Post Session: Quick Review

Indian equity benchmarks witnessed consolidation on Tuesday where frontline gauges managed to end up the volatile session near neutral lines as investors opted to book profit after four days of continuous rally. After a positive start, markets pared most of their gains and entered into red tertian as traders remained concerned with the MNI Consumer Sentiment index falling to 108.9 in February from 109.8 in January, indicating sluggish sentiment among end consumer as they grapple with volatile markets and deteriorating personal finances. Meanwhile, Finance Minister Arun Jaitley withdrew a controversial Budget proposal to tax 60% of Employees’ Provident Fund (EPF) balances at the time of withdrawal. He also withdrew another proposal to tax contribution made by an employer beyond Rs 1.5 lakh a year. Though, the proposal to not tax 40 per cent of money withdrawn from national pension system stays.

The indices even went on to test important psychological 24,500 (Sensex) and 7,450 (Nifty) levels, but the key gauges got strong support near those intraday low levels as they showcased a smart recovery from thereon which helped markets to end flat. Some support came with international rating agency Fitch maintaining India's growth forecast at 7.5 percent for the financial year 2015-16 and projecting the GDP growth of 7.7 per cent in the FY2017, which is 0.3 per cent lower than its December forecast of 8 per cent, but much in line with the government’s projection. The agency also sees RBI cutting key policy rates by 25 basis points and brushes off concerns over global recession.

On the global front, European markets were trading in red in early deals ahead of the European Central Bank's policy review on Thursday and US Federal Reserve's policy meeting next week. Most of the Asian equity indices ended in red as sentiments remained dampened after Chinese authorities warned about the risk of leverage in the country’s housing market. Chongqing mayor Huang Qifan said that China could be headed for a financial disaster if local governments are allowed to keep encouraging home buying with measures such as reducing down payment requirements.

Back home, depreciation in Indian rupee dampened sentiments. Breaking its sixth-day rising streak, the rupee weakened by 31 paise to quote at 67.39 against the dollar at the time of equity markets closing at the Interbank Foreign Exchange (forex) market on fresh demand for the American currency from importers and banks. Banks have taken a hit in today’s session on account of profit booking at higher and attractive levels. However, buying in metal counters provided some support to markets, gaining eight straight day on the back of surge in the base metal prices. Meanwhile, domestic steel consumption grew by 4.3% during the April-February period of the current financial year, while production of domestic industry fell by 1.9%. Mining and mineral stocks too may see some action, as the Cabinet is likely to consider mines ministry's proposal to allow auction of 100 mineral blocks for exploration as early as this week.

Oil shares firm up tracking a rally in global crude oil prices after Brent crude touched a three-month high to touch $39.50 per barrel while US West Texas Intermediate (WTI) futures was higher at $36.53 a barrel, up 61 cents from the last close. Sugar stocks too remained on buyers’ radar on prospects of sugar price hike in local markets following global trends and the possibility of export incentives by the government of Maharashtra to move surplus stock out of the country.

The NSE’s 50-share broadly followed index Nifty ended flat to hold its psychological 7,450 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex surged by over ten points to finish below its psychological 24,700 mark. Broader markets too struggled to get some traction and ended the session mixed.

The market breadth was evenly divided, as there were 1,321 shares on the gaining side against 1,327 shares on the losing side while 143 shares remain unchanged. (Provisional)

The BSE Sensex ended at 24659.23, up by 12.75 points or 0.05% after trading in a range of 24509.21 and 24793.62. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.25%, while Small cap index up by 0.24%. (Provisional)

The gaining sectoral indices on the BSE were Metal up by 1.70%, Oil & Gas up by 1.50%, Energy up by 1.44%, Basic Materials up by 1.20% and Realty up by 0.90%, while Bankex down by 1.29%, Finance down by 0.60%, IT down by 0.49%, TECK down by 0.42% and Capital Goods down by 0.30%, were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were GAIL India up by 2.49%, Reliance Industries up by 2.05%, Lupin up by 2.05%, ITC up by 1.66% and HDFC up by 1.56%. On the flip side, Maruti Suzuki down by 2.90%, SBI down by 2.52%, Hindustan Unilever down by 2.48%, ICICI Bank down by 1.66% and Cipla down by 1.13% were the top losers. (Provisional)

Meanwhile, concerned over continuous decline in exports, a committee of top officials including from commerce and shipping ministries will meet tomorrow to discuss ways to fast-track clearance processes and improve ease of doing business to boost shipments. The meeting will be chaired by Commerce Secretary Rita Teaotia

The committee to facilitate trading across borders and fast tracking of export import clearances was constituted last month by the Prime Minister's Office. Its other members include Central Board of Excise and Customs chairman, Director General of Foreign Trade, representative of Railway Board, shipping and Airport Authority of India.

Further, the committee in the meeting would deliberate on facilitating implementation of measures for fast tracking the regime for export and import clearances besides other trade facilitation steps. Fast tracking clearance procedures promotes ease of doing business for traders which in turn help reducing transactions cost for exporters and importers both. Besides, it will work on ways to speed up the progress of e-trade and its various components like creating paperless and contact free approval environment for export and import clearances.

India’s merchandise exports extending its decline for the fourteen months in row, plunged by 13.6 per cent in January 2016 at $21.07 billion as against $24.39 billion in January last year. The last time Indian exports registered a positive growth was in November 2014, when shipments had expanded at a rate of 7.27 percent.

The CNX Nifty ended at 7485.30, down by 0.05 points or 0.00% after trading in a range of 7442.15 and 7527.15. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Cairn India up by 6.67%, Hindalco up by 4.72%, Vedanta up by 3.38%, GAIL India up by 2.52% and Lupin up by 2.50%. On the flip side, Bank of Baroda down by 4.70%, SBI down by 2.68%, Hindustan Unilever down by 2.65%, Maruti Suzuki down by 2.60% and HCL Tech. down by 2.41% were the top losers. (Provisional)

European markets were trading in red; Germany’s DAX decreased 137.08 points or 1.4% to 9,641.85, France’s CAC dropped 64.31 points or 1.45% to 4,377.98 and UK’s FTSE 100 was down by 59.64 points or 0.96% to 6,122.76.

Asian markets ended mostly lower on Tuesday as Chinese trade figures rekindled global growth worries and revised Q4 GDP data from Japan underscored the challenges facing Premier Shinzo Abe in restoring growth. Reports showed China's trade performance deteriorated sharply in February, with both exports and imports declining far more than expected last month. Exports fell 25.4 percent from a year earlier in dollar terms and imports dropped 13.8 percent to extend declines for the 16th straight month, suggesting the world's second-largest economy continued to suffer from weak global demand and a slowdown at home. Chinese shares recovered from steep losses as speculation of buying by state-backed funds helped offset plunging exports. Japanese shares ended at its lowest in nearly one week, as a stronger yen kept investors on edge and hit the stocks of exporters.