Post Session: Quick Review

Sliding for fifth straight session, Indian equity markets on Tuesday ended with loss of little over one tenth of a percent that dragged both Sensex and Nifty below psychologically crucial 28,200 and 8,550 levels respectively. Earlier what appeared as positive session of trade turned out to be a disappointing one as bourses erased all the early gains since market-participants, growing wary squared off their position to avoid the volatility usually witnessed ahead of F&O expiry, which is scheduled to take place on Thursday. Meanwhile, the session turned out to be bigger disappointment for broader indices, which went home with loss of around half a percent. However, larger counterparts traded higher for most part of the session on incremental value buying activities witnessed after four straight sessions of drubbing, nevertheless selling pressure witnessed in late hour of trade fizzled out all the early euphoria seen on Dalal Street.

On the global front, Asian shares mostly ended higher on Tuesday even as a measure of Chinese factory activity unexpectedly skidded to an 11-month low.  The flash HSBC/Markit Purchasing Managers’ Index (PMI) dipped to 49.2 in March, below the 50-point level.

Closer home, most of the sectoral indices on BSE ended downbeat, nevertheless stocks from Auto, banking and Information Technology counters were the prominent losers of the session. On the flip side, much of the buying activity was witnessed in stocks from Healthcare, Consumer Durable and Infrastructure. In stock-specific action, telecom stocks rose after the Ministry of Communications & Information Technology issued a statement of about 88% of the spectrum been provisionally allocated to bidders at a value of more than Rs 1.05 lakh crore at the end of the 17th day of bidding for spectrum, i.e. 23 March 2015. Meanwhile, PSU OMCs stocks advanced on buzz a foreign brokerage upgrading BPCL and Indian Oil Corporation citing inexpensive valuations and saying downstream oil companies remain in a bright spot. The overall market breadth on BSE was in the favour of decliners which thumped advances in the ratio of 1107:1702; while 116 shares remained unchanged.

The BSE Sensex concluded at 28161.72, down by 30.30 points or 0.11% after trading in a range of 28130.09 and 28455.32. There were 16 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.44%, while Small cap index lost 0.64%. (Provisional)

The top gaining sectoral indices on the BSE were Healthcare up by 1.84%, Consumer Durables up by 0.69%, Infrastructure up by 0.69%, Oil & Gas up by 0.68% and PSU up by 0.05% while, Auto down by 1.17%, Bankex down by 0.61%, IT down by 0.50%, Realty down by 0.40% and FMCG down by 0.30% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 3.43%, GAIL India up by 1.82%, Sun Pharma up by 1.78%, Dr. Reddys Lab up by 1.72% and Sesa Sterlite up by 1.52%. On the flip side, Tata Motors down by 3.42%, Hindalco down by 1.51%, Hindustan Unilever down by 1.33%, SBI down by 1.31% and Hero MotoCorp down by 1.08% were the top losers. (Provisional)

Meanwhile, in its bid to garner support for the land acquisition bill, Union Minister for Urban Development and Parliamentary Affairs, M Venkaiah Naidu has said that 'The new norms for land acquisition being proposed by the Government will be 'pro-farmer''. He further said that 'I appeal to all parties to enable taking forward this legislation. Let there be a national debate on advantages and disadvantages of the new land acquisition Bill and the old Bill of the then UPA Govt.'

Naidu said that nine amendments were already made in the bill during the course of discussion in Lok Sabha and if the states had any objections in implementing the new legislation, they can stick to the previous Act. He further stated that under the new legislation, farmers whose lands will be acquired will get four times compensation. They will be made part of the developmental process by providing job to a member of a family.

The minister has sought cooperation of all in regard to bills on land acquisition, GST and black money, which are the next items for the second part of the Budget session. The Government, which had issued an ordinance in this regard in December 2014, now wants to get the Bill passed by Parliament. Though, the minister has also stated that the Centre would reissue the ordinance pertaining to the land acquisition Bill if it lapses next month. The Bill would lapse on April, 6, 2015, if the main opposition Congress continue to oppose the Bill in the Rajya Sabha.

India VIX, a gauge for markets short term expectation of volatility declined 4.18% at 13.67 from its previous close of 14.27 on Monday. (Provisional)

The CNX Nifty settled at 8542.95, down by 7.95 points or 0.09% after trading in a range of 8535.85 and 8627.75. There were 25 stocks advancing against 25 stocks declining on the index. (Provisional)

The top gainers on Nifty were Lupin up by 5.33%, BPCL up by 3.33%, Bharti Airtel up by 3.11%, GAIL India up by 1.99% and Sesa Sterlite up by 1.96%. On the flip side, Tata Motors down by 3.56%, Hindalco down by 1.99%, Hindustan Unilever down by 1.48%, Ultratech Cement down by 1.34% and Tata Steel down by 1.33% were the top losers. (Provisional)

European Markets were trading in the green; Germany's DAX rose 0.18%, France's CAC increased by 0.23% and UK's FTSE 100 was up by 0.16%.

The Asian markets closed mostly in green on Tuesday, with Shanghai Composite rising to hit a new 3-year high. Activity in China’s factory sector dipped to 11-month low in March as new orders shrank, signaling persistent weakness in the world’s second-largest economy that will likely fuel calls for more policy easing to support growth. The poor reading added to signs that the economy has lost momentum despite two interest rate cuts since November a reduction in the amount of money banks must keep in reserve and repeated attempts by the central bank to reduce financing costs. The flash HSBC/Markit Purchasing Managers’ Index (PMI) dipped to 49.2 in March, below the 50-point level that separates growth in activity from contraction on a monthly basis. The People’s Bank of China (PBOC) lowered its guidance rate for the benchmark seven-day bond repurchase agreement, lowering the rate to 3.55% down from 3.65% the previous week. Bank of Japan Governor Haruhiko Kuroda stated that tapering asset purchases is one option in ending the bank’s massive stimulus programme. But he stressed anew that it was too early to debate the timing, method and means to end quantitative easing (QE).