares of telecom companies rallied in the range of 3-5% in an otherwise choppy market after reports suggested that the ongoing telecom spectrum auction kitty surprisingly dipped to Rs 92,200 crore at the end of sixth day of bidding on Tuesday as bid price moderated after surging for five straight days for the biggest ever sale of 2G and 3G airwaves in India. Additionally, Auto stocks were in top gear after reports suggested of domestic passenger vehicle industry showing first signs of gaining some momentum in February with a 6.2% growth in sales over last year, shrugging off withdrawal of excise duty concessions last December. The overall market breadth on BSE was in the favour of decliners which thumped advances in the ratio of 1199:1637; while 126 shares remained unchanged.

The BSE Sensex concluded at 28659.17, down by 50.70 points or 0.18% after trading in a range of 28608.18 and 28843.23. There were 10 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.40%, while Small cap index down by 0.32%. (Provisional)

The gaining sectoral indices on the BSE were Infrastructure up by 0.92%, Realty up by 0.42%, TECK up by 0.40% and Power up by 0.11% while, Metal down by 1.64%, Oil & Gas down by 0.84%, Healthcare down by 0.82%, Capital Goods down by 0.54% and PSU down by 0.48% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 6.09%, NTPC up by 3.03%, Mahindra & Mahindra up by 1.97%, GAIL India up by 1.82% and Hindustan Unilever up by 1.27%. On the flip side, Hindalco down by 5.18%, Sesa Sterlite down by 2.38%, Tata Steel down by 1.94%, Bajaj Auto down by 1.77% and Tata Motors down by 1.63% were the top losers. (Provisional)

Meanwhile, government is likely to lend a helping hand to Indian oil PSUs in protecting their economic interest from being impacted in the eventuality of US sanctions against them for investing in Iran. Recently, Government Accountability Office (GAO) of US named Oil and Natural Gas Corp (ONGC), Indian Oil Corp (IOC) and Oil India (OIL) along with two Chinese firms for having energy ties with Iran, an act for which it can impose sanctions against them.

Petroleum Minister Dharmendra Pradhan though has not elaborated the details but has said that we will look at ways how our companies won’t be affected by any adverse situation. He further said that “India will take its own stand, independent diplomatic stand on the issue,” he said. “Certainly economic interest of our companies and country will be priority.”

The US Iran Sanctions Act provides for steps against persons, including foreign firms, investing more than $ 20 million in Iran’s energy sector in any 12-month period. ONGC, IOC and OIL have been named for having 40 per cent, 40 per cent and 20 per cent interest respectively in the Farsi block of Iran, though the three companies have said that exploration contract (for Farsi block) expired in 2009 and that they had not carried out any activity after 2007 in the Farsi Block. They had proposed investing $5.5 billion to produce gas from the 21.68 trillion cubic foot discovery they made in the offshore area located near the Saudi Arabian border.

India VIX, a gauge for markets short term expectation of volatility declined 1.96% at 15.22 from its previous close of 15.52 on Tuesday. (Provisional)

The CNX Nifty settled at 8699.95, down by 12.10 points or 0.14% after trading in a range of 8682.35 and 8755.60. There were 19 stocks advancing against 31 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bharti Airtel up by 5.87%, Tech Mahindra up by 2.88%, Mahindra & Mahindra up by 2.61%, NTPC up by 2.53% and Kotak Mahindra Bank up by 2.08%. On the flip side, Hindalco down by 5.58%, Cairn India down by 3.20%, Sesa Sterlite down by 2.48%, Tata Steel down by 1.90% and BPCL down by 1.75% were the top losers. (Provisional)

European Markets were trading in the green; Germany's DAX surged 1.28%, UK's FTSE 100 rose 0.17% and France's CAC was up by 1.53%.

The Asian markets ended mostly in red on Wednesday, amid concerns about an interest rate hike in the US. Growth in China’s investment, retail sales and factory output all missed forecasts in January and February, leaving investors with little doubt that the economy is still losing steam and in need of further support measures. The figures came a day after data showed deflationary pressures in the factory sector intensified in February, and is likely to reinforce expectations of more interest rate cuts and other policy loosening to avert a sharper slowdown in the world’s second-biggest economy. Industrial output grew 6.8% in the first two months of the year compared with the same period a year ago, the weakest expansion since late 2008. Chinese Retail Sales fell to an annual rate of 10.7%, from 11.9% in the preceding month while Chinese Fixed Asset Investment fell to a seasonally adjusted 13.9%, from 15.7% in the preceding month. Philippines Industrial Production fell to a seasonally adjusted annual rate of -1.8%, from 4.2% in the preceding month.