Benchmarks snap three-day losing streak; Nifty regains 7,400 level

Indian equity benchmarks snapped three-day losing streak as investors opted to buy beaten down but fundamentally strong stocks amid positive global cues. It was a volatile session of trade for Indian equity markets where domestic gauges started with a gap-up opening and traded with traction in early deals as traders took some relief with Finance Minister Arun Jaitley amid global uncertainty saying that it is important for India to emerge out of the crisis stronger as it is on a much higher and stabler footing than other nations. Jaitley said that India is ‘relatively unimpacted’ by some of the factors that have caused the global crisis.

However, markets pared most of their gains in second half of trade after reports stated that the US government has made it mandatory for all active pharmaceutical ingredients (APIs) to be manufactured locally. But, domestic gauges regained momentum in dying hours and ended the session with a gain of over half a percent with frontline indices recapturing their crucial 7,400 (Nifty) and 24,300 (Sensex) levels.

Global cues remained supportive with European counters making a firm opening with CAC, DAX and FTSE were trading in green with the focus on energy companies as speculation US interest rates may not rise at all this year left the dollar nursing hefty losses and oil held most of the previous day's big gains. Asian markets ended mostly in green on the back of higher oil prices and speculation about the Federal Reserve putting interest-rate increases on hold.

Closer home, appreciation in Indian Rupee too aided sentiments. The rupee recovered by 31 paise to 67.76 against the dollar at the time of equity markets closing, snapping the three-day falling streak on fresh selling of the US currency by banks and exporters. However, foreign funds remained sellers on Wednesday to the tune of Rs 357 crore while domestic institutions also sold equities worth Rs 145 crore, as per provisional stock exchange data.

Buying was witnessed in metal counter as traders went for short covering. Moreover, copper prices rose in global commodities markets too helped some stocks in the space. Shares of oil exploration and production companies edged higher on gain in crude oil prices. On the flip side, pharmaceutical stocks remained under pressure after the United States government reportedly made it mandatory for Active Pharmaceutical Ingredients to be manufactured locally. Aviation stocks tumbled after sharp rebound in crude oil prices.

The NSE’s 50-share broadly followed index Nifty surged by over forty points to end above the psychological 7,400 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex soared by over one hundred and ten points to end above its crucial 24,300 mark. Broader markets, however, failed to get any traction and ended the session in red with a cut of around half a percent. The market breadth remained in favor of decliners, as there were 1,030 shares on the gaining side against 1,623 shares on the losing side while 123 shares remain unchanged.

Finally, the BSE Sensex surged by 115.11 points or 0.48% to 24338.43, while the CNX Nifty gained 42.20 points or 0.57% to 7404.00. 

The BSE Sensex touched a high and a low 24514.01 and 24224.74, respectively. The BSE Mid cap index was down by 0.18%, while Small cap index was down by 0.75%.

The top gaining sectoral indices on the BSE were Metal up by 2.48%, Capital Goods up by 1.93%, Industrials up by 1.12%, Materials up by 1.11% and IT up by 0.92%, while Healthcare down by 1.56%, Realty down by 0.30% and Utilities down by 0.25% were the few losing indices on BSE.

The top gainers on the Sensex were ONGC up by 3.28%, Asian Paints up by 2.93%, Larsen & Toubro up by 2.58%, Adani Ports &Special up by 2.24% and Infosys up by 1.88%. On the flip side, Lupin down by 2.80%, NTPC down by 2.14%, Cipla down by 1.98%, SBI down by 1.81% and Bajaj Auto down by 1.62% were the top losers.

Meanwhile, the Public Private Project Appraisal Committee (PPPAC) and the Empowered Committee (EC) both chaired by Secretary, Department of Economic Affairs Secretary have approved 7 infrastructure projects in road and port sectors envisaging an investment of Rs 9,672 crore. The committees together have cleared 6 road projects and 1 ports sector project.

The projects include 4 National Highway projects, one each in the state of Maharashtra and Himachal Pradesh and two projects in the state of Uttar Pradesh and one port project in the state of Goa cleared by the PPPAC. Besides, the two road projects in Uttar Pradesh have been cleared for Viability Gap Funding (VGF). Under the VGF government support is provided to the infrastructure projects to make them viable and bankable. Public Private Projects (PPP) implemented by Infrastructure Ministries and departments of Central Government and PPP Projects of departments of State and Central Government seeking Viability Gap Support (VGF) from Central Government are cleared by institutional mechanisms.

In the year 2005, the Cabinet Committee on Economic Affairs (CCEA) has approved the procedure for approval of PPP projects. Following to this decision, PPPAC was been set up. The committee is serviced by the Department of Economic Affairs, who sets up a special cell for servicing such proposals.

The CNX Nifty touched a high and low 7457.05 and 7365.95 respectively. 

The top gainers on Nifty were Vedanta up by 9.89%, Cairn India up by 6.03%, Tata Power up by 3.51%, ONGC up by 3.26% and Hindalco up by 3.08%. On the flip side, Idea Cellular down by 3.38%, Lupin down by 2.71%, Yes Bank down by 2.36%, NTPC down by 2.14% and Cipla down by 2.07% were the top losers.

European Markets were trading in green; France’s CAC increased 22.52 points or 0.53% to 4,249.48, Germany’s DAX surged 65.64 points or 0.7% to 9,500.46 and UK’s FTSE 100 was up by 80.52 points or 1.38% to 5,917.66.

Asian equity markets ended mostly in green on Thursday, with sentiment supported by a late rebound on Wall Street overnight, higher oil prices and speculation about the Federal Reserve putting interest-rate increases on hold. Chinese shares closed higher, as yuan worries eased and China's central bank stepped up efforts to stave off potential liquidity squeeze heading into the week-long Lunar New Year holidays next week. Hong Kong stocks ended higher as energy shares surged on a rebound in oil prices, while an overnight tumble in the US dollar eased fears of capital outflows. However, Japanese shares bucked the uptrend to end at a one-week low as a result of a firmer yen and weak earnings forecasts from Panasonic and Hitachi.  Taiwan Weighted was closed for the start of the long break for the Lunar New Year.