Post Session: Quick Review

Tuesday turned out to be a disappointing session of trade for Indian equity benchmarks where frontline gauges, despite getting a positive start, ended the session with a cut of around a percent amid weak global cues. Markets traded in green terrain in early deals with India’s infrastructure sectors clocking their highest growth in 16 months in March 2016, with the index for core industries climbing 6.4 per cent, against 5.7 per cent in February. Also, a private report has said that the Indian economy is expected to clock a GDP growth of 7.4 percent this fiscal largely driven by the lagged impact of a good monsoon and increased consumer spending, supported by pay commission award.

However, markets took u-turn and entered into red terrain in second half of trade as traders opted to book profit at higher levels. Sentiments remained under pressure after International Monetary Fund (IMF) stated that China and Japan’s economies are expected to slow sharply over the next two years. In its Regional Economic Outlook for Asia and the Pacific, the IMF also warned of several external challenges, from weakness in advanced economies, weak global trade and increasingly volatile global financial markets. The Fund predicted growth in Asia to come in at 5.3% this year and next, down from its previous forecast of 5.4%.

Selling got intensified with European stocks took a hit with the major indices declining owing to weakness in mining and auto stocks as earnings from major banks including UBS and Commerzbank hurt the investor sentiments. Asian markets ended mostly in red terrain amid dip in oil prices and weakening of the US dollar. However, rebound in the US equities has capped the downside.

Back home, after entering into red terrain  in later part of day’s trade the domestic bourses never looked in recovery mood and ended the trade at intraday lows, breaching their crucial support levels of 25,300 (Sensex) and 7,750 (Nifty). Selling was both brutal and wide-based as none of sectoral indices on BSE, barring telecom and realty, could manage a green close. Counters which featured in the list of worst performers included software, metal and energy.

Shares of auto companies ended lower despite report that sale of passenger vehicles - cars, vans and utility vehicles - surging over 12 per cent in April, thanks to the popularity of newly-launched models and a low base effect. The industry is estimated to have sold 237,149 units in April this year. Steel and mining sector too witnessed selling despite the Rajya Sabha has approved an enabling legislation to make it easier for mergers and acquisitions (M&A) of steel and cement companies reeling in the aftermath of the collapse in global commodity prices. Once the Bill is signed into law, there will be no bar on the transfer of mining leases.

The NSE’s 50-share broadly followed index -- Nifty -- declined by around sixty points to end below the psychological 7,750 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex -- dropped by over two hundred points to finish above the psychological 25,300 mark. The broader markets too struggled to get any traction and ended the session with a cut of around half a percent.

The market breadth remained in the favour off decliners, as there were 1,156 shares on the gaining side against 1,484 shares on the losing side while 150 shares remain unchanged. (Provisional)

The BSE Sensex ended at 25229.70, down by 207.27 points or 0.81% after trading in a range of 25192.94 and 25705.96. There were 6 stocks advancing against 24 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.85%, while Small cap index down by 0.28%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 2.09% and Realty up by 0.32%, while IT down by 1.57%, Metal down by 1.34%, Energy down by 1.27%, PSU down by 1.22% and Oil & Gas down by 1.04% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 1.97%, Asian Paints up by 0.80%, HDFC up by 0.68%, Tata Steel up by 0.35% and Tata Motors up by 0.27%. On the flip side, Coal India down by 3.60%, BHEL down by 2.66%, Lupin down by 2.60%, ICICI Bank down by 2.45% and TCS down by 1.91% were the top losers. (Provisional)

Meanwhile, the government has given its approval for seven foreign direct investment (FDI) proposals amounting Rs 517.57 crore, based on the recommendations of Foreign Investment Promotion Board (FIPB) in its 233rd meeting held on April 8. The proposals include that of Helix Investment Holding, Alchymers ICM, Prime Living and Gulf Quarry.

The largest FDI proposal to be cleared was from Singapore-based Helix Investment Holding in the pharmaceutical sector worth Rs 475.31 crore. The company sought approval to invest 20 per cent in the equity of Concord Biotech by subscribing to equity shares and purchasing equity shares from existing shareholders.  Further, Alchymars ICM SM proposal worth Rs 22.3 crore for increasing foreign equity participation from 57.15 per cent to 100 per cent by way of transfer of equity shares from resident shareholder to Gen Phar Pro Investments (GB), a UK company, by amending earlier approvals, also got the green signal.

Prime Livings’s proposal worth Rs 3.43 crore in the construction sector seeking post facto approval for the issuance of 10,56,938 equity shares at issue price of Rs 32.50 was also cleared. Other proposals that were cleared include Jupiter Corporate Services in the defence sector, Elite Screens lndia in Wholesale trading, One Market India LLP in limited liability partnership and Gulf Quarry General Trading FZC in manufacturing.

Further, five FDI proposals were deferred viz, Ordain Health Care Global, lndian Rotorcraft, Tikona Digital Networks, Menon Bearings and Sharekhan, while three proposals of Malladi Drugs and Pharmaceuticals, Athena Chhattisgarh and Mount Kailash Shipping were rejected.

The CNX Nifty ended at 7747.00, down by 58.90 points or 0.75% after trading in a range of 7735.15 and 7890.25. There were 18 stocks advancing against 33 stocks declining on the index. (Provisional)

The top gainers on Nifty were Aurobindo Pharma up by 4.34%, Bharti Airtel up by 2.95%, Bharti Infratel up by 2.13%, Idea Cellular up by 1.87% and Grasim Industries up by 1.76%. On the flip side, Coal India down by 3.29%, Lupin down by 2.68%, BHEL down by 2.55%, ICICI Bank down by 2.49% and Ambuja Cement down by 2.32% were the top losers. (Provisional)

European markets were trading in red; Germany’s DAX declined 164.27 points or 1.62% to 9,959.00, France’s CAC decreased 55.57 points or 1.25% to 4,387.18 and UK’s FTSE 100 was down by 45.78 points or 0.73% to 6,196.11.

Asian equity markets ended mixed on Tuesday, with China's Shanghai Composite index ending higher in thin trading following the holiday weekend after President Xi Jinping pledged to maintain the healthy development of the stock market. Investors shrugged off the latest survey from Caixin, which revealed that activity in China's vast manufacturing sector unexpectedly declined further in April despite government stimulus. The manufacturing PMI fell to 49.4 from 49.7 in March. However, markets in Hong Kong, Malaysia, Singapore and Taiwan fell sharply as trading resumed after a long weekend. The Japanese market was closed today for the Constitution Day holiday.