Post session - Quick review

There was a complete carnage at D-street due to global risk off sentiment after minutes of Federal Open Market Committee meeting released on Wednesday showed difference among Federal Reserve officials over the central bank’s stimulus measures, that could result in instability in financial markets. On the home turf caution was witnessed on first day of Budget session of Parliament, where a total of 55 bills including the finance bill, await approval, discouraging investors from piling up position in risky asset class such as equities. Losing steam gradually in the session, Indian equity markets halted only at day’s low, with 50 share index, Nifty, scaling new lows for 2013. After previous session of consolidation, Sensex offloaded a massive 300 points, to shut shop below the 19350 level, likewise, 50 share index, Nifty, too witnessing a loss of over one and half a percent, concluded below the 5850 level. The session turned out to be far worse for broader indices, which after outperforming frontline equity indices in the previous four trading session, were beaten down today.

On the global front, in Asian pacific markets, besides the concern that Federal Reserve may scale back US economic stimulus, sentiment also were shaken by the talks that a hedge fund had been liquidating large positions in commodities. Moreover, the trend turned out be no different for European counterparts, which suffered sharp cuts in early trade.

Closer home, broad selling pressure dragged all the sectoral indices in red, barring Consumer Durable, which showcasing resilience ended in green. Nevertheless, the worst performers were stocks from Metal, Bankex and Realty counters. Banking shares, viz, ICICI Bank, State Bank of India, witnessed nasty drubbing a day after RBI data showed that loan growth continues to remain a concern. Banks' advances grew 8.7 percent so far this fiscal year, compared with 11.2 percent a year earlier, while deposit growth was 7.8 percent compared with 11.4 percent in the same period a year earlier. While, Realty stocks tumbled as tussle over legislation to set up a real estate watchdog, pending since 2009, intensified after private developers rejected the proposal. Additionally, tumbled of cigarette makers shares like VST Industries and ITC after the Gujarat state government proposed to increase the value-added tax on cigarettes, weighing on the sentiment.

The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 887: 1938 while 133 scrips remained unchanged. (Provisional)

The BSE Sensex lost 339.87 points or 1.73% and settled at 19302.88. The index touched a high and a low of 19554.65 and 19294.61 respectively. 1 stocks were seen advancing while 29 stocks were declining on the index. (Provisional)

The BSE Mid-cap and Small-cap indices ended down by 1.67% and 1.76% respectively. (Provisional)

The top losing sectoral indices on the BSE were, Metal down by 3.21%, Bankex down by 2.64%, Realty down by 2.37% Capital Goods down by 2.25%, and Oil & Gas down by 1.90% while, Consumer Durables (CD) up by 0.04% was the sole gainer on the index. (Provisional)

The only gainer on Sensex tuned out to be Gail India, which was up by 0.09%. On the flip side, Jindal Steel down by 4.19%, Tata Steel down by 4.18%, Sterlite Industries down by 3.77%, ICICI Bank down by 3.77% and Maruti Suzuki down by 3.77%, were the top losers on the Sensex. (Provisional)

Meanwhile, as per Planning Commission Deputy Chairman Montek Singh Ahluwalia, 12th Five Year Plan (2012-17) emphasis not merely on economic development but on inclusive growth to bring more poor and marginal people under its ambit. While addressing an event, Ahluwalia said in the 12th plan, we have actually set out a different objective for inclusive growth also.

Regarding the inclusive growth, he said that regionally balanced inclusive growth rate makes every state able to do better than the past, which narrows the gap between different communities and also brings gender equality, upliftment of women, improving their educational condition and social status.

By adding further, he said a number of policies and implementation by the state governments is required to achieve a high inclusive growth in 12th five year plan. Ahluwalia said ‘in the 12th plan the most interesting things we find is that the states which were earlier viewed as being backward have now begun to improve their growth quite substantially.’

Expressing view on the economic growth, Ahluwalia said that presently the economy is growing at the low rate of 5 percent or little bit more than that and we are concerned for it because lower growth means less jobs. He added that for the next five years, we can expect an average of about 8 percent economic growth.

Further, to achieve high economic growth in future, the government need to make sure that the young generation are educated and equipped with both the educational and skill weapons in order to deal with rapidly changing and increasingly globalizing world, which is a huge challenge for the country.

India VIX, a gauge for markets short term expectation of volatility gained 8.58% at 16.64 from its previous close of 15.60 on Wednesday. (Provisional)

The CNX Nifty lost 95.30 points or 1.60% to settle at 5,847.75. The index touched high and low of 5,921.15 and 5,844.40 respectively. 2 stocks advanced against 47 declining and one stock remains unchanged on the index. (Provisional)

The top gainers on the Nifty were Cipla up by 0.18% and SUN Pharma up by 0.09%. On the other hand, Jindal Steel down by 4.47%, Tata Steel down by 4.10%, Reliance Infrastructure down by 3.93%, Sesa Goa down by 3.91% and ICICI Bank down by 3.83% were the top losers. (Provisional)

All of the European markets were trading in red with, Germany’s DAX down by 1.46%, the United Kingdom’s FTSE 100 down by 1.38% and France’s CAC 40 down by 1.45%.

Asian equity markets ended lower on Thursday after minutes from the latest Federal Reserve policy meeting increased worries that central-bank policy-tightening moves will reduce global liquidity. Japanese stocks closed with red mark as investors indulged in selling in several front line stocks from across various sectors. Meanwhile, Chinese market went home on negative note, as sentiments were dampened following reports that the Communist government has mandated that cities that had extreme property price rise should impose restrictions on house purchases.