Post session - Quick review

Putting a break on five day’s losing streak, Indian equity markets finally saw the light of the day as benchmark equity indices managed to gain some traction to close in green. Bourses, after listlessly gyrating in the morning deals, staged reversal of trade post opening of European markets, which activated the snoozing bulls, which thereafter took in-charge of the bourses gains. 30 share barometer index Sensex of Bombay Stock Exchange (BSE), accumulated over 75 points to conclude above the 17150 level, while the 50 share index also reclaimed the 5200 crucial level, which emerging as strong support. Meanwhile, the broader indices, too managed to shut shop in green, with gains of over 0.30%. Thus, the high volume session of trade, managed to witness turnover of 1.60 lac crore, with the market breadth ending largely in the favour of advances which thumped declines in the ratio of 1409:1373, while 147 shares remained unchanged.

The gains at Dalal Street were also bolstered by the good earning of Bajaj Auto. Country’s second largest two wheeler maker, posted much in line increase in profit after tax for the first quarter of FY-13  at Rs 718 crore against Rs 711 crore, it posted for the same period last year. The stocks, rallied close to 5%, also spelling optimism amongst other Auto stocks, which in turn lifted the index higher close to 0.50%. Metal, Realty and Capital Goods counters, were among the other pillar of strength for the bourses.

Much of the strength came to Indian equity markets since the opening of European counterparts, which managed to showcase resilience,  despite the downbeat assessment of the U.S. economy by Federal Reserve Chairman Ben Bernanke with no signals of an imminent move toward further quantitative easing. Meanwhile, the similar development came as sign of caution to Asian pacific shares, which ended mix.

Back on the home turf, release of CPI inflation, turned a non-event, though the annual rate of inflation, based on the consumer prices index (CPI) in India, despite easing for the month of June, came in double digit at 10.02% as compared to 10.36% for the previous month of April 2012. While, Food inflation in the CPI accelerated to 10.71% in June from 10.66% in May. Sector wise, Power stocks too managed to bounce back in green, on expectation of some big ticket decisions at the Cabinet meeting scheduled for Thursday, scheduled for deciding upon the import duty on power equipment, disinvestment issue. Further, planning commission’s proposal of outstanding SEB debt partially being distributed over the state government and partially to be held by bank guaranteed by state government was also seen as positive move for the ailing sector. Beneficiaries were Tata Power, Reliance Power and Reliance Infra, which all captured gains of over 2% each.

The BSE Sensex gained 72.38 points or 0.42% and settled at 17,177.68. The index touched a high and a low of 17,205.26 and 17,038.59 respectively. 21 stocks were seen advancing against 9 declining ones on the index (Provisional)

The BSE Mid-cap index gained 0.50% while Small-cap index was up by 0.29%. (Provisional)

On the BSE Sectoral front, Metal up 1.43%, Capital Goods up 1.13%, Realty up 0.68%, Power up 0.62% and Auto up 0.56% were the top gainers while, Oil & Gas down 0.33%, Health Care down 0.22%, Consumer Durable down 0.08% and FMCG down 0.07% were the only losers.

The top gainers on the Sensex were Bajaj Auto up 5.14%, Tata Power up 2.66%, Jindal Steel up 2.54%, BHEL up 2.23% and Sterlite Industries up 2.23% while, Dr. Reddy’s Lab down 2.03%, Tata Motors down 2.01%, NTPC down 0.73%, SBI down 0.63% and Reliance Industries down 0.63% were the top losers in the index. (Provisional)

Meanwhile, in a meeting to discuss the strategy to deal with various issues of energy sector in the country in the 12th Five Year Plan (2012-17), Planning Commission urged States to increase electricity charges to instead use power subsidy to improve essential services like drinking water, education and health, essential for promoting inclusive growth.

Acknowledging that high growth is unattainable without addressing the issues of power sector, Plan panel deputy chairman Montek Singh Ahluwalia, while addressing the conference of states' power ministers, said, that the current situation could be handled through some combination of tariff increase and serious efforts to reduce Aggregate Technical and Commercial Losses (AT & C Losses), which is nothing but the sum total of technical loss, commercial losses and shortage due to non-realization of total billed amount.

Seconding Power Ministry's proposal to restructure power distributions companies’ debt to the extent of Rs 200,000 lakh crore, Ahluwalia said the states should increase the electricity tariff to reduce these firms deficit. Only rationalization of tariff, the Commission urged, could ensure sustainable growth of the ailing power sector. Though, he also warned States failing to raise power charges to be prepared for making steep adjustments, while stating that Centre would soon come out with a scheme to link central support to states with rationalization of power tariff.

India VIX, a gauge for market’s short term expectation of volatility lost 1.91% at 17.44 from its previous close of 17.78 on Tuesday. (Provisional)

The S&P CNX Nifty gained 24.40 points or 0.47% to settle at 5,217.25. The index touched high and low of 5,222.85 and 5,169.05 respectively. 32 stocks advanced against 18 declining ones on the index. (Provisional)

The top gainers on the Nifty were Bajaj Auto up 5.32%, Tata Power up 3.34%, Sesa Goa up 2.91%, Jindal Steel up 2.71% and Maruti Suzuki up 2.71%. On the other hand, PNB down 2.98%, Bank of Baroda down 1.95%, Tata Motors down 1.95%, Dr. Reddy’s Lab down 1.91% and Ranbaxy Laboratories down 1.06% were the top losers. (Provisional)

The European markets were trading in green, with France's CAC 40 up 0.61%, Germany's DAX up 0.34% and Britain’s FTSE 100 up 0.24%.

Most of the Asian markets went home on negative note amid gloomy outlook by U.S. Federal Reserve Chairman Ben Bernanke trumped hopes for further monetary stimulus. Meanwhile, Asian tech sector also was under pressure as top chipmaker Intel Corp reduced its growth forecast, considering feeble global economy conditions and lack of consumer interest are dampening personal computer sales. However, Chinese shares ended lower by property plays after data showing another year-on-year dip in home prices spurred profit-taking in one of this year's biggest outperformers in Asia.