Post session - Quick review

Indian equity markets garnered significant traction on the auspicious occasion of ‘Akshaya Tritiya’, where shopper’s besides investing in the safe heaven yellow metal also bought oodles of blue chip stocks. The upbeat earnings by country’s largest software company-TCS-mainly buoyed the spirit of Information Technology (IT) index and consequently the whole market. IT counter rallying over 4%, led the pack of gainers, even stocks from TECk and Metal counters slug it to occupy the second and the third spot respectively.

Tata Consultancy Services’ scrip’s shot up as much as 12.4 percent after the company banged on expectation by reporting 23 percent rise in fiscal fourth-quarter profit after markets hours on Monday. However, the company's comments on its near-term prospects being far more bullish than those of Infosys came as major booster.

After gyrating in range bound fashion in early deals, benchmarks picked up momentum from the noon with opening of European share markets. European region shares recovering their poise after sharp falls in the previous session rose on Tuesday, though with caution as fears over the euro zone debt situation loomed large with Spanish and Dutch debt auctions under the spotlight. Upbeat performance of regional counterparts also supported the momentum of benchmark equity indices of Indian equity markets.

Fears over euro zone economy remaining in dire straits, which got refreshed with data showing the region's business slump deepened at a quicker pace than expected in April - indicating the region will stay in a recession through the second half of the year, mainly contributed the drubbed sentiment in early deals.

Back home, the optimism of IT stocks encountered with the drubbing of Telecom and Cement stocks, which clobbering out of shape witnessed intense selling pressure. Telecom stocks like Bharti Airtel, Idea Cellular and  Reliance Communication suffered sharp cuts after telecom Regulator, TRAI proposed a near tenfold increase in the price of 2G spectrum as compared to the 3G. Meanwhile, cement stocks also collapsed on the fears that CCI may rule against them for possible collusion after the later ruling against Excel Crop and United Phosphorous for colluding while submitting bids for a tender for aluminium phosphide tablets to Food Corporation of India. ACC, Ambuja Cements and Ultra Tech Cement were down in the drain. Ultratech Cement stocks though reported good numbers, higher than expected growth of 19.3% year-on-year in its net profit at Rs 867 crore for the March quarter of FY12.

Thus, the session packed with results and happening ended near the high point of the day. 30 scrip sensitive index accumulated over a century of points to shut shop above the 17200 psychological level. Similarly, the widely followed 50 scrips index of National Stock Exchange (NSE) -Nifty- after capturing over 25 points finished above the 5200 bastion. However, gains this time around were capped by the meek performance of broader indices, which concluded with loss of over 0.05%.The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1308:1405 while 111 scrips remained unchanged. (Provisional)

The BSE Sensex gained 121.35 points or 0.71% and settled at 17,218.03. The index touched a high and a low of 17,247.53 and 17,046.72 respectively. 17 stocks advanced against 12 declining ones while 1 stock remained unchanged on the index (Provisional)

The BSE Mid-cap index lost 0.09% while Small-cap index was down 0.09%. (Provisional)

On the BSE Sectoral front, IT was up 5.05%, TECk up 3.46%, Metal up 0.63%, Power up 0.43% and FMCG up 0.33% were the top gainers while Capital Goods down 1.22%, Health Care down 0.31% and Bankex down 0.25% were the only losers.

There top gainers on the Sensex were TCS up 13.13%, Wipro up 4.32%, Tata Power up 2.59%, Hero MotoCorp up 2.57% and Infosys up 1.71% while, L&T down 2.69%, Bharti Airtel down 1.81%, Bajaj Auto down 1.50%, DLF down 1.30% and GAIL India down 1.16% were the top losers in the index. (Provisional)

Meanwhile, the government has in principle agreed to deregulate diesel prices. However no details have been given about the time frame and extent of the deregulation.

In a written reply told the Rajya Sabha the government has stated that the decision to decontrol diesel prices has been taken in principle. However, the government added that retail selling prices would be moderated to insulate the common people.

The government has been under increasing pressure to cut its subsidies on fuel, food and fertilizers that are straining its finances.

In June 2010, it lifted control over petroleum prices and said that it will eventually free diesel prices too. But the government has been reluctant to do so as it could drive up inflation as well as result in severe political repercussions.

India VIX, a gauge for market’s short term expectation of volatility lost 10.75% at 19.25 from its previous close of 21.57 on Monday. (Provisional)

The S&P CNX Nifty gain 26.55 points or 0.51% to settle at 5,227.15. The index touched high and low of 5,232.35 and 5,180.35 respectively. 25 stocks advanced against 25 declining ones on the index. (Provisional)

The top gainers on the Nifty were TCS up 12.74%, SAIL up 4.45%, Wipro up 4.11%, HCL Tech up 3.26% and Tata Power up 3.04%.On the other hand, Ambuja Cement down 4.88%, L&T down 2.87%, Kotak Bank down 2.56%, ACC down 2.53% and GAIL India down 2.07% were the top losers. (Provisional)

The European markets were trading in green, with France's CAC 40 up 1.23%, Germany's DAX up 0.90% and Britain’s FTSE 100 up 0.50%.

After witnessing a sluggish trade in the morning trade, most of the Asian counters rebounded on the back of bargain hunting amid positive opening in European counters. Hong Kong shares gained in choppy trade, bouncing off the day’s lows helped by major Chinese banks after the Shanghai-listed Bank of Beijing's quarterly earnings came in better than expected. Banks also helped the mainland Chinese markets end flat after a topsy turvy session.

Meanwhile, Tokyo shares closed 0.78 percent lower following overnight losses on Wall Street stoked by political and economic uncertainty in Europe. However, Taiwan stocks ended up 0.24 percent, reversing initial losses and outperforming regional peers, as Apple plays such as Hon Hai Precision Industry and Catcher Technology advanced ahead of the California-based company’s second fiscal quarter earnings.