Post Session: Quick Review

April F&O expiry day turned out to be a daunting session for the Indian equity indices which got pounded by around two percentage points, amid losses in the Asian peers after Bank of Japan left its main policies unchanged failing to enthuse the investors. Markets, after a choppy start, extended their losses and never looked in recovery mood to end near intraday lows, breaching their crucial support levels of 25,700 (Sensex) and 7,850 (Nifty). Selling was both brutal and wide-based as none of sectoral indices, barring realty, on BSE could manage a green close. Counters which featured in the list of worst performers included oil and gas, metal and energy.

Sentiments remained dampened since morning with Fitch ratings’ report indicating that the rapid rise in private-sector debt in emerging markets (EMs), particularly in foreign currency, has increased risks to their economies at a time of heightened global uncertainty. Foreign-currency debt was highest as a share of GDP in Turkey at 41 per cent (including indexed debt) and Russia at 37 per cent. It was lowest in China at 10 per cent of GDP, and India at 17 per cent. Traders failed to get any sense of relief with report that foreign direct investment (FDI) into the country has increased 37 percent after the launch of 'Make in India' programme till February this year. The overseas inflows grew 29 percent during the period compared to the 15-month period prior to the launch.

Selling got intensified after European counters have made a feeble start with CAC, DAAX and FTSE were trading with a cut of over a percent in early deals, after the Japanese central bank disappointed investors by standing firm on rates. Asian markets also ended mostly in red after the Bank of Japan’s inaction followed an interest-rate status quo on Wednesday from the Federal Reserve, whose relatively upbeat post-decision commentary failed to quash expectations of a rate rise later this year, possibly as early as June.

Back home, market participants failed to get any encouragement with UN report projecting Indian economy to expand by 7.6% in 2016-17 and accelerate to 7.8% in 2017-18, mainly on the back of domestic consumption demand aided by steady employment and a relatively low inflation.

Stocks related to gems and jewellery (G&J) counter edged lower on report that India’s G&J exports declined in the financial year 2015-16 due to a slowdown in global economy despite a small pick up witnessed from the United States, the world's largest consumer of luxury goods. Sugar stocks too remained under pressure after the government decided to allow states to impose and enforce stock limits to check the price rise in sugar. However, buying was seen in realty space on report suggesting that the BrihanMumbai Municipal Corporation (BMC) has recommended an increase in permissible floor space index (FSI) in Greater Mumbai.

The NSE’s 50-share broadly followed index Nifty tumbled by over one hundred and thirty points to end below the psychological 7,850 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex declined by around four hundred and sixty points to finish below its psychological 25,700 mark. Broader markets too witnessed selling pressure and ended the session with a cut of around a percentage point.

The market breadth remained in favor of decliners, as there were 851 shares on the gaining side against 1,673 shares on the losing side while 172 shares remain unchanged. (Provisional)

The BSE Sensex ended at 25603.10, down by 461.02 points or 1.77% after trading in a range of 25561.17 and 26100.54. There were 3 stocks advancing against 27 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.78%, while Small cap index down by 1.05%. (Provisional)

The lone gaining sectoral index on the BSE was Realty up by 1.68%, while Oil & Gas down by 2.18%, Metal down by 2.16%, Energy down by 2.11%, Power down by 2.01%, Auto down by 1.99% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were TCS up by 0.86%, Lupin up by 0.62% and Axis Bank up by 0.11%. On the flip side, HDFC down by 3.26%, Maruti Suzuki down by 3.14%, ITC down by 3.08%, Reliance Industries down by 2.62% and NTPC down by 2.56% were the top losers. (Provisional)

Meanwhile, with an aim to boost rural economy and create a large number of jobs, Road Transport and Highways Minister Nitin Gadkari has said that the government plans to provide 'green canopy' on national highways at an estimated cost of Rs 5,000 crore and may link that with National Rural Employment Guarantee Act (NREGA).

Addressing a workshop on Greening of Highways, jointly organised by National Highways Authority of India (NHAI), along with The Energy and Resources Institute (TERI), Gadkari invited interested investors to take up experimental projects in the area of transplantation along national highways and said that if needed, the government will provide technology and financial support as well to the selected agency. The minister pointed out that the projects will be monitored through satellite technology with payments to be made only after the successful implementation.

Furthermore, Gadkari urged TERI to share their inputs on the transplantation techniques. NHAI on its part said that it has set aside one percent of its project cost for transplantation, plantation, beautification and maintenance of national highways. Talking about environmental benefits that will accrue from greening of highways, the minister urged the use of biofuels in machines to be employed in the project and organic fertilisers for transplanted trees.

So far, Gadkari said road contracts worth Rs 1.5 lakh crore have been awarded and the number would swell to Rs 2 lakh crore by next month. In total the government is going to award at least Rs 5 lakh crore worth of highways projects and Rs 5,000 crore would exclusively be meant for greening of highways and transplantation of trees.

The CNX Nifty ended at 7847.25, down by 132.65 points or 1.66% after trading in a range of 7834.45 and 7992.00. There were 8 stocks advancing against 43 stocks declining on the index. (Provisional)

The top gainers on Nifty were Yes Bank up by 3.28% and Idea Cellular up by 1.20% and Eicher Motors up by 0.89% and TCS up by 0.66% and ACC up by 0.58%. On the flip side, Hindalco down by 4.77%, HCL Tech. down by 4.50%, HDFC down by 3.21%, ITC down by 3.19% and Mahindra & Mahindra down by 2.91% were the top losers. (Provisional)

European markets were trading in red; Germany’s DAX declined 128.83 points or 1.25% to 10,171.00, UK’s FTSE 100 dropped 69.22 points or 1.1% to 6,250.69 and France’s CAC was down by 64.51 points or 1.41% to 4,494.89.

Asian equity markets ended mostly lower on Thursday, as an overnight rally in oil prices and the Federal Reserve's decision to keep rates unchanged were overshadowed by the Bank of Japan's unchanged policy decision. The Bank of Japan shocked markets by keeping its monetary policy steady despite multiple headwinds plaguing the economy. The central bank maintained its negative 0.1 percent deposit rate and the size of its asset purchase program, while adopting a 300 billion yen ($2.75 billion) new lending program to aid regional banks operating in areas hit by this month's earthquake in southern Japan. Japanese shares reversed early gains to end sharply lower after the yen soared as much as 2.6 percent against the dollar in the wake of BoJ announcement. Sluggish inflation and spending data also weighed on markets. Chinese shares fell, dragged down by resource stocks, as commodity prices fell in response to a government crackdown on speculation in commodity markets.