Post Session: Quick Review

Indian equity markets surrendered most of their last two sessions’ gains on Monday, as investors relentlessly locked gains, largely spooked by negative regional counterparts and slump of Indian currency to new lows. However, lower-level buying by select market-participants in the second half of the trade, tracing positive European markets aided the benchmark indices in recuperating some ground, thereby turning the session less horrid. Barometer gauges, Sensex and Nifty, witnessing loss of over three-fourth a percent, ended below 19,300 and 5,800 levels respectively. Meanwhile, broader indices suffered lesser losses as compared to larger peers.

Earlier in the session, benchmarks after getting a cautious start dropped to day’s low in early deals tailing negative Asian shares, which tumbled on Monday as strong US jobs growth increased the chances of the Federal Reserve rolling back its stimulus in coming months, sending the dollar to a three-year high against a basket of major currencies.

Benchmarks continued to languish in red territory  up till early noon deals after Indian currency stroke a record low of 61/$ mark on fears that India will be among the worst hit among emerging markets as and when the Federal Reserve begins to taper off its bond purchase programme. Further, CII survey which highlighted Indian currency further depreciating by September-end also hit investors’ sentiment.

Nevertheless, selling pressure arrested after reports suggested Gold imports into India, the world's biggest buyer of the metal, falling by 80.56 percent to 31.5 tonnes in June from the previous month, way lower than the trade body's estimate. Further, benchmarks recouped some lost ground following the positive start of European counterparts and climbed to day’s highest point by the close of trade.

European shares rose on Monday, with investors finding value in beaten-down stocks after Friday's drop, with chances of Greece getting its next aid payment and an improved political situation in Portugal boosting sentiment. Investors reacted positively to news that Portugal's Prime Minister, Pedro Passos Coelho, reached a deal late last week with his junior coalition partner to end a rift that had threatened the country's bailout programme, while Greece was close to securing its next tranche of aid.

Closer home, stocks from Fast Moving Consumer Goods, Information Technology and Capital Goods counters supported some recovery, while those from Oil & Gas, Realty and Auto counters mainly were responsible behind the downfall. Meanwhile, even PSU OMCs declined as US crude oil futures hit a 14-month high.The market breadth on the BSE remained negative; advances and declining stocks were in a ratio of 1059: 1254, while 112 scrips remained unchanged. (Provisional)

The BSE Sensex lost 165.88 points or 0.85% to settle at 19329.94.The index touched a high and a low of 19422.69 and 19185.92 respectively. Among the 30-share Sensex pack, 9 stocks gained, while 21 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended lower by 0.03% and 0.32% respectively. (Provisional)

On the BSE Sectoral front, FMCG up by 0.66%, Teck up by 0.44%, Capital Goods up by 0.36%, IT up by 0.35% and Consumer Durables up by 0.13% were the only gainers, while Oil & Gas down by 2.04%, PSU down by 1.85%, Realty down by 1.70%, Auto down by 1.56% and Metal down by 1.20% were the top losers. (Provisional)

The top gainers on the Sensex were BHEL up by 2.86%, Wipro up by 1.65%, ITC up by 1.29%,  Sun Pharma up by 1.17% and Infosys up by 0.99%, while, ONGC down by 3.50%, HDFC down by 2.89%, Tata Motors down by 2.57%, Mahindra & Mahindra down by 2.55% and Gail India down by 2.51% were the top losers in the index. (Provisional)

Meanwhile, Oil Minister M Veerappa Moily has defended the move to hike the gas price and has said that it will benefit the government in terms of revenue as many gas discoveries have been made by public sector companies than private sector. The public sector companies made 90 percent of gas discoveries and the remaining by private sector so the government will get 80 percent of the income from these explorations will be back to government kitty.

Recently the Cabinet Committee on Economic Affairs (CCEA) approved hike in domestic gas prices using Rangarajan formula, which will be effective from April 1, 2014. The approved price is likely to be about $8.4 per million British thermal unit against $4.2 currently.

The minister further stated that US and China produced 40 to 50 percent more gas because of the no foreign investment flows to their country, while our country is going back  and needs due consideration as its difficult to survive if the country imports petroleum products worth Rs 8 lakh crore.India VIX, a gauge for markets short term expectation of volatility gained 3.58 % at 19.34 from its previous close of 18.67 on Friday. (Provisional)

The CNX Nifty lost 53.25 points or 0.91% to settle at 5,814.65. The index touched high and low of 5,833.85 and 5,775.55 respectively. 16 stocks advanced against 34 declining on the index. (Provisional)

The top gainers on the Nifty were IndusInd Bank up by 3.98%, HCL Technologies up by 3.07%, BHEL up by 2.74%, Reliance Infrastructure up by 2.48% and ACC up by 1.74%

On the other hand, BPCL down by 5.56%, JPAssociate down by 4.13%, ONGC down by 3.84%, M&M down by 2.87% and Tata Motors down by 2.73%.

The European markets were trading in green; France’s CAC 40 up by 1.88%, Germany’s DAX up by 2.16% and the United Kingdom’s FTSE 100 up by 0.36%.

All the Asian equity indices ended the session in the red with major benchmarks declining by 1 to 4 per cent on Monday after strong US jobs data increased expectations that the US Federal Reserve would ease its stimulus measures within a few months, maybe as early as September. Back on regional turf, Seoul Composite declined by about a percent as technology heavyweight and the largest component on the main index, Samsung Electronics Co, tumbled to a fresh 10-month closing low, weighed down by last week's disappointing earnings estimates. Meanwhile, Japanese Nikkei declined by about one and a half percent, giving up initial gains tracking fall in other Asian shares, and partially impacted by a ratings Standard & Poor’s downgrade of Softbank to junk after its multi-billion-dollar acquisition of Sprint Nextel too dampened the sentiments.