Post session - Quick review

Indian equity markets showcased splendid performance not only for the session, but also for the week which took barometer gauges up by around 4%. For the session, domestic indices traded from strength to strength, in sync with global markets. After getting positive start, barometer gauges went on gaining spree and concluded the session near day’s high. Although there was some signs of fatigue in the early afternoon deals, but markets picked up pace with the boisterous opening of European counterparts. 30 share index, Sensex, accumulated 250 points, to shut shop above 19600 level. Similarly, widely followed index, Nifty, too gaining over 75 points closed above its 50 DMA, above the 5900 level. The broader indices, too gaining traction, concluded with gains of over half a percent.  For the week, BSE Smallcap index rallied over 2%. Meanwhile, trade of over Rs 1.70 lac crore was recorded in terms of volume turnover (Provisional)

Positive global set-up was mainly on the better-than-expected US data that boosted the outlook for growth, with focus now shifting to US non-farm payrolls data due on Friday, seen as a key labour market indicator for the world's largest economy. Meanwhile, Asian shares also rallied after Chinese exports rose 21.8 percent last month from a year earlier, with imports falling 15.2%, almost twice the pace predicted. Additionally European shares advanced.

However, the rally at D-street also signaled investor’s confidence ahead of the data heavy week that would see monthly IIP data on March 12 followed by the inflation numbers, key data prints which will give markets direction to the further course of action by the RBI in its policy review.

The sentiment at D-street was also buttressed after a leading global brokerage house in its report estimated benchmark index Nifty to hit the 7000 mark by the end of this year. Amongst sectoral indices, Oil & Gas, Fast Moving Consumer Goods and Public Sectoral Undertaking counters were the leading counters. On the other hand, Information Technology stocks and Technology stocks emerged as the pockets of weakness. Meanwhile, expectation that the RBI will cut rates later this month boosted banks. Up with substantial gains were stocks of IndusInd Bank, Kotak Mahindra Bank, HDFC Bank, etc.

On the flip side, Technology stocks which gained sufficient traction in the previous trading session on expectations of improving sector earnings this year, especially in the United States, ended downbeat on account of profit-booking. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1713: 1145 while 102 scrips remained unchanged. (Provisional)

The BSE Sensex accumulated 260.57 points or 1.34% and settled at 19674.11. The index touched a high and a low of 19706.03 and 19477.61 respectively. 24 stocks were up, while 5 stocks declined and one stocks remained unchanged on the index (Provisional)

Broader indices too concluded in green; BSE Mid cap and Small cap indices were up by 0.69% and 0.67% respectively. (Provisional)

On the BSE Sectoral front, Oil & Gas up by 1.98%, FMCG up by 1.83%, Metal up by 1.80%, Bankex up by 1.76% and Capital Goods up by 1.57% were the top gainers, while IT down by 0.69% and Teck down by 0.35%, were the losers in the space.

The top gainers on the Sensex were Jindal Steel up by 5.66%, HDFC up by 3.78%, Gail India up by 3.60%, Coal India up by 2.86% and HDFC Bank up by 2.21%. On the flip side Maruti Suzuki down by 1.49%, Wipro down by 1.20%, Infosys down by 1.04%, Tata Motors down by 0.80% and TCS down by 0.41% were the top losers on the Sensex. (Provisional)

Meanwhile, an all party meeting on March 7 to sort out the differences on issues relating to the disputed land acquisition bill, has failed to reach on consensus and the government has decided to send the draft of the proposed legislation to the standing committee for perusal and discussion .

During the meeting, left parties said that the government had recently circulated over 180 amendments, most of which had not been recommended by the Standing Committee. This makes the case for referring the legislation to the standing committee or the select committee, which will study these amendments and submit a report to the House in the ongoing Budget session itself after the break. Some parties were of the view that the rising population is putting pressure on land and multi-crop yielding agricultural land should not be used for housing and other purposes.

While, the government is confident of its smooth passage in the on-going session and has sent the copies of Bill to all parties on the same day so that all can study the bill and come up with their suggestions in the next meeting, which is scheduled to be held on March 20.

Earlier, in December, the Union Cabinet cleared the controversial land acquisitions bill. With the new land acquisitions law, the government hopes to make easy land acquisition and also remove bureaucratic hurdles that hold up highway projects, which have become a roadblock for the economic growth.

As per the provisions of the bill, permission of 80% of landowners would be required to acquire land for private industrial projects and in case of Public-Private Partnership projects permission of 70 percent of the landowners would be mandatory. However, no permission would be required in case of projects acquired for government purpose. The bill also has provisions to return the unutilized land to the land losers.

India VIX, a gauge for markets short term expectation of marginally gained 2.06% at 13.34 from its previous close of 13.07 on Thursday. (Provisional)

The S&P CNX Nifty gained 80.05 points or 1.37% to settle at 5,943.35. The index touched high and low of 5,952.85 and 5,883.00 respectively. 41 stocks advanced against 9 declining on the index. (Provisional)

The top gainers on the Nifty were Jindal Steel was up by 5.70%, IDFC was up by 4.22%, HDFC was up by 3.96%, Siemens was up by 3.55% and BPCL was up by 3.42%. On the other hand, Maruti Suzuki down by 1.29%, Infosys down by 1.13%, Wipro down by 1.08%, Ambuja Cements down by 1.05% and Tata Motors down by 0.69% were the top losers. (Provisional)

The European markets were trading in green, France’s CAC 40 up by 0.70%, Germany’s DAX up by 0.53% and the United Kingdom’s FTSE 100 down by 0.27%.

Most Asian markets ended firm on Friday, following upbeat economic data from the US. However, some markets backed out from higher levels and turned a bit subdued with a part of investors treading cautiously at higher levels. Japan’s Nikkei went home with green mark as the yen continued its downward trend and by fairly encouraging economic reports, which witnessed GDP growth rose at 0.2% in Q4, boosted market sentiments.