Post Session: Quick Review

Clocking losses for seventh straight session, local equity markets witnessed absolute massacre on Thursday, nursing heavy loss of over 2% which dragged Sensex and Nifty below psychologically crucial 27,500 and 8,350 levels respectively. The fall came as blue-chips such as Housing Development Finance (HDFC), ICICI Bank and HDFC Bank slumped on concerns about foreign investors after Saudi Arabia launched air strikes in Yemen. Overseas funds sold index futures worth Rs 1,386 crore ($221.2 million) on Wednesday. Additionally, adjustments related to F&O expiry also played out on sentiment. Meanwhile, the session also turned out to be daunting for broader indices, which went home with losses in the range of 0.75-1.05%.

On the global front, Stocks in Japan suffered their steepest selloff since mid-January on Thursday and most Asian markets were lower amid jitters about the pace of the U.S. economic recovery. Meanwhile, European shares fell for a second straight session Thursday, echoing weakness in U.S. and Asian markets and weighed down by an escalating conflict in Yemen. The operation involves 10 countries, including Gulf nations, and will receive logistical support from the U.S. However, American forces will not participate in military action.

Closer home, with selling being broad-based in nature, none of the sectoral indices were spared barring stocks from Capital Goods counter that showed exception trend. On the flip side, massive drubbing was witnessed by stocks from Information Technology, Metal and Banking counters which were the prominent losers of the session. IT stocks declined on account of soft economic data in US, which is the biggest outsourcing market for Indian IT services firms. In economic data, US business investment spending plans fell for a sixth straight month in February weighed down by a strengthening dollar, weak global demand and restrained activity due to poor weather. Meanwhile, power stocks which gained in early trade after CCEA nod for supply of cheap LNG to stranded power plants too succumbed to selling pressure. In stock-specific activity, three telecom stocks rose after the Ministry of Communications & Information Technology said that the auction of spectrum in 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands came to an end. The overall market breadth on BSE was in the favour of decliners which thumped advances in the ratio of 924:1842; while 105 shares remained unchanged.

The BSE Sensex concluded at 27457.58, down by 654.25 points or 2.33% after trading in a range of 27384.87 and 27997.14. There were 4 stocks advancing against 26 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.84%, while Small cap index down by 1.00%. (Provisional)

The gaining sectoral indices on the BSE were Capital Goods up by 0.49% while, IT down by 2.29%, Metal down by 2.24%, Bankex down by 2.00%, TECK down by 1.78% and PSU down by 1.63% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 0.98%, Larsen & Toubro up by 0.67%, GAIL India up by 0.24%, Hero MotoCorp up by 0.17% and BHEL up by 0.06%. On the flip side, HDFC down by 4.23%, Wipro down by 4.10%, Sesa Sterlite down by 3.98%, SBI down by 2.96% and Axis Bank down by 2.87% were the top losers. (Provisional)

Meanwhile, based on wide consultations with all the states and Union Territories, Kerala Finance Minister, K M Mani has been appointed as the Chairman of the Empowered Committee of State Finance Ministers on Goods and Services Tax (GST), an indirect tax regime, which is to be rolled out from April 2016. Earlier on March 20, the GST Empowered Committee met Union Finance Minister Arun Jaitley wherein state Finance Ministers asked the FM to select the new Chairman. The meeting although saw the attendance of 14 Ministers from the States and Union Territories, a decision could not be taken at that meeting as some ministers could not attend it due to preoccupation with state budgets.

The Empowered Committee Chairman's post fell vacant after Abdul Rahim Rather, the former finance minister of Jammu & Kashmir, quit following the defeat of National Conference in state elections held in December. The chairman of this Empowered Committee has generally been from an opposition-ruled state and the Mani, who represents Kerala Congress (M) and is also a senior finance minister, perfectly fits the bill.

Mani holds the records of having presented the maximum number of 13 Budgets in the Kerala Legislative Assembly as finance minister and also as the longest-serving member of Kerala Assembly.

Notably, this development comes right after Jaitley expressed the hope that the constitutional amendment Bill to roll out the GST would be passed in the next leg of the Budget session beginning on April 20, 2015. However, this wouldn't be an easy task as GST requires to be passed by each House of Parliament by a two-third majority. Besides, consent of at least half of the states --15-- has to be obtained for the Bill. Post to which, GST Bills have to be passed by Parliament and respective state Assemblies.

India VIX, a gauge for markets short term expectation of volatility soared 16.39% at 15.29 from its previous close of 13.13 on Wednesday. (Provisional)

The CNX Nifty settled at 8342.15, down by 188.65 points or 2.21% after trading in a range of 8325.35 and 8499.45. There were 8 stocks advancing against 42 stocks declining on the index. (Provisional)

The top gainers on Nifty were BPCL up by 1.82%, Bharti Airtel up by 1.18%, Ultratech Cement up by 1.08%, NMDC up by 0.80% and Ambuja Cement up by 0.52%. On the flip side, HDFC down by 5.23%, PNB down by 4.73%, Wipro down by 4.42%, Sesa Sterlite down by 4.32% and DLF down by 3.48% were the top losers. (Provisional)

European Markets were trading in the red; Germany's DAX declined 1.80%, France's CAC dropped 1.54% and UK's FTSE 100 was down by 1.27%.

The Asian markets closed mostly in red on Thursday, following weak US economic data and a sharp sell-off in US shares. Investors have also taken cautious approach after Saudi Arabia launched air strikes in Yemen. Bank of Japan has reported that the country’s exports struggled for the past two years due to lower demand for capital goods, a shift in production overseas and a loss of competitiveness, but these structural problems are fading away. As these structural problems become less of a factor, exports are likely to expand and will get an added boost from the yen’s recent weakening. Strong exports are important because they keep factory workers employed, supporting consumer spending and the BOJ’s plan to achieve 2% inflation. Hong Kong Trade Balance rose to a seasonally adjusted -35.9B, from -37.0B in the preceding month. Singaporean Industrial Production fell to an annual rate of -3.6%, from 1.3% in the preceding month whose figure was revised up from 0.9%. South Korean Consumer Confidence fell to 101, from 103 in the preceding month.