Post Session: Quick Review

Local equity markets witnessed drubbing for third straight session on Friday on incremental profit-booking activities by market-participants in absence of positive triggers which could lift markets higher on last trading session of the week. In the extremely abysmal session of trade, barometer gauges just kept grinding lower to conclude at day’s low point on sustained selling activities as markets momentum bore a cautious trend over ongoing Q4 earnings result season. Sentiment also took a hit after IT major, TCS kick-started the Q4 earning season on not so encouraging note. By close of trade, both Sensex and Nifty plunging over three fourth of a percent settled below psychologically crucial 28,500 and 8,650 levels respectively. Meanwhile, the session also witnessed nasty cut in broader indices, which taking a bigger hit, went home with losses in the range of 1.45-2.05%. For the week, both Sensex and Nifty concluded with loss of over 1%. On the broader front, BSE Smallcap index concluded with cut of around 1.80%, while CNX Midcap plunged 2.50%.

On the global front, Asian stocks ended mixed on Friday, as an unimpressive lead from Wall Street on the back of mixed economic reports and growing worries about Greece's finances soured investor sentiment. While Japanese and Australian shares led the declines in the region, China's stock market continued to rise on stimulus hopes. Meanwhile, European stocks fell for a second day, extending their first weekly drop in three, as banks led losses.

Closer home, most of the sectoral indices on BSE concluded into negative territory, nevertheless stocks from Healthcare, Technology and Information Technology counters were the prominent losers of the session. IT index collapsed in trade after TCS recorded a 30.7 per cent fall in net profit for the fourth quarter ended March 31, 2015, by a one-off bonus paid to employees, cross currency-movements and overall weakness in key sectors. On the flip side, stocks from Metal and PSU counters were the only gainers of the session.  The overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1184:1635; while 121 shares remained unchanged.

The BSE Sensex concluded at 28442.10, down by 223.94 points or 0.78% after trading in a range of 28403.76 and 28696.19. There were 9 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 2.01%, while Small cap index down by 1.45%. (Provisional)

The gaining sectoral indices on the BSE were Metal up by 1.14% and PSU up by 0.07% while, Healthcare down by 3.05%, TECK down by 2.02%, IT down by 2.00%, Consumer Durables down by 1.80% and Bankex down by 1.64% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Sesa Sterlite up by 3.09%, Tata Steel up by 2.43%, Hindalco up by 2.04%, NTPC up by 1.25% and BHEL up by 1.10%. On the flip side, Sun Pharma down by 4.60%, TCS down by 4.07%, Axis Bank down by 3.17%, Bharti Airtel down by 2.95% and Wipro down by 2.54% were the top losers. (Provisional)

Meanwhile, barely few days after the Prime Minister announced higher compensation for damaged crops, the Reserve Bank of India (RBI) underscored that a new scheme for interest subvention for farmers was on the anvil and would be revealed anytime soon. In the meanwhile, the earlier interest subvention scheme will continue till June 30, 2015. Reserve bank of India unveiled that Government of India was presently examining various alternative approaches for improving the efficacy of the scheme and that finalization may take some time.

Under 2014-15 scheme, interest subvention of 2% per annum is available to all commercial banks on their own funds used for short-term crop loans up to Rs 3 lakh per farmer provided the lending institutions made available short-term credit at 7% to farmers. The subvention is calculated on the crop loan amount from the date of its disbursement/drawal up to the date of actual repayment of the crop loan by the farmer or up to the due date of the loan fixed by the banks, whichever is earlier. However, this is subjected to a maximum period of one year.

Notably, this development exactly comes a week after Prime Minister announced Centre's decision to raise by 50 per cent the quantum of compensation to farmers affected by crop losses due to recent unseasonal rains.

India VIX, a gauge for markets short term expectation of volatility rose 0.60% at 15.04 from its previous close of 14.95 on Thursday. (Provisional)

The CNX Nifty settled at 8606.00, down by 100.70 points or 1.16% after trading in a range of 8596.70 and 8699.85. There were 12 stocks advancing against 38 stocks declining on the index. (Provisional)

The top gainers on Nifty were Sesa Sterlite up by 3.50%, Tata Steel up by 2.46%, Hindalco up by 1.90%, BHEL up by 1.23% and NTPC up by 1.22%. On the flip side, Lupin down by 6.86%, Indusind Bank down by 6.26%, Yes Bank down by 4.87%, Sun Pharma down by 4.61% and TCS down by 4.18% were the top losers. (Provisional)

European Markets were trading mostly in the red; France's CAC lost 0.42% and Germany's DAX was down by 0.47%, while UK's FTSE 100 was up by 0.05%.

Asian markets ended the Friday’s session mostly in the red as investors remained cautious on mixed economic reports and growing worries about Greece’s finances soured investor sentiment. Japanese shares fell to a more than one-week low as a stronger yen dampened investor sentiment and investors braced for the earnings season that begins later this month. Moreover, Hong Kong's Hang Seng index edged lower as investors locked in some profits after a recent rally triggered by inflows from mainland investors. However, Chinese Shanghai edged higher by over two percent as investors continued hunting for riskier assets amid lingering speculation the government will take more measures to bolster economic growth. Investors also drew some solace from a bullish research report by brokerage Shenwan Hongyaun, which predicted that China's stock market will rise further on the back of central government support.