Post session - Quick review

Albeit staging bewildered moves approaching the final leg of trade, stability revisited Indian equity markets after frontline indices took a break from five day’s long bull-run in the previous session. Benchmark equity indices after tossing and turning their way from red and green territory concluded the session by clinching gains of over half a percent.

Dwelling on the optimism that more talks are due to be held in Athens today, which will eventually lead to a deal that releases the funds needed to avoid a messy Greek debt default. Benchmark equity indices pulled up an astonishingly though face from day’s low, although the attempt remained desultory as benchmarks recuperated from day’s low, but they failed to reclaim their intra day’s high.

Frontline indices in the late noon deals dipped their heads in red as profit booking picked up after the indices hit important resistance level in the day. However, recuperation evolved with the positive close of Asian pacific markets.  Japan’s Nikkei 225 Stock Average climbed 1.1 percent and Hong Kong’s Hang Seng Index all rallied 1.5 percent. The Shanghai Stock Exchange Composite Index advanced 2.4 percent amid speculation that inflation reports tomorrow will show price gains slowing, giving the government more room to ease monetary policy.

Meanwhile, European shares also emerged much as a rescue for Indian equity market. Banks led European shares higher on Wednesday, with investors positioning for a favorable resolution of the Greek sovereign debt crisis and cheering a string of upbeat corporate results, as they bought into high-beta or volatile stocks.

Back home, Consumer Durable, rate sensitive-Realty counter jumped over two and half a percent in the session being the top sectoral gainers on BSE. After the Information Technology counter, the metal index too ended with sheen of over 1.50% on the back of reports that a Supreme Court panel has recommended for cancellation of 123 iron ore leases, which would be up for grab for steel companies.

Meanwhile, sugar stocks like Shree Renuka, Bajaj Hindusthan along with rice stocks like Kohinoor Foods rallied in the session after EGoM approved export of one million tonnes of sugar. It also okayed further export of non-basmati rice up to 4 million tonne and reduction of MEP (minimum export price) of basmati rice to $700 a tonne from $900 a tonne.

In stocks moving on news flow, stocks of GMR Infrastructure spurted by over 7%. The company’s net sales rose a stronger-than-expected 47% in the December quarter even as losses mounted after it was ordered by a court to suspend collection of airport development fees at Delhi airport, which it operates. However, shares of country's biggest telecom operator Bharti Airtel tumbled over 6% on less than expected net profit in third quarter of FY12. Bharti Airtel disappointed investors by posting its eighth straight quarter of falling profits as the world's No. 5 mobile carrier by subscribers was hit by higher tax and interest costs, though it’s nascent but key Africa business improved. On the consolidated basis, the company has posted a fall of 22.40% in its net profit at Rs 1011.30 crore for the quarter ended December 31, 2011 as compared to Rs 1303.30 crore for the same quarter in the previous year. Meanwhile, even Index heavyweights - ONGC fell 2% ahead of quarterly numbers today; additionally, ICICI Bank dropped over 2% after Temasek arm sold 1.59 crore shares of the bank via block deal.

Thus, the 30 share volatile index of Bombay Stock Exchange (BSE)-Sensex- accumulated over 75 points to finish the session above the 17,700 level. Similarly, the National Stock Exchange's Nifty ended above the 5,350 mark, with gains of over 0.50%. The broader indices too went home with moderate gains of over 0.75%.

The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1666:1193 while 129 scrips remained unchanged. (Provisional)

The BSE Sensex gained 96.92 points or 0.55% and settled at 17,719.37. The index touched a high and a low of 17,809.21 and 17,579.59 respectively. 23 stocks advanced against 7 declining ones on the index.(Provisional)

The BSE Mid-cap index gained 1.54% while Small-cap index was up by 0.92%. (Provisional)

On the BSE Sectoral front, Realty up 3.26%, Consumer Durables up 3.10%, Metal up 1.75%, IT up 1.68% and Power up 1.40% were the top gainers while Health Care down 0.18% and Bankex down 0.16% were the only losers.

The top gainers on the Sensex were Hindalco Industries up 5.68%, GAIL India up 3.55%, DLF up 3.21% Hero MotoCorp up 2.33% and Coal India up 2.23%.

On the flip side, Bharti Airtel down 6.85%, ICICI Bank down 1.92%, ONGC down 1.53%, Cipla down 0.75% and ITC down 0.37% were the top losers in the index. (Provisional)

Meanwhile, passenger cars have recorded a growth 7.2% in January 2012 as compared to the same month last year. Commercial vehicles grew by 13.52% and the growth figures for two wheelers stood at 13.63% in January 2012 as compared to January 2011. Three wheelers however, registered de-growth at (-) 3.49% in January, as per the data released by Society of Indian Automobile Manufacturers (SIAM).

Passenger cars saw the third consecutive monthly rise in this fiscal. Car sales had been registering a decline in sales since July 2011 after registering a 30% growth in the year ending March 2011. However, the growth in November-January is unlikely to make up for the losses suffered earlier unless sales grow in February-March at 10-12%. Since this is unlikely to happen, the auto industry will miss the sales projection for FY12. The industry had forecasted an increase in sales by 0-2% in FY12.

The overall sales growth rate recorded for April-January 2012 was 12.51%. Passenger vehicles segment recovered marginally at 1.45% during April-January 2012 over same period last year. Passenger cars recorded de-growth of (-) 1.19%, Utility Vehicles grew by 13.03% and Vans grew by 8.40% in this period. And growth in overall passenger vehicles was at 8.86% in the month of January 2012.

Indian car sales are mainly driven by a rapidly expanding middle class that is typically reliant on loans for purchases. This makes the car industry too sensitive to interest rates. Since interest rates are unlikely to come down in the near future, the car industry is not optimistic of meeting its forecasted growth. SIAM, however, expects vehicle sales to increase by 11-13% in the fiscal year starting on April 1, if the Reserve Bank of India begins to ease interest rates soon. The central bank had raised interest rates 13 times since March 2010 in its battle against stubborn inflation.

Growth in sales of commercial vehicles, seen as an indicator of economic activity, stood at 13.52% in January 2012 as compared to January 2011. The overall commercial vehicles segment registered growth of 18.63% during April-January 2012 as compared to the same period last year. Motorcycle sales, which have remained strong over the past year, rose by 10.51% last month. The increase is less than SIAM's growth rate forecast of 13-15% for the current fiscal year. During April-January 2012, motorcycles grew by 13.66%.

The cumulative production data for April-January 2012 shows overall production growth of 14.56% over same period last year. Production in January 2012 registered growth of 11.25% as compared to January 2011. On the export front, overall automobile exports registered a growth rate of 28.36% during April-January 2012. Passenger Vehicles registered growth at 20.64% in this period. Two Wheelers, Commercial Vehicles and Three Wheelers segments recorded growth of 28.52%, 27.60% and 39.70% respectively during April-January 2012. In January 2012 compared to January 2011, overall automobile exports registered a growth of 22.93%.

India VIX, a gauge for market’s short term expectation of volatility lost 2.56% at 24.27 from its previous close of 24.91 on Tuesday. (Provisional)

The S&P CNX Nifty gain 37.35 points or 0.70% to settle at 5,372.50. The index touched high and low of 5,396.90 and 5,325.20 respectively. 40 stocks advanced against 10 declining ones on the index. (Provisional)

The top gainers on the Nifty were Reliance Infrastructure up 7.59%, Hindalco Industries up 5.40%, JP Associates up 4.10%, GAIL India up 3.80% and DLF up 3.48%.

On the other hand, Bharti Airtel down 6.81%, ICICI Bank down 2.06%, ONGC down 1.15%, SAIL down 0.99% and Kotak Bank down 0.82% were the top losers. (Provisional)

The European markets were trading in green, with France's CAC 40 up 0.51%, Germany's DAX up 1.03% and Britain’s FTSE 100 up 0.31%.

Asian stock markets climbed on Wednesday, helped by signs of progress over debt restructuring talks in Greece, while the Tokyo market tapped a three-month high as Toyota Motor surged. Earlier, Asian markets took a lead from Wall Street, which ended higher on Tuesday on hopes for action on the euro-zone’s debt crisis and growing optimism that a stronger US job market signaled a recovery for the world's number one economy.

The optimistic mood in markets sent the Seoul’s benchmark Kospi index up to a six-month high of 2,003.73. However, the gains were capped ahead of Thursday’s options expiry. While, Hong Kong shares hit a six-month high, led by Chinese oil, property and material names, but gains were capped by chart resistance. Meanwhile, Japanese Nikkei closed above the 9,000-mark for the first time in 3 months, boosted by profit outlook from Toyota Motor Corp and optimism over US economic growth.