Post Session: Quick Review

Markets witnessed consolidation after seven straight sessions of losses, which led to flat closing of both Sensex and Nifty below psychologically crucial 27,500 and 8,350 levels respectively. The session turned out to be extremely volatile as barometer gauges flip-flopped between green and red territory for entire session, only to settle flat by close of trade. However, markets after making a weak start, recouped substantial ground in early deals to enter positive territory and remain in green uptill afternoon deals, post to which the trade turned out to be shaky. Absence of any positive catalyst on domestic front and somber global cues on first trading session of F&O expiry and last trading session of week, led to a week close at Dalal Street. The session also turned out to be daunting one for broader indices, which went home with losses in the range of 0.10-0.40%. For the week, both Sensex and Nifty lost over 2%

On the global front, Asian markets ended mostly lower on Friday as concerns about the US economy and uncertainty ahead of expected comments from Federal Reserve Chairwoman Janet Yellen inhibited some caution in the market. Meanwhile, European stocks rose in early trade on Friday, halting a sharp two-day retreat as a renewed fall in the euro helped boost exporters' shares.

Closer home, amidst broad-based selling pressure, most of the sectoral indices on BSE concluded in negative territory, however stocks from Capital Goods, Banking and Information Technology witnessed good demand from market-participants to emerge as the gainers. On the flip side, massive drubbing was witnessed by stocks from Oil & Gas, Infrastructure and Fast Moving Consumer Goods which topped the losers list. In stock-specific activity, gas utility stocks, like Gujarat Gas Company, Gujarat State Petronet and Indraprastha Gas gained after Prime Minister Narendra Modi underscored that government aims to extend piped natural gas to one crore houses over the next five years.  Moreover, shares of telecom companies edged lower on profit-booking after DoT released details of bidders at the recently concluded airwave auction. The overall market breadth on BSE was in the favour of decliners which thumped advances in the ratio of 1050:1771; while 127 shares remained unchanged.

The BSE Sensex concluded at 27456.32, down by 1.26 points after trading in a range of 27248.45 and 27694.41. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was up by 0.10%, while Small cap index was down by 0.41%. (Provisional)

The gaining sectoral indices on the BSE were Capital Goods up by 1.42%, Bankex up by 1.18%, IT up by 0.56%, Auto up by 0.43% and Metal up by 0.20% while, Oil & Gas down by 1.71%, Infrastructure down by 1.05%, FMCG down by 0.90%, Healthcare down by 0.77% and Realty down by 0.71% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindalco up by 2.97%, Infosys up by 2.79%, SBI up by 2.72%, Larsen & Toubro up by 2.60% and ICICI Bank up by 2.21%. On the flip side, Bharti Airtel down by 5.54%, Wipro down by 3.04%, Reliance Industries down by 2.60%, HDFC down by 1.80% and Mahindra & Mahindra down by 1.77% were the top losers. (Provisional)

Meanwhile, the regional connectivity is going to get a boost with the Asian Development Bank (ADB) extending a loan of $ 300 million to India for improving road connectivity and increasing the domestic and regional trade along the North Bengal-North Eastern Region (NER). The project will improve road connectivity and efficiency of the international trade corridors by expanding roads in NER of the country.

The loan which has a 25 year repayment term is the first tranche under $ 500 million multi-tranche South Asian Sub- regional Economic Cooperation (SASEC) Road Connectivity Investment Programme. Under this programme, about 500 km of roads will be constructed. SASEC is an initiative to promote economic cooperation between Bangladesh, Bhutan, India and Nepal.

ADB's loan of $300 million makes-up nearly 71% of the total project cost of about $425 million, with the central and state governments providing counterpart finance of about $125 million. The 25-year repayment term of the loan includes a five-year grace period with an annual interest rate determined in accordance with ADB's LIBOR-based lending facility.

The first tranche will be used to construct two national highways totalling about 150 km in West Bengal and State roads totaling about 180 km in Manipur, extending to Myanmar and is expected to be completed by December 2021.

India VIX, a gauge for markets short term expectation of volatility declined 4.36% at 14.50 from its previous close of 15.16 on Thursday. (Provisional)

The CNX Nifty settled at 8341.40, down by 0.75 points or 0.01% after trading in a range of 8269.15 and 8413.20. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were IDFC up by 3.89%, Hindalco up by 3.40%, SBI up by 2.71%, Larsen & Toubro up by 2.65% and Infosys up by 2.60%. On the flip side, Bharti Airtel down by 5.79%, Idea Cellular down by 4.57%, Cairn India down by 3.36%, Wipro down by 3.13% and HCL Tech. down by 2.49% were the top losers. (Provisional)

European Markets were trading in the red; Germany's DAX declined 0.36%, France's CAC dropped 0.05% and UK's FTSE 100 was down by 0.45%.

The Asian markets closed mostly in red on Friday, as rising tensions in the Middle East obscured the investment outlook. The World Bank stated that Indonesia must improve logistics and business licensing in its underdeveloped manufacturing sector in order to truly reap the benefits of a stronger US dollar in its export activities. Japan’s retail sales rose to a seasonally adjusted annual rate of -1.8%, from -2.0% in the preceding month. Japan’s National Core CPI fell to a seasonally adjusted 2.0%, from 2.2% in the preceding month. Japanese Household Spending rose to a seasonally adjusted -2.9%, from -5.1% in the preceding month while Tokyo’s core CPI, which excludes fresh food costs remained unchanged at an annualized rate of 2.2%. Japan’s unemployment rate fell last month, the percentage of the total work force that is unemployed and actively seeking employment during the previous month fell to a seasonally adjusted 3.5%, from 3.6% in the preceding month.