Post Session: Quick Review

Benchmarks consolidated on Friday, with most part of the selling emerging in the dying hours of trade, as investors preferred locking gains ahead of usually volatile F&O expiry week. Prime Minister’s forecast of economy growing lower than 6.5 percent in FY14, spooked investors’ sentiment and led to sell-off. Benchmark indexes, Sensex and Nifty, exhibiting mixed trend, settled above the crucial 20,100 and 6000 psychological levels respectively, which turned out to strong support levels. Meanwhile, broader indices showing a degree of underperformance, settled lower with a cut of around half a percent. For the week, Nifty gained 0.40% and Sensex soared close to a percent, while in broader space, CNX midcap and BSE Smallcap index edged lower with a cut of around half a percent.

On the global front, Asian shares fell on Friday, with takers moving in at the end of a positive week, while dealers in Japan kept an eye on weekend parliamentary elections. The losses came despite another record-breaking close for the Dow and S&P 500 on Wall Street. Meanwhile, European stocks slipped back on Friday, with Dutch group Vopak lagging after cutting its profit outlook.

Closer home, corporate earnings were mixed bag, on one hand investors’ took heart out of better than expected results of TCS and Bajaj Auto, while on other, stocks of UCO Bank and HDFC were punished on reporting poor set of numbers. TCS soared to new high after the company’s first quarter consolidated net profit rose higher-than-expected 16 percent year-on-year (6 percent quarter-on-quarter) to Rs 3,831 crore, helped by new deal wins and foreign exchange gain. While, Bajaj Auto surged 3% after the company reported 2.7% growth in net profit in the June quarter from the year earlier.

On the flip side, while, HDFC plummeted close to 3% on missing street estimates by reporting a 17 percent rise in net profit for the April-June quarter on Friday, UCO bank shares tanked over 5% after the bank reported 41 percent jump on its net profit to Rs 511 crore in Q1 FY13 compared to Rs 362.5 crore (Y-o-Y).

On the BSE sectoral front, IT, Auto and Oil & Gas counters were the few gainers, while Capital Goods, Power and Banking counters were the top laggards. While, splendid gains of TCS spilled over optimism in IT sector, upmove of Reliance Industries lifted the Oil & Gas pivotal higher. On the flip side, sharp dive of BHEL stocks had a rub on effect on the entire pivotal. The market breadth on the BSE remained negative; advances and declining stocks were in a ratio of 1038: 1307, while 142 scrips remained unchanged. (Provisional)

The BSE Sensex gained 4.92 points or 0.02% to settle at 20133.33.The index touched a high and a low of 20256.60 and 20111.13  respectively. Among the 30-share Sensex pack, 15 stocks gained, while 15 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended lower by 0.64% and 0.58% respectively. (Provisional)

On the BSE Sectoral front, IT up by 2.77%, Teck up by 2.14%, Auto up by 1.47% and Oil & Gas up by 0.75% were the only gainers, while Realty down by 2.09%, Capital Goods down by 2.02%, Power down by 1.97%, Bankex down by 1.81% and Consumer Durables down by 1.77% were the top losers. (Provisional)

The top gainers on the Sensex were TCS up by 4.82%, Bajaj Auto up by 3.83%, Hero MotoCorp up by 2.73%, Gail India up by 2.39% and Tata Motors up by 2.28%, while, BHEL down by 8.63%, Sun Pharma down by 3.78%, Jindal Steel down by 3.05%, Sterlite Industries down by 2.87% and HDFC down by 2.77% were the top losers in the index. (Provisional)

Meanwhile, in a bid to boost trade, Indian exporters have urged government to take some measures including providing sops, bringing down transaction costs and implementing flexible labour laws. In a recent time, the exports have been hampered on account of weakness in Indian rupee and demand in key western markets like the US and Europe was already hit badly.

The association has appealed to Prime Minister Manmohan Singh to intervene in the on-going rupee volatility, in order to re-motivate Micro, Small and Medium Enterprises (MSMEs) business particularly the export related segment, especially, at a time when the rupee has been falling. Further, if India has to compete with the rest of the world, the government must amend the labour laws according to today’s economic scenario.

Exports declined by 1.41 percent to $72.45 billion in Q1FY14 as against the same period last year. However, imports during the period were up by 5.99 percent at $122.6 billion for the same period. Meanwhile, the country’s exports in 2012-13 declined 1.76 percent to $300.6 billion mainly on account of slowdown in the global economy. In 2012-13, India’s trade deficit had touched an all time high of $190.91 billion compared to $183.4 in the previous fiscal.

The rupee is continuously losing its sheen, declining 33 paise to 59.67 against dollar for the second day, after Fed’s comments strengthened the US currency and RBI could drain only a fifth of its Rs 12,000-crore target in an auction to curb liquidity.

India VIX, a gauge for markets short term expectation of marginally lost 0.76 % at 18.27 from its previous close of 18.13 on Thursday. (Provisional)

The CNX Nifty lost 8.85 points or 0.15% to settle at 6,029.20. The index touched high and low of 6,066.85 and 6,020.25 respectively. 24 stocks advanced against 26 declining on the index. (Provisional)

The top gainers on the Nifty were TCS up by 4.97%, Bajaj-Auto up by 3.97%, HCL Tech up by 3.43%, GAIL up by 2.73% and Hero MotoCorp up by 2.44%

On the other hand, BHEL down by 9.02%, IndusInd Bank down by 3.98%, Axis Bank down by 3.88%, Sun Pharmaceuticals down by 3.70% and Ranbaxy Laboratories down by 3.60%.

The European markets were trading in red; France’s CAC 40 down by 0.32%, Germany’s DAX down by 0.32% and the United Kingdom’s FTSE 100 down by 0.35%.

Asian markets concluded Friday’s trade mostly in red. Japanese Nikkei retreated after opening comfortably higher in morning, with a wave of selling ahead of weekend elections in the country, dragging on other regional markets. The volatility came ahead of the country’s upper house elections this weekend, in which the ruling Liberal Democratic Party (LDP) is expected to easily clinch a majority. The LDP already has a majority in the lower house of the parliament, and a majority in the upper chamber of the Diet would strengthen Prime Minister Shinzo Abe’s government in its attempt to revive the Japanese economy. China’s Shanghai Composite too concluded the trade in red.

South Korean shares experienced choppy trade as investors took to the sidelines ahead of the Upper House election in Japan on Sunday that was expected to strengthen the weak yen trend. The weak yen trend was feared to damage price competitiveness of South Korean exporters that are competing with Japanese rivals in overseas markets. Cautiousness also remained among investors over the second-quarter earnings season that will be start from next week. Besides, the central bank data showed that corporate bankruptcies in South Korea fell to a record low last month as local financial institutions eased lending attitude toward small businesses.

Indonesia’s Jakarta Composite concluded in green. The country’s central bank raised $600 million in its first currency swaps auction, well above its indicative target of $500 million. The swaps with tenure of one, three and six-months were oversubscribed with incoming bids worth $1.24 billion, Bank Indonesia reported. Hong Kong managed to close in green but utilities fell and developers slid amid concern more cities will take steps to cool the property market.