Post Session : Quick Review

After trading steady for almost entire part of the session, benchmark equity indices slipped in red terrain in the late hours of trade on account of profit-booking. Prolonging six consecutive sessions’ losing streak, benchmark equity indices failed to negotiate a positive close, as wary investors preferred rounding off their position at the start of the F&O expiry week. Concerns that other allies too could withdraw support from the ruling coalition, after the withdrawal of the Dravida Munnetra Kazhagam (DMK) party last week, mainly got the investors nervous. Thus underperforming the globe, benchmark 30 share index Sensex, on Bombay Stock Exchange (BSE), lost over quarter percent, to conclude below the psychological 18700 level. Similarly, 50 share index, Nifty, on National Stock Exchange (NSE), too loosing over 0.25%, ended below the crucial 5650 bastion. Broader indices too witnessing profit-booking settled with a cut of 0.25% (Midcap index) and 0.75% (Small cap index).

Risk appetite across the globe was bolstered after Cyprus did a last-ditch deal with international lenders for a 10 billion euro bailout hours before a deadline to avert a financial collapse on the Mediterranean island. In the early hours of Monday morning Cypriot policy-makers agreed a deal with the European Union, the European Central Bank and the International Monetary Fund to shut down its second largest bank and inflict heavy losses on uninsured depositors, including wealthy Russians, in return for a 10 billion euro bailout.

Back home, benchmark equity indices made a gap up start following positive global cues and also on Finance Minister P. Chidambaram’s decision to ease restrictions for foreign institutional investors in government and corporate bonds next month, which besides lifting banking shares, also aided the sentiment at D-street. However, reversal of fortunes took place in the dying hours of trade, after some report suggested of Samajwadi Party leader pulling the plug on UPA, thereby dropping the strongest hint yet of an impending political crisis for the Manmohan Singh-led coalition.

Meanwhile, Oil-related shares, which hogged substantial limelight after Indian Oil Corporation (IOC), the country's biggest refiner rose diesel prices by about 1 percent from Saturday, too ended mixed by the close of trade. Sectorally on one hand, Realty, Power and Consumer Durable counters were the top performing indices, Capital Goods, Metal, auto and Banking stocks were the top losers. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1035: 1876 while 123 scrips remained unchanged. (Provisional)

The BSE Sensex lost 55.21 points or 0.29% to settle at 18680.39.The index touched a high and a low of 18950.22 and 18654.61 respectively. 10 stocks were up, while 20 stocks declined on the index. (Provisional)

The BSE Mid cap and Small cap indices ended lower by 0.41% and 0.70% respectively. (Provisional)

On the BSE Sectoral front, Realty up by 0.65%, Power up by 0.47%, Consumer Durables up by 0.19% and IT up by 0.03% were the only gainers, while Capital Goods down by 1.63%, Metal down by 0.76%, Auto down by 0.72%, Bankex down by 0.50% and FMCG down by 0.32% were the top losers in the space. (Provisional)

The top gainers on the Sensex were ONGC up by 1.83%, NTPC up by 1.76%, HDFC up by 1.14%, HDFC Bank up by 0.93% and Hindustan Unilever up by 0.91%, while, Hero MotoCorp down by 2.73%, L&T down by 2.54%, Tata Steel down by 2.48%, Hindalco Industries down by 2.18% and Bharti Airtel down by 2.11% were the top losers in the index. (Provisional)

Meanwhile, the government has planned to pay Rs 25,000 crore additional cash subsidy to state-owned fuel retailers to cover for their losses incurred in this fiscal for selling auto and cooking fuel below cost. So far in this fiscal, the government has already provided Rs 55,000 crore to state-owned fuel retailers that include Bharat Petroleum Corp Ltd (BPCL), Indian Oil Corp (IOC) and Hindustan Petroleum Corp Ltd (HPCL) to cover the part of the revenue they lost on selling diesel, domestic LPG and kerosene at government controlled rates which were way below the cost. These three firms are together projected to end the 2012-13 fiscal with an under-recovery or revenue loss of Rs 161,343 crore on sale of diesel and cooking fuel.

The government is committed to insulate the common man from the impact of rise in international oil prices and domestic inflationary condition by providing essential fuels, particularly cooking fuels at affordable prices.

However, in order to reduce the subsidy burden, the government has decided to increase the price of diesel in the range of 40-50 paise per litre per month; sell diesel to bulk consumers at non-subsidised market determined price and restrict the supply of 14.2 kg domestic LPG cylinders to 9 per consumer per annum.  Despite these measures, currently, the under-recoveries for the fuel retailers are Rs 8.64 per litre for diesel, Rs 33.43 per litre for kerosene and Rs 439 per cylinder for domestic LPG. Presently, the oil marketing companies are losing Rs 407 crore per day on fuel sales. 

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 16.35 points or 0.29% to settle at 5,635.00. The index touched high and low of 5,718.40 and 5,624.40 respectively. 20 stocks advanced against 29 declining stocks and one stock remain unchanged on the index. (Provisional)

The top gainers on the Nifty were DLF up by 5.04%, NTPC up by 2.05%, BPCL up by 2.04%, ONGC up by 1.74% and Power Grid was up by 1.71%. On the other hand, Bank of Baroda down by 2.81%, Hero MotoCorp down by 2.75%, L&T down by 2.57%, Tata Steel down by 2.52% and IDFC down by 2.34% were the top losers. (Provisional)

All European markets were trading in green with, Germany’s DAX up by 1.38%, the United Kingdom’s FTSE 100 up by 0.76% and France’s CAC 40 up by 1.67%.

Asian markets ended mostly higher on Monday after Cyprus and its international lenders reached on an outcome that will qualify the island for a bailout and avoid the collapse of its banking system. Japan’s Nikkei went home with green mark, as retailers extended the strong gains they had enjoyed in recent sessions. Hong Kong market closed higher supported by gains in index heavyweights.