Post session - Quick review

Indian equity markets managed to remain in fine contour in low volume session of the fresh week, which remained hectic on account of slew of corporate earnings. Continued buying by funds and retail investors evident post two sessions of bourses consolidation, mainly led to the spurt. However, trading remained light ahead of Labor Day holiday on Tuesday and before the European Central Bank's meeting later in the week where policymakers will consider the declining health of the region's economy.  Trade of not even Rs 1 lac crore was done in the today’s session.

The benchmark index of Bombay Stock Exchange -Sensex- ended above the 17300 psychological level, with sparkling gains of over a century of points. The index, after hitting a low of 17100 level, did substantial recovery to reclaim its 17300 mark. The widely followed 50 share index of National Stock Exchange -Nifty- too ended above its 5200 bastion. The trade remained cheerful for broader indices, which went home with gains of over half a percentage points.

Optimistic leads from global markets mainly drove the bulls of Indian equity market as sentiment turned upbeat with US economic growth cooling in the first quarter and bolstering expectations that the Federal Reserve could start a third round of government bond buying or quantitative easing known in markets as QE3, to support the economy. A move to increase market liquidity and risk appetite for commodities.

Europe shares climbed for fifth day in a row, following milder-than-expected fall in Spain’s GDP data, which eased worries over the country’s finances. Data showed on Monday that Spain’s gross domestic product shrank 0.3% in January to March on a quarterly basis, beating economists’ forecasts. However, even support was rendered from Asian pacific shares, which managed to sneak out gains in the subdued session of trade, where market in both Japan as well as China remained closed on account of a public holiday.

Back on the home turf, short covering in beaten down Information Technology counter coupled with gains in Technology and high beta Realty sector, worked in the favor of 30 scrip sensitive index. However, the decline of Consumer Durable (CD), Fast Moving Consumer Goods (FMCG) and Capital Goods (CG) counters cut short the gains of the bourses.

Capital Goods counter was dragged by the downfall of BHEL. The weakness in the state run power equipment giant was a result of orders worth Rs 12000, which were bagged by the company more than a year ago, getting scrapped by Government of Rajasthan's RVUN (Rajasthan Rajya Vidyut Utpadan Nigam).

Reports, which showed global rating agency Moody's will be reviewing ICICI Bank, Axis Bank and HDFC Bank for a potential downgrade, also curbed the up move of the bourses along with the banking pivotal.

However, shares of sugar and textile sector traded in fine fettle for the entire trading session, contributed to the positive milieu. Most sugar stocks including Shree Renuka and Bajaj Hindustan along with and shares of textile companies like Arvind, Alok Industries etc traded with notable gains ahead of a meeting called upon by Indian Prime Minister Manmohan Singh to deliberate on the objections raised by Agriculture Minister Sharad Pawar over the export of farm commodities such as sugar and cotton. Government has reversed the ban on cotton, thereby allowing its exports.

On the result front, Maruti Suzuki’s scrip tanked over a percentage as worries grow over its operating margins, even after the auto maker posted a better-than-expected fiscal Q4. The Company’s net profit for the fourth quarter of FY12 slipped by 3.03% at Rs 639.84 crore as compared to Rs 659.86 crore for the quarter ended March 31, 2011.

On the other hand, scrips of Dabur India after the company reported better than forecasted Q4 results. FMCG major Dabur India consolidated net profit rose 16 per cent to Rs 170.52 crore for the fourth quarter ended March 31, 2012 against Rs 147.01 crore in the same period of the previous fiscal. Additionally, scrips of Bank of India surged. The state-run lender reported a near two-fold rise in net profit to Rs 952.73 crore for the fourth quarter ended March 31, 2012 as compared to its net profit of Rs 493.64 crore in the year-ago period. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1470:1267 while 112 scrips remained unchanged. (Provisional)

The BSE Sensex gained 137.28 points or 0.80% and settled at 17,324.62. The index touched a high and a low of 17,359.18 and 17,195.51 respectively. 21 stocks advanced against 9 declining ones on the index (Provisional)

The BSE Sensex gained 137.28 points or 0.80% and settled at 17,324.62. The index touched a high and a low of 17,359.18 and 17,195.51 respectively. 21 stocks advanced against 9 declining ones on the index (Provisional)

The BSE Mid-cap index gained 0.76% while Small-cap index was up 0.54%. (Provisional) On the BSE Sectoral front, IT up 2.50%, TECk up 2.05%, Oil & Gas was up 1.09%, Realty up 1.04% and Metal up 1.01% were the top gainers while Consumer Durables was down 0.70% and FMCG down 0.29% were the only losers.

There top gainers on the Sensex were TCS up 3.75%, Jindal Steel up 3.66%, Infosys up 2.85%, DLF up 2.69% and Hero MotoCorp up 2.52% while, Maruti Suzuki down 2.04%, BHEL down 1.98%, M&M down 0.78%, ITC down 0.55% and HDFC down 0.50% were the top losers in the index. (Provisional)

Meanwhile, the government has reversed the ban on cotton and has allowed its exports. Fresh registrations are expected to start in the next 1-2 days. After a meeting between the GoM and the Prime Minister Commerce Minister Anand Sharma informed about the decision. The GoM is expected to review the situation based on revised estimates and figures of crop size.

The exports of cotton has become a political issue after the government banned its exports on March 5 citing shortages in the domestic markets and a tendency of cotton mills to hoard the fibre abroad.  The decision drew flak from the United Progressive Alliance, as well as Gujarat chief minister Narendra Modi. The international community also did not view it favourable.

Consequently the government then allowed exports of those quantities which had already been registered with the Directorate General of Foreign Trade, subject to revalidation by authorities. However no new registrations were allowed. Now with today’s decision the ban stays reversed and fresh registrations are expected to start in the near future. 

India VIX, a gauge for market’s short term expectation of volatility gain 1.19% at 17.82 from its previous close of 17.61 on Saturday. (Provisional)

The S&P CNX Nifty gained 38.55 points or 0.74% to settle at 5,247.55. The index touched high and low of 5,262.15 and 5,201.45 respectively. 35 stocks advanced against 15 declining ones on the index. (Provisional)

The top gainers on the Nifty were TCS up 3.81%, Jindal Steel up 3.73%, Power Grid up 3.08%, Hero MotoCorp up 2.91% and Infosys up 2.84%.On the other hand, BHEL down 2.27%, Maruti Suzuki down 1.75%, Axis Bank down 1.38%, Dr. Reddy’s Lab down 1.09% and SAIL down 0.68% were the top losers. (Provisional)

The European markets were trading mixed, with France's CAC 40 down 0.83%, Germany's DAX up 0.17% and Britain’s FTSE 100 up 0.05%.