Post Session: Quick Review

Although the markets witnessed gigantic losses in the June F&O series, the expiry session turned out to be quite blissful, as benchmark equity indices regained the firepower on Thursday post announcement of narrower than expected March quarter Current Account Deficit (CAD) data that assuaged some fears over burgeoning CAD, which took the currency beyond its 60.50 per dollar lower . Additionally, optimism across the globe too encouraged investors. The key indices vivaciously rallied well over one and half a percent in the session mainly on short covering, owing to the expiry of the series. Benchmark indexes Nifty and Sensex, for the session added over 1.5% to end past the crucial 18,850 and 5650 levels respectively. Broader indices, which for the session managed modest gains of over 0.25%, suffered colossal loss of over 9% ( CNX midcap index) and 6% (BSE Smallcap index). Meanwhile, trade of over Rs 3.95 lakh crore was done in terms of volume turnover on the expiry session. (Provisional)

On the global front, shares in Seoul and Tokyo led Asia's rebound on Thursday as investors took heart from signs that central banks around the world will maintain easy monetary policies, though Shanghai ended slightly lower with concerns over China's slowing growth hurting cyclical stocks. Additionally, European shares held steady on Thursday following two days of sharp gains, as a sell-off in chemicals stocks after a bearish note on the sector from JPMorgan offset strength from defensive stocks.

Closer home, markets were taken by surprise after India’s Current Account Deficit (CAD) stood at $18.1 billion, or 3.6 % of the GDP in the March quarter, sharply lower from the historically high level of 6.7% seen in the December quarter, however the barometer shot higher in the last leg of trade as traders adjusted their position on the expiry session of F&O series. Oil & Gas, Information Technology and Health Care counters moved higher, while stocks from Consumer Durables, Capital Goods and Fast Moving Consumer Goods counters were the worst performers. Oil & gas sector companies stole the show and rallied substantially in anticipation of a hike in natural gas prices for the first time in three years. IT counter too remained on investors’ radar on account of Rupee deprecation, which is broadly seen as positive for export-focussed sectors. Pharma stocks also extended intraday gains. Pharma companies are likely to benefit from the depreciation of rupee against the dollar as pharma firms derive substantial revenue from exports. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1224: 1097, while 138 scrips remained unchanged. (Provisional)

The BSE Sensex gained 316.03 points or 1.70% to settle at 18868.15.The index touched a high and a low of 18925.75 and 18688.28 respectively. Among the 30-share Sensex pack, 21 stocks gained, while rest 9 declined. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 0.42% and 0.39% respectively. (Provisional)  On the BSE Sectoral front, Oil & Gas up by 3.10%, IT up by 3.02%, Teck up by 2.65%, Health Care up by 2.45% and Realty up by 2.14% were the top gainers, while Consumer Durables down by 0.88% and FMCG down by 0.12% were the only losers in the space. (Provisional)

The top gainers on the Sensex were ONGC up by 4.29%, TCS up by 3.79%, Dr Reddys Lab up by 3.72%, HDFC Bank up by 3.42% and Sun Pharma up by 3.32%, while, Maruti Suzuki down by 1.26%, NTPC down by 0.78%, Jindal Steel down by 0.59%, ITC down by 0.46% and Coal India down by 0.45% were the top losers in the index. (Provisional)

Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) is likely to take a decision on the issue of natural gas pricing. It is expected that CCEA will raise natural gas prices by around 60 per cent to $6.775 per million British thermal unit (mbtu) as against the present rate of $4.2 per mbtu for all domestically produced natural gas, which will impact the power and fertilizer sectors hard.

Meanwhile, the CCEA proposed price $6.775 mbtu is lower than the $8 to $8.5 mbtu suggested by the Rangarajan panel, which recommended domestic gas pricing at an average of rates at key international hubs. Further, CCEA draft also states that the natural gas prices will be revised on the quarterly basis and for the April-June quarter of 2014, it comes to $6.775 per mbtu. The pricing will be applicable to gas produced from all sources, conventional as well as unconventional like shale gas, CBM etc.

Earlier, Oil minister M V Moily said that the revision in rates was a contractual requirement which will help remove policy uncertainties and spur investments, citing that the current rate of $4.2 per mbtu is uneconomical to produce gas from deep-sea fields.

Meanwhile, the move is facing stiff resistance as it would result in a rise in electricity tariff and fertiliser cost. The power ministry suggested that that gas price should not be more than $5 and rates should not be hiked for gas produced by state-owned firms like the Oil and Natural Gas Corporation Limited. However, the power ministry's suggestion was rejected by oil ministry.

India VIX, a gauge for markets short term expectation of volatility lost 10.53% at 18.85 from its previous close of 21.07 on Wednesday. (Provisional)

The CNX Nifty gained 90.25 points or 1.61% to settle at 5,678.95. The index touched high and low of 5,699.35 and 5,630.95 respectively. 39 stocks advanced against 10 declining, while one stock remains unchanged on the index. (Provisional)

The top gainers on the Nifty were Cairn up by 5.76%, DLF up by 5.19%, UltraTech Cement up by 4.69%, ONGC up by 4.23% and HCL Tech was up by 3.51%. On the other hand, IDFC down by 1.40%, Maruti Suzuki down by 1.39%, Grasim down by 0.86%, PNB down by 0.68% and ITC down by 0.60% were the top losers. (Provisional)

Most of the European markets were trading in green with, France’s CAC 40 up by 0.11%, Germany’s DAX up by 0.10% and the United Kingdom’s FTSE 100 up by 0.37%.

Asian markets shut shop on a strong note as investors went for hectic buying expecting that the US Federal Reserve will not rush to end its stimulus programme soon and on further signs that stress in China's banking system are easing. Shanghai market recovered from early session’s lows as fears of a credit crunch retreated, boosting financials, but confidence remained fragile, and the index ended lower. Japan’s Nikkei went home on a firm note, as dollar's rise against the yen triggered some strong buying in several stocks across various sectors. Meanwhile, South Korean market closed higher, after official data showed that the seasonally adjusted current account surplus surged to a record high of $7.82 billion in May.