Post session - Quick review

Benchmark equity indices, protracting previous session’s euphoria, fervently went on gaining ground, to conclude with modest gains of over and close to half a percent. Gains for the fourth out five sessions at D-street, were led by shares in state-run oil firms, which surged for a second day on Friday, with ONGC gaining 7%, after government’s diesel price hike was seen reducing their subsidy burden. In bold reforms, the government on Thursday moved towards partially deregulating diesel when it raised prices by 51 paisa per litre and planned similar monthly hikes in future to cut record subsidies. Besides this, hectic buying activity in Power and Realty counters also fuelled the uptrend of the bourses. Meanwhile, index heavyweight, Reliance Industries (RIL), over one percent gains ahead of Q3 earnings, also bolstered the sentiments. The company’s net profit is likely to increase to Rs 5,078 crore, up 14 per cent, against a net profit of Rs 4440 crore in the corresponding quarter last fiscal.

Thus, advancing for second consecutive session, 30 share barometer index, Sensex and 50 share widely followed index, Nifty, ended above psychological 20,000 and 6050 respective levels. However, the session turned out to be futile for broader indices, which went home with loss of over quarter of a percent. Meanwhile, frontline equity indices concluded with gains of close to 2% for the week.

Additionally, positive global cues too added to the strength of barometer gauges. Better than expected China's fourth quarter growth data mainly lifted Asian pacific shares higher, as latest economic data confirmed the view that China is recovering from the slowdown it experienced last summer, a belief that has created a strong run in Chinese shares in recent months. China's economy grew 7.9 percent in the fourth quarter of 2012 from a year earlier, official data showed, strengthening from 7.4 percent in the third quarter -- the lowest since the depths of the global financial crisis. While, European shares edged higher on Friday, with heavyweight miners and exporters supported by stronger-than-expected Chinese data, but concerns about the upcoming corporate earnings season kept key indexes below recent multi-month highs.

Back home, profit-booking in Information Technology, Auto and Metal counters, prevented further upside of the bourses. Wipro results tempered sector euphoria on uncertain IT demand. Since a week ago, better-than-expected results from Infosys, Tata Consultancy Services and HCL Technologies sparked a 13 percent rally in the sector sub-index that grinded to a halt on Friday.  Basically, one of the leading software services provider Wipro’s less-than-perfect score on its quarterly earnings report card casted a measure of doubt over the sector's near-term outlook, with new projects and contracts still elusive. While Wipro did join its domestic rivals in topping profit forecasts, investors punished its shares after its core services business lagged expectations and revenue guidance for the current quarter was subdued. The company’s shares ended lower with a cut of over 7% after the company a rise of 39.39% in its net profit at Rs 1483.00 crore in Q3FY13 as compared to Rs 1063.90 crore in the corresponding quarter previous year.

In the heavy earning session, HDFC Bank’s shares were beaten down blue with a cut of over a percent, despite the bank reporting in-line with street estimates Q3 numbers. Private sector HDFC Bank on Friday reported a 30 percent jump in net profit at Rs 1,859.07 crore for the October-December quarter of the current fiscal, mainly on account of increased loan book. The bank had a net profit of Rs 1,429.66 crore in the December quarter of 2011-12 fiscal. Meanwhile, gains of Cigarettes major ITC prevented FMCG counter negative close. Cigarettes major ITC reported a better-than-expected 21 percent year-on-year rise in third quarter net profit at Rs 2,052 crore, helped by strong growth in FMCG and agri businesses. Its net sales growth of 23 percent at Rs 7,627 crore also topped street estimates.  The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 954:1082 while 1031 scrips remained unchanged. (Provisional)

The BSE Sensex gained 51.79 points or 0.26% and settled at 20015.82. The index touched a high and a low of 20126.55 and 19990.62 respectively. 16 stocks were seen advancing while 14 stocks were declining on the index. (Provisional)

The BSE Mid cap and Small cap indices decline 0.24% and 0.52% respectively. (Provisional)

 On the BSE Sectoral front, Oil & Gas was up by 3.07%, PSU up by 2.77%, Power up by 1.53%, Realty up by 0.73% and CG up by 0.25% were the top gainer, while IT down by 1.22%, TECk down by 1.21%, CD down by 0.88%, HC down by 0.74% and Auto down by 0.73% were the top losers in the space. (Provisional)

The top gainers on the Sensex were ONGC up by 7.31%, NTPC up by 4.65%, Maruti Suzuki up by 3.41%, Gail India up by 2.82% and Tata Power up by 2.02%, while, Wipro down by 8.19%, Hero MotoCorp down by 2.67%, Dr Reddy’s Lab down by 2.60%, Jindal Steel down by 2.40% and Hindustan Unilever down by 2.23% were the top losers in the index. (Provisional)

Meanwhile, barely hours after petroleum minister M Veerappa Moily permitted oil marketing companies to set diesel prices, the retailers grabbed the opportunity. Oil Marketing Companies (OMCs) hiked diesel price by 45 paise excluding taxes effective January 18, 2013. While the base hike in diesel price being 45 paise, it would lead to an increase of 51 paise in Delhi after including local VAT. New rate for diesel now stand at Rs 47.66 a litre.

However, in a bit of relief to the common-man, petrol prices, which were only earlier this week hiked by 35 paise, will come down by 25 paise per litre. Meanwhile, the base rate cut on petrol was 25 paise; it translates into a reduction of 29.75 paise in price in Delhi to Rs 67.27 a litre.

In a bold reform, the government has planned similar monthly hikes in future to cut record subsidies. This was coupled with a decision to charge bulk consumers like defence, railways and state transport undertakings market price which is almost Rs 10 a litre more than retail selling rate, to save an estimated Rs 12,907 crore in annual subsidy. Although price of petrol is purely market-determined, diesel still remains under government control, even though oil firms now have the freedom to make little changes in the price.

According to Indian Oil, the hike in diesel price will lead to reduction in under-recoveries by Rs 3,400 crore till March 2013. Meanwhile, based on the current prices and volumes, the decrease in the under-recoveries on annual basis on HSD (diesel) shall be approximately Rs 15,000 crore for OMCs as a whole.

However, as a sweetener to the bitter pill, besides slender petrol price reduction, the Cabinet Committee on Political Affairs chaired by Prime Minister Manmohan Singh bowing to public pressure raised the cap on subsidised LPG to nine cylinders per household from six.

India VIX, a gauge for markets short term expectation of marginally lost 0.85% at 13.89 from its previous close of 14.01 on Thursday. (Provisional)

The S&P CNX Nifty gained 18.75 points or 0.31% to settle at 6,057.95. The index touched high and low of 6,083.40 and 6,048.30 respectively. 25 stocks advanced against 25 declining ones on the index. (Provisional)

The top gainers on the Nifty were BPCL was up by 10.44%, ONGC up by 7.31%, NTPC up by 4.90%, Maruti Suzuki up by 3.73% and GAIL was up by 2.56%. On the other hand, Wipro down by 8.06%, Dr. Reddy's Laboratories down by 2.68%, Hero MotoCorp down by 2.62%, Jindal Steel down by 2.34% and Hindustan Unilever down by 2.11% were the top losers. (Provisional)

The European markets were trading in mixed with, France’s CAC 40 up by 0.16% and the United Kingdom’s FTSE 100 up by 0.25% while Germany’s DAX down by 0.11%.

Most of the Asian equity indices ended the session in the green terrain on Friday on the back encouraging data from the China. The nations’ economy grew 7.9 percent in the fourth quarter of 2012 from a year earlier, strengthening from 7.4 percent in the third quarter -- the lowest since the depths of the global financial crisis. Other Chinese data released showed industrial output grew 10.3 percent in December from a year ago, above an expected 10.1 percent increase, and retail sales in December rose 15.2 percent on the year ago, also topping an estimated 14.9 percent rise.  Meanwhile, Japanese benchmark Nikkei surged by around three percent for its biggest daily gain in 22 months as the yen resumed its downtrend, improving earnings prospects for Japanese exporters.