Post session - Quick review

Local equity markets edged higher, after previous session’s drubbing, on renewed buying interest as investors bet big on European Central Bank pumping fresh money into the euro area's banking system, part of which may find its way into emerging market equities including India. Although cooling from high point of the day, local equity indices largely settled in the favour of green. 30 share barometer index of Bombay Stock Exchange (BSE), Sensex, after piercing through the 17400 psychological level, ended above the 17350 level, with gains of close to quarter of percent. Meanwhile, widely followed index of National Stock Exchange (NSE), Nifty, despite luring gains of over quarter of points, settled sub 5250 mark. Both the levels of 17400 (for Sensex) and 5250 (for Nifty) respectively turned to be tough nuts to crack. Additionally, broader indices too concluded with gains, more or less in the magnitude of frontline benchmark equity indices.

On the global front, Asian shares rose on expectations the European Central Bank’s president Mario Draghi will unveil new tactics to ease the high borrowing costs facing the region's highly indebted nations at a meeting later in the day. Meanwhile, European shares, with no surprises notched higher on reports that suggested that the European Central Bank will buy unlimited amounts of short-term sovereign bonds to cap surging borrowing costs in indebted euro zone states.

Closer home, stocks from Information Technology, Auto and Health Care counters featuring in the top list of performers, mainly buoyed the sentiment at Dalal Street, while stocks from Fast Moving Consumer Goods, Consumer Durable and Capital Goods counters languishing at the bottom, capped the upside of the bourses. Software services’ exporters widened gains quite smartly, partly on the hopes of revived bond buying program as European continent contributes to lion share of revenues to these IT companies. Wipro, Infosys and Hexaware Technologies, all spurted in the range of 2-3%. Moreover, PSU OMC’s again rallied yet again after reports suggested that oil ministry has proposed to the cabinet that diesel, cooking gas and kerosene prices should be raised immediately after September 7 when the monsoon session of parliament ends. Meanwhile, metals stocks bounced back after yesterday's sharp fall; Jindal Steel, Hindalco Industries and Sterlite were the prominent gainers. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1427:1352 while 171 scrips remained unchanged. (Provisional)

The BSE Sensex gained 36.29 points or 0.21% and settled at 17,349.63. The index touched a high and a low of 17,418.40 and 17,294.74 respectively. 17 stocks were seen advancing against 11 declining ones while 2 stocks remained unchanged on the index (Provisional)

The BSE Mid-cap index was up 0.28% while Small-cap index was up 0.21%. (Provisional)

On the BSE Sectoral front, IT was up 2.65%, TECk up 1.89%, Auto up 0.84%, Health Care up 0.69% and Bankex up 0.54% were the top gainers, while FMCG down 1.75%, Consumer Durables down 0.93%, Capital Goods down 0.74%, Realty down 0.20% and Oil & Gas down 0.13% were the only losers in the space.

The top gainers on the Sensex were Wipro up 4.56%, Infosys up 3.57%, Tata Motors up by 2.10%, Jindal Steel up 2.05% and ICICI Bank up 2.04% while, BHEL down 3.32%, ITC down 2.61%, Bharti Airtel down 2.44%, HDFC Bank down 1.06% and Hero MotoCorp down 1.06% were the top losers in the index. (Provisional)

Meanwhile, seeking an immediate price hike in diesel, LPG cylinders and kerosene amid soaring production costs, the Petroleum and Natural Gas Ministry has moved a Cabinet note. The Union Cabinet is also likely to discuss on limiting supply of subsidized LPG cylinders to 4-6 per household in a year and a cut of Rs 14.78 per litre excise duty currently levied on petrol. The ministry’s proposal has also suggested barring of households with income of more than Rs 50,000 per month or Rs 6 lakh in a year from getting subsidized LPG cylinders.

The Cabinet Committee on Political Affairs, headed by Prime Minister Manmohan Singh, will make the final call on hikes as early as next week. The government’s immediate move on this clearly points out, as a measure to avert a fiscal disaster and a sovereign credit downgrade to junk by global ratings agencies, as the widening deficit would put India on the brink of losing investment grade.

The ministry have been advocating for the reduction of subsidies on fuels like diesel as it is eating into the budget and have been affecting the financial health of state-run oil companies. But the fears of a popular backlash had stopped the Centre from raising prices for more than a year. The three state-run fuel retailers - Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp have together racked up losses of Rs 47,811 crore in the first quarter, four times the loss from a year earlier.

India VIX, a gauge for markets short term expectation of volatility lost 0.17% at 16.98 from its previous close of 17.01 on Wednesday. (Provisional)

The S&P CNX Nifty gained 13.95 points or 0.27% to settle at 5,239.65. The index touched high and low of 5,260.60 and 5,217.65 respectively. 29 stocks advanced against 21 declining ones on the index. (Provisional)

The top gainers on the Nifty were Wipro up 4.67%, Ambuja Cement up 4.66%, Infosys up 3.54%, ACC up 2.61% and Jindal Steel was up 2.49%. On the other hand, BHEL down 3.06%, ITC down 2.63%, Bharti Airtel down 2.62%, Ranbaxy Laboratories down 1.45% and IDFC down 1.43% were the top losers. (Provisional)

The European markets were trading in green with, France’s CAC 40 up 0.92%, Germany’s DAX up 1.22% and the United Kingdom’s FTSE 100 up 0.55%.

Most Asian stock markets went home with green mark on the back of bargain-hunting following two days of losses due to batch of weak manufacturing data that fuelled concerns over the global economy. Markets were optimistic about the European Central Bank meeting, which anticipated announcing a plan to support financially struggling European countries. Investors are also waiting for Friday's U.S. payrolls data for signs of life in the world's largest economy. Sustained signs of weakness in the U.S. economy may lend a hand to influence the Federal Reserve for announcing new action after its meeting next week. Shanghai Composite ended higher with infrastructure stocks leading the rally on news that China's top planner had approved investment in subway projects since April.