Post session - Quick review

Local equity markets yet again witnessed a range bound session of trade amidst growing hopes of FDI in Retail soon turning into reality, with UPA government making an all-out effort to woo friendly parties to elicit their support, by voting in the favour of the motion. Adding to optimism, the Samajwadi Party (SP) today said that it was against the move but would not do anything to 'trouble the UPA government'. This political development, which besides bolstering the sentiment of local equity markets also provided a fillip to the Indian currency, which moving sharply led to obliteration of Information Technology shares. However, IT shares along with Power and healthcare counters, turned out to be the weak pockets of trade. IT shares also crashed on the fears of New Jersey based-Cognizant Technology Solutions Corp issuing lower revenue growth guidance for 2013 based on compensation targets for top executives. Cognizant, in a filing to the US market regulator Securities and Exchange Commission (SEC) on Tuesday said its top executives will receive 100 percent of their performance-linked shares if the company achieves revenue of $8.5 billion next year, a 16 percent rise over its projected 2012 revenue. Nevertheless, Realty, Metal and Oil & Gas emerging as top performer’s of trade, kept the trend upbeat for D-street, which saw 30 share index, Sensex, settling at 19400 level and  Nifty, settling above the 5900 bastion, it’s best since April, 13, 2011. Broader indices, too drew buying interest and went home with gains of over half a percent.

On the global front, Asian shares ended higher on Wednesday, led by surge in Chinese equities, but concerns over US lawmakers can break a budget impasse before year-end to avert a possible economic slump capped the gains to some extent. Chinese shares were boosted by remarks late on Tuesday from new Communist Party chief Xi Jinping, who said that the government aimed to stabilise exports and make policies more targeted and effective. Meanwhile, European shares continued their recent rally on Wednesday.

Closer home, markets after making a firm start, dipped to intra-day low in the noon deals after India’s services sector logged a growth at its weakest pace in over a year during November. Registering a 13-month low and suggesting an economy limping towards its slowest growth for the year in a decade, the HSBC services Purchasing Managers' Index (PMI), fell to 52.1 in November from October’s 53.8. However, market momentum returned with the opening of European markets. Although profit-booking was yet again witnessed in last leg of the trade, the belief that government would do anything to float FDI in Retail aided D-street.  The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1680:1232 while 114 scrips remained unchanged. (Provisional)

The BSE Sensex gained 33.16 points or 0.17% and settled at 19,381.28. The index touched a high and a low of 19,463.25 and 19,371.01 respectively. 15 stocks were seen advancing and 15 stocks were declining on the index. (Provisional)

The BSE Mid-cap index was up by 0.34% while Small-cap index was up by 0.51%. (Provisional)

On the BSE Sectoral front, Realty up 2.69%, Metal up by 1.61%, Oil & Gas up by 0.67%, Bankex up 0.58% and PSU up 0.47% were the top gainers, while IT down by 1.22%, TECk down by 0.95%, Power down by 0.60%, Health Care down by 0.22% and Auto down by 0.01% were the only losers in the space.

The top gainers on the Sensex were Sterlite Industries up 5.79%, Hindalco Industries up by 3.51%, Tata Steel up 2.34%, SBI up 1.64% and Tata Motors up 1.36%, while, Tata Power down by 3.53%, Wipro down by 1.88%, Infosys down by 1.62%, Bajaj Auto down by 1.25% and M&M down by 0.95% were the top losers in the index. (Provisional)

Meanwhile, coming in sharp contrast to the manufacturing PMI, India’s services sector logged a growth that is at its weakest pace in over a year during November. The HSBC services Purchasing Managers' Index (PMI), fell to 52.1 in November from October’s 53.8, registering a 13-month low and suggesting an economy limping towards its slowest growth for the year in a decade.  The HSBC India Composite Output Index posted 53.2 in November, slightly down from 53.5 in October.

The report pointed out that though, manufacturing and services firms both signaled higher employment, the overall rate of job creation was only minor and the payroll numbers were increased just to meet production requirements. Manufacturing and services companies both recorded increases, although power shortages hampered manufacturing production. Services firms linked growth in new orders to rising demand, increased marketing and maintained quality of services.

November data signaled persistent inflationary pressure in the Indian private sector as input and output prices both increased. However, optimism which stood at three months high was signaled in the Indian service sector during November.

India VIX, a gauge for markets short term expectation of volatility gained 4.46% at 16.62 from its previous close of 15.91 on Tuesday. (Provisional)

The S&P CNX Nifty gained 17.85 points or 0.30% to settle at 5,907.10. The index touched high and low of 5,917.80 and 5,891.35 respectively. 30 stocks advanced against 19 declining ones while 1 stock remained unchanged on the index. (Provisional)

The top gainers on the Nifty were Sesa Goa was up 5.27%, DLF up 4.46%, Hindalco Industries up 3.37%, PNB up 3.07% and BPCL was up 2.32%. On the other hand, Tata Power down 3.36%, Infosys down by 2.02%, Wipro down by 1.71%, HCL Tech down by 1.41% and Ultratech Cement down by 1.34% were the top losers. (Provisional)

The European markets were trading in green with, France’s CAC 40 up 0.32%, Germany’s DAX up 0.30% and the United Kingdom’s FTSE 100 up 0.29%.

Asian markets ended higher on Wednesday, led by gains in Chinese equities, on the back of new Communist Party chief Xi Jinping’s statement that the government aimed to stabilize exports and make policies more targeted and effective. However, concerns over whether US lawmakers can resolve a budget impasse before year-end to avert a possible economic slump, restricted more gains. Japan’s Nikkei went home with green mark in somewhat light trading, while Kospi ended up after touching its highest level since October 18.