Post session - Quick review

After flip-flopping for the entire session, local bourses returned to their southbound journey as accelerating profit booking on the settlement day of February F&O series, combined with weak global cues activated bears across the Street. Barometer gauges after trading choppy for the entire trading session finally concluded the session in the red, with a cut of around 0.50% each.

However, selective buying by funds, covering-up of pending short positions by select group of speculators on the last session of current month F&O series expiry in the derivatives segment, helped Indian equity markets recoup losses, although not significantly. Thus, in the given month F&O series, the markets amassed good gains, with Sensex gaining over 5%, while broadly followed index of NSE-Nifty too surging over 6%.

Downturn in today’s trading session was led by high beta Realty and Metal stocks, which combined with rate sensitive Auto and technology stock’s spooked the sentiment. Market men also pressed sales on concerns over a slowdown in the global economy, including higher oil prices and data showing the euro zone may be sliding toward recession, which besides fanning fresh worries about Greece’s debt, also ate into the investor’s risk appetite.

However, even performance of the regional counterparts remained a drag on the market. Uncertainty over the implementation of Greece's debt deal dampened the mood of Asian pacific region after Fitch Ratings on Wednesday downgraded Greece's credit rating to C from CCC after the confirmation of the country's second bailout package.On the flip side, positive opening of European shares provided some solace to the Indian equity markets. European stocks advanced as a report showed that German business confidence rose in February to the highest in seven months, exceeding forecasts.

Back on Dalal Street, stocks from defensive Fast Moving Consumer Goods counter coupled with Oil & Gas  and power counters bought some optimism in the trade. PSU OMCs rose on recent reports the prices of auto and cooking fuels are likely to shoot up steeply in the first week of March 2012 after assembly elections. BPCL, HPCL and Indian Oil Corporation were up between 2 to 5%.

State-owned oil companies expect the hike to be at Rs 4 per litre for petrol, Rs 3 for diesel and Rs 50 per cylinder for cooking gas. Oil marketing companies - Indian Oil, Bharat Petroleum and Hindustan Petroleum - are currently losing Rs 4 a litre on petrol, Rs 14 on diesel and Rs 390 on every cylinder of liquefied petroleum gas (LPG). Global crude oil prices touched $120.7 per barrel on Monday - the highest since June last year because of geopolitical tensions over key producer Iran, which meets 12% of India's needs.

Thus, by the end of the trade, the benchmark 30 share index-Sensex- losing over 50 points ended sub 18100 level. In a similar way, 50 share index of NSE-Nifty-declining over 15 points concluded sub 5500 level. However, deeper cuts were suffered by broader indices as both midcap and smallcap index went home with a loss of over 0.50% each.The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1174:1695 while 117 scrips remained unchanged. (Provisional)

The BSE Sensex lost 88.80 points or 0.49% and settled at 18,056.45. The index touched a high and a low of 18,249.53 and 18,005.28 respectively. 7 stocks advanced against 22 declining ones while 1 stock remained unchanged on the index (Provisional)

The BSE Mid-cap index lost 0.33% while Small-cap index was down by 0.71%. (Provisional)

On the BSE Sectoral front, Consumer Durables up 0.96%, FMCG up 0.68% and Power up 0.654% was the only gainers while Realty down 1.77%, Metal down 1.56%, Auto down 0.61%, TECk down 0.60% and IT down 0.42% were the top losers.

The top gainers on the Sensex were HUL up 2.48%, BHEL up 1.60%, Tata Power up 0.90%, NTPC up 0.82% and SBI up 0.70%.

On the flip side, Sterlite Industries down 4.09%, Hero MotoCorp down 2.95%, M&M down 1.94%, Bharti Airtel down 1.83% and Maruti Suzuki down 1.64% were the top losers in the index. (Provisional)

Meanwhile, describing introduction of Goods and Services Tax (GST) as the most significant reform in the history of indirect taxes in the country, Union Finance Minister Pranab Mukherjee affirmed that once implemented it will bring about a paradigm shift in the arena of indirect taxation. With India being at the door step of implementing the crucial reform, the finance minister remained confident that GST will prove to be a more efficient system of taxation and is likely to give a boost to the tax revenues of the Centre and the States by removing barriers amongst States and converting the entire country into a common market.

Commending the performance of the Central Customs and Excise Department in adapting quickly and successfully to the changing economic environment, the finance minister stated the Central Excise revenue has more than doubled over the last ten years from Rs. 68,282 crore in 2000-01 to Rs 137,427 crore in 2010-11, which is 40% of the total revenue from Indirect Taxes. However, he said that still further efforts are required to ensure to meet the target of indirect tax collections for the current fiscal.

With India’s indirect tax collections increasing to Rs 317,233 crore till January 2012 in the current financial year, which is 15% more as compared to the revenues of the corresponding period last year, the government was optimistic that the Budget Estimates for the financial year will be completely met

India VIX, a gauge for market’s short term expectation of volatility lost 9.21% at 24.33 from its previous close of 26.80 on Wednesday. (Provisional)

The S&P CNX Nifty lost 27.40 points or 0.50% to settle at 5,477.95. The index touched high and low of 5,537.40 and 5,460.80 respectively. 16 stocks advanced against 34 declining ones on the index. (Provisional)

The top gainers on the Nifty were BPCL up 6.47%, HUL up 2.51%, Power Grid up 2.46%, BHEL up 1.55% and Tata Power up 1.31%.

On the other hand, JP Associates down 6.56%, Sterlite Industries down 3.85%, Sesa Goa down 3.66%, PNB down 3.10% and Hero MotoCorp down 2.44% were the top losers. (Provisional)

The European markets were trading in green, with France's CAC 40 up 0.18%, Germany's DAX up 0.50% and Britain’s FTSE 100 up 0.40%.

Stocks in Asian region fell on Thursday as investors remained concerned that the rescue package of $170 billion announced for Greece on Tuesday will not be sufficient to keep the debt-laden country from eventually defaulting. Moreover worries over slowdown in the global economy, including higher oil prices and data showing the euro zone may be sliding toward recession, too dampened the sentiments.

Seoul composite lost over a percentage point as foreign investors remained sellers of a net 95.9 billion won ($85.17 million) worth of stocks, poised to end a four-session buying streak. Institutions continued selling for a seventh straight session, offloading 82.9 billion won worth of stocks. Indonesia and Singapore’s index too lost near a percentage point in the trade, however, Japanese Nikkei share average advanced on Thursday to end just below 9,600, with a softer yen underpinning market sentiment.