Post Session: Quick Review

Snapping two consecutive sessions' uptrend, benchmarks ended in red on Tuesday, as market-participants preferred locking gains, tailing the underlying cautious tone of global markets, focus has now shifted on the Federal Open Market Committee’s policy meeting on Wednesday. Investors are waiting for Federal Reserve Chairman Ben Bernanke to clarify the US central bank's stimulus programme - with the mere suggestion of fine-tuning may unnerve market sentiment.

Meanwhile, lack of positive catalyst at home front kept away investors going gung-ho on equities. Disappointingly, benchmarks after bouncing back in green in the late hours of trade, capitulated to selling pressure, to close near day’s lowest point. Benchmark 30 share index, Sensex witnessing half a percent cut, ended sub 19200, while Nifty, ended below the crucial 5850 bastion.  However, the session turned out to be slightly better for broader indices, which managed to eke out slender gains.

On the global front, most Asian markets advanced as investors awaited the outcome of the two-day Federal Reserve meeting that starts today and Japanese exporters rose as the yen dropped for a second day. While, European markets after getting a cautious start eked some gains.

Closer home, stocks from Metal, Information Technology and Health Care (HC) counters slug to limit the downtrend of the bourses, while those from Banking, Consumer Durable and Public Sector Undertaking counters endorsed the weakness. Meanwhile, Telecom shares gained after the new roaming regulations were seen as less stringent than expected and with a negligible financial impact. Country’s telecoms regulator on Monday said it would allow carriers to offer free nationwide mobile roaming to subscribers for a fixed fee from July 1, in a partial relief to operators, some of whom had opposed a proposal to completely abolish roaming charges. The market breadth on the BSE remained negative; advances and declining stocks were in a ratio of 1162: 1164, while 140 scrips remained unchanged. (Provisional)

The BSE Sensex lost 97.58 points or 0.50% to settle at 19228.29.The index touched a high and a low of 19383.61 and 19191.37 respectively. Among the 30-share Sensex pack, 11 stocks gained, while 19 stocks declined. (Provisional)

The BSE Mid cap indices ended flat, while Small cap indices ended higher by 0.33%. (Provisional)

On the BSE Sectoral front, Teck up by 0.90%, IT up by 0.80% and Metal up by 0.76% were the only gainers, while Capital Goods down by 1.22%, Bankex down by 1.13%, PSU down by 1.03%, Consumer Durables down by 0.97% and Oil & Gas down by 0.91% were the top losers. (Provisional)

The top gainers on the Sensex were Tata Steel up by 2.64%, Bajaj Auto up by 1.81%, Infosys up by 1.59%, Hero MotoCorp up by 1.40% and Sterlite Industries up by 1.16%, while, NTPC down by 2.20%, ONGC down by 1.94%, Gail India down by 1.93%, L&T down by 1.57% and Bharti Airtel down by 1.32% were the top losers in the index. (Provisional)

Meanwhile, the government has allowed special economic zone (SEZ) units to export gold items after a minimum value addition of 3 per cent in gold jewellery and 5 per cent in gold and precious stone studded jewellery. Earlier, this provision was only applicable for gold units outside the special zones.

Earlier, in April, Commerce Ministry had banned SEZs for gold trading to check misuse of tax benefits by them as SEZs are allowed duty-free imports. It is reported that SEZ units were earning arbitrage profits as high as 7.5 per cent by diverting imported gold to the domestic market.

Commerce Secretary S R Rao said that the move would help in boosting India’s gold exports particularly jewellery as gold exports from SEZs in May declined by about $0.8 billion.

Presently, the government is worried over the high gold import, which has touched 162 tonnes in May, while in April, it was around 100-120 tonnes, higher than the average monthly import level of 70-80 tonnes. High gold imports are also the main reasons behind high current account deficit and major fall in rupee value.

India VIX, a gauge for markets short term expectation of marginally gained 0.60% at 18.29 from its previous close of 18.18 on Monday. (Provisional)

The CNX Nifty lost 39.80 points or 0.68% to settle at 5,810.25. The index touched high and low of 5,863.40 and 5,804.30 respectively. 14 stocks advanced against 36 declining on the index. (Provisional)

The top gainers on the Nifty were Tata Steel up by 2.65%, Infosys up by 1.38%, Sesa Goa up by 1.11%, Bajaj Auto up by 1.01% and Kotak Mahindra Bank up by 0.93%

On the other hand, Ranbaxy Laboratories down by 3.90%, NTPC down by 2.69%, IndusInd Bank down by 2.49%, UltraTech Cement down by 2.47% and Punjab National Bank down by 2.47%.

The European markets were trading in green; France’s CAC 40 up by 0.01%, Germany’s DAX up by 0.12% and the United Kingdom’s FTSE 100 up by 0.81%.

Asian stocks ended mostly higher after a thin and directionless trading on Tuesday as investors positioned themselves ahead of Fed Chairman Ben Bernanke's press conference tomorrow. However, Hong Kong's Hang Seng index ended little changed, as property developers drifted lower in Hong Kong after official data showed property prices in the mainland rose at the fastest pace in more than two years in major cities in May. Japan’s Nikkei closed with small losses after a choppy trading session. South Korea's Kospi went home with green mark as investors went for bargain hunting in blue-chip stocks after the benchmark index hit a fresh seven-month low the previous day.