Post session - Quick review

After showing signs of exhaustion in the last session, equity markets faltered more on Thursday to end the lackluster day of the trade in the red zone. In a range-bound session of trade, bourses snapped the four day’s gaining streak, as market-men resorted to cautious stance amid lingering uncertainty about whether the European Central Bank will take decisive steps to contain the euro-zone debt crisis in the meeting later in the day, after the US Federal Reserve refrained from offering fresh stimulus. Further, sluggish close of regional counterparts combined with the weak trade of Indian currency, also added to the downside. The 30 share barometer index, Sensex, offloaded over quarter percent to shut shop below the 17250 level. Meanwhile, widely followed 50 share barometer index, Nifty, consolidating for second straight session, ended sub 5250 crucial level. However, much of the bourses losses were recuperated by noon deal, as positive European cues did aid the sentiment to some extent.

European shares edged higher on Thursday ahead of the key European Central Bank (ECB) meeting, which traders say must result in fresh stimulus measures to fight the region’s sovereign debt crisis if equity markets are to avoid a sharp retreat.

Closer home, reports of PM relaxing the transfer policy for the government land for infrastructure projects, also eased some flexed nerves, eagerly awaiting action on policy reforms front. Much to surprise, improving from a five percent below average in the previous week, India's monsoon rains were only four percent below average in the week to August 1, as rainfall revived in soybean and rice growing areas of India. Sectorally, Consumer Durable, Power and Capital Goods counters emerged as the pillar of strengths, while Oil & Gas, Bankex and Metal counters, emerged as major pockets of weakness.

In stock specific action, shares of engines maker Cummins India surged 7.8% after the company’s April-June net profit rose 2.3% to a better-than-expected Rs 181 crore. Scrip’s of Ashok Leyland showed a dead cat bounce, after the company registered 25% year-on-year growth in July sales at 9,785 units. Meanwhile, country’s second largest two-wheeler maker, Bajaj Auto, spiked over half a percent despite reporting 5% dip in July sales number. However, shares of country’s largest public sector lender, State Bank of India (SBI) dived after the bank decided to revise downwards the interest rate on domestic term deposits for tenors 5 years and above to 8.5%. Being the festive day, volumes were lower than the 1 lac crore mark,  with market breadth on the BSE ending in the favour of advances which piped declines in a ratio of 1499:1177 while 141 scrips remained unchanged. (Provisional)

The BSE Sensex lost 35.69 points or 0.21% and settled at 17,221.69. The index touched a high and a low of 17,246.01 and 17,157.28 respectively. 12 stocks were seen advancing against 18 declining ones on the index. (Provisional)

The BSE Mid-cap index gained 0.21% while Small-cap index was up by 0.45%. (Provisional)

On the BSE Sectoral front, Consumer Durable up 1.11%, Power up 0.77%, Capital Goods up 0.64%, FMCG up 0.44% and TECk up 0.07% were the top gainers, while Oil & Gas down 1.00%, Bankex down 0.29%, Metal down 0.28%, Realty down 0.28% and Auto down 0.27% were the top losers in the space.

The top gainers on the Sensex were NTPC up 3.75%, BHEL up 1.25%, Bajaj Auto up 0.94%, Jindal Steel up 0.90% and Bharti Airtel up 0.72% while, Tata Motors down 2.07%, ONGC down 1.46%, Cipla down 1.26%, Sterlite Industries down 1.18% and Tata Power down 1.05% were the top losers in the index. (Provisional)

Meanwhile, in a move that could fast track the pace of reforms, Prime Minister Manmohan Singh on Thursday has approved relaxations in the transfer policy for the government land for infrastructure projects. To ensure that there is no procedural delay in acquiring government-owned land for infrastructure projects; PMO besides allowing all land transfer from ministries to PSUs, also eliminated the need of Cabinet approval required for transfer of government-owned land for infrastructure use.

Early last year, a ban had been imposed on all transfer of government owned lands to any entity except in cases where land was to be transferred from one government department to another. This was resulting into long delays in awarding concessions for infrastructure projects, particularly PPP projects. In the meanwhile, the Department of Economic Affairs was to prepare a comprehensive land transfer policy for government owned land. In case any department had to implement a project which required alienation of land either through lease, license or rent, it had to seek specific approval of the Cabinet. All PPP infrastructure projects - roads, railways, ports, civil aviation and metros - have some element of land alienation as the project is often built on government owned land.

With today’s decision all cases of land transfer from Ministries to statutory authorities or PSUs will be allowed, subject to the requirements of normal Government of India Rules; All cases of land transfer on lease or rent or license to a concessionaire which have been appraised through the PPPAC route and approved by the Finance Minister or by the Ministers concerned or by the Cabinet, as the case may be, depending upon the value of the project; and all cases related to the development and use of railway land by Rail Land Development Authority (RLDA) as per provisions of Railways Amendment Act, 2005 will be permitted.

India VIX, a gauge for market’s short term expectation of volatility gained 1.94% at 16.77 from its previous close of 16.45 on Wednesday. (Provisional)

The S&P CNX Nifty lost 11.15 points or 0.21% to settle at 5,229.35. The index touched high and low of 5,236.90 and 5,209.95 respectively. 18 stocks advanced against 31 declining ones while 1 stock remained unchanged on the index. (Provisional)

The top gainers on the Nifty were NTPC up 3.81%, BHEL up 1.54%, Axis Bank up 1.31%, SAIL up 1.05% and Jindal Steel up 0.93%. On the other hand, Cairn India down 2.33%, Tata Motors down 2.09%, BPCL down 1.74%, Tata Power down 1.65% and Cipla down 1.44% were the top losers. (Provisional)

The European markets were trading in green, with France's CAC 40 up 0.49%, Germany's DAX up 0.33% and Britain’s FTSE 100 up 0.40%.

Asian markets made a mixed closing on Thursday, there was cautiousness in the markets since morning after US Fed disappointed the global markets by not announcing any measure to stimulate economy and traders remained hopeful that the European Central Bank (ECB) will do more to contain the debt crisis; the ECB will announce a policy decision today. Japanese market despite paring most of its early gains closed marginally higher supported by rise in commodity prices. On the same time the Chinese market lost over half a percent on renewed concern that the government will issue more curbs to cool the real estate market after China’s Premier Wen Jiabao said the country will 'unswervingly' implement property controls and prevent home prices from rebounding. While, the Korean market ended lower following decline in largest exporter of consumer electronics, Samsung Electronics.

Meanwhile, the Taiwan Stock market remained closed due to Typhoon SAOLA.