Post Session: Quick Review

Snapping four consecutive sessions’ winning streak, Indian equity markets ended down in dumps on Monday. Intraday trend reversal, which took place in the final hour of the session, pared all the early gains of barometer gauges, as investors’ relentlessly booked profit. After striking a 31 months high level in early deals, 30 share index, Sensex  today shed about a quarter of a percent, to end below the psychological 20,400 level, while 50 share index Nifty, after piercing through 6200 level in the early deals, ended below that level with a loss of close to quarter percent.

Continued buying by FIIs on hopes of improvement in macroeconomic situation with softening of crude oil and gold prices and easing inflation led to the market’s rally in the morning session. However, the euphoria fizzled out approaching the fag end of the trade, as investors’ preferred cashing out profits at higher levels. Overseas investors have poured in nearly Rs 12,000 crore (about $2.2 billion) into the Indian equity market so far this month. With this, the total foreign investment in the country's equity market has reached Rs 73,029 crore ($13.5 billion) since January.

On the global front, Asian shares rose on Monday led by Chinese cyclical counters, as investors chased a resurgent mainland China market on their return from a Friday holiday, which posted a fourth-straight day of gains. Meanwhile, European shares set a new five-year high for a fourth straight session on Monday after positive indicators from the United States and Japan pointed to an improving global economic outlook. Equities also gained strength from encouraging economic indicators. Data on Friday showed that US consumer sentiment rose to the highest level in nearly six years, while a gauge of future economic activity rose to a near five-year high.

Closer home, stocks from Auto, Information Technology and Metal counters limited the losses of bourses, which were dragged by HealthCare, Consumer Durable and Bankex counters.  Depreciation of Rupee past 55/$ psychological level, mainly lifted Information Technology counters higher. Meanwhile, Auto stocks rose on expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013. However, the same logic failed to apply for banking shares, as investors perceived the rally in these shares to be overdone. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1116: 1302, while 130 scrips remained unchanged. (Provisional)

The BSE Sensex lost 62.14 points or 0.31% to settle at 20223.98.The index touched a high and a low of 20443.62 and 20186.66 respectively. Among the 30-share Sensex pack, 12 stocks gained while rest of them declined (Provisional)

The BSE Mid cap and Small cap indices ended lower by 0.39% and 0.20% respectively. (Provisional)  On the BSE Sectoral front, Auto up by 0.82%, IT up by 0.61% and Teck up by 0.15% were the top gainers, while Health Care down by 1.79%, Consumer Durables down by 1.19%, Bankex down by 0.92%, Oil & Gas down by 0.86% and Realty down by 0.70%, were the only losers in the space. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 1.98%, Bajaj Auto up by 1.97%, Mahindra & Mahindra up by 1.78%, Infosys up by 1.14% and  Hero MotoCorp up by 0.95%, while,  Bharti Airtel down by 2.49%, ONGC down by 1.99%, Cipla down by 1.74%, Wipro down by 1.72% and  ICICI Bank down by 1.60% were the top losers in the index. (Provisional)

Meanwhile, in order to garner more revenue from indirect tax, the finance ministry has implemented one-time amnesty scheme, Voluntary Compliance Encouragement Scheme (VCES), for service tax defaulters to pay their due without any penalty or late payment charges. As per the scheme, a defaulter may declare his due tax liabilities, including the cess charges, for a period between October 1, 2007 and December 31, 2012 and pay it to the government after making a truthful declaration and can avoid penalty, interest or any other penal proceedings.

The VCES scheme came into force after passage of Finance Bill on May 10 and can be availed by a service tax defaulter by this year end. The scheme was introduced by Finance Minister while presenting budget for 2013-14. The Finance Ministry has also decided to reject any enquiry or investigation against an evader, if he comes forward to make truthful declaration under this. A person may make a declaration to the designated authority on or before the December 31, 2013 and have to pay not less than 50 percent of the tax dues on or before December 31, this year and the rest by June 30, 2014.

According to the government estimates, service tax evaders have deprived the exchequer of over Rs 9,872 crore during April-December, 2012. However, it has detected 4,133 cases of service tax in the same period and has realized over Rs 1,969 crore from the defaulters. Further the financial bill noted that if any person who has furnished return and disclosed his true liability, but has not paid the disclosed amount of service tax or any part thereof, will not be eligible to make declaration for the period covered by the said return.

India VIX, a gauge for markets short term expectation of volatility gained 0.79% at 17.71 from its previous close of 17.53 on Friday. (Provisional)

The CNX Nifty lost 25.55 points or 0.41% to settle at 6,161.75. The index touched high and low of 6,229.45 and 6,146.05 respectively. 14 stocks advanced against 36 declining on the index. (Provisional)

The top gainers on the Nifty were Bajaj-Auto up by 2.24%, Maruti Suzuki up by 1.94%, M&M up by 1.39%, HCL Tech up by 1.34% and Coal India was up by 1.18%. On the other hand, Ranbaxy down by 5.94%, Lupin down by 4.38%, JP Associate down by 2.55%, Bharti Airtel down by 2.33% and ONGC down by 2.27% were the top losers. (Provisional)

The European markets were trading in green; France’s CAC 40 was up 0.27%, Germany’s DAX added 0.49% and United Kingdom’s FTSE 100 inched higher 0.51%.