Post Session: Quick Review

Indian equity benchmarks traded in tight band throughout the session and ended the session with a gain of over one third of a percent with Sensex recapturing its crucial 24,800 level. Sentiments remained up-beat as markets made gap-up opening with International Monetary Fund (IMF) chief Christine Lagarde’s statement that the fiscal stance adopted by India is exactly appropriate and a very sensible objective that has been set. Some support also came with Finance Minister Arun Jaitley stating that the government hopes to pass the landmark Constitution Amendment Bill for national Goods and Services Tax (GST) as well as the bankruptcy and insolvency bill in the second half of the Budget session beginning April 20.

However, market participants booked most of their initial profit at higher levels. Traders remained cautious in reaction to the weak industrial production data. IIP for the month of January came in at -1.5 as compared to -1.2 percent December IIP data. Investors also remained on sidelines ahead of consumer inflation data, due after the close of markets. Meanwhile, India’s main inflation gauge, based on monthly wholesale price index (WPI), stood at -0.9 percent from -0.9 percent in the month of January and -2.17 percent  during the corresponding month of the previous year. The February WPI remains unchanged on month on month basis.

Global cues remained supportive with European markets trading in green in early deals, following a positive lead set in Asia, as investors looked ahead to a raft of central bank meetings and rate decisions this week. Asian markets rallied on Monday, extending a four-week rally ahead of key meetings this week by central banks in the U.S. and Japan.

Back home, Indian shares have risen in eight out of ten sessions in March, boosted by foreign flows. Overseas investors have bought a net $1.41 billion worth of shares so far in March, paring this year's outflows to $1.48 billion. Buying in banking counter mainly aided sentiments after Reserve Bank of India (RBI) governor Raghuram Rajan commented that the headline fiscal deficit target for the next financial year (at 3.5 per cent) year is a comfort for the central bank has already hiked hopes of a rate cut. On the flip side, metal pack remained under pressure owing to steep decline in Coal India after the stock turned ex-dividend for Rs 27.40 per share.

The NSE’s 50-share broadly followed index -- Nifty -- rose by around thirty points to end near the psychological 7,550 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex -- surged by around ninety points to finish above the psychological 24,800 mark. Broader markets traded in-line with benchmarks and ended the session with a gain of around one third of a percent.  The market breadth was evenly divided, as there were 1,320 shares on the gaining side against 1,334 shares on the losing side while 172 shares remain unchanged. (Provisional).

The BSE Sensex ended at 24804.28, up by 86.29 points or 0.35% after trading in a range of 24734.04 and 24960.51. 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 0.31%, while Small cap index up by 0.41%. (Provisional)

The top gaining sectoral indices on the BSE were Bankex up by 0.81%, Industrials up by 0.73%, FMCG up by 0.69%, Basic Materials up by 0.63% and Auto up by 0.60%, while Metal down by 2.04%, Energy down by 0.51%, PSU down by 0.49%, Realty down by 0.32% and Consumer Durables down by 0.23% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were ICICI Bank up by 3.70%, Tata Motors up by 3.36%, BHEL up by 1.88%, ONGC up by 1.51% and Bharti Airtel up by 1.23%. On the flip side, Coal India down by 6.96%, Mahindra & Mahindra down by 0.92%, TCS down by 0.88%, Sun Pharma down by 0.43% and Bajaj Auto down by 0.42% were the top losers. (Provisional)

Meanwhile, total revenue foregone stood at Rs 1,84,764 crore, which was 97.74 per cent of revenue from central excise, in the Financial year 2015, on account of exemptions in excise duty, according to the report on 'Indirect taxes-Central Excise' tabled in Parliament by Comptroller and Auditor General of India (CAG). It was the first time in five years that revenue forgone was less than the central excise tax figure at Rs 1,89,038 crore.

Further, the report said that a sizable amount of Rs 81,538 crore of the central excise revenue is blocked in appeals. The amount is increasing every year. Despite, a number of measures initiated by the Board, locking up of such large revenue is a matter of concern. The report also highlighted that during 2014-15, increase in central excise duty on petrol and high speed diesel resulted in increase of central excise collection from petroleum sector.

In 2013-14, the revenue forgone was at Rs 1.96 lakh crore which was 115.80 per cent of the central excise receipts; in 2012-13 the revenue was Rs 2.09 lakh crore which was 119.39 per cent; in 2011-12 it was Rs 1.95 lakh crore which was 134.98 per cent of the central excise receipts and Rs 1.92 lakh crore stood in 2010-11 which was about 139.60 per cent.

The CNX Nifty ended at 7538.75, up by 28.55 points or 0.38% after trading in a range of 7515.05 and 7583.70. There were 37 stocks advancing against 13 stocks declining on the index. (Provisional)

The top gainers on Nifty were ICICI Bank up by 3.65%, Tata Motors up by 3.44%, Cairn India up by 3.27%, Tech Mahindra up by 2.65% and BHEL up by 2.17%. On the flip side, Coal India down by 6.96%, Kotak Mahindra Bank down by 0.91%, Idea Cellular down by 0.88%, Mahindra & Mahindra down by 0.69% and Sun Pharma down by 0.69% were the top losers. (Provisional)

European markets were trading in green; France’s CAC increased 27.63 points or 0.61% to 4,520.42, UK’s FTSE 100 gained 34.09 points or 0.56% to 6,173.88 and Germany’s DAX was up by 171.04 points or 1.74% to 10,002.17.

The Asian markets rallied on Monday, with major averages extending a global rally posting good gains, ahead of central banks in two of the world’s three biggest economies reviewing policy this week. The Bank of Japan, which adopted a negative interest rate in January, will conclude a policy review on Tuesday and a Federal Reserve meeting will be ending on Wednesday. Meanwhile, the Chinese market surged over two percent, posting their biggest gain in more than a week after chairman of the China Securities Regulatory Commission, said it was too early to think about the state rescue fund leaving the market and vowed to step in “decisively” if needed to curb panic. Other markets in the region too ended higher, with Japanese Nikkei and Hang Seng posting gains in excess of a percent.