Post Session; Quick Review

It turned out to be extraordinary session for benchmark equity indices at D-street, where not a single iota of profit-booking was seen after early morning deals. Indian equity markets gaining steam steadily ended near day’s highest point, with Sensex reclaiming the crucial 20,000 mark and widely followed index Nifty, piercing past the psychological 6050 mark, with gains of around one and a half percent. Meanwhile, broader indices too performing well ended with gains of around a percent.

The session turned out to be magnificent as benchmark equity indices gained significant traction in absence of any major global cues. London Stock Exchange was closed on Monday for a May bank holiday, while US floors will be closed for Memorial Day. Although most of the Asian pacific region’s markets concluded in green, Japan’s Nikkei index slid more than 3% on Monday, extending last week’s severe volatility and leading investors to worry that a bout of profit-taking may have turned into lasting doubt about economic growth and broader appetite for risk.

Closer home, the start of the F&O expiry week turned out to be optimistic as investors stormed into equities. Stocks from Consumer Durables, Oil & Gas and Metal counters outperformed.  Index heavyweight Reliance Industries (RIL) lifted the entire pivotal higher, after the company’s stock spurted over 4% on reports that the company and its partners BP and NIKO have struck a significant gas and condensate discovery in the KG D6 block. Additionally, telecom stocks, i.e., Bharti Airtel and Idea Cellular, were in demand on reports that Reliance Communications (RCom) has raised basic rates for prepaid mobile-to-mobile calls by 33%. Capital Goods which along with Auto counter were down in early afternoon trade, too recovered their ground to end the trade with gains of close to half a percent. Disappointing result of Crompton Greaves weighed on the pivotal in after noon deals, nevertheless the counter soon recovered the lost ground. Shares of Crompton witnessed selling pressure after the company's consolidated net profit fell 75% to Rs 25.27 crore for the fourth quarter ended March 2013 as compared to a net profit of Rs 100.32 crore in the same period last fiscal. 

The BSE Sensex gained 326.44 points or 1.66% to settle at 20030.77.The index touched a high and a low of 20083.47 and 19678.31 respectively. Among the 30-share Sensex pack, 27 stocks gained, while 3 ended in red (Provisional)

The BSE Mid cap and Small cap indices ended higher by 1.14% and 0.79% respectively. (Provisional)

With across the board buying in the BSE Sectoral front, there were no losers, while Consumer Durables up by 3.00%, Oil & Gas up by 2.76%, Metal up by 1.95%, Health Care up by 1.56% and Teck up by 1.55% were the top gainers.

The top gainers on the Sensex were RIL up by 5.12%, Sun Pharma up by 4.66%, Jindal Steel up by 3.61%, Bharti Airtel up by 3.31% and Hindalco Industries up by 3.17%, while, Cipla down by 1.70%, Mahindra & Mahindra down by 1.60% and Maruti Suzuki down 1.09% were the only losers on the index. (Provisional)

Meanwhile, with a view to boost investment and promote growth, the government is working out norms for utilisation of surplus funds, estimated at around Rs 2.8 lakh crore of cash-rich public sector units (PSUs) including Coal India (CIL), ONGC, NMDC and OIL among other. Currently, a panel, constituted to review guidelines on investment of excess funds available with cash-rich CPSEs, has submitted its report to the Finance Ministry and once the report is finalized the Department of Public Enterprises (DPE) will go ahead with new norms.

The panel, in its draft report has suggested various investment options such as term deposits, mutual funds, treasury bills and government securities wherein PSUs can invest their money. Further, the panel is also in process for rationalizing and consolidating the existing investment norms for CPSEs. Meanwhile, there are number of guidelines issued by the DPE in regard to investment by PSUs.

Since last fiscal, the Prime Minister's Office (PMO) has been monitoring investment and capital expenditure plans of about 17 major PSUs, to enhance investment in the economy by utilizing their substantial cash surpluses as the country is facing the issue of high fiscal deficit. Recently, finance ministry also asked cash-rich public sector entities (PSE) to consider buying government equity in other state-run firms to achieve Rs 40,000 crore disinvestment target in the current fiscal. 

India VIX, a gauge for markets short term expectation of volatility lost 3.78% at 17.03 from its previous close of 16.36 on Friday. (Provisional)

The CNX Nifty gained 88.55 points or 1.48 % to settle at 6,072.10. The index touched high and low of 6,099.90 and 5,975.55 respectively. 43 stocks advanced against 7 declining and one stock remains unchanged on the index. (Provisional)

The top gainers on the Nifty were IndusInd Bank up by 6.26%, Reliance Industries up by 5.12%, Sun Pharmaceuticals up by 4.45%, Jindal Steel up by 3.98% and Bharti Airtel up by 3.85%.

On the other hand, Cipla down by 1.90%, Maruti Suzuki down by 1.78%, Lupin down by 1.68% Mahindra & Mahindra down by 1.66% and Bank of Baroda down by 1.63% were the top losers. (Provisional)

Most of the European markets were trading in green with, France’s CAC 40 rose 0.65% and Germany’s DAX added 0.48%.

Asian markets ended the session on a mixed note on Monday with Chinese benchmark closing the session in green; however investors remained cautious after new data pointed to an uncertain pace of recovery in the world’s second-largest economy. Reports that China may not launch new stimulus amid concerns of a debt buildup and overcapacity also weighed on the markets, with property stocks slipping. South Korean shares too rose slightly on Monday, edging close to a seven-week high hit last week, helped by the return of foreign investors. However, Japanese Nikkei share average tumbled over three percentage point in an increasingly tense market after last week’s turbulent trade that sent the benchmark reeling to its worst one-day loss in two years.