Post Session: Quick Review

Logging sixth straight session of losses, Indian equity markets concluded into negative territory with losses of around two tenths of a percent which dragged Sensex and Nifty below psychologically crucial 28,150 and 8,550 levels respectively as caution ahead of the expiry of monthly derivatives and the end of the fiscal year hit blue-chips such as Larsen & Toubro, HDFC and TCS among others. Akin to last two sessions of trade, markets reversing all the early gains, lost steam in the last hour of trade. Volumes remained low as investors were reluctant of initiating fresh bets ahead of F&O expiry, while, overseas investors, waiting for the next trigger too reduced their exposure. Meanwhile, the session also was daunting for broader indices, which went home with losses of around 0.50-0.65%.

On the global front, Asian stocks ended a lackluster session mixed on Wednesday as fluctuations in oil prices and uncertainty over the direction of U.S. monetary policy offset upbeat data from the U.S. and Europe. Meanwhile, European shares dipped on Wednesday but held near multi-year highs after a survey showed the German business climate improving. German business morale, as measured by the Ifo index, rose for the fifth successive month to its highest since July 2014.

Closer home, most of the sectoral indices on BSE concluded into negative territory, nevertheless stocks from Capital Goods, PSU and Power counters were the prominent losers of the session. On the flip side, much of the demand was witnessed by stocks from Healthcare, IT and Auto counters. Meanwhile, investors also lapped up healthcare stocks after the merger of Ranbaxy was consummated by Sun Pharmaceuticals following receipt of requisite approvals.  The overall market breadth on BSE was in the favour of decliners which thumped advances in the ratio of 911:1872; while 116 shares remained unchanged.

The BSE Sensex concluded at 28111.83, down by 49.89 points or 0.18% after trading in a range of 28031.42 and 28249.60. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.48%, while Small cap index down by 0.67%. (Provisional)

The gaining sectoral indices on the BSE were Healthcare up by 0.48%, IT up by 0.33%, Auto up by 0.32%, TECK up by 0.29% and Consumer Durables up by 0.08% while, Capital Goods down by 1.65%, PSU down by 1.32%, Power down by 1.17%, Metal down by 0.97% and Oil & Gas down by 0.56% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Wipro up by 1.76%, Sun Pharma up by 1.46%, Tata Motors up by 1.32%, ICICI Bank up by 1.11% and Mahindra & Mahindra up by 1.04%. On the flip side, NTPC down by 3.67%, GAIL India down by 2.82%, Larsen & Toubro down by 2.50%, Coal India down by 2.49% and SBI down by 1.94% were the top losers. (Provisional)

Meanwhile, amid stiff opposition by many political parties and activists who initiated campaign against the measure, the government is likely to allow the controversial land ordinance to lapse on April 5. The Government had promulgated ordinance on land acquisition on December 31, 2014 and a bill to replace the ordinance was brought to Parliament in Budget session, which began on February 23.

While the bill, providing for amending the Act of 2013, cleared Lok Sabha earlier this month, it failed to see the light of the day in Rajya Sabha, where the ruling NDA is in a minority. However, if the government would want to re-promulgate the ordinance, it would have to prorogue the parliament since the Budget session has gone to recess till April 20.

However, reports suggest that government wouldn't want to take risk of proroguing the Budget session during the recess as it could lead to charges of arrogance on the ruling dispensation, which has not completed even one year in office.

Also, with no big ticket investment project pending for approval, rushing with the repromulgation will bring the government under unnecessary criticism. Nevertheless, the government could re-promulgate the ordinance after Budget session comes to an end on May 8 as taking the step before the second half of the budget session is unlikely to yield any result since the opposition is unrelenting on scuttling the measure.

India VIX, a gauge for markets short term expectation of volatility declined 3.27% at 13.22 from its previous close of 13.67 on Monday. (Provisional)

The CNX Nifty settled at 8530.80, down by 12.15 points or 0.14% after trading in a range of 8516.55 and 8573.75. There were 18 stocks advancing against 32 stocks declining on the index. (Provisional)

The top gainers on Nifty were HCL Tech up by 3.89%, DLF up by 3.00%, Sun Pharma up by 1.73%, Tata Motors up by 1.64% and ICICI Bank up by 1.43%. On the flip side, PNB down by 4.24%, NTPC down by 3.67%, Coal India down by 2.58%, Larsen & Toubro down by 2.51% and GAIL India down by 2.44% were the top losers. (Provisional)

European Markets were trading mostly in the red; Germany's DAX declined 0.26% and France's CAC was down by 0.50%, while UK's FTSE 100 was up by 0.01%.

The Asian markets closed mostly in green on Wednesday, while the Chinese stocks closed lower as losses in the Banking, Electricity and Utilities sectors led shares lower.  The Asian Development Bank stated that Indonesia’s economic growth could speed up to 5.5% this year and 6% next year, should President Joko Widodo’s administration succeed in maintaining a healthy investment climate in the country. The economy grew 5% last year, a fourth consecutive year of deceleration. Last year, household consumption remained buoyant, but government spending and investment slowed, while exports fell. Japan’s corporate services price index (CSPI) fell to a seasonally adjusted annual rate of 3.3%, from 3.5% in the preceding month whose figure was revised up from 3.4%. South Korean GDP rose to a seasonally adjusted 0.3%.