Post session - Quick review

Benchmark indices for Indian equities markets witnessed a brutal laceration of close to a percent on the last trading session of the week due to disappointing earnings of blue-chip firms like State Bank of India (SBI), Tata Steel and Oil & Natural Gas Corporation (ONGC). Snapping six day’s gaining streak in the previous session, Indian equity markets extended losses as market-men squared off their position ahead next big trigger - industrial output which is likely to grow at a steady but slow annual pace in September, lifted by infrastructure output, in what is likely to be further evidence of a sluggish economy. Besides gloomy domestic happenings, feeble global cues also added to the bearish sentiment at D-street. In disappointing session of trade, 30 share barometer index, Sensex, offloaded over massive 150 points, to end below the psychological 18700 level, while 50 share benchmark index, Nifty, too knocked of over 50 points, to conclude sub crucial 5700 mark. Broader indices too succumbed to profit booking and went home with loss of over 3 /4 percent. For the week, Sensex and Nifty were down and out by 0.30% and 0.20% respectively. Meanwhile, NSE Midcap index and BSE Smallcap index went home with gains of over 0.20% and 0.40% respectively.

On the global front, Asian shares extended losses on Thursday as market fretted over US fiscal crisis and the risk of it tipping the world's largest economy into recession. Meanwhile, European shares traded lower on Friday as uncertainty about a new bailout deal for Greece and some disappointing earnings from European companies added to concerns about a looming 'fiscal cliff' in the United States. Worries about Greece resurfaced on Thursday after German Finance Minister Wolfgang Schaeuble said next week may still be too early to make a decision on granting further aid to Athens, despite a successful vote on new austerity measures.

Closer home, other PSU banks like Allahabad Bank, Andhra Bank, Bank of India, Canara Bank, Central Bank of India, Dena Bank, IOB, Indian Bank, OCB, UCO Bank and Union Bank, all came under pressure after country’s largest lender that disappointed the street by its second quarter numbers. Although, SBI reported 30 per cent year-on-year jump in quarterly profits for the fiscal second quarter ending September 2012 at Rs 3,660 crore aided by lower provisioning for bad loans, the gross Non-performing assets (NPAs) stood at 5.15% versus 4.99% quarter-on-quarter. 

Although across the board carnage was witnessed, shares from Realty, Public Shares Undertaking and Metal counters suffered the major brunt of profit booking. However, even Auto stocks succumbing to profit-taking ended with a loss of close to half a percent even after reports showed that Car sales in India grew at their fastest pace in 22 months in October from a low base a year ago, helped by festive season demand that offset high ownership costs, but the industry remains cautious about the future.

On the result front, most of corporate earnings were a major disappointment; ONGC shares plummeted over a massive 3% after the company’s net profit for second quarter 2012-13 stood at Rs 5896.57 crore against Rs 8642.23 crore in the same period previous year on account of higher subsidy outgo. Additionally, Tata Steel shares too took a knock of over 3% after the company reported on Friday a surprise quarterly loss of Rs 364 crore, as weakening demand and prices in its main European market offset a solid performance at home. Further, IOC dropped a percent even after turning black in Q2. The company has reported a net profit of Rs 9611.35 crore for the quarter ended September 30, 2012 as compared to net loss of Rs 7485.55 crore for the same quarter in the previous year. Furthermore, State-owned Bharat Petroleum Corp (BPCL) too concluded with loss of half percent even after reporting net profit of Rs 5,034.79 crore for the July-September quarter, as against Rs 3,229.27 crore loss in the year-ago period, after the government released part of the fuel subsidy.  The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1133:1720 while 124 scrips remained unchanged. (Provisional)

The BSE Sensex lost 169.22 points or 0.90% and settled at 18,677.04. The index touched a high and a low of 18,894.42 and 18,656.41 respectively. 3 stocks were seen advancing while 27 stocks were declining on the index (Provisional)

The BSE Mid-cap index was down by 1.04% while Small-cap index was down by 0.68%. (Provisional)

On the BSE Sectoral front, there were no gainers, while Realty down by 1.79%, PSU down by 1.69%, Metal down by 1.64%, Oil & Gas down by 1.39% and Bankex down by 1.25% were the top losers in the space.

The top gainers on the Sensex were Maruti Suzuki up by 0.34%, ITC up 0.33% and Cipla up 0.14%, while, SBI down by 4.04%, Tata Steel down by 3.88%, ONGC down by 3.00%, BHEL down by 2.46% and Sterlite Industries down by 2.43% were the top losers in the index. (Provisional)

Meanwhile, in a clear reflection of the deceleration in industrial growth and subdued economic activity, gross direct tax collection grew at a mere 6.59% during the April-October at Rs 3.02 lakh crore vis-a-vis Rs 2.84 lakh crore in same period a year ago. Net direct tax collection, however, went up by 14.63 per cent to Rs 2.50 lakh crore during the first seven months of 2012-13, as against Rs 2.18 lakh crore in the same period last year.

Subdued corporate tax realization on account of slow economic activity is the major culprit for less than expected direct taxes growth. Corporate tax collection during the period grew by just 2.01% at Rs 1.93 lakh crore as against Rs 1.89 lakh crore during the corresponding period last fiscal.  The personal income tax collection, however, was up by 15.78% at Rs 1.08 lakh crore as against Rs 93,769 crore in first seven month of the last fiscal. Wealth tax collection recorded a growth of 25.84% at Rs 526 crore, against Rs 418 crore in same period last year. On the flip side, Securities Transaction Tax (STT) collection declined by 15.42 per cent at Rs 2,502 crore in the April-October period as against Rs 2,958 crore in the April-October period a year ago.

Finance Minister P Chidambaram had, however, expressed confidence of meeting the direct tax target of Rs 5.70 lakh crore for 2012-13. He added that collections would improve in the second half of the fiscal and the Government would achieve the 15 per cent growth target during the financial year.

India VIX, a gauge for markets short term expectation of volatility gained 1.05% at 14.37 from its previous close of 14.22 on Thursday. (Provisional)

The S&P CNX Nifty lost 52.40 points or 0.91% to settle at 5,686.35. The index touched high and low of 5,751.70 and 5,677.75 respectively. 7 stocks advanced against 42 declining ones while 1 stock remained unchanged on the index. (Provisional)

The top gainers on the Nifty were Cairn India was up 1.01%, Ultratech Cement up 0.71%, Power Grid Corporation up 0.63%, Maruti Suzuki up 0.27% and Grasim Industries was up 0.10%. On the other hand, SBI down 3.98%, Tata Steel down by 3.89%, ONGC down by 3.07%, IDFC down by 2.90% and Sesa Goa down by 2.83% were the top losers. (Provisional)

The European markets were trading mixed with, France’s CAC 40 up 0.03%, Germany’s DAX down 0.52% and the United Kingdom’s FTSE 100 down 0.15%.

Asian shares ended mixed on Friday, as investors’ sentiments were weighed down by worries over the risk of a looming fiscal crisis in the world's largest economy, while Europe still expects a bailout for Greece. However, better than expected Chinese data showing inflation at a new three-year low rendered some hope, giving authorities more space to ease the monetary policy, while industrial output figures were also in favor of growth. Shanghai ended down despite of in line economic data, while Nikkei touched biggest one-day percentage drop in two months.