Post session - Quick review

Expiry session of November series futures and options (F&O) contract turned out to be breathtaking, whereby benchmarks equity indices getting plethora of positive development, staging best of CY12 moves. Registering second consecutive session of gains, local equity markets managed to stage spectacular rally of close to 2%, after government accepting opposition's demand for a debate over the issue of allowing FDI in retail under a rule that entails voting, put an end to the four day’s long logjam in Parliament. Sentiments were also flared up with the optimistic comments of US President Obama, who was hopeful that a “framework” for deficit reduction would be worked out before Washington disperses for the holidays as he urged Congress to act quickly and extend tax cuts for 98 percent of Americans. Additionally, buyer’s also got that extra shot of encouragement, after Goldman Sachs raised India to 'overweight' from 'market-weight', citing growth recovery and inflation moderation ahead. In the session, where participation and conviction both remained on the upside, 30 share barometer index of Bombay Stock Exchange (BSE), Sensex, shot up over massive 300 points to end past the 1900 level. Similarly, widely followed index, Nifty, spurting over 100 points and concluding past 5800 level, settled at its best since April 28, 2011. In broader space, Midcap index garnered over a percentage point, while Smallcap index, managed to shut shop with gains of over half a percent. Trade of over massive 3.92 lac crore was done in terms of market turnover.

On the global front, world shares hit three-week peaks on Thursday as comments from a senior US lawmaker raised hopes of a budget deal by year-end to avoid a fiscal crisis in the world's biggest economy. U.S. shares jumped overnight after House of Representatives Speaker John Boehner voiced optimism that Republicans could broker a deal with the White House to avoid a $600 billion crunch of spending cuts and tax hikes dubbed the 'fiscal cliff'.

Closer home, rate sensitive’s, Realty, Bankex and Auto counters, toppled the buying list ahead of the Q2 GDP release on Friday. On the flip side, Information Technology and Technology stocks, and emerged as the sole losers. Retail stocks, Pantaloon Retail, Trent and Reisix Ten Retail, with no surprises ended in green after four day long logjam in Parliament over FDI in Retail issue finally came to an end.

On the F&O front, Nifty and Sensex, for November series, registered gains of 2.10% each, as against 1% profit in October series. Moreover, in the broader markets, CNX Mid Cap index garnering gains of over 2.6% not only outperformed frontline equity indices, but also BSE Smallcap index, which ended with gains of over 1%.

From the expiry perspective, as on November 27, 2012 market wide rollover of 60.97% was observed, which was lower than the three month average of 61.89% while Nifty rollovers were at 54.54%, marginally higher than three month average of 51.65%. Sectorally, capital goods, metals and power space witnessed high rollover of positions while banking, oil & gas and technology stocks observed relatively low rolls into the December series. Among individual stocks, Wipro (39%), HDFC (40%) and Ambuja Cement (41%) witnessed low rolls while BHEL (72%), Sterlite (69%) and Tata Motors (67%) observed better rollover into December series. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1679:1263 while 120 scrips remained unchanged. (Provisional)

The BSE Sensex gained 341.68 points or 1.81% and settled at 19183.76. The index touched a high and a low of 19205.33 and 18873.63 respectively. 26 stocks advances against 4 stocks declines on the index (Provisional)

The BSE Mid-cap index was up by 1.39% while Small-cap index was up by 0.52%. (Provisional)

On the BSE Sectoral front, Realty up 3.52%, Bankex up by 3.09%, Auto up by 1.98%, CD up 1.84% and CG up by 1.61% were the gainers while IT down by 0.45 and Teck down by 0.07% were the only losers in index. (Provisional)

The top gainers on the Sensex were ICICI Bank up 5.00%, Tata Motors up by 4.35%, Bajaj Auto up 4.28%, Ciplaup 4.07 % and Sterlite Inds up 3.48%, while, Infosys down by 1.18%, Maruti Suzuki down by 0.89% and BHEL down by 0.78% were the only losers in the index. (Provisional)

Meanwhile, the Rajiv Gandhi Equity Savings Scheme (RGESS), introduced by the government in current budget, has been notified the Central Board of Direct Taxes (CBDT). This scheme seeks to encourage small investors to channelise their savings into domestic capital markets.

RGESS has been framed consequent to the introduction of Section 80CCG in the Finance Act 2012. Under this scheme, only a one-time deduction will be available to a “new retail investor” i.e. one who has not invested in any equity, derivatives prior to the notification. The deduction will be available to a new retail investor who complies with the conditions of the scheme.

According to the scheme, investor’s gross total income should be less than Rs 10 lakh for the financial year, in which investments are made. Also, investor can avail maximum deduction upto Rs 50,000 in a financial year. The eligible securities can be held for three years with fixed lock-in of first year and a flexible lock-in period of two years. In the 'flexible lock-in' period, investors will be permitted to trade, subject to conditions.

India VIX, a gauge for markets short term expectation of volatility lost 10.10% at 15.37 from its previous close of 13.96 on Monday. (Provisional)

The S&P CNX Nifty gained 97.55 points or 1.70% to settle at 5,825.00. The index touched high and low of 5,833.50 and 5,736.10 respectively. 43 stocks advanced against 7 declining ones on the index. (Provisional)

The top gainers on the Nifty were ICICI Bank was up 4.92%, Asian Paint up 4.51%, Tata Motors up 4.46%, Bajaj Auto up 4.11% and Cipla was up 4.02%. On the other hand, Infosys down by 1.40%, Maruti Suzuki down by 0.84%, Hero Motoco down 0.83%, BHEL down by 0.76% and HCL Tech down by 0.45% were the only losers. (Provisional)

The European markets were trading in green with, France’s CAC 40 up by 1.05%, Germany’s DAX down by 0.83% and the United Kingdom’s FTSE 100 down by 0.92%.

Asian markets ended broadly higher on Thursday after touching three weeks high on improvement in global sentiment after a senior U.S. lawmaker said he was optimistic on reaching a budget deal before the end of the year to avoid a fiscal crisis. Japan's Nikkei went home with strong gains, as exporters were benefitted by the ongoing weakness in the yen, which boosted the outlook for export earnings. Meanwhile, Hong Kong market closed higher with blue-chip exporters amongst the most notable gainers. However, Chinese shares ended lower for the fourth-consecutive day.