Post Session: Quick Review

Benchmark equity indices languished for the entire session of trade and settled flat with negative bias. Volatility remained the constant companion of benchmarks on the penultimate session of May F&O series expiry. The muted tone of bourses was also on account of prevailing caution ahead of economic growth data this week, while downbeat European markets also added to the downside.  Thus, by the close of trade, benchmark 30 share index, Sensex, on Bombay Stock Exchange (BSE) despite dipping a little below its neutral line, ended above 20150 level, while 50 share index, Nifty on National Stock Exchange (NSE), settled above the psychological 6100 level. Meanwhile, broader indices, in absence of positive catalyst, ended on a mixed note.

On the global front, most Asian markets rose on Wednesday on account of strong US economic data which took Dow Jones industrials at a record high, while European shares fell, reversing most of the previous session's strong gains as concern that the Federal Reserve may taper its bond purchases tapered optimism. Meanwhile, US data showed on Tuesday home prices accelerated in March by the most in nearly seven years, while consumer confidence was the strongest in May in over five years.

Closer home, the markets after soaring high in early deals, capitulated to selling pressure and traded in range till noon deals, after which it grinded lower. Further, the markets started showing signs of recovery but the optimism soon tapered off and the markets just managed to negotiate a flattish close with a negative bias. Stocks from Health Care, Consumer Durable and Fast Moving Consumer Goods were the top gainers of the session, while those belonging from high beta Realty, Banking and Power were the weakest spells. Led by the gains of Sun Pharmaceuticals Industries, Health Care counter topped the BSE sectoral chart. Sun Pharma surged to strike a record high on good Q4 result and a liberal 1:1 bonus issue announcement. The company’s consolidated net profit rose 23% to Rs 1,012 billion for the January-March quarter compared with Rs 820 crore a year earlier. Surprisingly, Information Technology stocks failed to gain traction even as Indian currency dipped to ten month low to trade past psychological 56/$ level. While, Banking stocks witnessed further drubbing after RBI reported KYC and AML violation among 30 banks. While, the recent expose by Cobra post was limited to questionable transactions in Axis Bank, ICICI Bank and HDFC Bank, the RBI study found out Know Your Customer (KYC) and anti-money laundering (AML) violations in a thematic study of 30 banks. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1025: 1342, while 137 scrips remained unchanged. (Provisional)

The BSE Sensex lost 13.18 points or 0.07% to settle at 20,147.64.The index touched a high and a low of 20,216.49 and 20,044.74 respectively. Among the 30-share Sensex pack, 12 stocks gained, while rest of 17 declined and one stock remain unchanged. (Provisional)

The BSE Mid cap and Small cap indices ended lower by 0.39% and 0.16% respectively. (Provisional) On the BSE Sectoral front, Health Care up by 1.82%, Consumer Durables up by 0.82%, FMCG up by 0.58%, A up by 0.34% and Oil & Gas up by 0.12%, were the only gainers, while Realty down by 2.50%, Metal down by 1.13%, Bankex down by 0.82%, Power down by 0.77% and IT down by 0.64%, were the top losers in the space. (Provisional)

The top gainers on the Sensex were Sun Pharma up by 7.09%, Tata Motors up by 2.69%,  Hero MotoCorp up by 2.39%, Coal India up by 1.30% and Cipla up by 1.26%, while, Sterlite Industries down by 2.53%, Tata Steel down by 2.27%, Jindal Steel down by 1.98%, Gail India down by 1.50% and ICICI Bank down by 1.38% were the top losers in the index. (Provisional)

Meanwhile, to increase domestic production of coal, the government is examining two-three models, suggested by Planning Commission and the Finance Ministry on having public-private-partnership (PPP) model in the coal sector. Coal Secretary S K Srivastava said that ministry has already convened 2-3 meetings on it and is trying to see as to how it can involve the private sector along with Coal India for improving the coal production in the country.

Earlier in March, the government had set up a nine-member committee under the chairmanship of Coal Secretary to devise a policy framework under PPP or increasing domestic coal production. The panel constituted members from various ministries including Law, Labour and Finance among others. 

Earlier, Finance Minster, in his Budget speech had stated the need to devise a PPP policy framework to reduce the country’s increasing dependence on imported coal in the medium to long-term. India imported around 135 million tonnes of thermal and coking coal in FY13, up around 28% from a year earlier, as domestic supply fell short of surging demand in Asia's third-largest economy.

Last fiscal, Coal India (CIL) which accounts for over 80 per cent of the domestic coal output, missed its production target of 464.1 million tonnes by 11.9 million tonnes. In India, coal is the main source for power production and the coal supply in country has failed to keep pace with the requirement of the domestic power sector.

India VIX, a gauge for markets short term expectation of volatility gained 4.38% at 17.86 from its previous close of 17.12 on Tuesday. (Provisional)

The CNX Nifty lost 13.95 points or 0.23% to settle at 6,097.30. The index touched high and low of 6,125.05 and 6,069.80 respectively. 17 stocks advanced against 33 declining on the index. (Provisional)

The top gainers on the Nifty were Sun Pharmaceuticals up by 7.03%, Tata Motors up by 2.77%, Hero MotoCorp up by 1.80%, Coal India up by 1.42% and Lupin was up by 1.13%. On the other hand, JP Associate down by 3.91%, Ranbaxy down by 3.11%, Grasim down by 2.86%, Tata Steel down by 2.73% and Jindal Steel down by 2.58% were the top losers. (Provisional)

The European markets were trading in red; France’s CAC 40 was down 1.06%, Germany’s DAX lost 1.04% and the United Kingdom’s FTSE 100 edged lower by 1.19%.