Post Session: Quick Review

Start of the fresh F&O series turned out to be appalling one for Indian equity markets as bulls took a breather from the recent rally. After starting the session on negative note, benchmarks kept grinding lower and concluded with a cut of over half a percent.  Not once throughout the session, did the benchmarks attempt to stage recovery and ended only near day’s lowest point.

Snapping four consecutive session’s gaining streak, benchmark 30 share index, Sensex, blew away over 100 points to finish sub 19300 level, while Nifty losing close to 50 points ended below the 5900 level. Nevertheless, the 5850 level turned out to be strong support level for 50 share index, Nifty, as every attempt below this level was reciprocated with recovery. For the week, Nifty and Sensex gained close to a percent and half, while CNX Midcap index too managed to negotiate gains of over a percent, BSE Small cap index ended with gains of 0.70% for the week.

In absence of supportive global cues, trader’s ignoring the positive corporate earnings, chose to book profit ahead of the weekend. India's largest car maker, Maruti Suzuki posted better than expected year on year 79.8% growth in net profit, led by strong volumes of high margin diesel cars like Swift, Swift Dzire and Ertiga. Meanwhile, LIC Housing Finance stocks soared over 6% after the company reported 25% rise in net profit at Rs 316 crore for the quarter ended March 2013. However, ICICI Bank’s shares got punished even as the bank posted in line net profit rise of 21% for fourth-quarter led by higher loan growth.

On the global front, Asian markets made a mixed ending on Friday, as Japan’s Nikkei fell sharply on the back of a pick-up in the yen after the Bank of Japan held off any new measures to boost the economy. Meanwhile, European shares traded lower as disappointing earnings encouraged investors to book profits after five straight sessions of gains.

Closer home, sectorally, Auto and Capital Goods counters were the only gainers. While, Realty, Information Technology, Oil & Gas counters were the top losers. Banking stocks too fell on profit booking after recent gains on expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost economic growth at a time when wholesale price inflation is slowing.  The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 967: 1340 while 134 scrips remained unchanged. (Provisional)

The BSE Sensex lost 123.64 points or 0.64% to settle at 19,283.35. The index touched a high and a low of 19,384.95 and 19,249.75 respectively. 11 stocks were up, while 19 stocks declined and one stock remains unchanged on the index. (Provisional)

The BSE Mid cap and Small cap indices ended lower by 0.56% and 0.49% respectively. (Provisional)

On the BSE Sectoral front, Auto up by 1.00% and Capital Goods up by 0.16% were the only gainers, while Realty down by 1.97%, IT down by 1.62%, Oil & Gas down by 1.45%, Metal down by 1.45% and Bankex down by 1.40% were the top losers in the space. (Provisional)

The top gainers on the Sensex were  Maruti Suzuki up by 5.26%, Bharti Airtel up by 4.55%, Bajaj Autoup by 3.09%, Gail India up by 1.78% and L&T up by 1.52%, while, Jindal Steel down by 4.29%, RIL down by 3.19%, ICICI Bank down by 2.82%, Hindustan Unilever down by 2.70% and Tata Steel down by 2.46% were the top losers in the index. (Provisional)

Meanwhile, expressing confidence that India’s economy will get back to its potential growth rate, President Pranab Mukherjee has said that the country would be able to return to the 7 to 8 percent growth level in the next two to three years on the back of measures taken by the government. 

Mukherjee said that India's strategy of inclusive economic growth has shown positive results and we have to make economic growth work for the betterment of our people, especially those at the bottom of the socio-economic pyramid.

Emphasizing the need for innovation, president said that India lags behind major economies in terms of innovation, while, the country's economic progress will depend on its capability to innovate.

Regarding the deteriorating education quality, he said that it is matter of concern that no Indian university is ranked within the top 200 universities in the world. Therefore, there is the need for developing Indian universities to meet global benchmarks by the way of innovative teaching and improving education infrastructure. He also said that our academic environment must be conducive for promotion of research.

India VIX, a gauge for markets short term expectation of volatility lost 2.25% at 13.88 from its previous close of 14.20 on Thursday. (Provisional)

The CNX Nifty lost 44.85 points or 0.76% to settle at 5,871.45. The index touched high and low of 5,907.05 and 5,860.50 respectively. 15 stocks advanced against 35 declining on the index. (Provisional)

The top gainers on the Nifty were Maruti Suzuki up by 5.22%, Bharti Airtel up by 4.99%, Bajaj-Auto up by 3.37%, Gail up by 1.77% and HDFC was up by 1.40%. On the other hand, HCL Tech down by 5.21%, Jindal Steel & Power down by 4.77%, Reliance Industries down by 3.17%, Hindustan Unilever down by 2.99% and ICICI Bank down by 2.98% were the top losers. (Provisional)

All the European markets were trading in red with, Germany’s DAX down by 0.49%, the United Kingdom’s FTSE 100 down by 0.52% and France’s CAC 40 down by 1.10%.

Snapping earlier gains, Asian markets made a mixed ending on Friday, as Japan’s Nikkei fell sharply on the back of a pick-up in the yen after the Bank of Japan held off any new measures to boost the economy. Seoul Composite went home with red mark following sharp drop in Samsung despite it reporting growth in net profit numbers. However, Hong Kong markets closed higher, as robust quarterly earnings spurred gains.