Post Session: Quick Review

Overlooking better than expected macro-economic data, Indian equity markets witnessed a tormenting session of trade, where benchmark equity indices ended down with a nasty cut of about a percent and half. Disappointing FY14 revenue guidance and poor Q4 sales by IT bellwether Infosys,  mainly pounded sentiment at D-street besides dragging the whole IT pack lower. The widespread losses of IT stocks eclipsed fine macro-economic data, which suggested some recovery in Indian economy.

On the macro-front, India's industrial production grew 0.6% in February, beating street estimate of a contraction, after a surprisingly strong rise in January. Separately, snapping the five month rising trend, Retail inflation declined to 10.39% in March against 10.91% in the previous month. Thus, for the session, benchmark 30 share index Sensex, offloading massive 300 points, concluded below the psychological 18250 level. Meanwhile, Nifty crashing close to 70 points, finished below the 5230 level. Broader indices too ended in red, but with lesser proportion. For the week, Sensex ended with cut of around a percent, while Nifty suffered a loss of close to half a percent. While, broader indices staged mixed performance, with NSE Midcap index ending flat and BSE smallcap index ending lower by 0.8%.

On the global front, Asian shares, paring the biggest weekly advance since September, fell from the highest level in 20 months, as investors turning cautious took profits from recent rallies. Additionally, European shares edged lower on Friday to end a four-day run higher, with some traders citing concerns that Cyprus may need more bailout money as a main factor weighing on markets.

Closer home, sectorally  Fast Moving Consumer Goods, Power and Banking counters were the pockets of some strength, while IT, Capital Goods and Consumer Durable space were the laggards. Meanwhile, PSU OMC’s stocks witnessed demand post crude oil slump below $93.50 per barrel, stretching losses into a second straight session after the International Energy Agency became the third of the world's top forecasters to cut its outlook for demand growth this year. Additionally, telecom stocks, namely Bharti Airtel and Idea Cellular, ended lower for second consecutive session after Supreme Court restricted Bharti Airtel, Idea Cellular and Vodafone from enrolling new subscribers in the circles where it does not own operating license. However, sugar stocks remained the flavor of session after oil marketing companies (OMC) and sugar companies revised the ethanol prices after months of deliberation. Infosys slipped nearly 20% on Friday after the IT major gave an annual dollar revenue growth guidance of 6-10% for FY14, way below market and Nasscom forecast of 12-14% growth in the Indian IT industry during 2013-14. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1068: 1238 while 138 scrips remained unchanged. (Provisional)

The BSE Sensex lost 317.73 points or 1.71% to settle at 18224.47.The index touched a high and a low of 18337.91 and 18186.10 respectively. 16 stocks were up, while 13 stocks declined and one stock remains unchanged on the index. (Provisional)

The BSE Mid cap and Small cap indices ended lower by 0.10% and 0.36% respectively. (Provisional)

On the BSE Sectoral front, FMCG up by 1.80%, Bankex up by 0.97%, Power up by 0.93%, Oil & Gas up by 0.62% and PSU up by 0.47% were the top gainers, while IT down by 11.32%, TECK down by 9.08%, Realty down by 0.78%, Consumer Durables down by 0.57% and Capital Goods down by 0.55% were the top losers in the space. (Provisional)

The top gainers on the Sensex were ITC up by 2.75%, SBI up by 1.98%, Hindalco Industries up by 1.61%, Hindustan Unilever up by 1.49% and  Bajaj Auto up by 1.38%, while, Infosys down by 21.33%, Wipro down by 4.72%, Coal India down by 1.78%, TCS down by 1.63% and L&T down by 1.31% were the top losers in the index. (Provisional)

Meanwhile, in a big relief to policy-makers, annual rate of inflation, based on the consumer prices index (CPI), after rising for fifth consecutive month, declined to 10.39% in March as against 10.91% seen in the previous month. However, inflation continued to remain in double digit terrain for the fourth consecutive month in March. The decline was mainly seen in prices of vegetables and protein based items.

As per the data, provisional annual inflation rate based on all India general CPI (Combined) for March 2013 on point to point basis stood at 10.39% as compared to 10.91% final inflation number for February 2013. Further, CPI numbers for rural, urban and combined were at 128.2, 126.5 and 127.5 respectively. The corresponding inflation rates for rural and urban areas for March came in at 10.33% and 10.38% respectively.  While final inflation rates for rural and urban for the month of February were revised at 11.01% and 10.84% respectively.

Among all the constituents that make the CPI, cereals recorded the highest inflation of 17.55% in March. However, the prices in the vegetables basket eased to 12.16% in March from the 21.29% in February. While, inflation in pulses stood at 11.38% and in sugar at 11.65% on an annual basis. Further, price rise in the clothing and footwear segment stood at 10.64% for the reporting month.

India has the highest retail inflation among the BRICS group of emerging economies - Brazil, Russia, China, and South Africa -- and is way above the Reserve Bank of India (RBI)’s comfort level. The central bank will take into account the double digit retail inflation and slowdown in factory output while formulating its annual monetary policy, which is scheduled on May 3.   

India VIX, a gauge for markets short term expectation of volatility lost 3.06% at 16.45 from its previous close of 16.97 on Thursday. (Provisional)

The CNX Nifty lost 71.95 points or 1.29% to settle at 5,522.05. The index touched high and low of 5,544.50 and 5,494.90 respectively. 36 stocks advanced against 14 declining on the index. (Provisional)

The top gainers on the Nifty were JP Associate up by 4.97%, Ambuja Cements up by 3.54%, ITC up by 2.51%, BPCL up by 2.38% and Lupin was up by 2.17%. On the other hand, Infosys down by 22.07%, Coal India down by 1.83%, HCL Tech down by 1.65%, TCS down by 1.62% and Maruti Suzuki down by 1.61% were the top losers. (Provisional)

Most of the European markets were trading in red with, Germany’s DAX down by 1.21%, the United Kingdom’s FTSE 100 down by 0.52% and France’s CAC 40 down by 0.80%.

Asian markets ended mostly lower on the last day of week, as investors choose to take profits following recent gains. Seoul markets went home with red mark over the tensions in the Korean peninsula and expectations of weak earnings by South Korean firms. The Japanese market closed lower after edging up marginally in early trades, as yen recovered against dollar.