Post session - Quick review

After rallying in the previous session, local barometer gauges managed to make modest gains even though slipping to the lowest point of the day by the end of the trade. Last hour deferral on CCI’s verdict on alleged cartelization case of cement companies combined with the reports stating the likelihood of India’s competition watchdog imposing a penalty which is three times of the profit of these companies, mainly led to selling.

30 scrip’s sensitive index, Sensex, after sneaking past the 16900 psychological level, cooled off by the end of the trade, to settle below that, with moderate gains of over 0.20%. Similarly, the widely followed index Nifty, too adding over previous session gains, closed above the 5100 crucial mark. However, the broader indices outperforming the frontline indices, clinched good gains to shut shop with profit of over 0.50%.

Sanguine global leads which on hopes of fresh stimulus measures by Fed, mainly got the markers going. Asian pacific shares ended jaunty as investors bet Fed will 'Twist' again, in order to prop up the faltering global growth. The expectations were that Fed prompting the major central banks to launch a new round of monetary stimulus will extend its bond-buying programme dubbed as 'Operation Twist'. Meanwhile, European shares were exhibiting cautiousness ahead of the outcome of FOMC meeting later in the day.

Closer home, Prime Minister’s assurance of taking tough decision for the revival of the economy also worked wonders for investor’s on Dalal Street, who aggressively piled up massive bets in Metal, Capital Goods and Health Care space. On the flip side, stocks from Information Technology (IT), Technology, Fast Moving Consumer Goods (FMCG) and Realty counters turned up as the weak links of the trade. However, resilience put forth by banking gauge remained commendable in light of Global rating agency Fitch Ratings downgrade on India-based financial institutions’ outlook from stable to Negative. The downgraded category included the likes of State Bank of India, Punjab National Bank, Bank of Baroda, Bank of Baroda (New Zealand), Canara Bank, IDBI Bank, ICICI Bank Axis Bank, Export-Import Bank of India, Housing and Urban Development Corporation, Infrastructure Development Finance Company. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1603:1095 while 150 scrips remained unchanged. (Provisional)

The BSE Sensex gained 35.67 points or 0.21% and settled at 16,895.47. The index touched a high and a low of 16,962.49 and 16,840.10 respectively. 18 stocks were seen advancing against 12 declining ones on the index (Provisional)

The BSE Mid-cap index gained 0.84% while Small-cap index was up by 0.80%. (Provisional)

On the BSE Sectoral front, Metal up 1.32%, Capital Goods up 1.23%, Health Care up 1.17%, auto up 0.89% and Power up 0.86% were the major gainers while, IT down 0.50%, TECk down 0.47%, FMCG down 0.25% and Realty down 0.05% were the only losers.

The top gainers on the Sensex were Sterlite Industries up 3.29%, Tata Motors up 2.92%, Jindal Steel up 2.73%, Dr. Reddy’s Lab up 2.60% and Tata Power up 1.87% while, TCS down 1.75%, Coal India down 1.44%, Bharti Airtel down 1.38%, Maruti Suzuki down 1.09% and ITC down 1.06% were the top losers in the index. (Provisional)

Meanwhile, with an aim to protect the small scale industries from slowdown, the Reserve Bank of India (RBI) has extended the 2% interest subsidy scheme by another year on rupee export credit to the labour-oriented sectors with effect from April 1, 2012 to March 31, 2013.

RBI has decided to extend the scheme for the seven specified category of exporters namely handicrafts, handlooms, readymade garments, processed agriculture products and carpets. Besides, sports goods and toys exporters would also be eligible for such benefit.

Consequently, banks may reduce the interest rate chargeable to the exporters as per base rate system in the above mentioned sectors eligible for export credit subvention by the amount of subvention available, subject to a floor rate of 7%.

The banks are likely to pass on the benefit of 2% to the eligible exporters and further exporters in the small and medium enterprises across all the sectors would also be permitted for cheaper bank credit, subject to a minimum interest rate of 7%. The government, last year had given interest subvention facility to exporters, which expired in March 2012.

India VIX, a gauge for market’s short term expectation of volatility lost 1.86% at 21.03 from its previous close of 21.43 on Tuesday. (Provisional)

The S&P CNX Nifty gained 16.90 points or 0.33% to settle at 5,120.75. The index touched high and low of 5,141.70 and 5,100.70 respectively. 34 stocks advanced against 15 declining ones while 1 stock remained unchanged on the index. (Provisional)

The top gainers on the Nifty were ACC up 3.71%, Sterlite Industries up 3.56%, HCL Tech up 3.42%, Tata Motors up 3.09% and Jindal Steel up 2.97%.On the other hand, TCS down 2.04%, Coal India down 1.48%, Bharti Airtel down 1.48%, Maruti Suzuki down 1.38% and DLF down 1.25% were the top losers. (Provisional)

The European markets were trading on a mixed note, with France's CAC 40 down 0.32%, Germany's DAX up 0.17% and Britain’s FTSE 100 up 0.17%.

All the major Asian markets barring the Chinese Sanghai closed on a positive note on hopes that the Fed will go forward to stimulate the US economy. It could announce a new bond buying plan. Also the G-20 leaders pledged to support economic growth and help overcome Europe’s debt crisis helping the markets in the region to move higher near to the highest close in a month

The Nikkei closed at 96.44 points or 1.11 per cent to 8752.31, Hang Seng was up to 102.18 points or 0.53 percent to 19518.85, Jakarta Composite closed at 9.41 points or 1.63 percent to 3943.90, Singapore Strait Times closed at 13.27 point or 0.47 per cent to2855.68, Kospi Composite Index end at 12.35 point or 0.65 per cent to 1904.12, Taiwan weighted too closed at 61.50 point or 0.85 per cent to 7334.63.Although most of the Asian stocks end in a positive China’s Shanghai Composite closed down to 7.92 points or 0.34 per cent to 2292.88.

On the other hand China’s Shanghai Composite closed down by 7.92 points or 0.34 percent to 2292.88