Post session - Quick review

In volatile session of trade, benchmark equity indices picked up pace in the last hour of trade to end in green at day’s highest point. Thanks to the positive European counterparts, which supported the markets at lower levels, otherwise, benchmarks alike previous session of trade continued gyrating in a thin band, lacking any positive catalysts as investors await ‘2013/14 budget’-a critical test of whether the government will announce a plan to contain the fiscal and current account deficits. Most of the Asian markets barely moved on Tuesday, as a holiday in the US overnight and a lack of positive triggers kept many investors on the sidelines. Further, even concerns about the euro zone economy, US fiscal talks and Chinese appetite limited gains. However, recovery emerged at D-street after European shares crept higher ahead of German economic sentiment data, while the yen rose after Japanese ministers played down talk the Bank of Japan might buy foreign bonds to loosen credit.

BSE’s Sensex after hitting its 2013 lows in the previous session, scooped over a century points, to shut shop above the 19600 level, likewise, 50 share index Nifty, too adding gains of over half a percent, ended comfortably above 5900 mark. Meanwhile, broader indices, outperforming the frontline gauges for third consecutive session, went home with gains close to a percent.

Government decision of cancelling its last bond auction for 2012-13 that was expected to raise Rs 12,000 crore, sent strong signals that fiscal deficit would be contained at 5.3% of GDP, as promised by finance minister P Chidambaram, and augured well for Indian equity markets. Additionally, Sugar stocks, viz, Balrampur Chini, Triveni Engineering and Rana Sugar, etc, too lent some support to the barometer gauges, as they rallied on reports that Centre will soon take a decision on giving freedom to the Rs 80,000 crore sugar industry to sell the sweetener in the open market. Additionally, gains of likely candidates for banking licences, IFCI, Mahindra and Mahindra Financial Services and Shriram transport Finance Company, too bolstered the sentiment. NBFC rose a day after RBI Deputy Governor Anand Sinha said RBI would issue final guidelines on new bank licences before the end of March. On BSE, all 13 sectoral indices ended in green, but Realty, Information Technology and Healthcare counters, stole the limelight. However, telecom stocks, turned out to be the dark spot of the trade as the shares of mobile operators dropped after wireless broadband airwave holders were allowed to provide voice services by paying additional fee, a move that is seen benefiting 4G licence holder Reliance Industries, but leading to more competition in the sector.The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 956: 615 while 1389 scrips remained unchanged. (Provisional)

The BSE Sensex gained 162.96 points or 0.84% and settled at 19664.04. The index touched a high and a low of 19671.17 and 19457.21 respectively. 24 stocks were seen advancing while 6 stocks declines on the index (Provisional)

The BSE Mid-cap index was up by 1.28% while Small-cap index was up by 1.09%. (Provisional)

On the BSE Sectoral front, Realty up by 2.07%, IT up by 1.68%, Oil & Gas up by 1.48%, Health Care up by 1.41% and Power up by 1.20% were the top gainer, while there were no losers in the space. (Provisional)

The top gainers on the Sensex were ONGC up by 4.28%, Bajaj Auto up by 2.36%, Wipro up 2.21%,  Cipla up by 2.03% and Hindustan Unilever up by 1.89%, while, Bharti Airtel down by 1.86%,  Hero MotoCorp down by 1.82%, Coal India down by 1.72%, Gail India down by 1.19% and Jindal Steel down by 1.11% were the top losers in the index. (Provisional)

Meanwhile, the Reserve Bank of India (RBI) is expected to come out with the final guidelines for new bank licences much before the end of the fiscal. RBI deputy governor Anand Sinha said 'we are in the process of issuing the licence guidelines. The consultation process with the finance ministry is over; everything is settled now, and we will be issuing the guidelines. It will be much before the end of this financial year.’

As per Sinha, banks are very important for the financial sector and eligible corporates have to meet all the criteria of licensing draft guidelines to enter the banking space. However, Sinha refused to quantify the possible number of licences, saying that the central bank will be selective in this process. Currently, Indian banking industry consists of 26 public sector banks, 22 private sector banks and over 40 foreign banks.

India VIX, a gauge for markets short term expectation of volatility gained 1.88% at 14.61 from its previous close of 14.34 on Monday. (Provisional)

The S&P CNX Nifty gained 48.00 points or 0.81% to settle at 5,946.20. The index touched high and low of 5,947.55 and 5,883.15 respectively. 42 stocks advanced against 8 declining on the index. (Provisional)

The top gainers on the Nifty were ONGC was up by 4.33%, DLF up by 3.70%, ACC up by 3.22%, Ranbaxy Laboratories up by 2.99% and Ultrac Tec Cement was up by 2.58%. On the other hand, Bharti Airtel down by 1.99%, GAIL down by 1.51%, Hero MotoCorp down by 1.50%, Coal India down by 1.37% and Jindal Steel down by 0.95% were the top losers. (Provisional)

The European markets were trading in green with, France’s CAC 40 up by 1.03%, the United Kingdom’s FTSE 100 up by 0.35% and Germany’s DAX up by 0.81%.

Most Asian markets went home with red mark on Tuesday as Japan’s Nikkei closed lower due to an uptick in the yen. Chinese shares ended lower on worries that rising property prices will lead to fresh restrictions on the sector, while weakness in mainland China weighed on Hong Kong. Investors traded cautiously awaiting outcome of Italy’s election and about US budget talks limiting the upside after strong rallies in early February.