Post Session: Quick Review

Prolonging previous session’s downtrend Indian equity markets registered yet another weak session on Friday. Reversal of trade took place in the second half of the session as market-participants booked profit at day’s high point tracing the mostly negative start of European markets. Investors also preferred staying on the sidelines ahead of the release of crucial macro-economic data, i.e., IIP and WPI in the coming week, which could provide clues on RBI’s stance in its upcoming monetary policy review on June 17, 2013. Sentiments, however, took a hit for the worst after CBDT reportedly issued notices to four more banks on Cobrapost allegations. The four banks to which notice were issued were Allahabad Bank, Canara Bank, ING Vysya Bank and Bank of Baroda; all were clobbered out of shape and ended with loss in the range of 1.25-3.75%. By the close of trade, benchmark indexes, Sensex and Nifty lost around half a percent and settled near 19500 and 5900 respectively. Broader indices too succumbing to selling pressure were down and out in trade. For the week, both Sensex and Nifty witnessed a cut of over one and a half a percent.

On the global front, both Asian and European markets failed to capitalise on an overnight gain in Wall Street, as investors sought to square their positions before the payrolls data. The job numbers may shed new light on whether the Fed is likely to taper its $85 billion a month stimulus programme in coming weeks.

Closer home, weakness of Rupee past 57 per dollar mark also perturbed investors’; however the depreciation of Indian currency brought cheer for Information Technology stocks which derive lion share of their revenue in foreign currency. On the BSE Sectoral front, sole Technology stocks were the day’s winner, while rest of them ended down and out in red. Prominent losers were stocks belonging to Realty, Public Sector Undertaking and Auto counters. Auto stocks have been on declining trajectory ever since reporting disappointing monthly sales figures. The market breadth on the BSE remained negative; advances and declining stocks were in a ratio of 1029: 1328, while 169 scrips remained unchanged. (Provisional)

The BSE Sensex lost 71.90 points or 0.37% to settle at 19447.59.The index touched a high and a low of 19711.55 and 19397.51 respectively. Among the 30-share Sensex pack, 8 stocks gained, while 2 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended lower by 0.53% and 0.09% respectively. (Provisional)

On the BSE Sectoral front, IT up by 1.66% and Teck up by 0.71% were the only gainers, while Realty down by 1.40%, Auto down by 1.38%, PSU down by 1.38%, Power down by 1.31% and Bankex down by 1.30% were the top losers. (Provisional)

The top gainers on the Sensex were TCS up by 3.48%, Dr Reddys Lab up by 2.82%, Wipro up by 1.67%, Infosys up by 0.80% and Tata Power up by 0.57%, while, Bharti Airtel down by 2.40%, Mahindra & Mahindra down by 2.27%, NTPC down by 2.12%, Maruti Suzuki down by 2.04% and Jindal Steel down by 1.91% were the top losers in the index. (Provisional)

Meanwhile, Indian economy is likely to recover in the next 3 to 6 months as a large number of the 215 stalled projects are expected to start rolling, Financial Services Secretary, Rajiv Takru said. While addressing an event, he said that ‘given the initiatives taken up by the Government in the recent past and the decisions to be taken in the next 1-2 months, the domestic economy will mark a significant improvement in performance in the next 3-6 months’. 

Rajiv Takru said that the Government had identified 215 infrastructure projects worth Rs 7 lakh crore which had been stalled at various stages of implementation owing to the various hurdles including administrative delays and environment clearances among others. Also, another 126 projects worth Rs 3.5 lakh crore that have been approved are yet to take off. By adding further, he said that the Government has set up a special group headed by an officer in the cabinet secretariat to look into each of the stalled projects. Further, many supply issues relating to coal and gas are being resolved.    

The Government has recognized the development of infrastructure as a most critical condition to boost economic growth. Thereby, for the 12th Five Year Plan (2012-17), the Government has set the $1-trillion investment target for the infrastructure sector.  

India VIX, a gauge for markets short term expectation has ended flat to its previous close of 16.78 on Thursday. (Provisional)

The CNX Nifty lost 35.65 points or 0.60% to settle at 5,885.75. The index touched high and low of 5,972.70 and 5,871.30 respectively. 10 stocks advanced against 40 declining on the index. (Provisional)

The top gainers on the Nifty were TCS up by 3.53%, Dr. Reddy's Laboratories up by 2.68%, BPCL up by 1.45%, Lupin up by 1.02% and Infosys up by 0.86%

On the other hand, JP Associate down by 3.30%, Axis Bank down by 3.25%, Bharti Airtel down by 2.69%, Bank of Baroda down by 2.61% and Maruti Suzuki down by 2.36%.

The European markets were trading in red; France’s CAC 40 down by 0.24%, Germany’s DAX down by 0.22% and the United Kingdom’s FTSE 100 down by 0.03%.

Asian markets ended lower on Friday, once again dragged down by the Japan’s Nikkei, which went home with red mark dropping three days in a row, partly because of a stronger yen that pulled down exporters' stocks. Chinese market closed lower, because of continued profit-taking amid weakness in regional stock markets and as investors cashed out ahead of the Dragon Boat Festival Holiday. South Korea's Kospi ended with red mark, as Samsung Electronics shares slumped 6.2% amid concerns over slowing growth in its mobile business.