Post Session: Quick Review

Boisterous benchmarks showcased an enthusiastic performance on Tuesday, by rallying around one and a half percentage points amid gains in European shares and a mild recovery in crude prices. Markets, after a gap-down start, recovered gradually to enter into green terrain in noon deals. Frontline indices not only ended the session near intraday high levels but also recaptured their crucial 7,950 (Nifty) and 26,000 (Sensex) bastions as investors took to hefty across the board buying. Sentiments remained optimistic with Economic Affairs Secretary Shaktikanta Das, pledging a strong focus on the execution of Budget announcements and ensuring that there are no delays in investments by key ministries, said that India plans to further liberalise rules for overseas investors as the government looks to reduce the need for approvals.

Traders also took some encouragement with report of Department of Industrial Policy and Promotion (DIPP) that Foreign Direct Investment (FDI) into India touched the highest ever mark of $51 billion during the April-February period of last fiscal ended March 31. Some support also came with report showing that India might surpass China in attracting FDI this year, in terms of percentage of its GDP, as the gap in inflows between the two has been narrowing on the back of ongoing reforms in the country.

Global cues too remained supportive with European counters making a firm start and CAC, DAX and FTSE were trading with a gain of around half a percent in early deals after some encouraging company results, with pulp and paper maker UPM climbing after better-than-expected quarterly profits while BP also rose. However, Asian markets ended mixed ahead of central bank policy meetings in the United States and Japan this week.

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 appreciated by 9 paise to 66.51 against the US dollar at the time of equity markets closing on increased selling of the American currency by exporters and banks.

Buying in realty counter too aided sentiments with the RBI governor Raghuram Rajan putting the onus on real estate developers, asking them to reduce prices to encourage more people to buy properties. The jewellary and gold stocks too remained on buyers’ radar, as the government has further extended the deadline for jewellers to get their businesses registered with central excise department.

The NSE’s 50-share broadly followed index -- Nifty -- rose by around one hundred and ten points to end above the psychological 7,950 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex -- surged by around three hundred and thirty points to finish above the psychological 26,000 mark. Broader markets too traded with traction and ended the session with a gain of around two percentage points.  The market breadth remained in favor of advances, as there were 1,575 shares on the gaining side against 989 shares on the losing side while 175 shares remain unchanged. (Provisional)

The BSE Sensex ended at 26007.30, up by 328.37 points or 1.28% after trading in a range of 25549.05 and 26055.00. There were 24 stocks advancing against 6 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.79%, while Small cap index up by 0.68%. (Provisional)

The top gaining sectoral indices on the BSE were Bankex up by 2.02%, Metal up by 1.98%, Realty up by 1.93%, Finance up by 1.78% and Auto up by 1.57%, while there were no losers on the index. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 3.31%, Tata Steel up by 2.78%, BHEL up by 2.50%, Lupin up by 2.48% and Cipla up by 2.17%. On the flip side, Adani Ports &Special down by 1.44%, Hero MotoCorp down by 1.23%, Reliance Industries down by 0.21%, Dr. Reddys Lab down by 0.15% and NTPC down by 0.04% were the top losers. (Provisional)

Meanwhile, the Department of Telecommunications (DoT) may oppose the proposal put forward by the Telecom Regulatory Authority of India (TRAI) allowing telecom companies an easier payment structure in the upcoming spectrum auction. DoT is of the view that payment terms for operators have already been eased over the years and further liberalisation in payment terms can hurt the government's revenue collections. 

In order to reduce the financial burden on operators, TRAI has recommended that telecom companies be allowed to pay 10% of the winning bid initially for any spectrum in an auction. The balance, including interest, could be paid in equal installments over the next 18 years. In addition, the regulator suggested that operators be allowed to pre-pay the entire balance or part of it, apart from paying the total amount upfront.

Currently, an auction winner can pay the entire money upfront or 25% or 33% of the total amount initially, depending on the band, and the remainder in 10 equal instalments after a two-year moratorium.

In the 2010 auctions, the government had received an upfront payment and later to support the industry, it changed it to staggered payment. Decision on the matter will be taken during the Telecom Commission’s next meeting scheduled for April 30, 2016.

The CNX Nifty ended at 7962.65, up by 107.60 points or 1.37% after trading in a range of 7822.55 and 7974.50. There were 45 stocks advancing against 6 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindalco up by 4.83%, Idea Cellular up by 4.74%, Indusind Bank up by 3.98%, Maruti Suzuki up by 3.85% and Yes Bank up by 3.65%. On the flip side, Adani Ports &Special down by 1.16%, Bharti Infratel down by 1.02%, Hero MotoCorp down by 1.01%, Ultratech Cement down by 0.31% and BPCL down by 0.26% were the top losers. (Provisional)

European markets were trading in green; France’s CAC rose 6.55 points or 0.14% to 4,552.67, UK’s FTSE 100 increased 27.55 points or 0.44% to 6,288.47 and Germany’s DAX was up by 33.5 points or 0.33% to 10,327.85.

Asian equity markets ended mixed on Tuesday as weak overnight cues from Wall Street and Europe as well as the oil price volatility kept investors in a defensive mode ahead of central bank meetings in the US and Japan. The two-day FOMC meeting gets underway later today, with traders waiting for clues as to the probability of a June rate hike. Chinese shares reversed early losses to end slightly higher, as a rally in healthcare and real estate shares offset initial gloom triggered by falling commodity prices in the wake of a government crackdown on speculation. Japanese shares fell for a second straight day as the yen held Monday's gains against the dollar despite speculation the Bank of Japan will expand stimulus at its April 27-28 policy meeting.