Post Session: Quick Review

Logging fourth straight session of losses, local equity markets ended lower with cut of around three tenths of a percent, dragging Sensex and Nifty below psychologically crucial 28,200 and 8,600 levels respectively by close of trade on Monday. Reversal of trend which took place in late hours of trade mainly erased all the gains witnessed on Dalal Street on incremental value buying activities due to positive global set-up. Sentiments in early deals were buttressed on account of strength of rupee, which appreciated substantially on RBI’s intervention, while Fitch report that highlighted India as the only BRIC nation, where growth would accelerate to 8 per cent in FY16 and 8.3 per cent in FY17, based on revised data series also aided gains at Dalal Street in early deals. However, the profit-booking activities which got triggered at higher levels by market-participants in the F&O expiry week undid all the early euphoria. Meanwhile, the trend remained somber for broader indices, which went home with losses of around 0.75-1.35%.

On the global front, Asian stock markets mostly rose while Europe declined on Monday following Wall Street's gains amid expectations global central banks will hold off raising interest rates. Notably, the losses of European shares come ahead of Greek Prime Minister Alexis Tsipras meeting with German Chancellor Angela Merkel in his first official visit to Berlin on Monday amid a standoff between Athens and its euro zone creditors over the terms of its 240 billion euro bailout deals.

Closer home, most of the sectoral indices concluded into negative territory, nevertheless the stocks from IT, consumer durables and banking counters were the prominent losers of the session. On the flip side, much of buying activity was witnessed by stocks from Infrastructure, Metal and Auto counters which were the top gainers of the session. While IT shares lost steam on rupee’s strength, banking shares edged lower after the Securities & Exchange Board of India yesterday, March 22, 2015, relaxed its norms for conversion of bank's bad debt into equity. Meanwhile, metal and mining stocks advanced after the government in a commendable act succeeded in the passage of two key reform bills the Mines and Minerals Bill and the Coal Mines Bill in Rajya Sabha. The overall market breadth on BSE was in the favour of decliners which thumped advances in the ratio of 862:1978; while 111 shares remained unchanged.

The BSE Sensex concluded at 28188.91, down by 72.17 points or 0.26% after trading in a range of 28163.90 and 28385.14. There were 16 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.79%, while Small cap index down by 1.34%. (Provisional)

The gaining sectoral indices on the BSE were Infrastructure up by 0.42%, Metal up by 0.20% and Auto up by 0.06% while, IT down by 1.02%, Consumer Durables down by 0.98%, Bankex down by 0.94%, TECK down by 0.86% and Oil & Gas down by 0.55% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 3.09%, Hindalco up by 2.84%, GAIL India up by 1.90%, Sesa Sterlite up by 1.35% and Mahindra & Mahindra up by 1.29%. On the flip side, BHEL down by 3.72%, ICICI Bank down by 1.52%, SBI down by 1.49%, Wipro down by 1.27% and Reliance Industries down by 1.25% were the top losers. (Provisional)

Meanwhile, paving the way for resumption of iron ore mining in the coastal state’s economy, the Union Ministry of Environment and Forest (MoEF) finally issued the much-awaited order and lifted the suspension on the environment clearances (ECs) of 72 mining leases. However, this came with the rider that any violation of rules in the near future would result in direct cancellation of ECs, whose validity is valid till the expiry of mining lease period. 

Of the 72 mining leases, five leases belong to Pandurang Timblo industries, five belong to Sociedade Timblo Irmaos, seven belong to Chowgule and company, four of Sesa Goa, three mines of Dempo Mining (now with Sesa Goa), three of Damodar Mangalji and two belong to Salgocar Brother. The other mining companies include Bandekar Brothers, Raghuvir Sinai Gharse, Cosme Costa, Lithoferrao, Kadnekar mines, H L Nathurmal, Shantilal Khushaldas Bros amongst others.

Nevertheless, with the present order, the lease owners would not require any fresh ECs at the time of renewal. Presently, the state government has already renewed 88 mining leases under Mines and Minerals Development Regulation (MMDR) Act.

However, out of the total 137 mining leases, whose ECs were kept in abeyance since September 14, 2012, the ECs of 18 leases have been cancelled since they were in protected areas such as wildlife sanctuaries and national park. Additionally, the MoEF has also withdrawn ECs of two mining leases, Sesa Goa and Shree Jaisin Maganlal on account of submission of false data pertaining to the natural resources in their Environment Impact Assessment (EIA) report.

Meanwhile ECs of 23 mining leases, located within one kilometer of the buffer zone, have been put for consideration after the modification of the Supreme Court order dated August 4, 2006 that prohibited mining within the one km buffer zone. Besides, MoEF has prepared a list of 22 mining leases, which continue to remain in abeyance as these are located in the forest land and have not obtained forest clearances.

India VIX, a gauge for markets short term expectation of volatility declined 0.87% at 14.13 from its previous close of 14.25 on Friday. (Provisional)

The CNX Nifty settled at 8550.90, down by 20.00 points or 0.23% after trading in a range of 8540.55 and 8608.35. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were NTPC up by 3.20%, Hindalco up by 2.92%, Mahindra & Mahindra up by 1.73%, Sesa Sterlite up by 1.65% and GAIL India up by 1.63%. On the flip side, Jindal Steel & Power down by 6.17%, BHEL down by 3.64%, Tech Mahindra down by 3.17%, Cairn India down by 3.02% and NMDC down by 2.51% were the top losers. (Provisional)

European Markets were trading mostly in the red; Germany's DAX declined 1.24% and France's CAC was down by 0.79%, UK's FTSE 100 was up by 0.59%.

The Asian markets closed mixed on Monday, with Chinese markets touching fresh multi-year highs in early trades. Bank of Japan Governor Haruhiko Kuroda stated that he told Prime Minister Shinzo Abe that inflation is slowing due to a decline in oil prices but there is no change in the long-term rising trend for consumer prices as the economy improves. Kuroda added that he also told Abe that the economy remains on a gradual recovery path. The meeting occurred at a time when slowing inflation is testing the BOJ’s ability to meet its 2 percent consumer price growth target, and raising questions about whether additional monetary easing is needed later this year to keep prices on track. Taiwanese Industrial Production fell to a seasonally adjusted annual rate of 3.32%, from 8.14% in the preceding month.