Post session - Quick review

Consolidation returned to Dalal Street post previous two sessions run up of the bourses, ending the highly spirited session of trade end on lackadaisical note on Wednesday. Barometer gauges showcased sign of fatigue as market men booked profit after the previous session’s spurt of the bourses when the Apex Bank of India unexpectedly delivered a 50 bps rate cut, which was also the first rate cut in the span of three years. However, barometer gauges in the range bound session, showcased resilience to sneak out slender gains. BSE Sensex after trading in thin band ended above the 17350 crucial levels. The widely tracked 50 share index of National Stock Exchange (NSE)-Nifty- also concluded the session listless, a tad above its neutral line with slender gains of 10 points. The broader indices, however, depicted a tad better trend and outperformed benchmarks.

Impressive performance of regional counterparts buttressed the sentiment at Dalal Street, while European shares failed to delight. Asian pacific shares moved higher after a slew of solid earnings boosted Wall Street and a successful Spanish bond auction eased worries over Europe's debt crisis, thereby undermining investor appetite for riskier assets.  On the other hand, European shares eased as the region's sovereign debt worries and its weaker economic outlook weighed on investors ahead of a German bond sale that could test demand for ultra-low yielding debt. Nevertheless, signs that the International Monetary Fund was heading close toward a deal to increase its ability to help contain the region's crisis, strong U.S. corporate earnings and a rise in the IMF's global growth forecast ,counterbalanced the downbeat global set up.

Back home, stocks from Auto, Healthcare and Oil & Gas continued to steal the limelight, topping the buying list, however, stocks from Realty, Fast Moving Consumer Goods (FMCG), Capital Goods (CG) witnessed profit booking.

On the earnings front HDFC bank reported its Q4 earnings along with SKF India and HCL Technologies. HDFC Bank beat forecasts with a 30.3 percent rise in its quarterly net profit, helped by a surge in credit demand and lower provisions for loan losses amid an improvement in the sector outlook on hopes of cuts in lending rates. However, the 1.14% spurt of the HDFC bank failed to spur optimism to banking index, which edged lower post previous session’s fame. Meanwhile, HCL Tech Q3 profits also beat forecast, with shares rallying by massive 3%.ndia's fourth-largest software services exporter reported a better-than-expected 28 percent rise in quarterly profit, powered by outsourcing contracts from its global customers that wanted to cut operational costs in an uncertain global economy.

The BSE Sensex gained 25.02 points or 0.14% and settled at 17,382.96. The index touched a high and a low of 17,522.80 and 17,371.93 respectively. 19 stocks advanced against 11 declining ones on the index (Provisional).The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1624:1241 while 135 scrips remained unchanged. (Provisional)

The BSE Mid-cap index gain 0.44% while Small-cap index was up 0.47%. (Provisional)

On the BSE Sectoral front, Auto up 1.51%, Health Care up 0.95%, Oil & Gas up 0.75%, Metal up 0.62% and Consumer Durables up 0.49% were the top gainers while Realty down 1.08%, FMCG down 0.44%, Capital Goods down 0.34%, Bankex down 0.31% and PSU down 0.03% were the only losers.

There top gainers on the Sensex were Tata Motors up 2.75%, Bajaj Auto up 2.63%, Tata Power up 2.16%, Sun Pharma up 2.02% and Hindalco Industries up 1.95% while, DLF down 2.07%, ITC down 1.52%, BHEL down 0.86%, L&T down 0.79% and SBI down 0.78% were the top losers in the index. (Provisional)

Meanwhile, the International Monetary Fund (IMF) in its World Economic Outlook (WEO) has marginally reduced India’s growth rate for 2012 to 6.9% from the earlier 7%. The reduction has come in the wake of reducing global and domestic demand. It has pegged India's growth during the 2013 calendar year at 7.3% and for 2011 it was 7.2%.

On the other hand, as per the estimates of India's Central Statistical Organization (CSO), the growth rate during the financial year 2011-12 slipped to a 3-year low of 6.9%. While the government has projected a growth rate of 7.6% for the current financial year, which began on April 1, 2012, the Reserve Bank of India expects it to be 7.3%.

The global economy too is expected to witness a deceleration to 3.5% from 3.9% in 2011. As per the report, growth in advanced companies has improved even though it is slow. However, things still remain fragile in the Euro zone areas.

With regards to India the report states that structural bottlenecks like power, roads, railways etc. should be removed to strengthen the economy. Also governance and public service delivery should be enhanced to boost growth. The report also emphasized that government should strengthen policies to solidify the weak recovery and contain potential risks that can weigh on consumer and investor confidence.

Referring to the declining growth rate in India, the WEO said domestic factors have also contributed to the slowdown, as a deterioration in business sentiment weakened investment and policy tightening raised borrowing costs.  IMF believes that easing of monetary policy will remain constrained in countries like India where inflationary pressure exist. Also it expects the government to make fiscal consolidation a priority to meet future challenges.

After a gap of 3 years, India's Reserve Bank lowered the interest rates by 50 basis points thereby making credit cheaper. India Inc has been demanding easing of interest rates in view of slowing investments and slumping industrial output.

India VIX, a gauge for market’s short term expectation of volatility lost 1.37% at 20.03 from its previous close of 20.31 on Tuesday. (Provisional)

The S&P CNX Nifty gain 5.30 points or 0.10% to settle at 5,295.00. The index touched high and low of 5,342.00 and 5,293.45 respectively. 28 stocks advanced against 22 declining ones on the index. (Provisional)

The top gainers on the Nifty were ACC up 3.45%, Tata Power up 2.83%, HCL Tech up 2.79%, Cairn India up 2.78% and Ambuja Cement up 2.78%.On the other hand, Reliance Communications down 2.81%, DLF down 2.46%, IDFC down 1.79%, Axis Bank down 1.75% and ITC down 1.54% were the top losers. (Provisional)

The European markets were trading in red, with France's CAC 40 down 1.23%, Germany's DAX down 0.34% and Britain’s FTSE 100 down 0.09%.

After witnessing a deep cut in previous session, sentiments turned bearish in the Asian region on Wednesday and the stock markets rebounded after a slew of solid earnings boosted Wall Street and a successful Spanish bond auction eased worries over Europe’s debt crisis. Moreover, an IMF report forecasting global growth would be stronger than first thought too aided the sentiments. Meanwhile, technology and financial shares were boosted by strong earnings in the United States, while the euro and dollar gained against the yen as traders felt confident to buy riskier assets.

China shares ended with a gain of about 2 percentage point, the biggest one-day percentage rise in more than two months, led by finance and property sectors on expectations the government would ease monetary policy while, Tokyo stocks soared 2.14 percent after surges on overseas markets, driven by easing concerns over Europe's debt crisis and the health of the global economy.