Post Session: Quick Review

Indian barometer gauges witnessed bloodbath with both the major indices losing over one and a half percentage points and ending below their crucial 7,050 (Nifty) and 23,200 (Sensex) levels. After trading choppy for most part of the day’s trade, domestic gauges crashed like house of card in the last leg of trade, as investors opted to book profits after yesterday’s sharp rally of around two and a half percent. Sentiments remain dampened with exports falling for the 14th consecutive month with shipments in January, 2016 contracting 13.6 per cent year-on-year to $21 billion due to weak overseas demand as well as fall in major export items. Imports also fell during the month by 11 per cent to $28.7 billion that resulted in the trade deficit narrowing to an 11-month low of $7.6 billion.

Market participants also remained concerned with India Ratings maintaining a negative outlook for infrastructure sector for the next fiscal as it sees a high concentration of poorly performing assets. Meanwhile, the Reserve Bank of India’s (RBI) Governor Raghuraman Rajan stated that RBI and the government don’t favour undervaluation of the exchange rate as a means to spur economic growth.

On the global front, European markets have made a firm start with CAC, DAX and FTSE were trading in green in early deals, helped by stronger energy stocks which gained ground as oil prices surged on the possibility of output cuts. Mining stocks also advanced, lifted by a rally in copper prices, while shares in Anglo American climbed more than 6 per cent after the firm’s underlying earnings did not fall as much as some had feared. Asian shares ended higher on Tuesday as a combination of stabilising Chinese markets, rebounding oil prices and solid US consumption data prompted investors to look for bargains after last week’s rout.

Back home, selling was both brutal and wide-based as none of sectoral indices on BSE were spared. Counters, which featured in the list of worst performers, include realty, capital goods and telecom. Depreciation in Indian rupee too weighed down sentiments. The rupee was trading lower by 33 paise at 68.39 against the American currency at the time of equity markets closing at the Interbank Foreign Exchange market as the dollar firmed up overseas. Capital goods sector remained under pressure despite the government unveiling the first-ever policy for the country's capital goods sector which envisages increasing the share of capital goods in total manufacturing activity from 12 per cent at present to 20 per cent by 2025.

Shares of public sector oil marketing companies (OMCs) viz. BPCL, HPCL and IOC edged lower as global crude oil prices rose. Defence related shares, which traded firmly in early trade after the defence minister Manohar Parrikar said the DPP would give priority to indigenous manufacturers under the Make in India initiative but it wouldn’t be a mandatory condition to award contacts, too ended lower. Meanwhile, State Bank of India (SBI) emerged as the biggest laggard after SBI chairman stated that non-performing assets will rise in the March quarter as well, and profitability will get impacted.

The NSE’s 50-share broadly followed index Nifty tumbled by over one hundred and ten points to end below the psychological 7,050 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex declined by over three hundred and sixty points to finish below its psychological 23,200 mark. Broader markets too struggled to get any traction and ended the session with a cut of over two percent.

The market breadth remained in favor of decliners, as there were 621 shares on the gaining side against 1,994 shares on the losing side while 110 shares remain unchanged. (Provisional)

The BSE Sensex ended at 23191.97, down by 362.15 points or 1.54% after trading in a range of 23164.54 and 23692.08. There were 5 stocks advancing against 25 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 2.43%, while Small cap index down by 2.25%. (Provisional)

The top losing sectoral indices on the BSE were Capital Goods down by 3.06%, Realty down by 3.03%, Telecom down by 2.93%, Industrials down by 2.63% and Oil & Gas down by 2.32%, while there were no losers on the index. (Provisional)

The top gainers on the Sensex were Adani Ports &Special up by 4.78%, NTPC up by 2.12%, Dr. Reddys Lab up by 0.49%, Wipro up by 0.40% and Hero MotoCorp up by 0.16%. On the flip side, SBI down by 6.37%, BHEL down by 4.59%, Tata Motors down by 4.53%, Larsen & Toubro down by 3.95% and GAIL India down by 3.78% were the top losers. (Provisional)

Meanwhile, the government has collected non-tax receipts over Rs 2 lakh crore in the current fiscal. The biggest share flows from dividends paid by PSUs and the RBI. The other major items of non-tax receipts are interest receipts, spectrum charges, royalty, licence fee, sale of forms and RTI application fee. The receipts are about 90% of the FY16 non-tax revenue estimate of Rs 2.21 lakh crore.

For the financial year 2015-16 Rs 1,00,651 crore has been budgeted from dividends. Of this Rs 36,174 crore is estimated to come from CPSEs and Rs 64,477 crore from banks, financial institutions and RBI. The RBI has already paid a dividend of Rs 65,896 crore in FY16, 25% more than the amount in the year ago period.

Besides, Finance Minister Arun Jaitley has launched a Non-Tax Receipt Portal (NTRP) developed by Controller General of Accounts (CGA) which provides a one-stop platform to citizens or corporates or other users to make online payment of non-tax receipts to Government of India. As taxes are largely collected using the e-payment mode, non tax revenues flow mainly through physical instruments such as bank draft or cheque or cash. The online electronic payment will help common users/citizens from the hassle of visiting bank premises for issue of drafts, and later to Government offices to deposit the instrument for availing services. The online payments can be made by using either a credit card, a debit card or through net banking.

Recently the government has said it would meet the tax revenue target of Rs 14.49 lakh crore for the current fiscal as a small shortfall in direct tax revenue would be offset by the indirect tax collections. It expects Rs 40,000 crore extra mop up from indirect taxes to make up for the shortfall in direct levies.

The CNX Nifty ended at 7048.25, down by 114.70 points or 1.60% after trading in a range of 7037.70 and 7204.65. There were 7 stocks advancing against 43 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Ports &Special up by 4.81% and NTPC up by 2.36% and Indusind Bank up by 1.35% and Power Grid up by 0.43% and Cairn India up by 0.28%. On the flip side, SBI down by 6.82%, Bank of Baroda down by 6.10%, Zee Entertainment down by 5.56%, PNB down by 5.23% and Tata Motors down by 5.07% were the top losers. (Provisional)

European markets were trading in green; Germany’s DAX increased 3.51 points or 0.04% to 9,210.35, France’s CAC gained 26.83 points or 0.65% to 4,142.08 and UK’s FTSE 100 was up by 33.5 points or 0.58% to 5,857.78.

Asian markets ended higher on Tuesday as a combination of stabilizing Chinese markets, rebounding oil prices and solid US consumption data prompted investors to look for bargains after last week's rout. Chinese shares ended higher, helped by a surge in China’s bank lending to a record high and comments from China's premier, who hinted of fresh stimulus if the economy slowed further. China's bank lending surged to a record 2.51 trillion yuan ($385 billion) in January from 597.8 billion yuan recorded in December amid soaring demand for mortgages. Hong Kong shares extended gains, led by energy stocks as sentiment improved on the back of higher oil prices and rebounding European and Chinese equities. Japanese stocks rose slightly in choppy trade as weaker yen and firmer oil prices.