Post Session: Quick Review

First day of the year 2014 remained a lackluster one for the Indian equity markets, lacking any major participation by the traders ended modestly in red. Benchmark indices traded in a tight range and entered the red terrain for a couple of time during the day and though recovery was prompt buying was missing, keeping the markets in range. Most of the global markets were closed for the trading, unable to give any cues to the domestic markets.

Earlier the markets made a green start of the first trading day of the year, though witnessed a sharp slump that took the indices into red but buying in the rate sensitives’ especially the realty took the markets back in green. Traders’ mood remained cautious reacting to two major economic data announced late last day, India's fiscal deficit in the April-November period reaching 94% of the targeted budgetary estimate of Rs 5.42 lakh crore, raised concerns that India may well overshoot its target of containing the deficit at 4.8% of GDP. On the same time core sector (infrastructure sector growth) made some recovery, growing at 1.7 percent in November from contraction of 0.6 percent, but was much lower from 5.8 percent a year ago and is likely to impact IIP numbers for November. However, Commerce and Industry Minister Anand Sharma’s indication that government will go for further liberalisation of the FDI policy in the coming weeks to attract foreign investments into the country, kept the momentum intact for the markets, capping losses.

In the second half some buzz was seen among the auto stocks when the December sales number started trickling in, Maruti Suzuki India reported 4.4 percent decline in its total sales at 90,924 units in December 2013 as against 95,145 units in the same month previous year. Mahindra and Mahindra’s December sales fell 28 percent to 16,436 units from a year ago. One sector that remained in jubilant mood since morning was realty, despite the Maharashtra government increasing the ready reckoner rates for Mumbai by 20 percent effective today. Broader markets looked in a celebrations mood and outperformed the benchmarks.

The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1582: 910, while 136 scrips remained unchanged. (Provisional)

The BSE Sensex lost 31.42 points or 0.15% to settle at 21139.26. The index touched a high and a low of 21244.35 and 21133.82 respectively. Among the 30-share Sensex, 15 stocks gained, while 15 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 0.45% and 1.44% respectively. (Provisional)

On the BSE Sectoral front, Realty up by 2.77%, Consumer Durables up by 0.90%, Healthcare up by 0.45%, PSU up by 0.27% and Bankex up by 0.24% were the top gainers, while IT down by 0.72%, Oil & Gas down by 0.37%, Teck down by 0.25% and Capital Goods down by 0.05% were the only losers in the space. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 2.39%, Hero MotoCorp up by 0.64%, NTPC up by 0.62%,  Mahindra & Mahindra up by 0.57% and  Sun Pharma up by 0.56%, while, Wipro down by 1.26%, BHEL down by 1.11%, Tata Power down by 1.04%, TCS down by 0.89% and Infosys down by 0.59% were the top losers in the index. (Provisional)

Meanwhile, as per the Chairman of the Prime Minister's Economic Advisory Council (PMEAC) C Rangarajan, Indian economy is likely to record 6-6.5 per cent growth in 2014-15 as recent policy measures taken by the government will provide impetus to growth by next fiscal. Rangarajan also asserted that the recent pick up in Indian exports will sustain in the next fiscal on the back of reviving demand in developed economies.

Regarding the country’s current account deficit (CAD), Rangarajan felt that India's current account deficit will come in at less than 3 per cent of GDP in 2014-15, however, value of gold imports is expected to be higher in next fiscal. Referring to rising food inflation in the country, Rangarajan is quite confident that food inflation will soften in the coming future. Further, he added that steep increase in food inflation was mainly due to high vegetables prices, which are expected to come down in the near term.

Indian economy’s growth slowed down to a decade low of 5 per cent in the previous fiscal on account of low investment, weak domestic demand, rupee depreciation and global economic turmoil. Further, rising inflation has become a hurdle for Indian economic growth as it has been eroding consumers and business confidence in the country.

The CNX Nifty gained 0.35 points or 0.01% to settle at 6,304.35. The index touched high and low of 6,327.20 and 6,298.25 respectively. Out of the 50 stocks on the Nifty, 32 ended in the green, while 17 ended in the red and one stock remains unchanged.

The major gainers of the Nifty were Bharti Airtel up 2.56%, Bank of Baroda up by 2.24%, DLF up by 2.19%, Ranbaxy up by 2.13% and Asian Paints up by 1.88%. The key losers were Wipro down by 1.32%, BHEL down by 1.10%, Tata Power down by 1.04%, TCS down by 0.88% and Reliance Industries down by 0.79%. (Provisional)

All the major Asian equity indices are not trading today. The European markets were also closed for the day on account of New Year's Eve.