Post Session : Quick Review

Local equity markets ended in green for second consecutive session, mainly supported by global risk on sentiment, which encouraged investors to buy blue chips stocks at attractive valuations. After diving to day’s low in the early noon deals, benchmark equity indices gained sufficient momentum in the second half of the session to end near high points. However, the gains of Indian equity market assume high significance as they come a day ahead of the release of key macro-economic data, IIP and CPI and more importantly the official start of Q4 earning season, with Infosys reporting its earning. Meanwhile, today by the end of the trade Sensex and Nifty both gaining over a half a percent, finished just shy of 18550 and 5600 levels respectively. Broader indices, staged mixed performance, while the Smallcap index gathered gains in line with frontline indices, Midcap index ended little above the neutral line.

On the global front, fresh data underscoring a recovery in China and Wall Street's record closing overnight boosted Asian shares on Thursday. Data on Thursday showed Chinese banks made 1.06 trillion yuan of new local currency loans in March, adding to evidence of an economic recovery being fuelled by ample credit. The data followed Thursday's trade figures, which signaled a recovery in domestic demand. Additionally, European indices advanced for a fourth day, as retailers and household-goods makers rallied, before a report that may show American unemployment claims fell .

Closer home, buzz of Sensex regaining the 20,000 mark soon augured well for local equities, which depicted the rally at D-Street was for there to stay. Sectorally, Information Technology, Realty and banking counters were the flavor of the session, while Metal, Power and Oil & Gas were the main laggards. IT shares gained for a second day as previous losses were overdone, with Infosys adding over three percent gains ahead of fiscal 2013 earnings on Friday. Meanwhile, banking counter too came on investors buying list on rate cut hopes. Expectation of lower industrial production growth mainly supports the case for rate cuts. Meanwhile, February IIP data, which is up for release tomorrow, is expected to show contraction, on account of a decline in infrastructure industry output and flagging demand, after a surprisingly strong rise in January. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 888: 794 while 765 scrips remained unchanged. (Provisional)

The BSE Sensex gained 110.48 points or 0.60% to settle at 18,524.93.The index touched a high and a low of 18,599.14 and 18,397.94 respectively. 15 stocks were up, while 15 stocks declined on the index. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 0.12% and 0.68% respectively. (Provisional)

On the BSE Sectoral front, Realty up by 2.50%, IT up by 1.95%, Bankex up by 1.54%, Teck up by 1.33% and Capital Goods up by 1.29% were the top gainers, while Metal down by 0.83%, Power down by 0.82% and Oil & Gas down by 0.68% were the only losers in the space. (Provisional)

The top gainers on the Sensex were Tata Motors up by 3.92%, Infosys up by 3.72%, ICICI Bank up by 3.52%, L&T up by 2.05% and Sun Pharma up by 1.81%, while, Bharti Airtel down by 2.31%, Tata Steel down by 2.24%, HDFC down by 1.90%, NTPC down by 1.48% and Bajaj Auto down by 1.42% were the top losers in the index. (Provisional)

Meanwhile, clearing the air that India will buy oil from wherever it ‘gets the best deal’, the government has refused to ‘lay down a quota’ for importing oil from any country, including Iran which is facing strict financial sanctions imposed by the UN and the US. On the other hand, India is unwilling to impose restrictions or restrict its oil imports from Iran, and will continue its energy ties with Tehran as long it gets a good deal and logistic support.

The government also cleared that there is no issues between the two countries and the present decline in oil import from Iran is due to the logistics reason. Lack of logistic support, mainly in financing, has over the months created problems for Indian refining companies. However, two Indian insurance companies recently agreeing to provide insurance to the oil imports from Iran have removed a great hurdle in oil imports.

The following western sanctions were aimed at cutting Iran's funding of its contentious nuclear programme. Although, Iran has always maintained that its nuclear programme was for peaceful purposes. Currently, India imports 12% of its oil requirement from Iran, which is the second largest supplier to the country.

On the other hand, the government on the domestic front is working towards securing energy independence for India and has formulated new vision and set ambitious targets to reduce India’s energy dependence on crude oil imports achieving self-sufficiency by 2030.

India VIX, a gauge for markets short term expectation of volatility gained 2.91% at 16.97 from its previous close of 16.49 on Wednesday. (Provisional)

The CNX Nifty gained 29.00 points or 0.52% to settle at 5,587.70. The index touched high and low of 5,610.65 and 5,542.85 respectively. 26 stocks advanced against 24 declining and one stock remains unchanged on the index. (Provisional)

The top gainers on the Nifty were DLF up by 4.83%, Lupin up by 3.81%, Tata Motors up by 3.81%, Infosys up by 3.53% and Icici Bank was up by 3.46%. On the other hand, Bharti Airtel down by 2.70%, Tata Steel down by 2.31%, NTPC down by 2.14%, Grasim down by 2.08% and HDFC down by 2.04% were the top losers. (Provisional)

Most of the European markets were trading in green with, Germany’s DAX up by 0.52%, the United Kingdom’s FTSE 100 up by 0.29% and France’s CAC 40 up by 0.43%.

Extending earlier session’s gains, Asian markets ended mostly higher on Thursday, on the back of another record performance from Wall Street. Japan’s Nikkei closed with strong gains after touching a fresh multi-year high as the dollar approached the 100-yen mark. However, the ambitiously quixotic Shanghai Composite went home with red mark, while Hang Seng market was more closely correlated to the global mood. Meanwhile, Seoul’s Kospi, ended higher joined in with positive regional mood, despite of North Korea tensions and worries about exporter competitiveness as the won rose against the yen.