Post session - Quick review

Dilly-dallying for the entire session of trade, benchmark equity indices settled in the favour of red albeit with slender losses. However, downside chances of the markets were capped by the upmove of banking stocks, which picked up pace after government's announcement that public sector banks, reeling under asset quality issues, be re-capitalised. After a crucial meet of Cabinet Committee on Economic Affair, finance minister P Chidambaram reported that about 9-10 banks will be infused with Rs 12,200 crore. State Bank of India (SBI) scooped up gains of close to half a percent, while, Punjab National Bank (PNB) too ended in green zone. Meanwhile, stocks of oil companies, which also witnessed good demand on hopes of a hike in fuel prices that might reduce subsidy burden and improve revenue, also managed to restrict of bourses, besides positive global cues.

Thus, in the highly volatile session of trade, benchmark 30 share index, Sensex, despite settling sub pre-closing levels, managed to hold 19650 mental level, which turned out to be a strong support level. Although Sensex, even dipped below 19600 level, soon recovered ground.  Similarly, widely followed index, Nifty, despite losing some steam, settled above 5950 bastion. However, broader indices showcasing degree of underperformance, concluded with cut of close to half a percent.

On the global front, stronger-than-expected Chinese trade data led to positive momentum of Asian pacific shares. Chinese shares closed higher as its exports grew 14.1% in December from a year ago, while imports grew 6% on the year, double the forecast, boosting the country's trade surplus to $31.6 billion, from a surplus of $19.6 billion in November and sharply above a forecast of $19.7 billion. Moreover, European shares saw modest early gains on Thursday after more evidence of improving economic conditions in China, though investors were cautious before a policy decision from the European Central Bank later in the session.

Closer home, sentiment turned sour with reports, which stated HSBC slashing India GDP forecast further for FY13, FY14. Citing slowdown in the economy turning to be more structural than cyclical, HSBC has slashed India’s growth forecast for this fiscal year and next fiscal to 5.2% and 6.2% from 5.7% and 6.9% respective projections earlier. Additionally, selling pressure too were exerted stocks from Power, Health Care and Metal counters. Shares of select Power companies, namely Indiabulls Power and BHEL dropped after Barclays Capital and Citigroup warned that the two thermal power projects with which the two companies were involved with could have been held up for financial irregularities. Further, even Telecom stocks too rang-off after reports suggested of government likely fetching over Rs 23,000 crore from levy of one-time spectrum fee on existing operators for holding radio waves beyond a prescribed limit. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1165:1806 while 128 scrips remained unchanged. (Provisional)

The BSE Sensex lost 9.79 points or 0.05% and settled at 19656.80. The index touched a high and a low of 19783.75 and 19596.38 respectively. 7 stocks were seen advancing while 23 stocks were declining on the index (Provisional)

The BSE Mid cap and Small cap indices decline 0.56% and 0.58% respectively. (Provisional)

 On the BSE Sectoral front, Bankex was up by 0.62%, Oil & Gas up by 0.49%, PSU up by 0.30%, Auto up by 0.24% and FMCG up by 0.06% were the top gainers, while Power down by 1.02%, Health Care down by 0.82%, Metal down by 0.77%, Capital Goods down by 0.64% and TECk down by 0.53% were the top losers in the space.

The top gainers on the Sensex were ONGC up by 3.60%, Tata Motors up by 2.10%, HDFC Bank up by 1.02%, SBI up by 0.53% and ITC up 0.25%, while, BHEL down by 2.17%, Hindalco Industries down by 1.89%, Bharti Airtel down by 1.86%, Sterlite Industries down by 1.71% and NTPC down by 1.19% were the top losers in the index. (Provisional)

Meanwhile, the government is expected to get over Rs 23,000 crore from levy of one-time spectrum fee on existing operators for holding radiowaves beyond a prescribed limit. The government in this regard has issued notices to telecom companies including Bharti Airtel, Vodafone and BSNL, MTNL, Aircel and Reliance Communications for the excess spectrum they hold beyond the prescribed limit. 

To be more precise, the government is expected to get Rs 4,251.83 crore from retrospective charges, Rs 18,925.82 crore from prospective charges. In all Rs 23,977.65 crore is expected from levy of one-time spectrum fee.

State-owned BSNL will have to pay around Rs 6,912 crore, Bharti Airtel - Rs 5,201 crore, Vodafone - Rs 3,599 crore, MTNL - Rs 3,205 crore, Idea Cellular - Rs 2,113 crore (includes Rs 231.5 crore of Spice), Aircel - Rs 1,365 crore (includes Rs 14 crore of Dishnet), Loop Mobile - Rs 606 crore and Reliance Communications - Rs 173 crore.

Earlier, for pan-India operations, telecom firms were given 4.4 MHz spectrum with license for Rs 1,658 crore and later were permitted to get another 1.8 MHz on fulfillment of certain subscriber-base criteria. However, in November, the government decided that the telecom operators will have to pay charges for holding spectrum above 6.2 MHz retrospectively, for the period of July 2008 to January 1, 2013. For spectrum above 4.4 MHz, they would have to pay for the remaining period of their licences starting January 1, 2013.

 India VIX, a gauge for markets short term expectation of volatility lost 0.37% at 13.27 from its previous close of 13.32 on Wednesday. (Provisional)

The S&P CNX Nifty lost 10.15 points or 0.17% to settle at 5,961.35. The index touched high and low of 6,005.15 and 5,947.30 respectively. 12 stocks advanced against 38 declining on the index. (Provisional)

The top gainers on the Nifty were ONGC was up by 3.49%, Tata Motors was up by 1.99%, Bank of Baroda was up by 1.60%, Axis Bank was up by 1.58% and Hdfc Bank was up by 1.03%. On the other hand, Ultra Tech Cement down by 3.18%, Ambuja Cements down by 2.79%, Sesa Goa down by 2.11%, Hindalco Industries down by 2.08% and BHEL down by 2.05% were the top losers. (Provisional)

Most of European markets were trading in green, Germany’s DAX up by 0.31% and the United Kingdom’s FTSE 100 up by 0.18%. On the other hand, France’s CAC 40 down by 0.04% was the sole loser in space.

Asian markets ended mostly higher on Thursday on the back of stronger-than-expected Chinese trade data, which raised the hopes for recovery in the world's second-largest economy. Chinese shares closed higher as its exports grew 14.1% in December from a year ago, while imports grew 6% on the year, double the forecast, boosting the country's trade surplus to $31.6 billion, from a surplus of $19.6 billion in November and sharply above a forecast of $19.7 billion. Moreover, Hang Seng and South Korea's Kospi Composite also turned positive after the trade data. Japan's Nikkei extended early sessions’ gains and went home with green mark as the yen resumed its weakening trend.