Post Session: Quick Review

Markets managed to squeeze out slender gains of around one tenth of a percent in otherwise subdued day of trade on Wednesday which took both Sensex and Nifty above psychologically crucial 27,550 and 8,300 levels respectively on pick up in buying activity in late hour of trade on the penultimate session of F&O expiry on growing bets of rate cut by Reserve Bank of India in its upcoming monetary policy on June 2, 2015. Otherwise, weak earnings, depreciation of Indian currency past 64/$ level and somber global set-up influenced the trade for most part of the session. Additionally, cautiousness ahead of GDP data which is scheduled to be released on Friday also weighed on the sentiment. The session also turned out to be not so encouraging for broader indices, which ended mixed. While Midcap index ended with slender gains, Smallcap index succumbed to selling pressure by close of trade.

On the global front, Asian shares ended mostly lower as investors remained worried over Greece's debt talks and potentially higher US interest rates. Additionally, minutes from the Bank of Japan's policy meeting also dented investor sentiment because it showed some members felt that consumer prices in the world's third largest economy would not meet the central bank’s target in the 2017 fiscal year. Meanwhile, European stocks rose Wednesday, regaining a portion of the losses logged in the previous session, as worries over Greece and a commodity squeeze receded. On data front, there were mixed economic readings in Europe on Wednesday. French consumer confidence slipped in May, while German consumer sentiment is set to increase in June.

Closer home, most of the sectoral indices concluded into positive territory, nevertheless stocks from PSU, Banking and Oil & Gas counters were the top gainers of the session. On the flip side, stocks from Auto, Information Technology and Technology counters were the top losers of the session. Shares of three public sector oil marketing companies rose as global crude oil prices softened. Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. The overall market breadth on BSE was in the favour of decliners which thumped advances in the ratio of 1441:1189, while 110 shares remained unchanged.

The BSE Sensex concluded at 27564.66, up by 33.25 points or 0.12% after trading in a range of 27363.72 and 27595.80. There were 16 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was up by 0.06%, while Small cap index down by 0.03%. (Provisional)

The top gaining sectoral indices on the BSE were PSU up by 1.51%, Bankex up by 1.19%, Oil & Gas up by 0.97%, Consumer Durables up by 0.95% and Capital Goods up by 0.71%, while Auto down by 2.11%, IT down by 1.88%, TECK down by 1.42%, Infrastructure down by 0.59% and Healthcare down by 0.59% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were BHEL up by 4.15%, NTPC up by 2.75%, ONGC up by 2.46%, Axis Bank up by 2.11% and Coal India up by 2.04%. On the flip side, Tata Motors down by 4.95%, Mahindra & Mahindra down by 3.20%, Sun Pharma down by 2.13%, Infosys down by 1.91% and GAIL India down by 1.75% were the top losers. (Provisional)

Meanwhile, dismissing the claims of being unable to keep up to the high promises made during electoral victory, Prime Minister Narendra Modi asserted that the government has put the derailed economy back on track in this last one year, contained inflation and improved investors’ confidence in last one year, while promising of continuing to do more in the coming days to meet the high expectations of people.

The minister further highlighted that not only has the India’s economic growth revived, but has piped many more economies, to emerge as the fastest growing economy one in the world. It also pointed that while, inflation has come substantially down, confidence and foreign investments have grew up and fiscal prudence has been restored.

Further putting out the list of his government’s achievements ever since taking over reins, the minister emphasized the implementation of bold reforms like decontrol of diesel, raising Foreign Direct Investment (FDI) limit on insurance and defence and headway to roll out the Goods and Services Tax (GST) by his government.

Prime Minister added that this was just beginning and that the economy was expected to grow at over 8% in the current fiscal, up from 7.4 per cent in 2014-15 and fiscal deficit was budgeted to come down to 3.9% of the GDP this fiscal, from 4% a year ago.

India VIX, a gauge for markets short term expectation of volatility rose 1.25% at 17.28 from its previous close of 17.06 on Tuesday. (Provisional)

The CNX Nifty settled at 8334.60, down by 4.75 points or 0.06% after trading in a range of 8277.95 and 8342.85. There were 30 stocks advancing against 20 stocks declining on the index. (Provisional)

The top gainers on Nifty were BHEL up by 3.48%, ONGC up by 2.95%, Axis Bank up by 2.40%, Idea Cellular up by 2.35% and NMDC up by 2.28%. On the flip side, Tech Mahindra down by 14.24%, Tata Motors down by 5.19%, Mahindra & Mahindra down by 3.19%, Sun Pharma down by 1.94% and Infosys down by 1.93% were the top losers. (Provisional)

European Markets were trading mostly in green; Germany's DAX gained 0.21%, France's CAC rose 0.56% and UK's FTSE was up by 0.57%.

The Asian markets closed mostly in red on Wednesday, after a sell-off on Wall Street, but Shanghai extended its winning streak to seven successive sessions. The International Monetary Fund (IMF) stated that China should step up fiscal support for its economy if growth dips below 6.5 percent this year, or prepare to take steps to rein in credit and investment if growth surprises on the upper side. The IMF expects China’s annual economic growth to be 6.8 percent this year, before slowing further to 6.25 percent in 2016. Seeking to become more competitive, Indonesia wants to bring annual inflation lower, nearer to the rates managed by its Southeast Asian neighbors. Bank Indonesia Governor Agus Martowardojo stated that the central bank aims to bring down the inflation rate to between 2.5-4.5 percent in 2018, from a target of 3-5 percent this year.

The Bank of Japan stated in minutes of its April board meeting released that inflation in Japan won’t hit a sustained 2% pace this year and any pickup in prices could take considerable time. A key going forward will be how firms move to raise prices and wages, but for now there is no need for further easing. At the April 30 meeting, the BoJ held pat on monetary policy with member Takahide Kiuchi once again dissenting and calling for the stimulus of government bond buying to be cut to 45 trillion yen annually from 80 trillion yen annually now. Singaporean GDP rose to a seasonally adjusted 2.6%, from 2.1% in the preceding quarter.