Post session - Quick review

Barometer gauges after dilly dallying for the entire trading session, concluded in the green zone as market men piled up positions in risky asset class in the backdrop of positive global set up. After witnessing a choppy session, benchmark indices garnered gains close to 0.50% to end above the  psychological  level of 17600 (Sensex) and 5350 (Nifty) respectively. However, broader indices failed to show any fervor and concluded with a cut of over 0.15% each.

Indian equity markets post getting a flat start faltered soon in early trade only to show volatile trend. However, a flood of cheap European Central Bank (ECB) funds this week, which eased fears of a meltdown in the euro zone financial sector, counterbalanced some weak data, thereby leading to the increased risk appetite. However, the gains at Dalal Street remained restricted as investors focused more towards forthcoming budget, regional elections and rise in oil prices.

On the global front, Asian stock markets concluded in green zone after US stocks advanced modestly on Thursday, with investors picking up beaten-down cyclicals, led by financials, while oil and coal companies got a boost from crude oil's continued rise. Positive readings for US jobless claims and upbeat sales for US retailers on Thursday helped the regional mood though some investors remained cautious after the oil price spike and soft US manufacturing data. Even the European shares too managed hitting one week high level and edged up on Friday.

Back home, stocks from Banking, Health Care (HC) and Capital Goods counters combined with TECK, Metal and Information Technology led to upbeat mood. However, stocks from Realty, Public Sector Undertaking and Auto stocks limited the uptrend of the bourses. Thus, after long Indian equity markets registered its second weekly fall to end with a loss of over 1%. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1410:1484 while 121 scrips remained unchanged. (Provisional)

The BSE Sensex gained 60.19 points or 0.34% and settled at 17,644.16. The index touched a high and a low of 17,731.88 and 17,504.38 respectively. 15 stocks advanced against 14 declining ones while 1 stock remained unchanged on the index (Provisional)

The BSE Mid-cap index lost 0.20% while Small-cap index was down by 0.12%. (Provisional)

On the BSE Sectoral front, Bankex up 1.34%, Health Care up 0.84%, Capital Goods up 0.47%, TECk up 0.28% and Metal up 0.18% were the top gainer while Realty down 2.67%, PSU down 0.74%, Auto down 0.43%, Oil & Gas down 0.29% and FMCG down 0.28% were the top losers.

The top gainers on the Sensex were Sun Pharma up3.12%, Jindal Steel up 2.79%, ICICI Bank up 1.89%, NTPC up 1.45% and L&T up 1.41%.

On the flip side, DLF down 5.31%, ONGC down 2.38%, Hindalco Industries down 1.99%, Bajaj Auto down 1.75% and Tata Power down 1.47% were the top losers in the index. (Provisional)

Meanwhile, the government has decided to cut subsidies on Di-Ammonium Phosphate (DAP) and Muriate of Potash (MOP) for 2012-13. This is the government’s latest move towards controlling the burgeoning fiscal deficit which has already breached its annual target of 4.6% of GDP in January. It has left urea untouched which is the most used crop nutrient and accounts for the bulk of government's spending on fertilisers.

The government has approved reduction in per Kg NBS (Nutrient Based Subsidy Policy) rates of fertilizer nutrients namely Nitrogen (N), Phosphate (P) and Potash (K) by 11.6%, 32.6%, and 10.3% respectively to Rs 24, Rs 21.804, and Rs 24.  It has, however, kept the sulphur subsidy steady at Rs 1.677 per kg. This has led to a reduction in subsidy on DAP to Rs 14,350 a tonne, down by 27.4% from Rs 19,763 in 2010-11, and on MOP to Rs 14,440 from Rs 16,054, a fall of 10%. The rates will be effective from April 01, 2012.

At the announced rate, total subsidy outgo for the P&K fertilizers for the financial year 2012-13 would be reduced by more than 20%. The cut in subsidies has come in following the recent decline in global prices and an appreciating rupee combined with the government’s need to reduce the gap in its fiscal deficit.

It is also expected that the farmers will increase their usage complex fertilizers given a reduction in prices. Following the decontrol in April 2010, prices of non-urea fertilisers had almost doubled on account of rising global raw material costs and a weakening rupee. The farmers had shifted to cheaper urea during kharif and rabi seasons in the current financial year following an increase in phosphatic fertiliser prices.   India VIX, a gauge for market’s short term expectation of volatility gain 0.61% at 27.84 from its previous close of 27.67 on Thursday. (Provisional)

The S&P CNX Nifty gained 19.20 points or 0.36% to settle at 5,358.95. The index touched high and low of 5,392.55 and 5,315.05 respectively. 30 stocks advanced against 20 declining ones on the index. (Provisional)

The top gainers on the Nifty were Sun Pharma up 3.23%, IDFC up 2.70%, Jindal Steel up 2.68%, Ambuja Cement up 2.13% and ICICI Bank up 1.99%.

On the other hand, DLF down 5.07%, ONGC down 2.43%, Siemens down 2.17%, Hindalco Industries down 1.86% and Bajaj Auto down 1.72% were the top losers. (Provisional)

The European markets were trading on a mixed note, with France's CAC 40 up 0.05%, Germany's DAX down 0.18% and Britain’s FTSE 100 down 0.12%.

Stock indices in Asia rallied on last trading day of the week tracking positive global cues. Positive readings for US jobless claims and upbeat sales for US retailers on Thursday helped the regional mood though some investors remained cautious after yesterday’s oil price spike and soft US manufacturing data. Crude oil futures jumped to a fresh nine-month high of $110.55 a barrel on reports that an explosion destroyed an oil pipeline in Saudi Arabia. Nymex April oil futures were recently down 23 cents at $108.62 a barrel.

Meanwhile, Chinese benchmark Shanghai Composite ended up 1.40 percent, supported by banks and developers after China’s bank regulator said state-backed banks will lend more to qualified developers and speed up loan approvals to boost private sector housing. Moreover, Japanese Nikkei average hit a fresh seven-month closing high on Friday after a European Central Bank (ECB) liquidity operation this week underpinned market sentiment, but it failed to hold above 9,800 for a third day as market players warned of a correction.