Post Session: Quick Review

What started as the quiet session of trade, ended up with handsome gains after the markets picked up speed to conclude over 2 years' high level. The Nifty extended its winning streak and charged towards the 6150 mark, level last seen on January 2011, while Sensex, zooming over 450 points wrapped up the session above the crucial 20200 level. The trade turned out to be exceptional as benchmark equity indices showing a power-packed performance recouped all the losses suffered during the big plunge of on Monday. Trade of over massive 2.16 lac crore was done in terms of turnover (Provisional)

The party at D-street was led by rate sensitives’, which rallied on rate cut hopes mainly bolstered by RBI’s official comments. India’s central bank governor Duvvuri Subbarao, said, ‘the Reserve Bank of India will take note of falling inflation when discussing potential interest rate cuts. This comments, following the 41 month low inflation data brought sanguinity for Indian equity markets.

Meanwhile, positive regional counterparts too contributed to the upside. Asian pacific shares ended higher on Wednesday, with the tumbling yen pushing Japanese stocks to a fresh multi-year high as improving confidence in the US economy boosted prospects for regional exporters. However, European shares were trading mixed in early deals on Wednesday, taking a breather from a sharp rally started in mid-April, with lower-than-expected growth data for Germany and France denting investor appetite. Data showed Germany's economy grew just 0.1% in the first quarter, while France entered a shallow recession, contracting by 0.2%.

The Indian equity markets recovered all their losses after consolidating on Monday, supported by across the board buying. Although there were no losers on BSE sectoral front, stocks from Realty, Bankex and Capital Goods topped the gainers chart. Sentiments also got bolstered after Finance Minister P Chidambaram said that he would set up a cell in his office to monitor and resolve the issues for speedy completion of the stalled infrastructure projects. Additionally, investors took heart out of the reports which stated global rating agency Standard & Poor’s has projected Indian economy to grow by 6 percent in the current fiscal, with growth remaining steady in most of the Asia Pacific economies

Meanwhile, slew of good earnings also encouraged investors for pouring their funds into risky equities. Karnataka Bank, gained close to 3% despite reporting decline of 19% in net profit for quarter ended March 31, 2013. Additionally, Bajaj Finance stocks gained close to 1.50% after the company reported a rise of 51.30% in its net profit at Rs 163.81 crore in Q4FY13.

The BSE Sensex gained 490.67 points or 2.49% to settle at 20212.96.The index touched a high and a low of 20241.96 and 19798.18 respectively. Among the 30-share Sensex pack, 29 stocks gained, while 1 ended in red (Provisional)

The BSE Mid cap and Small cap indices ended higher by 1.58% and 0.98% respectively. (Provisional)

With across the board buying in the BSE Sectoral front, there were no losers, while Realty up by 4.04%, Bankex up by 3.95%, Capital Goods up by 3.00%, PSU up by 2.36%, Auto up by 2.29% were the top gainers.

The top gainers on the Sensex were HDFC up by 4.70%, SBI up by 4.07%, L&T up by 3.85%, ICICI Bank up by 3.80% and HDFC Bank up by 3.72%, while, Wipro down by 0.52% was the lone loser on the index. (Provisional)

Meanwhile, with India’s headline wholesale inflation falling below 5% in April, the Reserve Bank of India (RBI) governor D Subbarao said, the central bank will take a note of falling inflation while discussing potential interest rate cuts. Inflation measured in terms of Wholesale Price Index (WPI) fell to over 3-year low of 4.89% in April compared to 5.96% in March this year and 7.50% April 2012 and has returned to the RBI comfort zone.

By adding further, the governor said that the country’s economic growth is expected to pick up speed in the second half of this year, and added that India would control its current account deficit and bring it down to 2.5% from the current level of 5%.

In the last fiscal, India’s GDP growth slowed down to around 5%, which was decade low. However, the government expects the economy to grow by 6.1-6.7% in the current fiscal. Moreover, the country macro-economic indicators such as industrial production and inflation are also improving. The industrial output grew by 2.5% in March this year revealing that there is acceleration in production.India VIX, a gauge for markets short term expectation of volatility gained 5.59% at 18.13 from its previous close of 17.17 on Tuesday. (Provisional)

The CNX Nifty gained 151.35 points or 2.52% to settle at 6,146.75. The index touched high and low of 6,157.10 and 6,018.85 respectively. 47 stocks advanced against 3 declining and one stock remains unchanged on the index. (Provisional)

The top gainers on the Nifty were PNB up by 7.60%, Reliance Infra up by 5.22%, Indusind Bank up by 5.14%, kotak Bank up by 5.12% and DLF up by 4.78%. On the other hand, Power Grid Corporation down by 0.74%, UltraTech Cement down by 0.51% and Cairn India down by 0.08% were the top losers. (Provisional)

Most of the European markets were trading mixed with, France’s CAC 40 rose 0.19%, Germany’s DAX added 0.10% and the United Kingdom’s FTSE 100 down by 0.02%.