Post Session: Quick Review

Wednesday’s session turned out to be a choppy day of trade for Indian equity markets with frontline gauges ending the session with marginal losses as investors remained wary after strong US inflation numbers and Federal Reserve comments raised hopes of the central bank hiking rates later this year. Markets, after a gap-down opening, witnessed gradual recovery and pare most of the initial losses in later part of day’s trade. Overall, sentiments remained dampened with report that India’s receipts from invisible services declined 4 per cent to $57.61 billion in the October-December quarter of 2015-16, while payments towards such activities rose by 5.8 per cent to $30.67 billion.

Weakness in global markets too dampened sentiments with European counters making somber start with CAC, DAX and FTSE were trading with a cut of around one third of a percent in early deals. Asian stocks fell for the first time in three days as better-than-expected data in the US and Japan fuelled speculation their central bank policies will be less accommodative than was previously envisaged.

Closer home, weak rupee, which fell for the fifth day against the dollar, also has its bearing on domestic equities. The partially convertible currency is trading at 66.95 at the time of equity markets closing, weaker by 8 paise from its previous close of 66.87 on Tuesday due to sustained demand for the American unit from importers and banks. However, markets witnessed smart revival in second half of trade to pare most of their losses. The recovery was not enough to bring markets back into green terrain and key gauges ended the session with a cut of over quarter a percent. Some support to the markets came with a Nielsen survey that Indian consumers were the most confident in the world in terms of job prospects, personal finances and concerns in the first quarter of 2016 with their confidence index touching a nine-year high during the period.

On the sectoral front, banking counter edged lower on profit booking after yesterday’s rally after SBI chairwomen has called for the government to park surplus funds with banks instead of the RBI to make up for fund shortage. However, shares of companies focusing on agriculture such as agrochemicals, pesticides and other special chemicals remained on buyers’ radar, ever since India Meteorological Department predicted good monsoon this year.

The NSE’s 50-share broadly followed index Nifty slipped by over twenty points to end below the psychological 7,900 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex declined by around seventy points but hold its psychological 25,700 mark. Broader markets struggled to get some traction and ended the session mixed.

The market breadth remained in favor of decliners, as there were 1,242 shares on the gaining side against 1,314 shares on the losing side while 181 shares remain unchanged. (Provisional)

The BSE Sensex ended at 25,704.61, down by 69.00 points or 0.27% after trading in a range of 25503.40 and 25747.00. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.01%, while Small cap index up by 0.22%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 2.11%, Capital Goods up by 0.64%, Metal up by 0.61%, PSU up by 0.55% and Basic Materials up by 0.11%, while Auto down by 1.28%, Consumer Discretionary Goods & Services down by 0.66%, Power down by 0.33%, TECK down by 0.31% and Consumer Durables down by 0.28% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were SBI up by 1.89%, Lupin up by 1.59%, ONGC up by 1.47%, Larsen & Toubro up by 1.28% and Tata Steel up by 0.93%. On the flip side, Bajaj Auto down by 2.07%, Mahindra & Mahindra down by 1.47%, Hero MotoCorp down by 1.30%, HDFC Bank down by 1.18% and BHEL down by 1.16% were the top losers. (Provisional)

Meanwhile, the Minister of State for labour and Employment Bandaru Dattatreya has proposed a 15-fold increase in the rehabilitation cost of bonded labourers to up to Rs 3,00,000 in order to restore the government's pro-labour image. The government is revising the rehabilitation of bonded labour scheme and increasing the quantum of financial assistance from Rs 20 thousand to one lakh rupees. The scheme proposes to increase the budget provision from Rs 5 crore to about Rs 47 crore per annum.

Under the revised scheme, male bonded labourer would get a financial assistance of Rs 1 lakh, while a child or woman would of get Rs 2 lakh. This would go up to Rs 3 lakh in case of a differently-abled or physically challenged bonded labourer.

The minister said that under this new scheme the money will remain in an annuity account, controlled by the District Magistrate and a monthly earning will flow to the beneficiary account for his/her comfortable living. Furthermore, the new scheme aims to address new forms of bondage such as organised begging rings, forced prostitution and child labour for which females, disabled and transgenders are mercilessly used by the powerful elements.

In the year 1978, the government had launched a centrally-sponsored scheme for rehabilitation of bonded labourers. Under the scheme, an assistance of up to Rs 4,000 per bonded labour was provided initially. This was raised to Rs 6,250 in 1986 and to Rs 10,000 in 1995, before fixing it at Rs 20,000 in 1999.

The CNX Nifty ended at 7,870.15, down by 20.60 points or 0.26% after trading in a range of 7810.75 and 7882.05. There were 19 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were ONGC up by 1.90%, SBI up by 1.75%, Lupin up by 1.56%, Larsen & Toubro up by 1.45% and HCL Tech up by 1.36%. On the flip side, Bosch down by 2.55%, Zee Entertainment down by 2.12%, Hero MotoCorp down by 1.84%, Bajaj Auto down by 1.79% and BPCL down by 1.29% were the top losers. (Provisional)

European markets were trading in red; Germany’s DAX decreased 27.83 points or 0.28% to 9,862.36, UK’s FTSE 100 shed 24.47 points or 0.4% to 6,143.30 and France’s CAC was down by 11.04 points or 0.26% to 4,286.53.

Asian equity markets ended mostly lower on Wednesday as hawkish comments from Fed officials and upbeat data pointing to a US rate hike this year dampened investor sentiment. Chinese shares ended lower as positive home price data dashed hopes for more fiscal and monetary stimulus. Japanese stocks ended the day almost flat after the yen see-sawed against the US dollar, rising and falling in strength as investors digested Japan's stronger than expected GDP data and US inflation. Reports showed that the world's third-largest economy grew 0.4 percent sequentially in the first quarter of 2016. That topped forecasts for an increase of 0.1 percent, following the downwardly revised 0.4 percent contraction in the previous three months. On a yearly basis, GDP surged 1.7 percent.