Post session: Quick Review

Extending previous two sessions’ losing streak, Indian equity markets yet again capitulated to selling pressure and ended with a cut of over a percent on Thursday. In the typically cautious day of trade, barometer gauges for once did not break out in green and rather kept languishing in the red terrain for the entire session. Investors, in the background of the negative global set-up, preferred staying light ahead of the release of the crucial October IIP, November CPI which would provide clues on RBI’s stance in its upcoming monetary policy review, with RBI Governor Raghuram Rajan, in the previous day, reiterating that the central bank's focus remains on controlling inflation. In the spiteful day of trade, barometer gauges witnessing persistent selling pressure, concluded near day’s lowest point, with investors widely cashing out profits on expectation that October IIP would contract 1.2% from 2% in the previous month and November CPI would remain sticky at 10%. Both Sensex and Nifty, ending lower for third consecutive session and after witnessing a cut of over a percent, settled below the crucial 21,100 and 6,250 levels respectively. Meanwhile, broader indices too witnessing profit-booking, concluded with losses, albeit slender.

On the global front, Asian shares tumbled to two and half month low on Thursday on heightened expectations that the Federal Reserve may act sooner than later to unwind its stimulus after a provisional budget deal in Washington eased some of its fiscal drag on the US economy. Emerging Asian currencies also came under pressure, with Indonesia's rupiah falling to match a near five-year low set last week. Meanwhile, the taper fear was also sensed across European market, which was also trading lower for the second consecutive session on the back of weaker pharmaceutical stocks.

Closer home, amidst across the board selling activities, only stocks from Power counter managed to show some amount of resilience. On the flip side, stocks from Auto, Metal, Oil & Gas and Banking counters witnessed maximum brunt of profit-booking. While, banking stocks plunged on fears of another rate hike being in the store in the upcoming RBI’s monetary policy meet, Auto stocks too ran out of the steam for third consecutive session. The stocks took a hit after data from Society of Indian Automobile Manufacturers (Siam) showed that domestic passenger car sales declined 8.15% to 142,849 units in November this year compared with 155,535 units sold in the same month last year. Besides, Information Technology stocks also failed to gain some traction despite Rupee’s depreciation. On the currency-front, the partially convertible currency slipped past 61.50/ $ level in intra-day trade on fresh dollar demand. Additionally, sugar stocks, viz, Shree Renuka Sugars, Balrampur Chini and Dhampur Sugar Mills, soured on concerns over surplus sugar production and bumper cane crop this year. The market breadth on the BSE ended in red; advances and declines were in a ratio of 1053: 1419, while 170 scrips remained unchanged. (Provisional)

The BSE Sensex lost 258.68 points or 1.22% to settle at 20912.73. The index touched a high and a low of 21103.80 and 20901.47 respectively. Among the 30-share Sensex, 4 stocks gained, while 26 stocks declined and one stock remains unchanged. (Provisional)

The BSE Mid cap and Small cap indices ended lower by 0.24% and 0.39% respectively. (Provisional)

On the BSE Sectoral front, Power up by 0.22% was the only gainer, while Auto down by 2.23%, Metal down by 1.54%, Bankex down by 1.47%, PSU down by 1.36% and Oil & Gas down by 1.29% were the top losers in the space. (Provisional)

The top gainers on the Sensex were Tata Power up by 3.61%, HDFC up by 0.91%, Gail India up by 0.42% and NTPC up by 0.29%, while, Tata Motors down by 4.71%, ONGC down by 2.79%, Coal India down by 2.65%, ICICI Bank down by 2.37% and Bajaj Auto down by 2.21% were the top losers in the index. (Provisional)

Meanwhile, India Inc has expressed hope that country’s exports target of $325 billion in the current fiscal would be met despite slowing growth of overseas shipments to a five-month low in November. Indian exports increased by 5.86 percent to $24.6 billion in November owing to the declined shipments of petroleum goods and rough diamonds.

Ficci President Naina Lal Kidwai underscored that continued rise in exports for the fifth month in a row is significant and the first eight months of this fiscal have witnessed a nearly 23 percent decline in the cumulative trade deficit. During April-November’ 2013, exports grew 6.27 percent to $204 billion. Rising exports will considerably ease the pressure on the current account deficit and make the rupee more stable. India’s imports fell the most in four years, by 16.37% from a year earlier to $33.8 billion in November, leaving narrower trade deficit of $9.22 billion as against $17.2 billion deficit in November 2012.

Chairman of engineering exporters body EEPC Anupam Shah highlighted that significant fall in trade deficit is a noteworthy development, which is largely a result of a steep import compression rather than a smart rise in exports. Assocham Secretary General DS Rawat mentioned that evolving trend strongly indicates that India's trade balance in 2013-14 would improve and falling imports are a welcoming sign at this juncture. Meanwhile, decline in the imports of capital goods owing to less investment activity and rising imports of consumer goods does not augur well for the domestic economy.

Chairman of the CII Committee on Exports and Imports Sanjay Budhia commented that India will achieve exports target in current fiscal. Meanwhile, he also expressed the need for the government to come out with a scheme to expand new products basket and duty drawback rates besides taking a holistic view and make special economic zones more viable.India VIX, a gauge for markets short term expectation of volatility gained 2.44% at 17.74 from its previous close of 17.54 on Wednesday. (Provisional)

The CNX Nifty lost 73.40 points or 1.16% to settle at 6,234.50. The index touched high and low of 6,286.85 and 6,230.55 respectively. Out of the 50 stocks on the Nifty, 10 ended in the green, while 40 ended in the red.

The major gainers of the Nifty were Tata Power up 4.07%, Ranbaxy up by 1.47%, HDFC up by 0.95%, JP Associate up by 0.84% and Lupin up by 0.51%. The key losers were Tata Motors down by 4.69%, IndusInd Bank down by 3.52%, Ambuja Cements down by 3.43%, ONGC down by 2.95% and Coal India down by 2.79%. (Provisional)

Most of the European markets were trading in red with, France’s CAC 40 down by 0.01%, the United Kingdom’s FTSE 100 down by 0.56% and Germany’s DAX down by 0.47%.