Post session - Quick review

Benchmarks equity indices bid-adieu to the month of October on positive note as investors look ahead to string of data set to trickle in the early November. Intra-day recovery of the bourses accompanied with sanguine European counterparts mainly led to positive session of performance at D-Street. However, bourses also managed to clock modest gains on lower level buying of select fundamentally strong blue chip stocks available at attractive valuations, after previous session’s brutal sell-off. Indian equity markets after getting a mute start, gained a lot of ground in the last leg of the trade, which led to 30 share index, Sensex, ending near the high point of the day and reclaiming the 18500 mark. Similarly, widely followed index, Nifty, too garnering gains of over 3/10 percentage settled above the psychological 5600 level. However, the session clearly belonged to broader indices, which swept gains of over half a percent.

On the global front, Asian pacific shares made a mixed close on Wednesday, as investors look ahead to a series of important political and economic events set to unfold in early November. Meanwhile, European shares scooped up gains as investors looked ahead to key economic data and waited for Wall Street to re-open after a two-day closure with the passage of a powerful storm.

Closer home, some anxiety was also witnessed in early deals after Parthasarathi Shome committee, set up to re-examine the General Anti-Avoidance Rules (GAAR) proposed by former finance minister Pranab Mukherjee in this year's budget, reportedly presented its final recommendations to current finance minister P Chidambaram today, the outcome of which would be public by November 1, 2012. The panel's final suggestions are said to be largely in line with its draft report, already made public earlier this month. A major point is that the new tax rules should be applied only to future indirect asset transfers; but if at all the government decides to levy such taxes retrospectively, interest and penalty should be waived.

Sectorally, pharmaceuticals and Auto counters mainly spurted gains across Dalal Street. Further, even Realty and Metal gaining momentum emerged as the prominent gainers on BSE sectoral front. On the flip side, Capital Goods, Oil & Gas and Fast Moving Consumer Goods counters witnessed the sharp brunt of profit-booking. Optimism was spelled across Healthcare sector with the robust earnings of Glenmark Pharmaceuticals, which accelerated over 7 percent a day after its July-September quarter earnings almost tripled. Additionally, even Auto shares speed drove ahead of reporting October sales numbers, which are expected mostly to be higher given the start of the festive season. Moreover, Media stocks too shot higher on Wednesday after the government reported that digitization reaching 93% in the 4 metro cities till October 30, 2012. Sun TV Network climbed the most with rise 2.26%, followed by Dish TV India (1.35%) and Hathway Cable & Datacom (1.78%).

Furthermore, banking stocks also rose on account of short covering. Banking pivotal witnessed huge selling in the previous session on the back of Reserve Bank's new provisioning norms for restructured assets and also on account of centeral bank’s status quo stance in Second quarter monetary policy review 2012-13. PSU lenders - State Bank of India and Punjab National Bank - ended with over 1 per cent gains. 

On the result front, Bank sector earnings were complete hit among investor’s today. State-owned lender Jammu and Kashmir Bank, scaled a 52 week high, on reporting a growth of 35 percent year-on-year in its net profit at Rs 269.5 crore for the quarter ended September 2012 due to lower provisions. Additionally, Karur Vysya Bank’s too touched a 52 week high level after the old generation private sector lender’s net profit grew by 17.7 percent year-on-year to Rs 133 crore in the July-September quarter of financial year 2012-13 owing to decline in non-performing assets (NPAs).

Meanwhile, NHPC shares too eked out gains of close to quarter percent even after the company’s net profit for quarter ended September 30, 2012 declined by 19%. Additionally, LIC Housing Finance too scooped up gains of over 3/10 percent after the company’s September-quarter profit more than doubled to Rs. 243 crore from Rs.98 crore a year earlier because of rising interest income.

However, disappointment crept in at D-Street with stocks of TVS Motor Company, which witnessed a sharp cut of over 2 percent after, the company’s second quarter net profit declined 41 percent year-on-year to Rs 45 crore amid slowdown in sales across its motorcycle and scooter brands, although three-wheeler sales increased. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1454:1313 while 150 scrips remained unchanged. (Provisional)

The BSE Sensex gained 67.75 points or 0.37% and settled at 18,498.60. The index touched a high and a low of 18,521.62 and 18,398.48 respectively. 20 stocks were seen advancing while 10 stocks were declining on the index (Provisional)

The BSE Mid-cap index was up by 0.84% while Small-cap index was up by 0.52%. (Provisional)

On the BSE Sectoral front, Health Care up by 1.78%, Auto up by 1.58%, Realty up by 1.36%, Metal up by 1.24% and TECk up by 0.58% were the top gainers, while Capital Goods down by 0.30%, Oil & Gas down by 0.30% and FMCG down by 0.07% were the top losers in the space.

The top gainers on the Sensex were Hindalco Industries up 5.18%, Maruti Suzuki up 3.19%, Tata Motors up by 3.01%, Cipla up by 2.72% and Jindal Steel up 1.86%, while, Gail India down by 1.76%, ONGC down by 1.67%, BHEL down by 1.53%, L&T down by 0.73% and Tata Steel down by 0.48% were the top losers in the index. (Provisional)

Meanwhile, Disappointing the tactical measures taken by the government to garner more foreign investments for triggering financial health of the nation, the Department of Industrial Policy and Promotion has reported that the foreign direct investment (FDI) in India has dipped by 20% to $2.26 billion in the month of August with respect to same month last year’s $2.83 billion worth foreign inflows, while in July month foreign investments were about 60%.

However, the centre has expressed hopes that relaxation of investment caps in FDI in multi- brand retail and civil aviation would aid in garnering more investments to the country in the coming months. It also affirmed the significance of foreign investments as India needs fund above $1 trillion over the next five years for its infrastructure developments in sector like ports, airports and highways.

The pummeled foreign inflows are likely to weigh on the country's balance of payments (BoP) and could also impact on rupee. The major shares of FDI inflows in the month has reached the sectors like services with $2.28 billion, automobile about $617 million, for construction $601 million and metallurgical by about $595 million.

The major contributors to FDI in India are Mauritius with $2.53 billion, Japan with $1.16 billion, the Netherlands with $923 million, the UK with $570 million and Singapore with $961 million. While the foreign inflows for the financial year in 2011-12 was about $36.50 billion, with respect to 2010-11’s $19.42 billion and 2009-10’s $25.83 billion. 

India VIX, a gauge for markets short term expectation of volatility lost 5.07% at 14.40 from its previous close of 15.17 on Tuesday. (Provisional)

The S&P CNX Nifty gained 16.95 points or 0.30% to settle at 5,614.85. The index touched high and low of 5,624.40 and 5,583.05 respectively. 33 stocks advanced against 17 declining ones on the index. (Provisional)

The top gainers on the Nifty were Hindalco Industries was up 5.23%, Maruti Suzuki up 3.43%, Cipla up 2.89%, Tata Motors up 2.77% and Sesa Goa was up 2.49%. On the other hand, Reliance Infrastructure down 2.74%, Gail India down by 1.87%, BHEL down by 1.77%, ONGC down by 1.72% and Ultratech Cement down by 0.90% were the top losers. (Provisional)

The European markets were trading in green with, France’s CAC 40 up 0.52%, Germany’s DAX up 0.69% and the United Kingdom’s FTSE 100 up 0.02%.

Asian stock markets went home on mixed note amid better news in Europe both on the earnings and the fiscal front, which improved investors risk appetite. Meanwhile, South Korean industrial production data and earnings reports from some regional companies also helped markets to extend the gains. Japan’s Nikkei ended higher, recovering from the sharp fall in the previous session as the Bank of Japan’s (BoJ) expansion of its asset-buying program failed to ease fears over economic growth. Hong Kong markets closed with green mark with surge in regional companies, while Seoul shares advanced after industrial output data.