Post Session: Quick Review

It turned out to be a disappointing session of trade at Indian equity markets, which struggled to gain traction amidst mixed global cues on Monday. Slew of negative earnings plagued the markets and kept the mood largely downbeat at Dalal-Street in absence of positive catalyst. Lack of investors' conviction was firmly evident in today’s trading session as bourses not even for once did entered in positive territory. Market-participants remained reluctant to initiate large bets and evidently preferred to remain on sidelines ahead of RBI’s monetary policy review on July 30, 2013, which could be a game changer for local equity markets, in the event the RBI decides to hike rates or roll-back measures taken in the previous week to curb Rupee’s volatility. By the end of the trade, Sensex offloaded over 3/4 of a percent, to end past the crucial 19,550 level, while Nifty too declining in the similar magnitude, ended sub 5,850 psychological level. Meanwhile, the session turned out to be worse for broader indices, which took a hit of around a percent.

On the global front, Asian shares ended mixed ahead of the policy meetings of the US and European central banks. While, European shares too echoing the similar trend were trading on a mixed note. Globally, all eyes are on the US Federal Reserve policy meeting this week, which traders hope will provide more clues about the state of the economy and the future of the central bank's huge stimulus program.

Closer home, benchmarks after getting a muted start kept grinding lower, while they staged significant recovery in early noon deals tailing the positive start of European counterparts, the efforts soon proved futile. Sentiments in the early noon deals got a fillip from Finance Minister P. Chidambaram’s comments, who while addressing media, stated that he does not expect RBI’s recent liquidity steps to lead to increase in bank lending rates, notably a day ahead of RBI’s monetary policy review. However, the comments of Gold import rising in July, negated the sentiment.

Meanwhile, most of the corporate earnings came as disappointment. While, Indian Bank tanked 7% on reporting 32% slide in Q1FY net profit at Rs 317.39 crore, Syndicate Bank lost over 6% on reporting marginal 2% rise in first quarter net profit at Rs 452.28 crore. Additionally, IDFC stocks too declined over 4% even as the company reported 46.74% rise in its consolidated net profit at Rs 557.31 crore for the quarter ended June 30, 2013. TV18 Broadcast, Colgate Palmolive and Reliance Capital were some of the other stocks which witnessed selling pressure post reporting their Q1FY14 earnings. The market breadth on the BSE remained negative; advances and declining stocks were in a ratio of 848: 1387, while 146 scrips remained unchanged. (Provisional)

The BSE Sensex lost 170.16 points or 0.86% to settle at 19578.03.The index touched a high and a low of 19751.03 and 19570.87 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 1.27% and 0.98% respectively. (Provisional)

On the BSE Sectoral front, IT up by 0.65% and Auto up by 0.52% were the only gainers, while FMCG down by 2.84%, Metal down by 1.88%, Realty down by 1.85%, PSU down by 1.82% and Bankex down by 1.24% were the top losers. (Provisional)

The top gainers on the Sensex were Wipro up by 6.77%, Jindal Steel up by 4.63%, Tata Motors up by 2.29%, Sun Pharma up by 1.95% and Hero MotoCorp up by 0.75%, while, Hindalco Industries down by 4.13%, Hindustan Unilever down by 3.95%, Dr Reddys Lab down by 3.86%, ITC down by 3.12% and Coal India down by 2.99% were the top losers in the index. (Provisional)

Meanwhile, Finance Minister P Chidambaram said that India has continued to be the second fastest growing economy in the world after China. While addressing a bank function, Chidambaram expressed hope of achieving six per cent growth this fiscal and said that Indian people should not be worried about the current economic slowdown and should take bank loans to invest in the farm, small industries and housing sectors etc. 

Expressing confidence on Indian economic recovery, Finance Minister said that the government has planned to open 8,000 new bank branches this year, which would create 50,000 jobs in the country and would also help the economy growth. He also suggested that women should form more self-help groups and obtain loans boldly to start new ventures.

Chidambaram said that presently global economic growth has slowed down therefore India cannot remain unaffected. Indian economic growth fell to decade low of 5 percent for the 2012-13 fiscal on account of poor performance of farm, manufacturing and mining sectors.

Referring to the petroleum product prices, he said that the prices have been going up due to the high price of crude oil touching $108 for a barrel, adding that the price of petrol and diesel would show a declining trend only if crude dropped below $100 a barrel. Presently, India imports over 70 per cent of its oil demand, meanwhile the efforts are on to explore crude and gas in the country. India VIX, a gauge for markets short term expectation of volatility gained 8.76% at 18.25 from its previous close of 16.78 on Friday. (Provisional)

The CNX Nifty lost 56.15 points or 0.95% to settle at 5,830.05. The index touched high and low of 5,886.00 and 5,825.80 respectively. 12 stocks advanced against 38 declining on the index. (Provisional)

The top gainers on the Nifty were Jindal Steel up by 4.76%, Tata Motors up by 2.09%, UltraTech Cement up by 1.35%, Grasim Industries up by 1.16% and Asian Paints up by 1.03%

On the other hand, IDFC down by 4.79%, JP Associate down by 4.44%, Hindalco Industries down by 4.24%, Ambuja Cements down by 4.07% and Sesa Goa down by 3.96%.

Most of the European markets were trading in green; Germany’s DAX was up by 0.35% and France’s CAC 40 up by 0.24%, while the United Kingdom’s FTSE 100 down by 0.20%.

The Asian markets barring Singapore’s Strait Times which was marginally up, concluded Monday’s trade mostly in red. Japanese Nikkei tumbled more than 3% ending at their lowest level in more than a month below the 14,000 line due to the yen’s climb against US dollar and expectation of a series of economic data due to be released this week. Meanwhile, official data released showed Japan’s retail sales climbed 1.6% in June from the year-ago month, though just short of forecasts. Japanese retailers registered a sharp rebound in June sales, which rose 1.6% from a year earlier, compared to May's 0.8% gain. The result was slightly below average expectations for a 1.9% gain.

China’s Shanghai Composite plunged the most in three weeks, sending the key index to a fourth straight day of decline, after China’s top auditor announced a nationwide audit of government debt. Market sentiment was also hit by dismal data showing industrial profits in China rose at a slower pace in June, while a continuous increase in borrowing costs reignited fears over a liquidity squeeze. China’s building materials sector regained steam in the first half, with real estate investment picking up speed.

Indonesia has likely turned the corner on a ballooning current account deficit, with the figure set to narrow in the current quarter after strong imports and a slump in exports widened it in the year’s second quarter, the central bank stated. Bank Indonesia added that the deficit probably widened to $8 billion, or 3.5% of the country’s gross domestic product, in the April-June period, from $5.3 billion, or 2.4% of GDP, in the prior three months. Total exports in the first five months of the year contracted 6.5%, the Central Statistics Agency (BSP) stated, while imports contracted 1.2%.