Post session - Quick review

Trading listlessly throughout the session, Indian equity markets virtually ended from where they picked up the trade today, rather with a negative bias. Intra-day volatility came naturally to the bourses on the expiry day of the April month’s F&O series, whereby the 30 scrip sensitive benchmark index of BSE-Sensex and broadly followed 50 share index-Nifty- ended flat but with slender gains of 0.04% and 0.03% respectively.

Some confidence was restored in Indian equity markets after Moody's Investors Service reiterated ‘stable' outlook on India, stating that “Negative trends in India won't sustain for long”. However, even bargain hunting by intrepid market men trimmed losses of the bourses. Sensex ended flat in today’s session. However, the index after dipping below 17100 bastions managed to negotiate a close above it. However, the widely followed Nifty, failed to hold 5200 psychological level. In the broader space, the Midcap and Smallcap indices both incurred loss of similar proportion, I.e. 0.30%, while for April month’s F&O series, Midcap index was down by 1.6%, while Smallcap Index managed to eke out gain of over 3.50% for the series.

In the global markets upbeat performance of regional counterparts also aided bourses in capping loss to some extent. Most Asian stock markets ended modestly higher on Thursday as the Federal Reserve left the door open for more stimulus measures ahead. Investors were encouraged with news that the Federal Open Market Committee remained committed keeping low interest rates at least until late 2014, while Fed Chairman Ben Bernanke said the central bank was ready to ease monetary policy further if needed. Meanwhile, European markets were exhibiting mixed trend. European equity markets briefly dipped into negative territory on Thursday after weaker-than-expected euro zone sentiment data reignited concerns about the region’s economy against a backdrop of mixed corporate earnings.

Back home, stocks from Fast Moving Consumer Goods (FMCG), Oil & Gas and Information Technology (IT) counters led the pack of gainers on the BSE sectoral front, however, stocks from Power, Realty and  Auto counters ended as the top laggards. However, for the series, Power and Realty both notched gains of over 3%, while defensive Health Care counter captured 4% gains. Brunt of profit-booking was majorly born by Information Technology, which cracked down by over 7%. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1139:1565 while 123 scrips remained unchanged. (Provisional)

The BSE Sensex lost 15.77 points or 0.09% and settled at 17,135.52. The index touched a high and a low of 17,193.25 and 17,084.05 respectively. 10 stocks advanced against 20 declining ones on the index (Provisional)

The BSE Mid-cap index lost 0.29% while Small-cap index was down 0.34%. (Provisional)

On the BSE Sectoral front, FMCG was up 0.18%, IT up 0.13%, Oil & Gas up 0.10% and TECk up 0.04% were the only gainers while Power down 1.38%, Realty down 0.93%, Auto down 0.67%, PSU down 0.56% and Health Care down 0.33% were the top losers.

The top gainers on the Sensex were Coal India up 2.70%, Jindal Steel up 1.92%, TCS up 1.43%, Reliance Industries up 1.38% and ITC up 1.36% while, GAIL India down 3.67%, Hindalco Industries down 3.13%, Tata Power down 3.07%, Hero MotoCorp down 2.91% and Bajaj Auto down 2.73% were the top losers in the index. (Provisional)

Meanwhile, India Inc anguished over downgrade of outlook by S&P said that this should serve as a “wakeup call” for government and it should consider fast tracking of economic reforms especially on FDI and tax fronts. It has also added that opening up of sectors like aviation and insurance to FDI would help in improving foreign capital inflows and also improve investors’ sentiment.

In another statement industry body ASSOCHAM has said that the government should keep its political compulsions away and demonstrate that the reforms process is well on track. It is also of the opinion that fiscal consolidation in terms of cutting subsidies for fuel, fertilisers and social schemes is a must to reverse economic indicators.

On a positive note financial services provider Nomura is of the opinion that it is unlikely that the sovereign rating downgrade on India is unlikely as economic activity is expected to show some rebound shortly. The debt-to-GDP ratio is also likely to remain stable, and the fiscal deficit should not worsen substantially. However risk can come in from the declining forex reserves.

S&P has revised the outlook on India's sovereign credit rating to negative from stable, while reaffirming its BBB- rating. The rating agency cited slowing investment and economic growth, and the widening current account deficit as the main reasons.

India VIX, a gauge for market’s short term expectation of volatility lost 1.05% at 18.74 from its previous close of 18.94 on Wednesday. (Provisional)

The S&P CNX Nifty lost 10.30 points or 0.20% to settle at 5,191.70. The index touched high and low of 5,215.60 and 5,179.05 respectively. 14 stocks advanced against 36 declining ones on the index. (Provisional)

The top gainers on the Nifty were Kotak Bank up 3.46%, ACC up 2.32%, Coal India up 2.15%, TCS up 2.01% and Jindal Steel up 1.35%.

On the other hand, GAIL India down 3.92%, Tata Power down 3.68%, BPCL down 3.17%, Reliance Communications down 3.11% and Hero MotoCorp down 3.02% were the top losers. (Provisional)

The European markets were trading mixed, with France's CAC 40 down 0.73%, Germany's DAX down 0.49% and Britain’s FTSE 100 up 0.10%.

Market participants in the Asian region remained encouraged and most of the Asian counters snapped the day’s trade in the green on Thursday on news that Federal Open Market Committee (FOMC) remained committed to keeping low interest rates at least until late 2014, while Fed Chairman Ben Bernanke said the central bank was ready to ease monetary policy further if needed. The Fed’s statements provided confidence that recovery is on track with the security that someone has their back if things go pear shaped, while the earnings season continued to have a mixed impact across the region.

Meanwhile, Hong Kong shares ended higher Thursday, tracking gains on Wall Street and boosted by China Unicom's strong first-quarter results. Though, Chinese benchmark ended flat as heavyweight financial companies dropped following China Life Insurance’s lower-than-expected first-quarter net profit, offsetting gains in metal companies while, Japanese Nikkei share average ended flat on Thursday after dipping in and out of negative territory as a sluggish start to earnings season and wariness ahead of a Bank of Japan meeting dampened sentiment.