Post session - Quick review

In the range-bound session of trade, barometer gauges managed to sneak out slender gains, in order to cut short two consecutive sessions losing streak of Indian equity markets. Barometer gauges, emerging out of low, did a commendable job to end near the high point of the day. Value buying in select fundamentally strong blue chip stocks combined with appreciation of Indian rupee sub ‘57/$’ psychological mark,  acted as a saving grace for local equity markets. 30 scrip sensitive index, Sensex, managed to accumulated over 50 points or 0.25%, to conclude above the 16900 psychological level. Similarly, the widely followed index, Nifty, too slug hard to basket gains of over 15 points, to conclude above the 5110 level. However, the show clearly belonged to the stocks belonging from the Midcap Index, which prominently outclassed larger peers. On the flip side, stocks from Smallcap index, managed to negotiate a green close, which was in proximity to the neutral line.

Optimistic leads from European market, shored up Indian equity markets to some extent. European shares rallied as investor’s tip-toed into the equity markets after two days of slide. Meanwhile, Asian pacific shares ended in red as investors remained skeptical that a summit of European leaders would yield any substantive measures to solve the region's protracted debt crisis, now in its third year.

A formal request from Spain for European funds and Moody's mass downgrade of 28 of its banks, plus news that Cyprus had become the fifth euro zone nation to request a bailout, kept the gains of equity markets across the globe under check.

Back on the home turf, gains in the stock markets were powered by stocks belonging from the Oil & Gas, Power and Public Sector Undertaking (PSU) counters. While, stocks from Consumer Durable, Fast Moving Consumer Goods and Information Technology toppled the selling list.  Oil & Gas pocket surged close to a percent after government allowed conditional import from Iran on cost, insurance and freight (CIF) basis for six months starting July 1, 2012 or till the issue is resolved.  While, the gauge also outperformed amongst the 13 sectoral indices on account of dwindling brent crude prices and on the hopes that Government will now be ready to bite the bullet of diesel price hike. On the other hand, FMCG companies like Britannia Industries, HUL, ITC, Godrej Consumer Products, Nestle India and Ruchi Soya Industries reeled under pressure on India Meteorological Department warning that the country is expected to receive the least rainfall recorded in the last 30 years. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1391:1335 while 148 scrips remained unchanged. (Provisional)

The BSE Sensex gained 61.32 points or 0.36% and settled at 16,943.48. The index touched a high and a low of 16,946.66 and 16,815.87 respectively. 20 stocks were seen advancing against 10 declining ones on the index (Provisional)

The BSE Mid-cap index gained 0.43% while Small-cap index was up 0.05%. (Provisional)

On the BSE Sectoral front, Oil & Gas up 1.40%, Power up 1.14%, PSU up 0.82%, Health Care up 0.77% and Bankex up 0.65% were the top gainers while, Consumer durables down 1.05%, FMCG down 0.58%, IT down 0.07%, Metal down 0.02% and TECk down 0.01% were the only losers.

The top gainers on the Sensex were GAIL India up 3.64%, Tata Power up 2.24%, ONGC up 1.80%, HDFC Bank up 1.78% and Hero MotoCorp up 1.65% while, HUL down 1.97%, Sterlite Industries down 1.11%, Infosys down 0.87%, Bharti Airtel down 0.81% and Tata Steel down 0.66% were the top losers in the index. (Provisional)Meanwhile, with the Islamic nation arranging shipping and insurance in the wake of European sanctions, the government has allowed conditional import from Iran on cost, insurance and freight (CIF) basis for six months starting July 1, 2012 or till the issue is resolved. India, which has secured a waiver from US sanctions which prohibits import of crude oil from Iran in an attempt to check Tehran’s nuclear ambitions.

European sanctions, which were announced earlier this year prohibits euro-based insurance companies from providing insurance and guarantees for transportation of oil from Iran, which has compelled many nations to reduce their oil imports from Iran. Around 90 percent of world’s tanker fleet is covered by western based protection and indemnity club, which includes personal protection and environmental cleanup claims.

As a result to this sanction, the oil ministry has proposed Iranian entity to export oil in their own ships so as to free the importer to get insurance cover for the ship and the oil. The shipping ministry has also taken up this matter with the finance ministry. Further, the oil ministry is also looking for finance ministry’s intervention to get state-owned General Insurance Corp (GIC) to provide insurance cover to domestic ships carrying oil from Iran.

The government might itself provide insurance to ships carrying crude if all other option closes. India has reduced import of oil from Iran from 18.5 million tons in 2010-11 to 17.44 million tons in 2011-12 and further down to 15.5 million tons in this fiscal. Unlike private refineries, state owned oil companies need permission from the government to import oil on cost, insurance & freight basis, which requires the seller to arrange for the carriage of goods by sea.

India VIX, a gauge for market’s short term expectation of volatility lost 6.21% at 20.23 from its previous close of 21.57 on Monday. (Provisional)

The S&P CNX Nifty gained 13.05 points or 0.26% to settle at 5,127.70. The index touched high and low of 5,134.55 and 5,095.50 respectively. 32 stocks advanced against 18 declining ones on the index. (Provisional)

The top gainers on the Nifty were GAIL India up 2.88%, Grasim up 2.86%, Tata Power up 2.07%, Power Grid up 1.99% and Siemens up 1.79%.On the other hand, SAIL down 2.00%, HUL down 1.86%, Sesa Goa down 1.20%, Infosys down 1.14% and Asian Paints down 1.08% were the top losers. (Provisional)

The European markets were trading in red, with France's CAC 40 down 0.47%, Germany's DAX down 0.32% and Britain’s FTSE 100 down 0.22%.

Asian stocks fell today with Nikkei the most as the global rating agency Moody’s downgraded 28 Spanish banks on concerns of country’s sovereign debt and rising bad loans. Nikkei closed to its lowest level on concern that the European leaders will not be able to tackle Euro debt crisis. Shanghai Composite dipped due lack of improvement in vehicle demand. Strait Times had a low volume of trade due to looming of Euro crisis.

On the other hand Hang Seng managed to close in green as Chinese telecom companies hold the market from going down due to heavy volume of trading. Jakarta Composite too closed on a positive note.