Post session - Quick review

In the choppy session of trade, local barometer gauges showcased astonishing reversal of trend in the noon deals, to negotiate third consecutive green close.  Value buying in select fundamentally strong blue chip stocks, mainly got the markets out of the static state. 30 scrip sensitive index, Sensex, puffing up over a century, concluded above the crucial 17k level, level last seen on May 3, 2012. Similarly, the widely followed index, Nifty, after clinching close to a percentage points, shut shop above the 5150 bastion. The broader indices too captured gains of around a percent.

Indian equity markets after showcasing signs of exertion in the previous session moved higher in today’s session. Asian pacific shares ended down in dumps after the Federal Reserve disappointed some investors with only a limited expansion of monetary stimulus and after a survey showed China's vast factory sector slowed for an eighth month. Federal Reserve extending the so-called “Operation Twist” plan -aimed at keeping rates low, failed to deliver a QE3, which could otherwise stimulate the faltering economy. Meanwhile, European shares traded lower on Thursday as investors cashed in on a four-day rally.

Closer home, sector specific activities mainly kept the market buzzing. Telecom stocks, like Tata Communications, Bharti Airtel rang loud ahead of the Empowered Group of Minister’s meeting, headed by Finance Minister Pranab Mukherjee, to discuss the spectrum price, payment terms and network rollout obligations for the auction of airwaves due before August 31, 2012.  Power equipment manufacturers, Larsen & Toubro and BHEL shot up for second consecutive session on reports that government is likely to impose a 21% import duty on power equipment.  However, Cable stocks suffered significant losses. Hathway, Finolex Cables, Wire & Wireless (India) and Den Networks, all lost traction on 4 months deferral to Cable TV digitization proposal. Government extended the deadline for a complete switchover of the existing analog cable TV networks to digital addressable systems (DAS) in the four metro cities from June 30 to October 31 this year. Further, Cement stocks continued to sulk for second consecutive session, on the reports averring that Competition Commission of India (CCI), which deferred its verdict on alleged cartelization case of cement companies, is now mulling a fine of up to 3 times profit of cement companies. Meanwhile, session’s turned out to be good for PSU oil marketing companies (OMCs), which soared in the range of 2-3% after Brent crude slipped to its lowest in 18 months on Thursday at around $92 a barrel. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1653:1094 while 114 scrips remained unchanged. (Provisional)

The BSE Sensex gained 147.94 points or 0.88% and settled at 17,044.57. The index touched a high and a low of 17,050.44 and 16,799.63 respectively. 27 stocks were seen advancing against 3 declining ones on the index (Provisional)

The BSE Mid-cap index gained 0.81% while Small-cap index was up 0.84%. (Provisional)

On the BSE Sectoral front, Realty up 2.74%, Capital Goods up 2.17%, Bankex up 2.10%, Power up 1.96% and FMCG up 1.54% were the major gainers while, Oil & Gas down 1.12%, Consumer Durables down 0.09% and IT down 0.08% were the only losers.

The top gainers on the Sensex were BHEL up 4.05%, SBI up 2.80%, Hero MotoCorp up 2.53%, Tata Power up 2.32% and ITC up 2.31% while, RIL down 2.73%, TCS down 2.37% and Hindalco Industries down 1.06% were the only losers in the index. (Provisional)

Meanwhile, the much promulgated digitalization of cable TV services in four metros has been extended by four more months. As a first step for the ambitious project of digitization of cable TV services in the entire country by December 2014, the information and broadcasting ministry had selected four metros, Delhi, Mumbai, Kolkata and Chennai for the switchover from analogue to digital cable TV by July 1. This dead line has been extended in recognition that just 20% of cable homes had installed the necessary set top boxes. The I&B ministry has now informed that all the TRAI regulations for digital addressable system will come into effect from 1st November, 2012.

The digitization of cable TV is seen as a game changer for the entire Indian TV industry as it will also significantly benefit distributors, both the multi-system operators (MSOs) and local cable operators (LCOs), who’s paying base will also improve.India VIX, a gauge for market’s short term expectation of volatility lost 5.18% at 19.94 from its previous close of 21.03 on Wednesday. (Provisional)

The S&P CNX Nifty gained 46.65 points or 0.91% to settle at 5,167.20. The index touched high and low of 5,169.80 and 5,093.45 respectively. 41 stocks advanced against 9 declining ones on the index. (Provisional)

The top gainers on the Nifty were JP Associates up 4.63%, Reliance Infrastructure up 4.24%, DLF up 4.05%, BHEL up 3.95% and PNB up 3.29%.On the other hand, Cairn India down 2.69%, Reliance Industries down 2.56%, TCS down 2.55%, Ambuja Cement down 1.96% and ACC down 1.24% were the top losers. (Provisional)

The European markets were trading in red, with France's CAC 40 down 0.43%, Germany's DAX down 0.33% and Britain’s FTSE 100 down 0.45%.

All the Asian markets barring Japanese Nikkei ended day's trade in the negative territory as the US Federal Reserve's policy announcement disappointed some investors who had expected more aggressive policy measures. The Fed extended its so called 'Operation Twist' programme of selling short-term securities and buying longer-dated ones as expected, but did not signal another round of quantitative easing. Though, it said it expects economic growth to continue to grow moderately over coming quarters and then to pick up gradually but it lowered its expectations for US GDP growth in 2012, going to a range of 1.9-2.4% from 2.4-2.9%.

Moreover weak Chinese manufacturing data also dampened investor’s sentiments. The HSBC China Manufacturing Purchasing Managers Index fell to 48.1 in June compared with a final reading of 48.4 in May. It was the eighth straight month of a reading below 50, which indicated contraction from the previous month.