Post Session: Quick Review

Extending previous session’s rally, Indian equity benchmarks ended the Thursday’s trade with a gain of over a percent with frontline gauges recapturing their crucial 23,600 (Sensex) and 7,150 (Nifty) levels. Markets made gap-up opening as sentiments remained up-beat after Moody's Investors Service said Indian economy will grow at 7.5% in 2016 and 2017 as it is relatively less exposed to external headwinds, like China slowdown, and will benefit from lower commodity prices. But, market participants took some profit off the table at higher levels in afternoon deals.

Markets once again gained momentum in last leg of trade to end near intraday highs as massive buying interest by investors with technology and FMCG stocks contributing the most to the rally. Some support also came with Cabinet’s approval for the WTO's Trade Facilitation Agreement (TFA) which aims at easing customs procedures to boost commerce. TFA will contain provisions for movement of goods, release and clearance of goods and goods in transit. Also, as Revenue Secretary Hasmukh Adhia has indicated that the Centre will announce a final roadmap for rationalising corporate tax exemptions in the Union Budget 2016-17.

Global cues too remained supportive with European markets trading mostly in green in early deals. However, gains remained capped with some disappointing company results putting pressure on the market. Asian markets ended mostly in green as crude oil extended gains on hopes that big producers will cap output, improving investor sentiment for riskier assets.

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. The Oil Marketing Companies (OMCs) exhibited mixed trade after slashing prices of petrol by 32 paise per liter and raising diesel rates by 28 paise per liter in order to align the domestic rates of the automobile fuels with global benchmarks.

Shares of oil exploration & production companies such as Cairn India, Oil & Natural Gas Corporation (ONGC) and Oil India were trading higher on the bourses after a sharp surge in global crude oil prices. Buying in pharma space too aided sentiments on report that department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers is expected to come out with a new bulk drug policy in less than a month with an objective to grow the Indian pharmaceuticals sector to a $200 billion industry by 2030.

The NSE’s 50-share broadly followed index Nifty surged by over eighty points to end above the psychological 7,150 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex soared by around two hundred and seventy points to finish above its psychological 23,600 mark. Broader markets too traded with traction and ended the session with a gain of over half a percent.

The market breadth remained in favor of advances, as there were 1,416 shares on the gaining side against 1,114 shares on the losing side while 153 shares remain unchanged. (Provisional)

The BSE Sensex ended at 23649.22, up by 267.35 points or 1.14% after trading in a range of 23448.21 and 23735.35. There were 20 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.63%, while Small cap index up by 0.59%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 1.94%, TECK up by 1.90%, Healthcare up by 1.78%, Capital Goods up by 1.59% and FMCG up by 1.52%, while there were no losers on the index. (Provisional)

The top gainers on the Sensex were Dr. Reddys Lab up by 4.52%, ONGC up by 4.50%, Hero MotoCorp up by 3.97%, ICICI Bank up by 2.83% and Lupin up by 2.68%. On the flip side, Maruti Suzuki down by 2.53%, Asian Paints down by 2.09%, BHEL down by 1.84%, Axis Bank down by 1.39% and Reliance Industries down by 1.19% were the top losers. (Provisional)

Meanwhile, Union Cabinet, chaired by Prime Minister Narendra Modi gave its ex post facto approval for memorandum of understanding (MoU) which India signed with various countries for cooperation in the field of agriculture and allied sectors.

The approval has been given to MoUs signed with 13 countries which include Netherlands, Nepal, Cyprus, Israel, Bangladesh, Cambodia, Tanzania, Surinam, Zambia, Syria, Bhutan, Chile and Mauritius. Expenditure incurred on implementation of such MoU is managed within the financial allocation made for the ministry.

These MoUs will help in capacity building, knowledge exchange through visits of scientists and technicians, exchange of genetic resources that aid in development of appropriate technologies and farm practices for enhancing agriculture productivity at farmers' field. Expertise and technology so developed is applied all over the country as per felt needs.

Under Transaction of Business Rules, 1961, cases involving negotiations with foreign countries on treaties, agreements and other important matters need to be brought before the Cabinet for approval. Earlier, prior approval under Rule 12 of the Transaction of Business Rules was obtained in certain cases and subsequent Cabinet approval could not be obtained. Therefore, ex-post-facto approval in respect of MoUs signed with 13 countries is being obtained.

The CNX Nifty ended at 7191.75, up by 83.30 points or 1.17% after trading in a range of 7127.85 and 7215.10. There were 35 stocks advancing against 15 stocks declining on the index. (Provisional)

The top gainers on Nifty were Dr. Reddys Lab up by 4.83%, Hindalco up by 4.71%, ONGC up by 4.37%, Cairn India up by 3.77% and Hero MotoCorp up by 3.69%. On the flip side, Maruti Suzuki down by 2.56%, Asian Paints down by 2.42%, BHEL down by 1.94%, Reliance Industries down by 1.31% and Axis Bank down by 1.25% were the top losers. (Provisional)

European markets were trading mostly in green; France’s CAC increased 14.19 points or 0.34% to 4,247.66 and Germany’s DAX was up by 32.9 points or 0.35% to 9,410.11. On the flip side, UK’s FTSE 100 was down by 27.87 points or 0.46% to 6,002.45.

Asian markets ended mostly higher on Thursday, after US stocks posted their biggest three-day gain since August overnight, buoyed by a jump in oil prices, upbeat US industrial production data and signs the Federal Reserve could slow the pace of US interest rate hikes. Minutes from the Federal Reserve's January meeting suggested that participants were concerned about the downside risks posed by the recent tightening of global financial conditions and discussed altering their earlier views of the appropriate path for interest rates, if needed. Japanese shares ended higher, shrugging off bigger-than-expected declines in exports and imports in January. Hong Kong stocks climbed more than 2 percent on Thursday, aided by a surge in energy shares. However, Chinese shares surrendered early gains to end slightly lower as inflation data painted a mixed picture of the economy. While consumer inflation edged up to 1.8 percent last month, fueled by rising food prices ahead of the Lunar New Year, the producer price deflation hit a record long streak in January, declining for the 47th straight month.