Post session - Quick review

Indian equity markets yet again capitulating under selling pressure, ended down the dumps, clocking third consecutive session of decline. Lack of positive trigger at home front and sluggish global cues, took investors away from risky asset classes as equities. In-fact, prevailing caution ahead of February WPI data following higher CPI numbers, which lessened rate cut hopes in RBI’s Monetary Policy Review on March 19,2013, led wary market-men for squaring off their position.

The local equity markets, after starting the session on negative note, went on losing to halt near day’s lows. With not a single attempt for recovery during the session, the markets hinted about the shaky confidence that investors were now left with, after elevated CPI data and ahead of February Inflation data, where a reading of 6.5% or less could help build rate cut hopes for March 19. Thus, in the downbeat session of trade, Nifty closed below its 100 DMA, off 5850 level, with colossal loss of over 50 points or over a percent. Sensex, too offloading a massive 200 points, finished below the crucial 19400 level. Meanwhile, in broader space, Midcap index witnessed nasty laceration and ended with a cut of close to 1.25%, while Smallcap index lost a percent.

On the global front, Asian shares tumbled on Wednesday as lack of positive drivers encouraged investors to lock in recent gains. Stocks in mainland China ended subdued, with the Shanghai Composite registering fifth consecutive session of losses, as sentiment in the market remained weak after the latest set of Chinese economic data showed a moderation in the recovery of Asia's largest economy and amid renewed government efforts to control the property market. Meanwhile, European shares edged lower on Wednesday, weighed down by a string of weak earnings reports and with investors looking to economic data to put fresh impetus into the rally in key stock indices.

Closer home, the sentiment at D-street were also dampened after some investment bankers cut their India's economic growth forecasts for 2013/14 to 6.0% from 6.2% to reflect lower-than-expected growth in the October-December quarter. Sectorally, Bankex, Consumer Durable and Public Sector Undertaking counters witnessed maximum profit-booking, while stocks from Fast Moving Consumer Goods counter solely sported gains. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1010: 1873 while 130 scrips remained unchanged. (Provisional)

The BSE Sensex lost 202.37 points or 1.03% and settled at 19362.55. The index touched a high and a low of 19511.97 and 19338.52 respectively. 6 stocks were up, while 22 stocks declined and 2 stocks remain unchanged on the index (Provisional)

Broader indices concluded in red; BSE Mid cap and Small cap indices were down by 1.00% and 1.27% respectively. (Provisional)

On the BSE Sectoral front, Bankex down by 2.18%, Consumer Durables down by 1.57%, Auto down by 1.53%, PSU down by 1.41% and IT down by 1.18%, were the top losers, while FMCG up by 0.50% was the sole gainer in the space.

The top gainers on the Sensex were Sun Pharma up by 1.28%, Bharti Airtel up by 1.11%, ITC up by 0.95%, Hindustan Unilever up by 0.56% and Tata Power up by 0.20%. On the flip side Hindalco Industries down by 3.77%, Bajaj Auto down by 3.43%, ICICI Bank down by 3.41%, Maruti Suzuki down by 3.26% and Jindal Steel down by 3.44% were the top losers on the Sensex. (Provisional)

Meanwhile, Expressing confidence that Indian economy will recover in coming years, Prime Minister Manmohan Singh said the government has taken a number of measures to boost the economic growth and hopes that it will return to the robust growth path in the next two to three years. Though, he admitted that there has been a slowdown in the economy which has been reflected in the GDP figures.

Replying to questions on the slowdown of economy, Singh said ‘it is certainly true that in the last two years there has been a slowdown in the economy and it has been reflected in the GDP. In the Economic Survey of 2012-13 and the Finance Minister’s Budget speech, we have explained at length the factors that are responsible for the slowdown.’

By adding further he said, there are also global issues like the banking crisis of 2008-09 and the euro zone crisis coupled with the domestic issues like inflation and widening fiscal and current account deficits, which has lowered the domestic economy growth. Meanwhile, Singh assured that the government is trying hard to tackle with the prevailing economic crisis.

India VIX, a gauge for markets short term expectation of volatility gained 7.07% at 16.20 from its previous close of 15.13 on Tuesday. (Provisional)

The S&P CNX Nifty lost 69.55 points or 1.18% to settle at 5,844.55. The index touched high and low of 5,893.85 and 5,842.25 respectively.10 stocks advanced against 40 declining on the index. (Provisional)

The top gainers on the Nifty were Sun Pharma up by 1.11%, Bharti Airtel was up by 1.10%, Asian Paints was up by 0.98%, ITC was up by 0.97% and HCL Tech was up by 0.72%. On the other hand, Hindalco down by 3.77%, Icici Bank down by 3.48%, Siemens down by 3.47%, Bajaj-Auto down by 3.45% and Kotak Bank down by 3.43% were the top losers. (Provisional)

The European markets were trading in red, France’s CAC 40 down by 0.42%, Germany’s DAX down by 0.08% and the United Kingdom’s FTSE 100 down by 0.75%.