Post session - Quick review

The last trading session of the week at D-street remained no different than the previous ones, wherein benchmark equity indices witnessing profit-booking, ended weak. Volatility remained the constant companion of bourses at D-street, which in absence of positive catalyst registered sixth consecutive session of loss and ended the week with a cut of around 4%. Worries over the political uncertainties at home front combined with looming concerns over possible debt default by Cyprus, led to another down session of trade. The sentiment stayed largely negative ever since DMK's split with Congress, which in turn has put question mark on government’s future. However, in today’s trading session, besides the fears over political uncertainties, investors also winded their position ahead of the upcoming short F&O expiry week. Continuing to scale fresh 2013 lows, Sensex, lost over 50 points and ended below the crucial 19k level for third straight session of trade, its lowest level in four months. Meanwhile, Nifty, ending flat, settled below the 5700 crucial level. Meanwhile, Small cap index witnessing broader cut, went home with losses of close to a percent, while Midcap index too ended lower by quarter of a percent. For the week, CNX Midcap index and BSE Smallcap index ended with huge loss of over 5%.

On the global front, besides the negative close of Asian pacific market, European shares dipped on Friday, putting key indices on track for their worst weekly drop since November, as growing worries over Cyprus' bailout problems dented sentiment. Cyprus, having earlier rejected a plan to raise the funds by taxing bank customers' deposits needs to find 5.8 billion euros ($7.50 billion) in new money by a Monday deadline, if it is to receive an EU bailout to avert a collapse of its financial system that could push it out of the euro zone.

Closer home, drubbing in blue chip stocks, viz, SBI and ICICI Bank on doubts about the prospects of future rate cuts also soured sentiment at D-Street. Meanwhile, in yet another negative sign for investors, SAIL’s share auction covered 98% subscription in the last 15 months of trade, with possibility of LIC being the last minute rescuer being higher. Sectorally, Power, Metal and Capital Goods counters were the worst performers, while losses of the bourses remained limited on account of strength in Power, Metal and Capital Goods counters. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 996: 1867 while 110 scrips remained unchanged. (Provisional)

The BSE Sensex lost 55.12 points or 0.29% to settle at 18737.75.The index touched a high and a low of 18859.82 and 18669.20 respectively. 12 stocks were up, while 18 stocks declined on the index. (Provisional)

The BSE Mid cap and Small cap indices ended lower by 0.23% and 0.91% respectively. (Provisional)

On the BSE Sectoral front, Power up by 0.31%, Metal up by 0.21% and Capital Goods up by 0.08% were the only gainers, while Consumer Durables down by 2.49%, Realty down by 0.98%, IT down by 0.89%, Teck down by 0.78% and Oil & Gas down by 0.50% were the top losers in the space. (Provisional)

The top gainers on the Sensex were Bajaj Auto up by 3.58%, Jindal Steel up by 3.28%, Hindalco Industries up by 1.70%, Tata Power up by 1.69% and Hero MotoCorp up by 1.52%, while, SBI down by 1.92%, Tata Steel down by 1.86%, TCS down by 1.65%, Mahindra & Mahindra down by 1.56% and Bharti Airtel down by 1.39% were the top losers in the index. (Provisional)

Meanwhile, National Food Security Bill, which got Cabinet’s approval earlier this week, will be presented in the Parliament on March 22, with a hope that the revised bill will see the light of the day before the current session draws to an end on May 10. Under the revised Food Security Bill, 67% of India’s population will have the right to get a monthly quota of 5 kg of food-grains at highly subsidized rates of Rs 1-3 per kg, which means atleast 5 kg of food grains would be guaranteed to one person per month under the bill, with the poorest of the poor continuing to get 35 kg per month.

Earlier, it was reported that Cabinet would try to bring ‘amendments to the Food Bill in Parliament before Friday'. Uptill now, 55-56 amendment bills have been made in-line with the suggestions made by the Parliamentary Standing Committee, which submitted its report in January this year.

With the hope that this decision to supply cheap wheat and  rice will fetch government with rich dividends in the next general election, the price of Rice to be sold through ration shops has been fixed at Rs 3 per kg, wheat at Rs 2 and millets at Re 1 in the first three years of the implementation of the Act, which is way lower than the market price of over Rs 20/kg for rice and Rs 16/kg for wheat. However, the right to decide on the beneficiaries would be in the hands of state government, while the rights to exclude 33% of population will be of Planning Commissions.

In the previous bill that was introduced in the Lok Sabha in December 2011, the Centre had proposed 7 kg of rice or wheat or millet a month for priority category at Rs 3, Rs 2 and Re 1 per kg respectively, while at least 3 kg per person per month for general households at 50 percent of support price. However, this time around the bill proposes only one category of beneficiary with uniform entitlement at uniform price.

Further, laying more burden on state government, the bill envisages liability of the central government under the Right to Food Security to be limited uptill providing grains to the state food depots, with the former being charged penalty if it fails to provide these gains to the intended beneficiaries.

India VIX, a gauge for markets short term expectation of volatility lost 5.87% at 15.54 from its previous close of 16.51 on Thursday. (Provisional)

The CNX Nifty lost 7.90 points or 0.14% to settle at 5,650.85. The index touched high and low of 5,691.45 and 5,631.80 respectively. 25 stocks advanced against 25 declining ones on the index. (Provisional)

The top gainers on the Nifty were IDFC up by 6.19%, Ambuja Cements up by 4.20%, Bajaj-Auto up by 3.97%, Bank of Baroda up by 3.70% and Jindal Steel was up by 3.34%. On the other hand, DLF down by 3.17%, Ranbaxy down by 1.99%, SBI down by 1.86%, Tata Steel down by 1.78% and TCS down by 1.66% were the top losers. (Provisional)

All European markets were trading in red with, Germany’s DAX down by 0.30%, the United Kingdom’s FTSE 100 down by 0.05% and France’s CAC 40 down by 0.05%.

Asian equity markets ended mostly lower after hovering near 2013 lows as Cyprus clambered to encounter a solution to its funding crisis and worries over the health of the euro zone increased. Bucking the trend, the Shanghai Composite Index went home with green mark after swinging between gains and losses. Japan’s Nikkei closed lower with the stronger yen after the new Bank of Japan governor played down the chances of an emergency meeting. Hong Kong market ended in negative territory, on gloomy picture of corporate earnings.