Post session - Quick review

It was a stellar session of performance for Indian equity markets, which gaining strength brick by brick concluded near the high point of the day. Although the bourses made a modestly positive start, the hectic buying activity witnessed in the noon deals got the bulls going, which running across the space, held the fort upright straight for second consecutive session, this time around with massive gains. The sharp uptick of the bourses was largely thanks to the broad gains of rate sensitive’s counterparts, which luring investor’s fund, emerged as prominent gainers. Additionally, positive global set-up also fed into the risk appetite of the investor’s, with index heavyweights such RIL, ITC and TCS, too contributing to the run -up rally. In the high volume session of trade, 30 share pack, Sensex, puffed up over 150 points to shut shop above the psychological 18700 level. Similarly, the widely followed index, Nifty, too adding 3 /4 percent, sailed past through crucial 5700 level level. Additionally, broader indices too remained in bulls grip, with Midcap and Smallcap indices concluding with gains above 0.75%. Meanwhile, trade of over 2 lakh crore was done in terms of volume turnover, a week ahead of F&O expiry.

On the global front, Asian shares closed near a seven-month high on Thursday as worries about a sharper slowdown in global growth eased after a slew of Chinese data signaled stabilization in the world's second largest economy. China's third-quarter gross domestic product, matching expectations, grew 7.4 percent from a year earlier, the slowest pace since the first quarter of 2009. Meanwhile other Chinese data such as fixed asset investment, retail sales and industrial output slightly exceeded forecasts also provided the required impetus.

However, European shares were trading cautiously position, as concerns over the disagreements at a two-day European leaders' meeting, which begins later, over plans for a banking union or measures to help struggling Spain and Greece, kept a check on the gains.

Closer home, besides, the hopes that central bank will respond with a 25 bps rate cut or a cash reserve ratio cut to complement the government's reform moves, the expectation that sector specific measures in the upcoming monetary policy review on October 30, gave a shot of adrenaline to the rate sensitive’s stocks, which rallying sharply, turbo-drove the domestic equity markets. However, stocks from Health Care counters emerged as the dark spot in the stellar trade. Additionally, even Telecom shares such as Bharti Airtel and Idea Cellular bore the brunt of profit booking after the Telecom Commission recommended mobile phone carriers to give up their entire airwave holding in the 900 mega hertz band at the time of their permit renewals.

On the result front, there were more hits than misses. Hyderabad-based VST Industries, the maker of cigarette brands, stocks rose over 2% even after the company reported a 17.83% decline in net profit to Rs 27.60 crore for the quarter ended September 2010, as compared with Rs 33.59 crore in the corresponding quarter last year. Additionally, Maharashtra Scooters too eked out modest gains on reporting 23% growth in Q2 net profit at Rs 42.99 crore for the quarter ended September 30, 2012 as compared to Rs 34.94 crore for the same quarter in the previous year. However, Cement producer ACC's stock lost over half a percent after the company missing street estimated posted 52% rise in its net profit at Rs 242 crore in the quarter ended September 2012. Further, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 435 crore, which too was lower than estimates of Rs 457 crore. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1668:1172 while 155 scrips remained unchanged. (Provisional)

The BSE Sensex gained 172.22 points or 0.93% and settled at 18,782.99. The index touched a high and a low of 18,806.56 and 18,576.41 respectively. 24 stocks were seen advancing while 6 stocks were declining on the index (Provisional)

The BSE Mid-cap index was up by 1.19% while Small-cap index was up 0.81%. (Provisional)

On the BSE Sectoral front, Realty up by 2.70%, Bankex up by 2.13%, Consumer Durables up by 1.69%, Auto up by 1.35% and Capital Goods up by 1.19% were the top gainers, while Health Care down by 0.39% was the sole loser in the space.

The top gainers on the Sensex were Tata Power up 2.94%, SBI up 2.75%, Hero MotoCorp up by 2.25%, Tata Motors up by 2.25% and L&T up 1.65%, while, Wipro down by 2.04%, Bharti Airtel down by 1.76%, Sun Pharma down by 1.69%, Gail India down by 0.57% and NTPC down by 0.39% were the top losers in the index. (Provisional)

With the alarming position of current account deficit, Finance Minister P Chidambaram has indicated for a rational and transparent energy pricing mechanism and correction of distortion in petrol and diesel prices caused due to unequal taxation, so as to protect the interest of poor and vulnerable sections of the society. He pointed out that the current level of subsidy on petroleum products is not conducive for economic policy decisions, as the rising subsidy bill has hiked the Government’s fiscal deficit.

He blamed the tighter global product market, peaking commodity prices, growing demand and slowing global financial growth, for the tough situation concerning welfare of citizens and acting as a major challenge for the policy makers. He also urged that the oil producing countries must exploit and sell at reasonable price to those who do not have less or resource for easing the stringent situation. He affirmed that the burgeoning subsidy bill is experienced not only in India but all developing countries are facing the situation.

The oil companies which had recorded loss in the first quarter are preparing to announce financial results for the second quarter, June-September without any compensation from the Government on account of selling diesel, domestic LPG and PDS kerosene below the cost price. India imports about 75% of its crude oil requirement.

India VIX, a gauge for markets short term expectation of volatility lost 2.70% at 14.76 from its previous close of 15.17 on Wednesday. (Provisional)

The S&P CNX Nifty gained 56.55 points or 1.00% to settle at 5,716.80. The index touched high and low of 5,722.50 and 5,650.55 respectively. 38 stocks advanced against 12 declining ones on the index. (Provisional)

The top gainers on the Nifty were JP Associates was up 4.73%, Axis Bank up 4.59%, Bank of Baroda up 4.00%, HCL Tech up 3.69% and Tata Power was up 2.89%. On the other hand, Wipro down 1.92%, Bharti Airtel down by 1.89%, Sun Pharma down by 1.78%, Grasim Industries down by 0.89% and Cairn India down by 0.75% were the top losers. (Provisional)

The European markets were trading on a mixed note with, France’s CAC 40 down 0.03%, Germany’s DAX up 0.30% and the United Kingdom’s FTSE 100 up 0.14%.

Asian markets went home with green mark, as the regional benchmark index touched highest close in a month, after China’s economic growth matched economists’ estimates and U.S. housing starts jumped. Meanwhile, China’s gross domestic product expanded 7.4% in the third quarter from a year earlier. Japan’s Nikkei ended with strong gains, after the economy minister yesterday called for stronger stimulus from the Bank of Japan, which convenes at the end of the month, while Hong Kong market closed with marginal gains.