Benchmarks conclude the first day of May series on quiet note

Indian benchmark indices snapped a volatile trading session on a flat note as gains in energy stocks following a recovery in crude oil prices, were offset by disappointing quarterly results from ICICI Bank. The country’s biggest private sector lender posted a steep fall in its net profit for the quarter that ended in March 2016 at Rs 702 crore.  Sentiments got some support with UN report for the Asia-Pacific that indicate Indian economy is projected to expand by 7.6 percent in 2016-17 and accelerate to 7.8 percent in 2017-18, mainly on the back of domestic consumption demand aided by steady employment and a relatively low inflation. Besides, the rupee recovered by 7 paise to 66.45 against the US dollar on fresh selling of the American currency by exporters. Some support also came with the report that foreign portfolio investors (FPIs) bought shares worth a net Rs 120.63 crore on April 28, 2016. However, investors remained cautious with the report that the country's current account deficit is likely to widen modestly to $25 billion in the current fiscal from $20 billion last year on rising demand for gold and sluggishness in exports. Moreover, the government’s statement that implementation of new pay scales recommended by the 7th Pay Commission is estimated to put an additional burden of Rs 1.02 lakh crore, or 0.7 percent of GDP, on the exchequer in 2016-17, also weigh on sentiment. The burden on pay head would increase by Rs 39,100 crore to about Rs 2.83 lakh crore in the current fiscal.  Meanwhile, Jewellery stocks came under pressure after the report that the government ruled out rollback of 1 percent excise duty on gold jewellery levied in the budget, calling it a tax on a luxury item. Stocks related to sugar space declined for another day after the government decided to allow states to impose and enforce stock limits to check the price rise in sugar. Furthermore, most of the realty stocks edged lower on profit booking after a rally in the last session.

On the global front, Asian markets declined, extending their weekly loss, as investors turned jittery after the Bank of Japan quashed expectations for further stimulus and earnings from PetroChina Co to China Petroleum & Chemical Corp disappointed investors. Focus now turns to profit reports due from Citic Securities Co, China's biggest brokerage, and Chinese manufacturing data due at the weekend. Meanwhile, European stocks fell in early trade, tracking losses in the US, where Apple shares slid after billionaire activist Carl Icahn said he had sold his entire stake in the technology company. Sentiments remained subdued after a mixed economic data included the European Union's statistics arm's first take on GDP figures for the first quarter. But eurozone consumer price figures showed deflation had returned to the region in April, with prices down 0.2% on the year, compared with the 0.1% deflation rate analysts had predicted.

Back home, the local benchmark got off to a somber opening, extending the downtrend for the second straight session as pessimistic sentiments prevailed across Asian markets after Wall Street slid. The key gauges showed some strength in early trade, but profit booking at higher levels dragged the key indices lower. Thereafter, they failed to show any kind of fervor due to lack of any encouraging leads. The key gauges suffered a setback in afternoon trades as sudden bouts of selling emerged in the local markets immediately after a somber European market opening. However, the frontline gauges managed to pare the losses and rise above the neutral line in the dying hours of trade. Eventually the NSE’s 50-share broadly followed index Nifty, settled with single digit gains near the crucial 7,850 support level, while Bombay Stock Exchange’s Sensitive Index Sensex too ended flat, managing a close above the psychological 25,600 mark. On the BSE sectoral space, the high beta Realty index remained the top gainer in the space and settled with over a percent gains followed by the Power and Metal pockets, which too went home with moderate gains. On the flipside, the Consumer Durables, TECK and Capital Goods sectors languished at the bottom of the table with losses of 0.97%, 0.62% and 0.24% respectively

The market breadth remained weak as there were 1141 shares on the gaining side against 1353 shares on the losing side, while 166 shares remained unchanged.

Finally, the BSE Sensex gained 3.52 points or 0.01% to 25606.62, while the CNX Nifty rose 2.55 points or 0.03% to 7,849.80.

The BSE Sensex touched a high and a low 25755.43 and 25424.03, respectively. The broader indices made a mixed closing; the BSE Mid cap index ended up by 0.22%, while Small cap index declined by 0.05%.

The top gaining sectoral indices on the BSE were Realty up by 1.18%, Power up by 0.93%, Metal up by 0.51%, Oil & Gas up by 0.39% and Bankex up by 0.33%, while Consumer Durables down by 0.97%, TECK down by 0.62%, IT down by 0.45%, Capital Goods down by 0.24% and Auto down by 0.21% were the top losing indices on BSE.

The top gainers on the Sensex were Lupin up by 1.94%, Cipla up by 1.89%, HDFC Bank up by 1.69%, Maruti Suzuki up by 1.24% and Adani Ports &Special up by 1.21%. On the flip side, Bharti Airtel down by 2.32%, SBI down by 1.67%, Reliance Industries down by 1.48%, ICICI Bank down by 1.48% and Hindustan Unilever down by 1.14% were the top losers.

Meanwhile, the Parliamentary Standing Committee on Finance in its report has asked NITI Aayog to complete mid-term review of 12th Five Year Plan (2012-17) on war footing for implementing their suggestions and initiatives in the last year of the Plan period. Expressing its concern, the committee pointed out that “with less than one year of the Plan period left, how the suggestions of the NITI would be effectively implemented in such a short duration of the remaining period of 12th Plan. The NITI should have been proactive in the matter and completed the job much earlier.”

The panel further said that even though the 12th Plan is in its last year of operation, this vital exercise has not yet been completed and the NITI has prepared only a draft Appraisal Document. Noting that 12th Plan is going to be over in less than a year, the panel said that they are not at all clear about the status of planning process in future.

In February 2015, it was decided that NITI would undertake Mid Term Appraisal of the 12th Five year Plan with a view to incorporating the shared vision of national development and important initiatives of Central Government so that they may be implemented in the last two years of the Plan.

In the separate development, the panel said that no study on utilisation of 10 per cent FlexiFund component within the CSS has been conducted by them to assess the benefits accruing to the States and has asked NITI to assess the implementation and impact of these schemes on a priority basis. It added that in this endeavor, more emphasis should be given on monitoring the outcomes of these schemes rather than the expenditure.

The CNX Nifty touched a high and low 7,889.05 and 7,788.70 respectively. 

The top gainers on Nifty were Zee Entertainment up by 2.47%, Kotak Mahindra Bank up by 2.05%, NTPC up by 1.96%, Lupin up by 1.82% and Cipla up by 1.75%. On the flip side, HCL Tech down by 6.21%, Idea Cellular down by 6.09%, Bharti Airtel down by 2.31%, Bank of Baroda down by 1.90% and Bosch down by 1.79% were the top losers.

European markets were trading in red; Germany’s DAX decreased 81.35 points or 0.79% to 10,239.80, France’s CAC declined 57.58 points or 1.26% to 4,499.78 and UK’s FTSE 100 was down by 36.69 points or 0.58% to 6,285.71.

Asian equity markets ended lower on Friday following the overnight sell-off on Wall Street. Oil prices slid in Asian deals after sharp overnight gains, and the yen continued its rise against the dollar, keeping investors cautious. Chinese and Hong Kong shares fell as a spate of bond defaults as well as increasing volatility in the commodity market despite a government crackdown on speculation kept investors on edge ahead of the Labor Day holiday. Japanese markets were closed for the Showa Day holiday after steep losses in the previous session amid the stronger yen stemming from disappointment that the Bank of Japan held off on further easing. Though, Amazon posted its biggest quarterly profit ever and a slew of other US companies also reported better-than-expected results after the US closing bell, helping to limit the downside across the region.