Post session - Quick review

Last hour of trade turned out to be productive for Indian equity markets, wherein, benchmarks after gyrating listlessly for the entire part of session, gained steam in the wee hours of trade. Shore-up that emerged at lower levels, mainly prevented barometer gauges from registering second successive negative session of trade. Further, even sustained buying in Bankex, Capital Goods (CG) and Technology counters, encouraged the snoozing bulls. Revived hopes of rate cut on reports suggesting finance Minister P. Chidambaram insisting Reserve Bank of India (RBI) for striking a balance between needs of pushing growth and controlling inflation, bolstered banking stocks. RBI is slated to announce its third quarter review of monetary policy on January 29 amid demands by the industry that it should lower interest rates to boost industrial output, which contracted by 0.1 per cent in November.

Further, even statement of economy gaining back traction in 2013/ 2014, augured well for investors. India’s economy will grow “no better than” 5.7 percent in the current fiscal year but will regain traction in 2013/2014, Finance Minister P. Chidambaram cited. In the backdrop of listless global cues, 30 share barometer index, Sensex, which gained over 2/10 percent, ended above mental 20,000 mark. In the similar way, 50 share barometer index, Nifty, too adding slender gains, concluded above 6050 bastion. Both the levels of 20,000 (Sensex) and 6050 (Nifty) turned out be strong bastion, as any attempts to budge below these levels were reciprocated with recovery.

Asian markets ended mixed, with Japan leading declines as local stocks pulled back in response to a stronger yen. Japanese stocks once again took their cue from the movement of the yen, which continued to strengthen against the dollar on Tuesday, a move brought about by the conclusion of the Bank of Japan's latest policy meeting. The central bank on Tuesday adopted a 2.0% inflation target and committed itself to an open-ended asset purchasing program. While these decisions were broadly within market expectations, concern that the open-ended program will not begin until 2014 provided a catalyst for the yen to firm up.  Moreover, European shares showcased mixed trend, with FTSEurofirst 300 index lingering around 22-month highs, as some good earnings results helped lift the index early on Wednesday.

Closer home, drubbing of Realty, Public Sector Undertaking and Consumer Durable counters, limited the further rise of bourses. Further, tumbling of FMCG major, HUL to 6 months low in early trade, also weighed on the sentiment. Shares in Hindustan Unilever extend their fall on Wednesday after a number of investment banks, including Credit Suisse and Nomura, cut their ratings on slower-than-expected volume growth and a hike in royalty payments. On Tuesday, Hindustan Unilever (HUL), India's largest consumer goods maker, reported a 16 percent jump in third-quarter net profit, and reported low volume growth and a rise in royalty payments.  However, telecom stocks rang loud after Bharti Airtel raised call prices in India, thereby signaling that rivals will soon follow the suit. Additionally, Idea Cellular, India's No.3 carrier by revenue and No.4 by customers, also effectively raised voice call prices in some parts of the country after withdrawing promotional offer. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 975:740 while 1324 scrips remained unchanged. (Provisional)

The BSE Sensex gained 66.53 points or 0.33% and settled at 20048.10. The index touched a high and a low of 20058.07 and 19920.91 respectively. 17 stocks were seen advancing while 13 stocks were declining on the index (Provisional)

The BSE Mid cap and Small cap indices decline 0.80% and 0.78% respectively. (Provisional)

On the BSE Sectoral front, Bankex was up by 0.78%, TECk was up by 0.68%  and Capital Goods was up by 0.16%  were the top gainer, while Realty down by 1.90%, Consumer Durables down by 0.94%, PSU down by 0.93%,  Auto down by 0.71% and Oil & Gas down by 0.51% were the top losers in the space. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 4.52%, Tata Power up by 2.52%, ICICI Bank up by 1.73%, ITC up by 1.33% and Hero MotoCorp up by 0.96%, while, Hindustan Unilever down by 4.18%, Tata Motors down by 1.59%, Hindalco Industries down by 1.46%, Bajaj Auto down by 1.44% and Gail India down by 1.35% were the top losers in the index. (Provisional)

Meanwhile, the government has issued guidelines for the second round of spectrum auction which is expected to fetch around Rs 45,000 crore to exchequer from airwaves sale. However, the guidelines did not mention the timeline for starting auction and related dates.

In the second round of auction, the government will put unsold GSM spectrum in 1800 MHz band, CDMA spectrum in 800 MHz and airwaves held by telecom licences in 900 MHz band that is coming for renewal starting 2014 onwards. As per the auction guidelines, spectrum auction for 1800 MHz and 900 MHz band, currently being used for GSM services, will be conducted simultaneously and auction of 800 MHz band, being used for CDMA services, in 21 out of 22 service area will be conducted separately.

Meanwhile, the government approved a 50 per cent reduction in the reserve price of CDMA spectrum for the auction to be scheduled in March. In the previous auction, reserve price for CDMA spectrum was 11 times higher than the amount telecom operators paid in 2008. The government also slashed the base price of unsold GSM spectrum by 30 per cent, while the price of spectrum in 900 MHz has been fixed at two times the price of airwaves in 1800 MHz.

India VIX, a gauge for markets short term expectation of volatility lost 1.58% at 13.67 from its previous close of 13.42 on Tuesday. (Provisional)

The S&P CNX Nifty gained 13.30 points or 0.22% to settle at 6,061.80. The index touched high and low of 6,069.80 and 6,021.15 respectively. 23 stocks advanced against 27 declining ones on the index. (Provisional)

The top gainers on the Nifty were Bharti Airtel was up by 4.55%, Tata Power up by 2.51%, ICICI Bank up by 1.80%, ITC up by 1.11% and Hero MotoCorp was up by 0.99%. On the other hand, Hindustan Unilever down by 4.12%, HCL Tech down by 3.09%, JP Associate down by 2.39%, BPCL down by 2.24% and IDFC down by 2.01% were the top losers. (Provisional)

The European markets were trading in mixed with, Germany’s DAX up by 0.29% and the United Kingdom’s FTSE 100 up by 0.18% while France’s CAC 40 down by 0.08%.

Asian markets ended mixed on Wednesday amid caution as the earnings season gathered pace. Japanese stocks extended its southward journey and closed lower reporting a third straight day of decline as yen continued to strengthen against the dollar following the Bank of Japan's latest policy meeting. Chinese shares ended almost flat ignoring healthy gains on Wall Street Tuesday following a long weekend. Moreover, Hong Kong market went home with red mark as investors were hesitant to extend a rally that took the index to a 21-month high in the previous session. South Korea's Kospi ended lower, overlooking Hyundai Motor’s gains ahead of its earnings report on Thursday.