Post Session: Quick Review

After racing up to 14 week’s high level, benchmark equity indices halted to take a breath on Thursday. Although no profit-booking was witnessed for most part of the day, but the markets turned choppy, given the cautious undertone ahead of the release of Consumer Price Index (CPI) and Industrial Production data on May 10. Meanwhile, mostly negative global set-up too dissuaded market-participants from initiating any fresh bets. In the choppy session of trade, benchmark 30 share index, Sensex on Bombay Stock Exchange (BSE), lost close to 50 points, to end below the psychological 20,000 level, while broadly followed 50 share index, Nifty on National Stock Exchange (NSE), dipped in red but managed to end above its crucial 6050 bastion. Meanwhile, broader indices ended on mixed.

After trading in and out of green zone, Benchmarks finally settled in negative terrain on account of disappointing earnings put forth by Asian Paints and Jubilant FoodWorks. Asian Paints’ shares plunged close to 4% after the company reported a 3.5% drop in net profit for the fourth quarter ending March, 2013, while Jubilant FoodWorks’ stocks tumbled close to 8% after the operator of Domino's Pizza and Dunkin' Donuts outlets in India, reported a lower-than-expected 14% year-on-year rise in fourth quarter net profit at Rs 33 crore.

On the global front, European investors cashed in on recent gains on defensive sectors such as pharma and utilities on Thursday, knocking down shares from multi-year highs. Meanwhile, Asian pacific shares ended mixed as investors weighed an interest rate cut in South Korea against rising inflation in China. South Korea's Kospi index jumped higher after the Bank of Korea lowered its benchmark interest rate for the first time in seven months, while Hong Kong's Hang Seng fell after the Chinese government issued a report showing that inflation rose slightly in April, which could temper any stimulus response by Beijing to China's shaky economic recovery.

Closer home, although batch of disappointing results led the markets lower in the dying hours of trade, investors took a heart out of Punjab National Bank’s results. The stock soared close to 5% after the company reported an improvement in asset quality, which has been a big concern for public sector banks. Net non-performing asset (NPA) declined to 2.35 percent of advances for the quarter ended March, 2013 against 2.56 percent in the quarter ended December, 2012. However, the bank posted a 20.6% fall in net profit for the quarter ended March, 2013 at Rs 1,130 crore. Additionally, good showings by Union and Indian Bank also cheered investors. Despite that, banking counter ended lower after Cobrapost exposed 10 more banks in money laundering case. The banks named were IndusInd Bank, Bank of Baroda, ING Vysya Bank, Allahabad Bank, Bank of India, Central Bank of India, Bank of Maharashtra, HDFC Bank, ICICI Bank and Axis Bank. On the other hand, Information technology, Public Sector Undertaking (PSU) and Power counters were the top gaining sectoral indices on BSE. State Run PSU OMC’s, viz, BPCL, HPCL and IOC all settled higher on expectation of major hike in diesel price. With the Karnataka assembly polls coming to an end, investor’s are widely expecting a hike in diesel prices, this time may be even double of the otherwise monthly increase of 50 paise a litre. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1082: 1317, while 169 scrips remained unchanged. (Provisional)

The BSE Sensex lost 47.72 points or 0.24% to settle at 19,942.46.The index touched a high and a low of 20,058.48 and 19,903.83 respectively. Among the 30-share Sensex pack, 12 stocks gained while rest of them declined (Provisional)

The BSE Mid cap indices ended lower by 0.38% and Small cap indices ended higher by 0.03%. (Provisional)On the BSE Sectoral front, IT up by 0.88%, Teck up by 0.49%, PSU up by 0.32%, Power up by 0.15% and Capital Goods up by 0.06% were the top gainers, while Health Care down by 1.56%, Metal down by 1.47%, Realty down by 1.00%, Consumer Durables down by 0.94% and Oil & Gas down by 0.52%, were the only losers in the space. (Provisional)

The top gainers on the Sensex were SBI up by 1.81%, TCS up by 1.52%, Wipro up by 0.80%, Hindalco Industries up by 0.54% and ITC up by 0.48%, while, Sun Pharma down by 3.73%, Jindal Steel down by 3.42%, Sterlite Industries down by 2.28%, Cipla down by 1.47% and RIL down by 1.33% were the top losers in the index. (Provisional)

Meanwhile, as per the Department of Economic Affairs (DEA) Secretary Arvind Mayaram, India’s current account deficit (CAD) for 2012-13 is likely to be less than 5 percent of the Gross Domestic Product (GDP). The CAD, which occurs when a country's total imports of goods, services and transfers are greater than its exports, has reached an all-time high of 6.7 percent of GDP in the 3rd quarter of FY13. By adding further, he said  despite all gloom and pessimism about the growth, the fundamentals of Indian economy are very strong.

Referring to the finance ministry meeting with the representatives of three global rating agencies-Fitch, Moody's and Standard and Poor's, Mayaram said that ministry did not make a pitch for rating upgrade, but engaged with them for them to get the right information. Moreover, with the strong measures that has been taken by the finance minister in last 7-8 months, especially on fiscal consolidation, the question about credibility has also come down.

India VIX, a gauge for markets short term expectation of volatility lost 0.95% at 16.60 from its previous close of 16.76 on Wednesday. (Provisional)

The CNX Nifty lost 12.00 points or 0.20% to settle at 6,057.30. The index touched high and low of 6,084.70 and 6,040.45 respectively. 21 stocks advanced against 29 declining and one stock remains unchanged on the index. (Provisional)

The top gainers on the Nifty were PNB up by 4.70%, HCL Tech up by 2.45%, Ambuja Cements up by 2.09%, SBI up by 1.88% and Reliance Infrastructure was up by 1.85%. On the other hand, Jindal Steel down by 3.78%, Asian Paints down by 3.72%, Sun Pharmaceuticals down by 3.30%, NMDC down by 2.84% and Axis Bank down by 2.27% were the top losers. (Provisional)

Most of the European markets were trading in red with, France’s CAC 40 down by 0.96%, Germany’s DAX down by 0.09% and the United Kingdom’s FTSE 100 down by 0.04%.