Post Session: Quick Review

After taking a breather in the previous session, benchmark equity indices resumed their bull run, taking the major equity indices higher by close to 1.5% for the session and over a massive 4% for the week, markets will remain closed for trade tomorrow on account of ‘Ram Navami’. After getting a cautious start markets went on gaining spree and concluded only near day’s high point. Benchmark 30 share index, Sensex adding over a massive 250 points ended above the long lost 19,000 mark, While Nifty climbing higher, close to century of points, concluded above the 5750 mark. Broader indices too ended in green but with lesser proportion as compared to frontline equity indices.

Continued rout in commodities and gold, which fueled expectation of reduced pressure on the country's record current account deficit along followed by a rate cut by the RBI in the monetary policy early May, provided the required fillip to the Indian equity markets. Additionally, good macro-economic data, also underpinned investors sentiment. India's exports, although declined by 1.76% to S300.6 billion during 2012-13, its first decline since 200-10, they were up for the third straight month in March, offering some relief to the record current account deficit.

On the global front, Asian shares mostly finished lower on Thursday, taking their cues from an overnight drop in US, on renewed concerns about global growth, which also weighed on commodities. However, European shares strengthened after a positive start as some investors indulged in bargain buying after the markets worst four-day fall in nine months.

Closer home, the sentiments were also buttressed with the rally of mining stocks, viz, Kalyani Steel, JSW Steel and Sesa Goa, after Supreme Court lifted a one-and-a-half-year old iron ore mining ban in Karnataka. Stepping back from its stance on imposing a total ban on mining in Karnataka State on account of environmental concerns, SC cleared the long awaited verdict on the Category B iron ore mining in Bellary district of Karnataka. Meanwhile, Indian oil marketing companies such as HPCL also gained on hopes that recent slump in crude prices would lower the cost of under-recoveries. In sector-specific activity, Capital Goods, Consumer Durable, Banking and Auto were the major pockets of strength, on the flip side, Information Technology, Metal and Health Care counters were the weak spells. While, sustained hopes of rate cut drove the rate sensitives’ higher, appreciation of Indian currency pressured Information Technology stocks.

On the result front, Q4 result of IndusInd Bank too cheered the markets. The stock hit the record high level on reporting 37.61% rise in Q4FY13 net profit at Rs 307.40 crore, due to higher interest and other income.  Besides, MRF shares drove higher by 4% on reporting 40.21% in its net profit at Rs 210.61 crore for the quarter ended March 31, 2013 as compared to Rs 150.13 crore for the same quarter in the previous year. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1311: 1056, while 135 scrips remained unchanged. (Provisional)

The BSE Sensex gained 285.30 points or 1.52% to settle at 19016.46.The index touched a high and a low of 19058.80 and 18691.61 respectively. 26 stocks were up, while 4 stocks declined on the index. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 0.74% and 0.59% respectively. (Provisional)

On the BSE Sectoral front, Consumer Durables up by 2.78%, Capital Goods up by 2.63%, Bankex up by 2.49%, Auto up by 2.26% and Realty up by 1.86% were the top gainers, while IT down by 0.31% was the sole losers in the space. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 4.65%, Tata Motors up by 3.98%,  L&T up by 3.61%, HDFC up by 3.34% and Gail India up by 3.20%, while, Wipro down by 1.68%, TCS down by 0.58%, Sun Pharma down by 0.04% and Dr Reddys Lab down by 0.02% were the top losers in the index. (Provisional)

Meanwhile, India's exports, although declined by 1.76% to $300.6 billion during 2012-13, its first decline since 2009-10, were up for the third straight month in March, offering some relief to the record current account deficit. Driven by lower spending on oil purchases, imports fell to 2.87% to $41.16 billion, while exports rose 6.97% year-on-year in March to $30.84 billion, thereby leaving trade deficit in the month to $10.32 billion.

However, the declining exports which missed the government target of $360 billion by a wide margin, also pushed up the trade deficit during the fiscal to $190.91 billion from $183.4 billion in the previous financial year. 

Acknowledging the need to enhance exports to address the real challenge of bringing down the trade account deficit, which directly impacts the current account deficit, trade Minister Anand Sharma, who gave the full year figures at a meeting of exporters, also announced incentives for external trade. The measures include a 2% interest rate subsidy for the stressed textile industry, which was once a stronghold of the Indian economy but now struggles to compete with China and Bangladesh for the European and US markets.

The current account deficit has emerged as a big threat to Asia's third largest economy since last year. It is expected to have hit about 5% of GDP in the fiscal year that ended in March, but a fall in gold and oil prices along with the uptick in exports since January should ease some of the pressure.

Earlier, in December 2012, the government had announced incentives for exporters that included extension of two percent interest subsidy for one more year till March 2014.

India VIX, a gauge for markets short term expectation of volatility lost 6.11% at 15.36 from its previous close of 16.36 on Wednesday. (Provisional)

The CNX Nifty gained 86.05 points or 1.51% to settle at 5,774.75. The index touched high and low of 5,794.35 and 5,681.85 respectively. 28 stocks advanced against 11 declining and one stock remains unchanged on the index. (Provisional)

The top gainers on the Nifty were IndusInd Bank up by 7.71%, IDFC up by 4.91%, Bharti Airtel up by 4.47%, Tata Motors up by 3.85% and Axis Bank was up by 3.84%. On the other hand, NMDC down by 2.48%, HCL Tech down by 1.97%, TCS down by 0.93%, Dr. Reddy's Laboratories down by 0.28% and Cipla down by 0.21% were the top losers. (Provisional)

Most of the European markets were trading in green with, Germany’s DAX up by 0.65%, the United Kingdom’s FTSE 100 up by 0.52% and France’s CAC 40 up by 0.81%.

Asian markets ended mixed on Thursday, as investors sentiments were dampened with sharp fall in commodity prices and weak US corporate results, with some technology stocks dropping after a sharp fall in Apple Inc. shares. Hong Kong market closed lower for a fifth straight session, while, Chinese market found a little support from economic data showing an improvement in foreign direct investment inflows and home prices. Japanese market went home with red mark as yen increased against the dollar.