Post Session: Quick Review

Snapping five consecutive sessions’ losing streak, local equity markets staged a smart recovery on Wednesday on bargain buying activities of select blue chip stocks which were available at attractive valuations after five straight sessions of drubbing. In the volatile session of trade, markets after giving glimpse of sixth down session, witnessed sudden recovery in the last hour of trade. Sentiments took a hit after MET department released its first monsoon forecast for the year 2015. According to Earth Sciences Minister, there is a 28 percent probability of rainfall being normal in 2015 and 35 percent probability of monsoon rainfall to remain below normal. However, trend-reversal which took place in the last hour of trade mainly aided markets’ recovery. By close of trade, both Sensex and Nifty gaining over three tenths of a percent lifted above psychologically crucial 27,800 and 8,400 levels respectively. Meanwhile, the session also was productive for broader indices which went home with gains of over 0.35%.

On the global front, Asian stocks ended mixed on Wednesday as lackluster cues from Wall Street overnight and lower crude oil prices kept investors on edge. While Chinese and Japanese shares outperformed to hit multi-year highs, the underlying mood remained cautious elsewhere across the Asia-Pacific region after recent gains, driven by Chinese stimulus measures to spur lending and combat a slowing economy. Meanwhile, European stocks fell on Wednesday, failing to extend an overnight rally in Asia as investors looked to Greece's debt crisis and lurch towards possible default as an excuse to cash in gains chalked up earlier in the week.

Closer home, most of the sectoral indices on BSE concluded into positive territory, however stocks from IT, Oil& Gas and PSU counters were the top losers of the session. On the flip side, stocks from Capital Goods, Healthcare and Banking counters were the top gainers of the session. IT stocks tanked in trade after Wipro reported a muted 2% year-on-year growth in bottom line in Q4 March 2015 and issued tepid revenue guidance for Q1 June 2015. The overall market breadth on BSE was in the favour of advances which thumped decliners in the ratio of 1374:1370; while 128 shares remained unchanged.

The BSE Sensex concluded at 27890.13, up by 214.09 points or 0.77% after trading in a range of 27385.48 and 27947.26. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was up by 0.38%, while Small cap index down by 0.04%. (Provisional)

The gaining sectoral indices on the BSE were Capital Goods up by 1.88%, Healthcare up by 1.23%, Bankex up by 0.78%, FMCG up by 0.52% and Metal up by 0.46% while, IT down by 0.67%, TECK down by 0.42%, Oil & Gas down by 0.41%, PSU down by 0.41% and Infrastructure down by 0.21% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindustan Unilever up by 3.84%, Axis Bank up by 3.50%, Hero MotoCorp up by 3.50%, Larsen & Toubro up by 3.42% and Dr. Reddys Lab up by 2.91%. On the flip side, Wipro down by 6.02%, ONGC down by 2.62%, SBI down by 1.66%, GAIL India down by 0.78% and Tata Motors down by 0.78% were the top losers. (Provisional)

Meanwhile, with the problem of cash crunch taking a toll over the credibility of Indian Railway, a parliamentary panel has suggested government to ensure effective implementation of proposed five-year investment plan, which could act as stimulus package for turning around the public transporter's story.

The panel, headed by former Railway Minister and TMC MP Dinesh Trivedi, also suggested that railways to improve the utilization of the existing assets should strategically invest the little resources to fill the gaps by adopting a system based approach. It emphasized the need for public transporter to reinvent itself and abstain from social responsibilities to make it a profit entity. It highlighted that Railways should have a clear and unambiguous perception of their role and their obligations to the nation.

Further, the 31-member panel has strongly batted for an urgent imperative of a national policy of railways. However, it expressed dissatisfaction on the performance of the Railways on safety-related issues. It observed that allocation and utilization for building road over-bridge (ROB) and road under-bridge (RUB) have consistently been on a downward trend.

Moreover, the panel also warned the Railways not to get into a debt trap and recommended that the Railways to not only undertake a pragmatic study on bankability of projects but also utilize high-cost and risk-infested market borrowings in those sectors that can offer assured returns.

India VIX, a gauge for markets short term expectation of volatility rose 1.18% at 17.23 from its previous close of 17.03 on Tuesday. (Provisional)

The CNX Nifty settled at 8429.70, up by 51.95 points or 0.62% after trading in a range of 8284.70 and 8449.95. There were 31 stocks advancing against 19 stocks declining on the index. (Provisional)

The top gainers on Nifty were ACC up by 4.09%, Hindustan Unilever up by 3.90%, Hero MotoCorp up by 3.45%, Larsen & Toubro up by 3.37% and Axis Bank up by 3.23%. On the flip side, Wipro down by 5.81%, ONGC down by 2.51%, SBI down by 1.85%, Cairn India down by 1.80% and HCL Tech. down by 1.50% were the top losers. (Provisional)

European Markets were trading in the red; Germany's DAX lost 0.62%, UK's FTSE 100 declined 0.46% and France's CAC was down by 0.51%.

The Asian markets made a mixed closing on Wednesday and traders in the region remained concerned about the cash-strapped Greece which may default on its debt, with any positive solution looking remote since the Germans refused to release additional bailout funds without a credible reform plan from Greece. However, the Tokyo and Shanghai markets showed good upmove with Chinese stocks ending with gains of over 2 percent to a new seven-year peak. Japan’s Nikkei too rose 1 percent to a high not seen since April 2000, after country’s March trade data showed a surplus of Yen 229.3 billion, the first surplus in 33 months. Exports rose 8.5%, matching expectations and imports declined 14.5%, more than the 12.8% fall seen. Hong Kong shares also rose while South Korean, Australian, Malaysian and Indonesian stocks fell.