Post session - Quick review

Prolonging previous session’s somber run, Indian equity markets yet again ended weak, albeit with slender losses on the last trading session of the week. Recovery which emerged in the last leg of the trade helped the benchmark equity indices cut short their losses. Nevertheless, weakness prevailed for yet another session as globally risk-averse environment ahead of the crucial G-20 meeting in Moscow combined with lack of positive triggers at home front, kept traders on the sidelines. During the meeting over the next two days, G-20 leaders are likely to discuss the recent move by some countries (which are strong in export) to de-value their currencies artificially and the impact it could have on the world economy. Back home, in the last trading session of the week, 30 share barometer index, Sensex, ended lower by over quarter percent, below the crucial 19500 level, while 50 share index, Nifty, on NSE, dipping little lower than neutral line, ended above 5850 level by the end of trade, after briefly appearing close to its crucial 5900 mark. Meanwhile, broader indices ended mixed, with BSE Mid-cap index gaining over quarter of a percent, while Midcap index lost over a half a percent. For the week, while Nifty ended with loss of over 0.20%, Sensex ended flat. For broader indices, CNX Midcap index went home with loss of over 2% and BSE Smallcap index closed with  a cut of over three and  half a percent.

On the global front, Asian pacific shares ended mostly lower as poor European data and caution before the Group of Twenty meeting this weekend weighed on stocks. In Europe, there were disappointing economic data as Gross Domestic Product (GDP) for the euro zone shrank by 0.6% in the fourth quarter - the third straight quarter that the currency block failed to grow, and the deepest rate of contraction in four years.  Weaker financial and chemicals stocks weighed on European markets on Friday, with traders expecting declines over the next month after a strong January rally.

Closer home, the sentiment at D-street also turned sour after Moody, in its report, warned country of expanding current-account deficit and external debt. It said, India's expanding current-account deficit and external debt will make the country more vulnerable to international financial volatility and will have negative implications for its sovereign credit profile.

Recovery which took place in the last hour of trade was mainly due to bounce back in rate sensitive- Auto, Bankex and defensive Fast Moving Consumer Goods (FMCG) counters, aiding benchmark equity indices in recouping some of their losses. Rate sensitive, viz, Auto and Bankex counter gained ground on hopes of rate cut in RBI’s monetary policy on March 19, 2013. Additionally, Shares of telecom service providers such as Bharti Airtel and Reliance Communications, which came under selling pressure on Thursday after the telecom department issued notices to the country's three top operators, including Vodafone, demanding an additional revenue share for spectrum usage from 2008 onwards, were also up  in a lackluster session of trade. Furthermore, sugar stocks gained on Friday after media reports said that the food ministry has decided to seek Cabinet approval to lift controls on sugar.

On the other hand, shares of Oil & Gas, Information Technology, Capital Goods and Consumer Durable counters, led the BSE sectoral chart from the bottom, adding to the downside pressure of the bourses. Realty sector too ended with loss after realty major DLF, reported a 10.1% growth in the December quarter from Rs 258.35 crore a year ago to Rs 284.80 crore, which missed market expectations. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 796:756 while 1412 scrip’s remained unchanged. (Provisional)

The BSE Sensex lost 61.97 points or 0.32% and settled at 19435.21. The index touched a high and a low of 19512.89 and 19381.82 respectively. 14 stocks were seen advancing while 16 stocks were declining on the index. (Provisional)

The BSE Mid-cap index was up by 0.27% while Small-cap index was down by 0.64%. (Provisional)

On the BSE Sectoral front, Auto was up by 0.22%, Bankex was up by 0.07%, FMCG was up by 0.06% and Power was up by 0.03% were the top gainer, while Oil & Gas down by 1.03%, IT down by 0.82%, Capital Goods down by 0.55%, TECk down by 0.49% and Health Care down by 0.30% were the top losers in the space. (Provisional)

The top gainers on the Sensex were Tata Motors up by 2.46%, Sterlite Industries up 1.68%, Bharti Airtel up by 1.46%, Tata Power up by 1.37% and Gail India up by 0.97%, while, Dr Reddys Lab down by 3.55%, Bajaj Auto down by 2.06%, Infosys down by 1.35%, RIL down by 1.34% and Jindal Steel down by 1.19% were the top losers in the index. (Provisional)

Meanwhile, expressing confidence on economic recovery, Finance Minister P Chidambaram said the economy would grow by 5.5 percent in the current financial year and improve to 6 percent in 2013-14. Observing that euro-zone crisis is still continuing, Chidambaram said ‘recession in Europe, Japan and Brazil will naturally affect us however, our economy has been witnessing growth and this year it will be 5.5 percent'.

Despite the Central Statistical Organization (CSO), who placed the figures at 5 percent for current fiscal, Chidambaram said that India would come out of the low GDP growth and see 6 percent next year followed by 7 percent growth rate leading to 9 percent gradually, while the economy grew by 6.2 percent in FY12 and 9.3 percent in FY11.

While, expressing views on 2008 financial crises, Chidambaram said that the Indian economy was hit adversely by the global financial meltdown of September 2008, but the stimulus packages provided by the government at that time had helped in economy recovery. He also emphasized that there should be a balance between the welfare schemes and the need to promote growth as without it would not be possible for the government to fund social sector programmes.

India VIX, a gauge for markets short term expectation of volatility gained 0.99% at 15.24 from its previous close of 15.09 on Tuesday. (Provisional)

The S&P CNX Nifty lost 20.20 points or 0.34% to settle at 5,876.75. The index touched high and low of 5,899.95 and 5,853.90 respectively. 22 stocks advanced against 28 declining ones on the index. (Provisional)

The top gainers on the Nifty were Tata Motors up by 2.52%, IDFC up by 1.78%, Bharti Airtel up by 1.49%, Gail up by 1.42% and Tata Power was up by 1.26%. On the other hand, Dr. Reddy's Laboratories down by 3.22%, Cairn down by 2.37%, Grasim down by 2.31%, DLF down by 2.30% and UltraTech Cement down by 2.21% were the top losers. (Provisional)

Most of the European markets were trading in red with, Germany’s DAX down by 0.13% and the United Kingdom’s FTSE 100 down by 0.05% while France’s CAC 40 up by 0.35%.

Asian markets shut shop on a mixed note on Friday with Japanese Nikkei tumbling the most as investors pared exposure to exporters and banks while awaiting the weekend G20 meeting. A deepening recession in the euro zone also dragged down shares, and sentiment deteriorated in late trade on news that a conservative, former finance ministry bureaucrat is the leading candidate to head the Japanese central bank. Markets in mainland China and Taiwan remained closed for public holiday.