Post Session: Quick Review

Indian equity benchmarks ended the volatile day of trade with a cut of around one third of a percent owing to continued all-round selling due to weak global cues. Though, markets made a smart recovery after a weak start and regained their green terrain as some support also came with the Wholesale Price Index (WPI)-based inflation for December 2015 coming in at (-) 0.73 per cent. This is a contraction for the 14th straight month. Some support also came with the Finance Minister Arun Jaitley's statement that the economy is moving in the right direction and the pace of growth will gather momentum in the coming quarters on the back of on-going structural reforms.

However, the recovery proved short-lived and markets once again entered into red with frontline gauges breaching their crucial 7,550 (Nifty) and 24,800 (Sensex) levels. Traders remained cautious with global ratings agency Moody's statement that lower rate of inflation and a sharp decline in prices of commodities like crude oil and steel would lead to accelerated growth only if corporate and bank balance sheets are repaired and the private sector remains internationally competitive. It said that declining inflation and lower commodities prices have placed Indian economy in a stronger position relative to similarly rated emerging economies and have also reiterated its view that India will remain one of the fastest growing large economies in 2016.

Global cues too remained sluggish with European markets falling near 3 month lows with sentiment depressing by continued weakness in oil prices, which briefly dipped below the key $30 level, and worries over global economic growth. Asian markets ended mostly in red in the wake of steep losses on Wall Street, while a rout in oil and commodities prices, with crude plumbing 12-year lows, heightened fears about the global economy.

Back home, foreign funds were net sellers in equities worth Rs 76 crore on Wednesday, as per provisional stock exchange data. Depreciation in Indian rupee too dampened sentiments. The rupee depreciated by 33 paise to trade at 67.18 against the US dollar at the time of equity markets closing even as some exporters may have stepped in to sell dollars in the market. Financial shares remained under pressure after rising consumer price inflation in December dashed hopes of a rate cut by the central bank at its next policy meet in early February.

Consumer durables and auto counters ended lower despite the government decided to set up a high-powered panel headed by Cabinet Secretary P K Sinha to process the recommendations of the 7th Pay Commission. However, software counters witnessed buying with Infosys reporting better-than-expected earnings and also raised its revenue guidance in constant currency terms. The company has reported 6.62% rise in its consolidated net profit at Rs 3465 crore for the quarter as compared to Rs 3250 crore for the same quarter in the previous year.

The NSE’s 50-share broadly followed index Nifty declined by over twenty points to end below the psychological 7,550 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex declined by around eighty points to finish below its psychological 24,800 mark. Broader markets too witnessed selling pressure and ended the session with a cut of over a percentage point.

The market breadth remained in favor of decliners, as there were 823 shares on the gaining side against 1,861 shares on the losing side while 175 shares remain unchanged. (Provisional)

The BSE Sensex ended at 24772.97, down by 81.14 points or 0.33% after trading in a range of 24473.22 and 25018.46. There were 12 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 1.00%, while Small cap index down by 1.27%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 1.93%, TECK up by 1.54%, FMCG up by 0.16% and Healthcare up by 0.02%, while Capital Goods down by 1.77%, Bankex down by 1.67%, Industrials down by 1.65%, Basic Materials down by 1.59% and Realty down by 1.46% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Infosys up by 5.05%, Lupin up by 3.44%, Asian Paints up by 2.37%, Dr. Reddys Lab up by 1.14% and Cipla up by 0.84%. On the flip side, Axis Bank down by 4.21%, Tata Steel down by 3.14%, BHEL down by 2.97%, Tata Motors down by 2.87% and SBI down by 2.64% were the top losers. (Provisional)

Meanwhile, overseas Investments or outward foreign direct investments by Indian firms in the month of December fell to $1.15 billion from $2.61 billion in the same month last fiscal, according to the RBI data. The overseas investments in the month of November 2015 stood at $2 billion. Direct investments by Indian firms overseas more than halved from a year ago in December.

The total outward foreign direct investment of $1.15 billion was in the form of equity, loan and issue of guarantee. Of the total investment equity, loan and issue of guarantee stood at $261.76 million, $219.96 million and $663.56 million respectively in the month of December 2015 as compared to $223.12 million, $210.84 million and $2177.59 million respectively during December 2014.

Major overseas investors during the month were Emcure Pharmaceuticals with a combined investment of $102.45 million in Canadian and Nigerian wholly owned units (WOS) for manufacturing, GAIL India in US for agriculture and mining with investment of $114 million in a WOS, Essar Steel India in UAE based WOS with investment of $58.92 million for manufacturing. Other investors include Hasham Traders PI International Holdings in the US-based wholly-owned subsidiary with an investment of $55.6 million in services.

The CNX Nifty ended at 7536.80, down by 25.60 points or 0.34% after trading in a range of 7443.80 and 7604.80. There were 15 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Infosys up by 4.58%, Lupin up by 3.08%, Asian Paints up by 2.40%, Tech Mahindra up by 1.89% and BPCL up by 1.51%. On the flip side, Axis Bank down by 3.96%, Tata Steel down by 3.18%, BHEL down by 3.07%, Tata Motors down by 2.83% and Hindalco down by 2.61% were the top losers. (Provisional)

European markets were trading in red; Germany’s DAX tumbled 231.78 points or 2.33% to 9,729.18, UK’s FTSE 100 decreased 105.31 points or 1.77% to 5,855.66 and France’s CAC was down by 103.67 points or 2.36% to 4,288.27. (Provisional)

Asian equity markets ended mostly in red on Thursday, following a massive sell-off on Wall Street overnight amid the relentless slide in oil prices and concerns over growth as the Federal Reserve's latest Beige Book survey of economic conditions pointed to more sluggish US economic growth. Japanese shares tumbled to hit a 3-1/2 month low as weak oil prices and global growth worries spurred demand for the yen. Downbeat machinery orders data also sapped investors' appetite for risk. Cabinet Office data showed that core machinery orders fell 14.4% in November from the previous month, falling for the first time in three months and underscoring businesses' reluctance to ramp up spending. Indonesia shares ended lower after a series of bomb blasts rocked the capital city. However, Chinese shares reversed early losses to end sharply higher. As part of efforts to prop up prices, the Shanghai and Shenzhen stock exchanges said they would closely monitor the selling activities by major shareholders and take action where appropriate.