Post Session: Quick Review

The last hour of trade turned game changer for Indian benchmark equity indices on the last trading session of FY12-13, wherein reversal of trend led to second consecutive positive close for the markets in the holiday truncated week. However, despite gaining for two out of three trading sessions, markets could only negotiate a positive close on the same time, broader indices witnessing rampant selling pressure, ended with cut of over 2% (CNX Midcap) and 6% (BSE Smallcap) index for the week.

Volatility played its part on the final day of March F&O series expiry, though benchmarks managed to gain some traction as investors went for battered blue chip stocks amidst the hopes of strong fund inflow by corporate in the new financial year and also on the hopes of better corporate earnings from the corporate in the upcoming quarter.

Gaining for second consecutive session, Sensex gathered over 150 points and finished above 18850 level, 50 Share index, Nifty, too adding close to 50 points, concluded above the 5650 bastion. Broader indices, outperforming frontline indices, ended with gains of over a percent. However, after rallying for over 27% in 2012, Indian equity markets featured in the worst performing emerging equity markets for the quarter.

Local equity markets made a cautious start tracing muted Asian markets ahead of March F&O expiry. Asian pacific shares ended down in dumps as weak euro zone data, a sluggish debt auction in Italy and fears of a potential run on Cyprus's banks stoked investors' concerns about instability in Europe. Adding to the negative tone was the latest restrictive move by China, with its banking watchdog ordering banks to strengthen checks on the underlying assets of a range of wealth management products to ward off potential risks to the financial system. Back home, even lingering concerns over current account deficit (CAD), which is expected to come at an all time high of 6.4% against 5.4% in the July-September period, kept investors away from investing into risky equities. However, recovery crept in local equity markets with the opening of European markets. European shares edged higher on Thursday, recovering from a three-week low hit in the previous session as bargain hunters picked up beaten-down stocks on the last trading day of the quarter.

Sectorally, Metal, Capital Goods and Consumer Durable counters were the major pillar of strength, while stocks from Auto sector remained the only chink in the armour. Auto stocks ended low ahead of new month Sales data. The market breadth on the BSE ended in the favour of green; advances and declining stocks were in a ratio of 1622: 1144 while 128 scrips remained unchanged. (Provisional)

The BSE Sensex gained 131.24 points or 0.70% to settle at 18835.77. The index touched a high and a low of 18882.54 and 18568.43 respectively. 21 stocks advanced, while 9 stocks declined on the index. (Provisional)

The BSE Mid cap index was rose by 1.46% and Small cap index lost 1.32%. (Provisional)

On the BSE Sectoral front, Metal was up by 2.69%, Capital Goods was up by 2.17%, Consumer Durables was up by 1.89%, PSU was up by 1.76% and Bankex up by 1.66% were the top gainers, while Auto down by 0.76 was the only losers in the space. (Provisional)

The top gainers on the Sensex were Gail India up by 5.96%, Hindalco Industries up 3.81%, ICICI Bank up by 3.03%, ONGC up by 2.91% and Sterlite Industries up by 2.80%, while Hero MotoCorp down by 2.26%, Tata Motors down by 2.14%, Bharti Airtel down by 1.50%, Maruti Suzuki down by 1.36% and Hindustan Unilever down by 1.30% were the top losers on the index. (Provisional)

Meanwhile, Commerce and Industry Minister Anand Sharma, while addressing the fifth BRICS Summit, has admitted that India unfortunately has not performed to expectations in the fields of trade and other commercial ties with member nations of BRICS (Brazil, Russia, India, China and South Africa). Out of the proposed $500 billion trade expected between the BRICS nations by 2015, the countries had crossed the $319 billion mark.

The Indian Commerce Minister said that he was not fully satisfied with India’s trade of $ 100 billion with the other BRICS nations and considered it to be an underperformance, saying that it is much below the country’s potential. Though, Sharma added that there are unexploited opportunities, and we are beckoning our business leaders and our institution builders to grab these and enhance the export.

Presently, the government is focusing to enhance the export as the waning export is hurting the country’s trade balance and the current account deficit, putting pressure on the currency. Government is looking at ways to increase exports through the Foreign Trade Policy (FTP). The annual FTP is expected to come in the first week of April.

To increase the country’s export, the commerce ministry is examining a number of proposals from the industry that include extending direct cash incentives to exporters of a larger number of products to targeted markets. The government is also considering an export development fund with a likely corpus of about Rs 5,000 crore to Rs 10,000 to help the exporters in their marketing initiatives and interest subsidy scheme to more export sectors in the upcoming foreign trade policy (FTP).

India VIX, a gauge for markets short term expectation of volatility lost 3.67% at 15.22 from its previous close of 15.80 on Tuesday. (Provisional)

The CNX Nifty gained 47.60 points or 0.84% to settle at 5,689.20. The index touched high and low of 5,692.95 and 5,604.85 respectively. 35 stocks advanced against 15 declining ones and one stock remained unchanged on the index. (Provisional)

The top gainers on the Nifty were Siemens up by 4.30%, Gail up by 4.03%, Hindalco up by 3.80%, HCL Tech up by 3.17% and Ambuja Cements was up by 3.11%. On the other hand, Tata Motors down by 2.32%, Hero MotoCorp down by 1.96%, Bharti Airtel down by 1.67%, Maruti down by 1.41% and Bajaj-Auto down by 1.33% were the top losers. (Provisional)

Most of the European markets were trading in green with, Germany’s DAX up by 0.16%, the United Kingdom’s FTSE 100 up by 0.14% and France’s CAC 40 up by 0.13%.