Post session - Quick review

After dilly-dallying for the entire session of trade, barometer gauges finally managed to gain little steam by the close of trade, as investors grabbed the opportunity of entering into equity markets at lower levels.  Despite positive global cues, undertone at D-street remained cautious after the Reserve Bank of India (RBI) meeting street’s expectation lowered repo rate and Cash Reserve Rate (CRR) by 25 bps, but made further rate cuts conditional on government moves to control fiscal deficit, thereby dimming the chances of any further monetary policy easing. However, fundamentally strong bets, which were up for grabs at lower prices, limited the downside chances of bourses ahead of the earning heavy session tomorrow, also marked by F&O expiry. Surge of Index heavyweights, Reliance Industries, Oil Natural Gas Corporation (ONGC) and ICICI Bank mainly aided the recuperation of Indian equity markets.

Thus, negotiating a flattish close, 30 share barometer index, Sensex, on Bombay Stock Exchange (BSE) and 50 share widely followed index, Nifty, on National Stock Exchange (NSE) ended above psychological 20,000 level 6050 respective levels. However, trade turned out to disappointing for broader indices, which ended with losses. On the global front, Asian shares, taking comfort from improving global economic prospects, inched up on Wednesday, despite cautiously awaiting local corporate earnings reports and the U.S. Federal Reserve's monetary policy decision due later in the session. However, European shares were wavering ahead FOMC decision.

Closer home, strong support was rendered from Realty, Consumer Durable (CD) and Oil & Gas counter, however, drubbing in Capital Goods, Power and Auto counter, pressurized the sentiment to some extent. Meanwhile, earnings mostly were disappointment. Shares of State controlled lender Central Bank of India lost momentum on higher provision. Otherwise, the bank’s net profit rose by 59.3 percent year-on-year to Rs 180 crore in the third quarter of financial year 2012-13. Provisions against bad loans jumped quite sharply to Rs 627.7 crore in the third quarter of FY13 as against Rs 427 crore in second quarter. Additionally, Dena Bank to lost over a percent after Provisions against bad loans jumped to Rs 156.6 crore in the December quarter as against Rs 104.5 crore in previous quarter. However, Q3 earnings of Titan Industries turned out to be a hit. The company reported 24.29% rise in its net profit at Rs 203.73 crore for the quarter as compared to Rs 163.91 crore for the same quarter in the previous year. Thus, the market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 841:903 while 1272 scrips remained unchanged. (Provisional) Meanwhile, overall trade of Rs 2.5 lac crore in terms of volume turnover was done on the penultimate day of F&O expiry.

The BSE Sensex gained 12.57 points or 0.06% and settled at 20003.47. The index touched a high and a low of 20073.46 and 19964.64 respectively. 11 stocks were seen advancing while 19 stocks were declining on the index (Provisional)

The BSE Mid cap and Small cap indices down by 0.01% and 0.20% respectively.  (Provisional)

On the BSE Sectoral front, Realty up by 1.39%, Consumer Durables up by 1.22%, Oil & Gas up by 1.08%, Health Care up by 0.40% and Metal up by 0.30%. While, Capital Goods  was down by 1.39%, Power down by 0.70%, Auto down by 0.49%, TECk down by 0.19% and IT down by 0.08% were the losers on the index. (Provisional)

The top gainers on the Sensex were Cipla up by 2.51%, Hindustan Unilever up by 2.13%, Tata Steel up by 1.93%, Reliance Industries up by 1.86% and Wipro up by 1.58%.

On the flip side, Gail India down by 3.62%, Tata Power down by 2.82%, L&T down by 2.15%, Jindal Steel down by 1.77% and Tata Motors down by 1.76% were the top losers on the Sensex. (Provisional)

Meanwhile, to enhance the share of export credit in the books of banks, Reserve Bank Governor D Subbarao on January, 29 constituted a technical advisory group to look for solutions to help the export orientated sector. Worried over the declining export, Subbarao said that the burgeoning current account deficit as 'biggest risk for inflation and macroeconomic management'.

The RBI governor D Subbarao said that banks' exposure to the exports sector still stands at a poor 5 percent or less in some cases, even when the RBI has allowed them to go up to 12 percent. By adding further, Subbarao said ‘apart from cost of financing, there are a number of non-cost issues for export sectors like transaction costs, accounting norms, documentation required, procedural difficulties. So, we decided to constitute a technical working group to go into these issues.’

Meanwhile, the constituted technical advisory group will be headed by RBI Executive Director G Padmanabhan. Apart from officials from the central bank, the committee will also be represented by Export Credit Guarantee Corporation, the Exim Bank, the Indian Banks Association and the Federation of Indian Exporters Organisation.

Further, as per the governor, in the last six months, the apex bank has taken certain steps to improve the export like raising the rupee export credit refinance facility to 50 percent from 15 percent and the recent dollar-rupee swap facility to $6.5 billion.

India VIX, a gauge for markets short term expectation of marginally lost 0.62% at 14.38 from its previous close of 14.47 on Tuesday. (Provisional)

The S&P CNX Nifty gained 5.45 points or 0.09% to settle at 6,055.35. The index touched high and low of 6,071.95 and 6,044.15 respectively. 23 stocks advanced against 27 declining ones on the index. (Provisional)

The top gainers on the Nifty were DLF was up by 3.00%, Cipla up by 2.41%, ACC up by 2.31%, Sesa Goa up by 2.26% and Ambuja Cements was up 2.25%. On the other hand, GAIL down by 3.29%, PNB down by 3.03%, Tata Power down by 2.96%, L&T down by 2.17 % and Jindal Steel down by 1.96% were the top losers. (Provisional)

Most of the European markets were trading in red with, France’s CAC 40 down by 0.07% and Germany’s DAX down by 0.08% while the United Kingdom’s FTSE 100 up by 0.15%.

Most Asian markets went home with a green mark on Wednesday with an improved economic outlook, lifting stocks in Hong Kong and Australia to near two-year highs. Japan's Nikkei closed with strong gains attaining its highest closing since late April 2010, as the yen continued to weaken against the U.S. dollar. South Korea's Kospi ended higher, after the government said manufacturing output rose 0.8% in December from November. Meanwhile, investors looked optimistic ahead of the outcome of the Federal Reserve’s two-day policy meeting later in the day.