Post Session: Quick Review

Building on last session’s exuberance, equity markets put forth decent performance on Thursday. Although no run-up rally was witnessed but the benchmark equity indices were successful to negotiate modest gains. Strong showing by rate sensitives’ viz, realty and banking counters, mainly acted as pillar of strength for bourses. Continued hopes of rate cuts post headline inflation numbers slipping below 5% in April, augured well for rate sensitive counters for the third consecutive session. Benchmark 30 share index, adding over 25 points, ended past the crucial 20,200 mark. However, the index closed far from its intra-day high level, which was past 20300, seen during early deals. Meanwhile, 50 share index Nifty, too negotiating similar proportion of gains, concluded past the psychological 6150 level. However, the session clearly belonged to the broader indices which outperforming larger peers went home with gains of over quarter of a percent.

Markets showcased a commendable follow-up rally amidst mixed global set up. Asian pacific shares ended mixed after profit takers emerged in Japanese equities after Tokyo’s reflationary strategy was seen to have some of the desired effect, with the euro hovering just above six-week lows following news that the currency bloc is enduring at its longest recession since its inception. Meanwhile, European shares fell from an almost five-year high and US equity-index futures slid as the dollar strengthened before reports on the strength of America’s recovery. Reports later in the day will probably show US housing starts slipped in April from an almost five-year high and jobless claims rose last week from a pre-recession low.

Closer home, undertone at D-street remained up-beat after Moody’s said that Indian economy is expected to pick up and grow in the range of 5.5-6.5 percent in 2013. There was buying witnessed from foreign investors too, after the newly appointed Law Minister Kapil Sibal, in the second successive signal in as many days, to foreign investors about India's willingness to clear hurdles in the way of investment, cleared a SEBI regulation which permits put and call options in mergers and acquisitions. However, the gains remain capped tracing the downtrend of the stocks belonging from Fast Moving Consumer Goods, Information Technology and Auto counters. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 952: 1032, while 96 scrips remained unchanged. (Provisional)

The BSE Sensex gained 34.37 points or 0.17% to settle at 20247.33.The index touched a high and a low of 20326.48 and 20162.12 respectively. Among the 30-share Sensex pack, 14 stocks gained while rest of them declined (Provisional)

The BSE Mid cap and Small cap indices ended higher by 0.42% and 0.23% respectively. (Provisional)

On the BSE Sectoral front, Realty up by 1.81%, Oil & Gas up by 1.64%, Health Care up by 1.53%, Bankex up by 1.11% and Capital Goods up by 0.84% were the top gainers, while FMCG down by 1.06%, IT down by 0.99%, Teck down by 0.87%, Auto down by 0.60% and Consumer Durables down by 0.49%, were the only losers in the space. (Provisional)

The top gainers on the Sensex were Hindalco Industries up by 2.68%, Cipla up by 2.62%, RIL up by 2.61%, Dr Reddys Lab up by 2.48% and Sterlite Industries up by 2.07%, while, ITC down by 1.71%, Tata Motors down by 1.69%, Jindal Steel down by 1.33%, Infosys down by 1.19% and TCS down by 1.02% were the top losers in the index. (Provisional)

Meanwhile, mirroring the effect of the expanding Indo-US partnership in clean energy sector, India and America have managed to garner $1.7 billion from the private sector to finance clean energy initiatives. Further, an additional $125 million public-private joint research center is also being created that will be led by 95 government, research, and private organizations.

While attending the 4th US-India Energy Partnership Summit, Assistant Secretary of Central Asia Robert Blake said, both nations are expanding bilateral cooperation on clean energy through the US-India Partnership to Advance Clean Energy and has mobilized over $1.7 billion.          

Expressing that collaboration in this area can drive broader cooperation and economic connectivity, he said, the US will address India’s all energy issues, from the Ministry of New and Renewable Energy to the Ministry of External Affairs and the Prime Minister's Office. Further, clean energy cooperation will be a key part of the agenda, when the US-India Strategic Dialogue will be held this summer.

Meanwhile, India is an energy deficient nation and is seeking more collaboration with the United States in the renewable energy sector. India needs massive investment in the renewable energy sector which is estimated to be between $60-70 billion in the next five years. India-US energy dialogue focuses on critical areas of social development and both the countries are also developing a joint strategy of clean energy development. 

India VIX, a gauge for markets short term expectation of volatility lost 2.15% at 17.74 from its previous close of 17.45 on Wednesday. (Provisional)

The CNX Nifty gained 22.60 points or 0.37% to settle at 6,169.35. The index touched high and low of 6,187.30 and 6,128.25 respectively. 29 stocks advanced against 21 declining and one stock remains unchanged on the index. (Provisional)

The top gainers on the Nifty were JP Associate up by 5.80%, IDFC up by 3.61%, Sesa Goa up by 2.99%, Lupin up by 2.94% and Cipla was up by 2.75%. On the other hand, NMDC down by 2.92%, Tata Motors down by 1.86%, Jindal Steel down by 1.58%, ITC down by 1.53% and Bajaj-Auto down by 1.41% were the top losers. (Provisional)

Most of the European markets were trading in red with, France’s CAC 40 down by 0.34% and Germany’s DAX down by 0.21% while the United Kingdom’s FTSE 100 up by 0.02%.

Asian markets closed the shutter on a mixed note on Thursday with Japanese stocks turning lower after touching a fresh five-and-a-half year high in early trade. Most of the markets in the region opened on a buoyant note, but some of them retreated soon with investors choosing to take some profits, cashing in on recent gains. Chinese market ended with green mark for the second straight day, with financial institutions and property developers leading the gains. South Korean market closed higher buoyed by foreign buyers returning after having been net sellers for most of April and so far this month.