Post Session: Quick Review

Extending previous session’s jubilant run, Indian equity markets put up a mesmerizing show on Tuesday on the back of positive domestic news flow, which encouraged investors to go long on risky equities regardless of mixed global set-up. In the highly optimistic session of trade, benchmark equity indices after getting a cautious start, went on gaining ground only to conclude near the day’s high point. Registering its biggest one day gain in 6 months, benchmark 30 share index, Sensex rallied over 350 points, to conclude above the long lost 18700 mark, while Nifty shooting up over 100 points ended past just shy of 5700 level. Broader indices too ended in green, but with lesser magnitude of gains as compared to frontline equity indices. Both Midcap and Smallcap index went home with gains of over half a percent.

Three year low inflation data, which fuelled hopes of an interest rate cut by the central bank in its May 3 policy review mainly gave a shot in arm to the equity markets, besides spurring gains for rate sensitives’ Banking and Auto counters. Investors also took cues from the sharp slump in gold and crude oil prices, which if sustained, would help narrow the ballooning current account deficit, a factor which has been cited by the central bank as a key variable in its monetary policy making. Meanwhile, encouraging statements of country achieving the fiscal deficit target of 3% in 2016-17, by Finance Minister P Chidambaram, for overturning fears of foreign investors about fiscal deficit, also provided the required fillip to the local equity markets. Additionally, surge of index heavyweight, Reliance Industries, ahead of its result, added to the upside.

On the global front, Asian stock markets trimmed most of their losses on Tuesday as some bargain-hunting kicked in after early decline in the day, however, miners and gold producers underperformed amid the recent sharp fall in commodity prices. Additionally, European shares fell early on Tuesday, declining for the third consecutive session, mirroring a sharp sell-off in US stocks and commodity prices as mounting worries over the pace of global growth rattles investors.

Closer home, with extensive buying, most of the sectoral indices were up in green with impressive gains. Banking, Auto and Capital Goods space were among the most prominent gainers. However, IT and Technology counters were the dark spots. Rate sensitive Auto and banking counters rallied on hopes that Reserve Bank of India would now have room to ease monetary policy for a third time this year. Additionally, telecom stocks too were in demand. Bharti Airtel, Idea Cellular and Reliance Communications edged higher in the range of 1-6%. Further, PSU OMCs, BPCL, HPCL and IOC edged higher as crude oil hits 4-month low. Further, stocks related to power sector ended higher after the Central Electricity Regulatory Commission (CERC), the electricity regulator directed five state governments to compensate Tata Power for the losses it incurred from importing coal for its 4,000 mw Mundra ultra mega power project (UMPP). The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1338: 1024 while 147 scrips remained unchanged. (Provisional)

The BSE Sensex gained 387.13 points or 2.11% to settle at 18744.93.The index touched a high and a low of 18771.33 and 18325.73respectively. 28 stocks were up, while 2 stocks declined on the index. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 0.86% and 0.43% respectively. (Provisional)

On the BSE Sectoral front, Bankex up by 2.94%, Auto up by 2.54%, Capital Goods up by 2.53%, Power up by 2.42% and Realty up by 2.29% were the top gainers, while IT down by 0.50% and Teck down by 0.09% were the only loser in the space. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 4.23%, Mahindra & Mahindra up by 3.95%, ONGC up by 3.87%, HDFC up by 3.84% and Dr Reddys Lab up by 3.56%, while, Infosys down by 1.71% and Sterlite Industries down by 1.28% were the only losers in the index. (Provisional)

Meanwhile, India’s services exports increased by 9.5 per cent to $12.28 billion in February from $11.22 billion recorded in the same month of previous year. However, the export was down from a month ago at $13.89 billion in January 2013. During April-February period of FY13, the cumulative services exports declined by 2.5 percent to $121.18 billion from 124.25 billion in the same period of corresponding fiscal. 

Director General and CEO of Federation of Indian Export Organisations (FIEO) Ajay Sahai said the services exports are not on expected lines. We require double digit growth in services exports. The federation is expecting better exports data and sees $160 billion services receipt in the FY13. 

On the other hand, import of services in February 2013 stood at $6.35 billion versus $6.75 billion a year earlier. In January 2013, the services import stood at $7.52 billion. During the first 11 months period of FY13, services imports were valued at $73.68 billion.

The services sector contributes around 57 per cent to the country’s gross domestic product. Service sector includes key service exporter industries like Health Care, Tourism, Education, Engineering and Information Technology among others. Indian service sector has been growing at an average annual growth rate of about 28% during the last 5 years, making it the country’s growing consultancy sector which is offering its accumulated experience and expertise at home and abroad. 

India VIX, a gauge for markets short term expectation of volatility lost 2.16% at 16.25 from its previous close of 16.61 on Monday. (Provisional)

The CNX Nifty gained 116.55 points or 2.09% to settle at 5,684.95. The index touched high and low of 5,699.25 and 5,555.85 respectively. 46 stocks advanced against 4 declining on the index. (Provisional)

The top gainers on the Nifty were IDFC up by 5.39%, Axis Bank up by 4.87%, IndusInd Bank up by 4.40%, Maruti Suzuki up by 4.36% and M&M was up by 3.94%. On the other hand, Infosys down by 1.97%, HCL Tech down by 0.33%, Cairn down by 0.32% and Lupin down by 0.02% were the top losers. (Provisional)

All European markets were trading in red with, Germany’s DAX down by 0.53%, the United Kingdom’s FTSE 100 down by 0.55% and France’s CAC 40 down by 0.58%.

Snapping earlier losses, Asian stock markets ended mostly higher on Tuesday but investors were still worried about China’s slowing economy, while miners and gold producers underperformed amid sharp declines in commodity prices. Stocks in China went home with green mark, digesting Monday’s weak economic data. Shares in Seoul closed higher as investors sentiments were boosted with an additional government spending. However, Japanese shares ended lower as the yen appreciated but pared those losses as the local currency came off a bit.