Post Session: Quick Review

Wednesday’s session turned out to be a fabulous day of trade for the Indian equity markets, where frontline gauges garnered gains of over a percent. Markets, after a gap-up start, traded in very tight band throughout the session with frontline gauges ending near intraday high levels, recapturing their crucial 25,800 (Sensex) and 7,850 (Nifty) bastions. However, trading volumes were low as traders turned cautious in a truncated week with stock exchanges closed on Friday on account of Christmas Day. Sentiments remained up-beat on report that the current account deficit (CAD) narrowed to 1.6 percent of GDP at $8.2 billion in the second quarter ended September, compared to $10.9 billion or 2.2 per cent of GDP reported in the same period last year, mainly due to lower trade deficit.

Some support also came after a new growth projections presented by researchers at the Centre for International Development (CID) at Harvard University has said that India, with a projected annual growth rate of 7 percent, has the potential to be the world's fastest growing economy over the coming decade, surging ahead of its South Asian economic rival China that will continue to see a slowdown.

Global cues too remained supportive with European counters trading with a gain of around one and a half percent in early deals led by mining stocks tracking gains in copper prices. Asian markets ended mostly in green terrain, tracking gains in US markets, as investors cheered strong US data, a pause in the greenback's rally and higher oil prices. Markets in Japan remained shut for the Emperor’s Birthday.

Back home, some support came in with report that foreign portfolio investors (FPIs) bought shares worth a net Rs 168.73 crore yesterday as per provisional data released by the stock exchanges. Appreciation in Indian rupee too aided sentiments. The rupee was trading higher by 18 paise against the US dollar at 66.15 at the time of equity markets closing on a sustained bout of dollar selling by banks and exporters.

Oil and gas shares gained after global crude oil stabilised after they hit 11-year lows early this week. Software majors which had weakened in the previous on account of sharp hike in US visa fees gained in today’s session. Meanwhile, New listing Dr Lal PathLabs and Alkem Laboratories got fabulous response and settled with a premium of 52% and 31% respectively on debut.

The NSE’s 50-share broadly followed index Nifty rose by around eighty points and ended above the psychological 7,850 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex surged by around two hundred and sixty points to finish above the psychological 25,800 mark. Broader markets too were traded with traction throughout the trade and ended the session with a gain of around half a percentage point. The market breadth remained in favor of advances, as there were 1,907 shares on the gaining side against 1,157 shares on the losing side while 114 shares remain unchanged.

The BSE Sensex ended at 25850.30, up by 259.65 points or 1.01% after trading in a range of 25689.70 and 25875.27. There were 24 stocks advancing against 6 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.30%, while Small cap index up by 0.43%.(Provisional)

The top gaining sectoral indices on the BSE were Metal up by 1.87%, Oil & Gas up by 1.47%, Healthcare up by 1.38%, Power up by 1.30% and Realty up by 1.22%, while Consumer Durables down by 0.27% was the lone losing indices on BSE. (Provisional)

The top gainers on the Sensex were GAIL India up by 5.75%, BHEL up by 3.52%, Sun Pharma Inds. up by 3.43%, Bharti Airtel up by 2.72% and Tata Steel up by 2.68%. On the flip side, Mahindra & Mahindra down by 0.75%, Adani Ports &Special down by 0.49%, Asian Paints down by 0.31%, Hero MotoCorp down by 0.25% and Bajaj Auto down by 0.05% were the top losers. (Provisional)

Meanwhile, Government’s ambitious $7-billion debt recast scheme ‘Uday’ (Ujwal DISCOM Assurance Yojana) for power distribution companies (discoms) has made a promising start. Power, Coal and Renewable Energy Minister Piyush Goyal has said that 12 key states have came up on board, and bonds worth Rs 70,000 crore to Rs 1 lakh crore is likely to be issued in the next three months to help clean up the balance sheets of these ailing utilities.

Goyal said the scheme had the overwhelming support of all stakeholders, particularly bankers, who had forcefully backed it. The success of the Uday package for discoms is vital for banks, which have lent Rs 4.3 lakh crore to these utilities. It is also crucial for India's ambitious clean energy programme, revival of stranded thermal power projects and Prime Minister Narendra Modi's vision to supply affordable 24x7 electricity to all.

The minister said that a dozen states have already opted for the scheme and several others have said approvals would come very soon. He further said that all states are likely to accept the scheme, which will make every state's discom profitable in three years, ending decades of inefficiency and mismanagement in the most vital link of the power sector.

Under the scheme, states have been promised attractive incentives such as cheaper power and more coal if they adopt the scheme and take over 75% of the debt of ailing discoms. States have to issue bonds in the market or to the lenders while the debt that is not taken over by the state will be converted into loans or bonds with an interest rate not exceeding the bank's base rate plus 0.1%.

The CNX Nifty ended at 7865.95, up by 79.85 points or 1.03% after trading in a range of 7826.10 and 7871.45. There were 43 stocks advancing against 7 stocks declining on the index. (Provisional)

The top gainers on Nifty were GAIL India up by 5.92%, Hindalco up by 5.40%, Vedanta up by 3.78%, BHEL up by 3.71% and Sun Pharma up by 3.50%. On the flip side, ACC down by 0.51%, Mahindra & Mahindra down by 0.37%, Tech Mahindra down by 0.29%, Asian Paints down by 0.23% and BPCL down by 0.21% were the top losers. (Provisional)

European markets were trading in green; France’s CAC surged 65.58 points or 1.44% to 4,633.18, UK’s FTSE 100 soared 82.32 points or 1.35% to 6,165.42 and Germany’s DAX was up by 154.94 points or 1.48% to 10,643.69.

Asian equity markets ended mostly in green on Wednesday, with buying supported by Wall Street rally as positive reading on US growth and consumer spending buoyed optimism about the recovery in the world's largest economy. Hong Kong stocks ended higher, aided by strength on Wall Street, and a sharp rebound in energy shares after oil prices bounced off 11-year lows. Overall gains, however, were limited by a lack of investor participation in a holiday-shortened week. Chinese shares reversed early gains to end lower as investors sold shares to subscribe to upcoming IPOs. The Japanese market was closed in observance of the Emperor's Birthday.