Post Session: Quick Review

After being brutally butchered by around three percentage points in the last session, some solace came to the bourses on Friday, however the overall recovery turned out to be relatively less, with the benchmarks even dipping in red in the noon deals, though they bounced-back and the key indices managed to show recovery as many investors, smarting from huge losses took up reverse positions, vowing to avenge the next day.

Benchmark indexes, Sensex and Nifty, which were embroiled in global glut in the previous trading session, managed to eke out  gains of over 0.25% to end past 18750 and 5650 bastions respectively, although for the week witnessed nasty laceration of over 2%.  However, broader indices failed to show the same fervor as larger peers and finished the session in red. For the week, while CNX Midcap index witnessed colossal cut of over 2%, BSE Smallcap index ended lower over 1%.

Besides soothing statements of Finance Minister P. Chidambaram, Rally of Power stocks, a positive opening of European counterparts also encouraged investors to build some position ahead of F&O expiry week. On the global front, European stock markets partially recovered on Friday, after posting severe losses the prior day in reaction to the US Federal Reserve’s announcement that it may begin to taper asset purchases later this year. On the flip side, turmoil in global markets hit Asia for a second day with stocks across Southeast Asia leading the decline, as investors fretted over a cash crunch in China and signs that the Federal Reserve will pull back on stimulus measures. Closer home, Rally of power stocks mainly worked in the favour of equity. Power stocks rallied after Cabinet Committee on Economic Affairs (CCEA) approved coal price pass-through mechanism, a move which will allow the power companies to pass the entire additional cost of imports to consumers as against the averaging of prices of imported and domestic coal under the earlier planned price-pooling mechanism. Besides Power, stocks from Information Technology and Auto counters gained significant traction on BSE. On the flip side, bout of profit-booking was witnessed in Metal, Realty and Consumer Durable counters which turned out to be top laggards of the session. Nevertheless, statements of Finance Minister also calmed some jitters, a day after the Indian currency touched its all-time low against the dollar, Finance Minister said there is no need to panic over the rupee's fall. He assured that policymakers were monitoring the rupee and would do whatever was needed to stem the fall. The market breadth on the BSE remained negative; advances and declining stocks were in a ratio of 1001: 1323, while 138 scrips remained unchanged. (Provisional)

The BSE Sensex gained 41.93 points or 0.22% to settle at 18761.22.The index touched a high and a low of 18820.81 and 18615.14 respectively. Among the 30-share Sensex pack, 16 stocks gained, while 13 stocks declined and 1 remained unchanged. (Provisional) 

The BSE Mid cap and Small cap indices ended lower by 1.20% and 0.31% respectively. (Provisional)

On the BSE Sectoral front, IT up by 1.32%, Teck up by 1.16%, Auto up by 0.29%, Power up by 0.28% and Oil & Gas up by 0.21% were the top gainers, while Realty down by 0.90%, Metal down by 0.89%, Bankex down by 0.42%, Capital Goods down by 0.34% and FMCG down by 0.32% were the top losers. (Provisional)

The top gainers on the Sensex were ONGC up by 2.43%, Maruti Suzuki up by 2.24%, Bharti Airtel up by 2.22%, NTPC up by 2.07% and Dr Reddys Lab up by 2.05%. While, Jindal Steel down by 8.17%, Sun Pharma down by 1.79%, HDFC Bank down by 0.71%, RIL down by 0.70% and Sterlite Industries down by 0.68% were the top losers in the index. (Provisional)

Meanwhile, with the rise in prices of food items and fuel, the inflation based on consumer price index (CPI) for agricultural labourers (AL) and rural labourers (RL) increased in May as compared to the previous month. The point-to-point rate of inflation based on the Consumer Price Index-Agriculture Labour (CPI-AL) and Consumer Price Index-Rural Labour (CPI-RL) rose to 12.70 per cent and 12.50 per cent in May from 12.32 per cent and 12.15 per cent in April, 2013.

The index varied from state to state and the index for agriculture workers recorded an increase which varied between 3 to 19 points in 19 states and a decrease of 11 points in one state. On the other hand, the retail inflation index for rural workers registered an increase between 2 to 20 points in 19 states and a decrease of 10 points in one state.

State wise, West Bengal registered the maximum increase of 19 and 20 points, respectively for farm and rural workers, on account of rise in the prices of food articles including rice, wheat, meat goat, fish fresh and ginger among others while, Bihar registered a decline of 11 points and 10 points, for CPI-AL and CPI-RL. Meanwhile, Karnataka topped the index table for CPI-AL and CPI-RL with 792 and 789 points, while Himachal Pradesh with an index level of 560 points and 592 points stood at the bottom.

India VIX, a gauge for markets short term expectation of volatility lost 0.83% at 19.03 from its previous close of 18.87 on Thursday. (Provisional)

The CNX Nifty gained 11.80 points or 0.21% to settle at 5,667.70. The index touched high and low of 5,686.15 and 5,616.85 respectively. 25 stocks advanced against 25 declining on the index. (Provisional)

The top gainers on the Nifty were IndusInd Bank up by 3.95%, Hindalco Industries up by 3.32%, ONGC up by 2.82%, Ranbaxy Laboratories up by 2.11% and NMDC up by 1.88%

On the other hand, Jindal Steel down by 7.79%, Bank of Baroda down by 4.59%, Punjab National Bank down by 3.07%, Reliance Infrastructure down by 2.02% and Sun Pharmaceuticals down by 2.00%.

The European markets were trading in green; Germany’s DAX up by 0.65%, the United Kingdom’s FTSE 100 up by 1.27% and France’s CAC 40 up by 1.16%.

Asian stock markets shut shop on a weak note on Friday amid continuing worries about the outlook for Fed's asset purchase program, which hurting sentiment and prompting investors to indulge in some heavy selling. However, Japan's Nikkei went home with green mark outshining the rest of the region, with a weaker yen against the dollar improving market sentiment. Chinese markets closed lower, despite China’s central bank offering some comfort to stressed money markets.