Post Session: Quick Review

Snapping three sessions’ losing streak, local equity markets staged smart recovery on Tuesday, ending with gains of around 3/4th of a percent that lifted both Sensex and Nifty above psychologically crucial 27,350 and 8,250 levels respectively. Value buying in banking and Realty stocks after three consecutive sessions of drubbing mainly lifted sentiments. Both the Sensex and Nifty closed at their lowest level since January 7 on Monday and the NSE index fell below its 200-day moving average for the first time in 15 months. However, cautiousness whic prevailed for yet another session ahead of monthly derivatives prevented further gains of local equity markets. Meanwhile, broader indices outperforming larger counterparts posted gains of over 1.30%.

On the global front, Asian markets mostly fell on Tuesday following losses on Wall Street, with Shanghai losing more than one percent a day after hitting a seven-year high as sentiment gave way to caution ahead of the Federal Reserve's two-day policy meeting. Street expects no change in policy stance from the two-day Federal Open Market Committee meeting starting later on Tuesday, with recent domestic data weaker than forecast and a strong dollar crimping exports. Meanwhile, European shares  fell on Tuesday, with Commerzbank dropping after announcing plans to raise Euro 1.4 billion ($1.52 billion) and Swiss sanitary equipment maker Geberit slipping following poor results.

Closer home, most of the sectoral indices on BSE concluded in positive territory, maximum buying activity was witnessed by stocks from Banking, Auto and Realty counters, which emerged as top gainers of the session. Gains of banking pack was led by ICICI Bank shares rose 8% and clocked its best single-day gain in nearly a year after it reported a 10 percent rise in Jan-March net profit and said it expects the new financial year to be better in terms of bad loans. Meanwhile, Auto counter’s gains were driven by shares of Maruti Suzuki which rallied over 4% in the previous session after its Jan-March earnings beat forecasts. On the flip side, major brunt of profit-booking was witnessed by stocks from FMCG, Information Technology and Consumer Durable counters. Technology shares plunged after Infosys dived 1.3% down for third straight session after its earnings on Friday missed expectations. In stock specific action, state-run oil marketing companies rose with Hindustan Petroleum Corp on expectations of no subsidy burden and low crude prices. Additionally, sugar stocks also were trading up on reports suggesting of revival package soon by government in order to lift the beleaguered industry from the doldrums. The overall market breadth on BSE was in the favour of advances which thumped advances in the ratio of 1638:1095; while 89 shares remained unchanged.

The BSE Sensex concluded at 27396.38, up by 219.39 points or 0.81% after trading in a range of 27073.25 and 27482.14. There were 16 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in the green; the BSE Mid cap index was up by 1.49%, while Small cap index added 1.37%. (Provisional)

The top gaining sectoral indices on the BSE were Bankex up by 2.12%, Auto up by 1.91%, Realty up by 1.61%, Infrastructure up by 1.25% and Power up by 1.22% while, FMCG down by 0.96%, IT down by 0.54%, Metal down by 0.20% and TECK down by 0.12% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were ICICI Bank up by 7.41%, Maruti Suzuki up by 5.03%, BHEL up by 2.29%, Bharti Airtel up by 1.93% and Axis Bank up by 1.84%. On the flip side, ITC down by 2.30%, Coal India down by 1.69%, Infosys down by 1.47%, Reliance Industries down by 1.38% and Hindustan Unilever down by 1.02% were the top losers. (Provisional)

Meanwhile, in pursuance of the enactment of Insurance Regulatory & Development Authority (IRDA) Act, 2013, the government has raised the limit of Foreign Direct Investment (FDI) in pension sector to 49% in line with the FDI cap in the insurance sector. A press note to this effect has been issued by the Department of Industrial Policy and Promotion (DIPP) on Monday.

The FDI cap in the sector has been hiked to 49% and that includes foreign investment in the forms of FPI, FII, QFI, FVCI, NRI and DR. Further, the formal release also states that while no government approval is required till 26 per cent, FIPB nod is required for investment beyond 26% and up to the cap of 49%. Besides, this all investment in the range of below 26% or above will have to abide by pension sector regulator -- PFRDA.

It was back in December last year that the government allowed 49% in insurance sector through an ordinance in the parliament, which was later converted into Act. However, the increase in the foreign investment limit in the pension sector comes with certain rider.

India VIX, a gauge for markets short term expectation of volatility declined 7.12% at 17.40 from its previous close of 18.74 on Monday. (Provisional)

The CNX Nifty settled at 8285.60, up by 71.80 points or 0.87% after trading in a range of 8185.15 and 8308.00. There were 34 stocks advancing against 16 stocks declining on the index. (Provisional)

The top gainers on Nifty were ICICI Bank up by 8.12%, Maruti Suzuki up by 4.77%, BPCL up by 4.49%, Tech Mahindra up by 3.64% and Idea Cellular up by 3.28%. On the flip side, ITC down by 2.12%, HCL Tech. down by 1.44%, Coal India down by 1.39%, Infosys down by 1.20% and Reliance Industries down by 1.15% were the top losers. (Provisional)

European Markets were trading in the red; Germany's DAX lost 0.74%, France's CAC declined 1.04% and UK's FTSE 100 was down by 0.82%.

The Asian markets closed mostly in red on Tuesday, as investors were cautiously ahead of the US Federal Reserve’s two-day monetary policy meeting that starts later in the day. Japanese retail sales in March declined at their fastest annual pace in 17 years as consumer spending struggled to pick up a year after a sales-tax increase, keeping alive speculation the Bank of Japan will expand stimulus again later this year. Japan’s retail sales fell to a seasonally adjusted annual rate of -9.7%, from -1.7% in the preceding month whose figure was revised up from -1.8%. The markets will be focused on the BOJ’s meeting as well as a slew of other data this week - including industrial production, inflation and employment - for clues on the economy’s performance in the final month of the first quarter. The central bank is expected to hold off on expanding stimulus at Thursday’s policy review, but remains under pressure to do more to get the economy motoring again after last year’s April sales tax hike clobbered consumption. Signs of continued weakness in private consumption - which accounts for some 60 percent of gross domestic product - is a headache for the BOJ as the economic recovery remains fragile following a recession last year. Hong Kong Trade Balance fell to a seasonally adjusted -46.2B, from -35.9B in the preceding month.