Post Session: Quick Review

Boisterous benchmarks showcased an enthusiastic performance on Monday, by rallying around two and a half percentage points amid strong global cues. Sentiments remained up-beat since start as key bourses opened with huge gap on upside and there appeared not even an iota of profit booking in the session as the benchmarks managed to fervently gain from strength to strength as investors continued hunt for fundamentally strong stocks. Frontline indices not only ended the session near intraday high levels but also recaptured their crucial 7,150 (Nifty) and 23,500 (Sensex) bastions as investors took to hefty across the board buying.

Sentiments remained optimistic with Prime Minister Narendra Modi’s statement that India is the fastest developing country among the “larger economies of the world”. He further said that India is the only economy which has not been affected by the global economic crisis that has hit the world. Investors shrugged off weak macro data of IIP and CPI inflation announced after the market hours on Friday. While, the Industrial output or index of industrial production (IIP) contracted an annual 1.3 percent in December, CPI inflation hit 17-month high in January at 5.69%. Meanwhile, the wholesale price index (WPI)-based inflation fell for the 15th straight month in January, dropping 0.90% compared to 0.73% in December.

Global cues too remained supportive with European counters making a firm start and CAC, DAX and FTSE were trading with a gain of around two and a half percent in early deals. Asian stocks rebounded from recent weakness as fears over global economic slowdown eased and as U.S. crude prices rallied from more than 12-year lows. China’s central bank also fixed the yuan higher as markets in Asia's largest economy returned from a week-long holiday.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. Appreciation in Indian rupee too aided sentiments. The rupee firmed up by 11 paise to 68.12 against the US dollar at the time of equity markets closing at Interbank Foreign Exchange market the back of selling of the US currency by exporters and banks.

Buying in capital goods counter too aided sentiments on report that the country's first-ever policy for the capital goods sector will be placed before the Cabinet for approval this month. The banking and financial pack remained in action after finance minister Arun Jaitely said the government would reduce its stake in public sector banks (PSBs) to 52 per cent. Among PSU banks, Bank of Baroda witnessed a sharp rebound after the management said that all non-performing assets were accounted for in the third quarter and it could return to profitability next fiscal. Metal & mining stocks gained as copper prices rose on global commodity markets.

The NSE’s 50-share broadly followed index -- Nifty -- rose by over one hundred and eighty points to end above the psychological 7,150 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex -- surged by around five hundred and seventy points to finish above the psychological 23,500 mark. Broader markets too traded with traction and ended the session with a gain of around three and a half percent.

The market breadth remained in favor of advances, as there were 1,985 shares on the gaining side against 673 shares on the losing side while 118 shares remain unchanged. (Provisional)

The BSE Sensex ended at 23554.12, up by 568.00 points or 2.47% after trading in a range of 23197.67 and 23622.64. There were 25 stocks advancing against 5 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 3.47%, while Small cap index up by 3.35%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 8.79%, Capital Goods up by 6.73%, Realty up by 6.17%, Industrials up by 5.46% and PSU up by 4.95%, while Telecom down by 0.65% was the lone loser on the index. (Provisional)

The top gainers on the Sensex were Tata Steel up by 13.04%, Larsen & Toubro up by 9.14%, SBI up by 7.45%, Coal India up by 6.92% and Adani Ports &Special up by 6.88%. On the flip side, Bharti Airtel down by 2.35%, Hindustan Unilever down by 0.86%, HDFC down by 0.24%, Sun Pharma down by 0.19% and HDFC Bank down by 0.12% were the top losers. (Provisional)

Meanwhile, expressing his hope that Congress will cooperate in ensuring the functioning of Parliament, Union Parliamentary Affairs Minister M Venkaiah Naidu has said that he is confident and optimistic that bills pertaining to formation of a realty regulator and the much-awaited indirect taxation reform Goods and Service Tax (GST) will be passed in the upcoming Budget session. He further said that he himself and Finance Minister Arun Jaitley has spoken to the congress leaders and added that the time has come for us to come together as lot of time is being wasted on it.

Further, commenting on the Congress's current stance of stalling Parliament and then putting forth certain changes in the bill it wants he said they're raising certain issues which they did not raise when they brought the Bill in 2008.  Naidu said passing the Real Estate Regulation and Development Bill is essential because in the absence of a watchdog, people can be fleeced by fly-by-night operators in the sector.

Earlier, in January, Naidu has said that the Modi government has agreed to accept the demands raised by the opposition congress Party, to pass GST Bill. Further he said that the government is ready to start the upcoming Parliament session earlier than scheduled to pass the bill in the Rajya Sabha if the Congress is willing to support it.

The CNX Nifty ended at 7162.95, up by 182.00 points or 2.61% after trading in a range of 7056.80 and 7182.80. There were 46 stocks advancing against 4 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bank of Baroda up by 22.56%, Vedanta up by 18.58%, Tata Steel up by 13.43%, Hindalco up by 10.02% and Larsen & Toubro up by 9.09%. On the flip side, Bharti Airtel down by 1.74%, Hindustan Unilever down by 0.97%, Idea Cellular down by 0.41% and HDFC down by 0.30% were the few losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 surged 99.23 points or 1.74% to 5,806.83, France’s CAC strengthened 120.03 points or 3% to 4,115.09 and Germany’s DAX was up by 223.56 points or 2.49% to 9,191.07.

Asian markets ended mostly higher on Monday, encouraged by a stronger finish in US and European markets on Friday. Japanese shares ended higher as investors bought up recently battered financial stocks and the Japanese yen continued to ease from its strongest levels against the US dollar in more than a year. Hopes for more monetary stimulus from Japan boosted investors' appetite for emerging market equities, shrugging off data that showed Japan's economy contracted more than expected in the final quarter of 2015. The Shanghai Composite, however, lost ground after re-opening post the week-long Lunar New Year holiday. This was despite the positive comments on the yuan made by Zhou Xiaochuan, governor of the People's Bank of China (PBOC).