Post session - Quick review

It turned out to be a productive session of trade at D-street, despite listless global cues, wherein investor’s impressed by slew of government measures, invested their funds into risky asset class such as equities. Benchmark equity indices, after taking a breather in the previous session, resumed their gaining trajectory after UPA government on Thursday partially deregulated diesel prices by announcing that henceforth, the price of the fuel would be decided by oil marketing companies (OMCs). However, government also hiked the cap on the annual supply of subsidized cooking gas cylinders to nine from six per household starting 1 April. The government had on Wednesday sought permission from the Election Commission (EC) for the same.

Hectic buying activity in Oil & Gas counter, mainly powered Indian equity markets, which after getting a flattish start gradually gained stream to conclude with gains of close to a percent. Spurt of downstream oil companies, after petroleum minister M Veerappa Moily announced a go ahead for oil marketing companies to raise diesel prices along with 52 week high level of Index heavyweight, Reliance Industries ahead of its Q3 earnings on Friday, kept the Oil & Gas pivotal in leading space. Otherwise, gains of Realty, TECk, Public Sector undertaking counters, also buttressed the sentiment. Buying activity, which was seen in 11 out of 13 sectoral pivotals on BSE, saw Capital Goods and Healthcare counters ending down in dumps.

Nevertheless, gaining the lost momentum in today’s session, 30 share barometer index, Sensex, accumulating over 150 points, finished above 19950 psychological level, with 50 share widely followed index, Nifty, too ending above the crucial 6000 bastion. However, session turned out to be less beneficial for broader indices, which even saw Smallcap index ending below its neutral line. Meanwhile, Midcap index accumulating traction, finished with gains of over 2/10 percent.

On the global front, Asian markets mostly ended lower, day before China’s fourth quarter growth data could be unveiled. Friday's data will provide investors with an opportunity to see whether the economic recovery is still on track. China's gross domestic product is expected to rise 7.8% from a year earlier in the final quarter of 2012, up from 7.4% growth in the third quarter. Moreover, European shares were trading mixed on account of concerns over the outlook for growth and corporate earnings. Worries about the global economic outlook have revived since the World Bank cut its 2013 forecast for global growth to 2.4 percent from its previous estimate of 3 percent, citing the prospect of poor performance across the developed world.

Closer home, benchmark equity indices commencing trade on flat to positive start, remained lackluster in early deals in absence of any positive trigger and mostly negative regional counterparts. However, much of the support was rendered from PSU, Realty and IT stocks. PSU shares were trading active ahead of government authorization to the National Investment Fund (NIF) to buy shares of public sector enterprises. Carrying its disinvestment policy forward, the government today permitted the National Investment Fund (NIF) to buy shares of public sector enterprises, including banks and insurance companies. Meanwhile, Technology shares gained after HCL Technologies beat street estimates with a 68.4 percent jump in quarterly profit. Further, even Telecom stocks, viz, Tata Tele Services and Reliance Communication scooped up gains after Cabinet decided to slash CDMA spectrum price by 50 percent.  The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 887:831while 1302 scrips remained unchanged. (Provisional)

The BSE Sensex gained 132.78 points or 0.67% and settled at 19950.41. The index touched a high and a low of 20005.98 and 19783.41 respectively. 18 stocks were seen advancing while 12 stocks were declining and one remain changed on the index (Provisional)

The BSE Mid-cap index was up by 0.19% while Small-cap index was down by 0.02%. (Provisional)

 On the BSE Sectoral front, Oil & Gas was up by 2.79%, Realty up by 2.01%, TECk up by 1.59%, IT up by 1.38% and PSU up by 1.31% were the top gainer, while CG down by 0.59%, HC down by 0.06% and Bankex down by 0.05% were the top losers in the space. (Provisional)

The top gainers on the Sensex were ONGC up by 3.63%, Bharti Airtel up 3.23%, RIL up by 3.09%, Wipro up by 3.08% and Tata Motors up by 2.59%, while, Cipla down by 2.09%, ICICI Bank down by 1.39%, Bajaj Auto down by 1.14%, Hindalco Industries down by 0.93% and Hero MotoCorp down by 0.92% were the top losers in the index. (Provisional)

Meanwhile, the Cabinet has approved the decision to raise cap on subsidized LPG cylinders from six to nine, effective from April, 2013. The cabinet also allowed the oil companies to increase the diesel prices by a ‘small quantum’ periodically. For the current financial year, consumers will get a quota of five subsidized cylinders between September 2012 and March 2013 and from April 1, 2013, they will be entitled to nine cylinders per annum.

After the cabinet meeting, Petroleum Minister Veerappa Moily said, the decision to increase the number of subsidised liquefied petroleum gas (LPG) cylinder to each household comes immediately into effect. Further, petroleum minister added that oil companies have been permitted to raise diesel prices by a small quantum periodically till such time that they are able to cover present loss of Rs 9.60 per litre on the fuel. However, no decision was taken about hiking price of kerosene and LPG cylinder. 

India VIX, a gauge for markets short term expectation of marginally gained 0.14% at 14.01 from its previous close of 13.99 on Wednesday. (Provisional)

The S&P CNX Nifty gained 34.20 points or 0.57% to settle at 6,036.05. The index touched high and low of 6,053.20 and 5,988.10 respectively. 32 stocks advanced against 18 declining ones on the index. (Provisional)

The top gainers on the Nifty were HCL Tech was up by 4.62%, BPCL up by 3.56%, ONGC up by 3.26%, Reliance up by 3.09% and DLF was up by 3.04%. On the other hand, Cipla down by 2.25%, Reliance Infrastructure down by 2.03%, ACC down by 1.77%, Ranbaxy down by 1.51% and HDFC down by 1.48% were the top losers. (Provisional)

The European markets were trading in mixed with, Germany’s DAX down by 0.32% and the United Kingdom’s FTSE 100 down by 0.06% while France’s CAC 40 up by 0.41%.

Asian markets ended mostly lower after a volatile session on Thursday, with mainland Chinese market extending losses from recent highs as investors took some profit ahead of key economic growth data due on Friday. Hong Kong market also closed lower, weighted down by property stocks. However, Japan's Nikkei went home with green mark after yesterday's corrective plunge. The Bank of Japan's policy meeting next week will be the major trigger for the market, as it will give investors a chance to see how much the central bank aligns its policy with the new government's monetary policy goals.