Post Session: Quick Review

RBI’s latest measure to lift Indian currency, apparently spelled dooms for Indian equity markets, which staggering under intense selling pressure ended with a cut of over one and half percentage points, on penultimate session of F&O expiry. In its constant endeavor to protect the rupee and keep it within 60 mark to dollar, the central bank lowered the amount banks can borrow or lend under its daily liquidity window, sending banking stocks for a freefall and leading collapse at Dalal-Street.

The session turned out be largely unpleasant, where benchmark equity indices after making a gap-down start kept grinding lower to conclude near day’s low. Slew of disappointing earnings also spooked investors’ sentiment.  At the close of trade, Sensex and Nifty, were below the crucial 20,100 and 6000 levels respectively. Meanwhile, broader indices too got clobbered out of shape and ended with a cut of around a percent and half. Trade of over 4lac crore was done in terms of volume turnover (Provisional)

On the global front, on one hand, Asian pacific shares edged mostly lower after Chinese manufacturing activity shrank further in July, on the other, European shares were trading higher, with technology stocks boosted by strong results from US tech giant Apple, and more upbeat economic data in Europe.

Closer home, in the sea of red, only stocks from Information Technology counters bucked the trend despite appreciation of Indian currency. While, stocks from Banking, Consumer Durables and Capital Goods were the worst performing counters.

On the earnings front, there was mostly disappointment.  Yes Bank plunged over 14% in trade on Wednesday to post its biggest percentage drop since October 2008 despite reporting better than expected results. The bank has reported a rise of 38.15% in its net profit at Rs 400.84 crore for the quarter, as compared to Rs 290.14 crore for the same quarter in the previous year. Meanwhile, Indiabulls Real Estate lost over 3% even as the company’s first-quarter profit more than doubled to Rs 70.20 crore from a year earlier. Additionally, United Phosphorous stocks slid over a percent after the company posted a rise of 10.85% in its net profit after tax at Rs 144.23 crore for the quarter ended June 30, 2013.

However, one corporate which reported good set number was Dabur India. The company added over a two percent on reporting 24.50% rise in its net profit after taxes, minority interest and Share of Profit / (loss) of Associates at Rs 186.01 crore for the quarter as compared to Rs 149.40  crore for the same quarter in the previous year. The market breadth on the BSE remained negative; advances and declining stocks were in a ratio of 780: 1519, while 121 scrips remained unchanged. (Provisional)

The BSE Sensex lost 211.45 points or 1.04% to settle at 20090.68.The index touched a high and a low of 20252.70 and 19994.25 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 1.82% and 1.42% respectively. (Provisional)

On the BSE Sectoral front, IT up by 1.03% and Teck up by 0.99% were the only gainers, while Bankex down by 4.61%, Consumer Durables down by 3.13%, Capital Goods down by 2.98%, Metal down by 2.09% and PSU down by 1.76% were the top losers. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 2.24%, Wipro up by 1.90%, Sun Pharma up by 1.84%, TCS up by 1.79% and Cipla up by 1.73%, while, L&T down by 3.83%, ICICI Bank down by 3.72%, SBI down by 3.18%, Jindal Steel down by 3.02% and Sterlite Industries down by 3.01% were the top losers in the index. (Provisional)

Meanwhile, petroleum and Natural Gas Minister Veerappa Moily has ruled out reconsidering over gas pricing policy, saying that the Cabinet Committee on Economic Affairs has taken the decision and there was no proposal before the government to reconsider the new gas pricing policy. Moily said that, the government doesn’t want to change it as the enhancement of gas price is in the favour of nation’s development, although, the decision of gas price hike has attracted criticism, particularly from the Left parties.

Moily further added that, in a bid to raise energy production to 800 MW from 32 MW at present, ONGC would accord priority to make available 20 lakh cubic metres of gas per day to the Puducherry Power Corporation in Karaikal and the state run company has agreed to fulfill this obligation on a priority basis and would also ensure transportation of the gas within two years. The state run PSU company would also associate itself with the state government in setting up a super speciality hospital at Karaikal.

This issue was discussed with Lt. Governor of Puducherry Veerendra Kataria and Minister of State in PMO V Narayanasamy too was keen on augmenting power generation in the state. Minister of State for Petroleum and Natural Gas, Panabaka Lakshmi too supported the same. Meanwhile, Chief Minister N Rangasamy had assured that accelerating government’s initiatives like acquiring land and other allied work will boost energy production.

Further, Veerappa Moily said that GAIL’s pipeline project would help people of Tamil Nadu, particularly, farmers and would not have negative impact on agriculture. Such project, covering around 16,000 km all over the country, has already benefited farmers, apparently referring to the objections by the Tamil Nadu government in this regard.

India VIX, a gauge for markets short term expectation of marginally gained 1.13% at 16.91 from its previous close of 16.72 on Tuesday. (Provisional)

The CNX Nifty lost 85.70 points or 1.41% to settle at 5,992.10. The index touched high and low of 6,047.25 and 5,962.60 respectively. 12 stocks advanced against 38 declining on the index. (Provisional)

The top gainers on the Nifty were Bharti Airtel up by 2.08%, TCS up by 1.90%, Sun Pharmaceuticals up by 1.83%, Cipla up by 1.67% and Bajaj Auto up by 1.39%

On the other hand, IDFC down by 9.02%, IndusInd Bank down by 8.41%, JP Associate down by 6.48%, Axis Bank down by 6.29% and Kotak Bank down by 5.82%.

Most of the European markets were trading in green; France’s CAC 40 up by 0.88%, Germany’s DAX up by 0.63% and the United Kingdom’s FTSE 100 up by 0.57%.

The Asian markets concluded Wednesday’s trade on mixed note. The Mainland Chinese stocks fell after a gauge of the country’s manufacturing sector dropped to 11-month low. China’s manufacturing-sector activity is slowing further in July, with new factory orders deteriorating at a faster pace, according to preliminary data from HSBC and Markit. The so-called flash version of HSBC’s Chinese manufacturing Purchasing Managers’ Index dropped to 47.7, it was down from a final result of 48.2 for June, with any reading below 50 indicating a contraction in activity. A separate government version of the June PMI printed at 50.1. The flash PMI - which includes about 85%-90% of the survey responses that will be used for the final version - also showed employment in the sector sliding at a quicker pace than in June.

Nikkei too ended the trade lower due to weak Chinese manufacturing data. Japan's exports growth slowed in June as growth in shipments to China slowed, the Finance Ministry reported, with the effects of a stronger yen leading to a less impressive performance than in May. Exports rose 7.4% in June compared to a year earlier, missing a 10.3% gain forecast, and slowing from May's 10.1% advance. Still, the results marked the fourth increase in a row for exports, and resulted in a narrowing of the trade deficit to 180.8 billion Yen ($1.82 billion), down from May's 993.9 billion Yen gap, though above a consensus estimate for a deficit of 155.7 billion Yen. Imports, meanwhile, surged 11.8% on an annual rate after rising 10% in May.

Indonesia’s Jakarta Composite too concluded the trade in red. The country’s consumers were the most confident globally, according to the research by polling group Nielsen, while Southeast Asian countries figured prominently in the top-10 rankings during the second quarter. Southeast Asia’s biggest country had an index of 124 to top the rankings, Nielsen’s Global Survey of Consumer Confidence showed, well above the world average of 94. Indonesia was followed by the Philippines with an index of 121. 

South Korean shares showed an upward trend for third straight session as continued foreign purchases of local stocks relieved profit-taking by retail investors. Despite the mixed closure of Wall Street overnight, continued stock purchases both by foreign and institutional investors led the market advance. Separately, the Central Bank of Sri Lanka has decided to keep its rates unchanged, citing increased foreign currency inflows and controlled inflation. The monetary report released by the Central Bank noted that the decision was made to maintain the Repurchase rate and the Reverse Repurchase rate of the Central Bank of Sri Lanka without change at 7% and 9%, respectively.