Post session - Quick review

What started as a promising session of trade, turned out to be trivial one for the Indian markets, with barometer gauges negotiating just about a green close. Volatility, trait which is peculiar in the F&O expiry week, dominated the trade at Dalal Street, as barometer gauges swirling in and out of the crucial psychological level, finally settled below it. 30 scrip sensitive index Sensex, unwinding the day’s work, settled in proximity to its previous closing levels, near 16400 level. Similarly, the widely followed 50 share index, Nifty, after knocking away all the gains, settled below the 5000 crucial bastion. Consolidation also gripped the broader space, which by the end of the trade, settled around previous session levels; however, trend was bit exceptional for Midcap index, which went home with loss of over 0.20%.

Wobbly European leads mainly turned investor skeptical about investing in risky asset class such as equities, which in the final hour of trade cashed out all their risky bets. Mounting concerns over the health of Spanish banks weighed down on risk appetite of the investor’s across the globe. Concerns about Spain’s banks have been mounting ever since Bankia, the country’s fourth-largest lender, on Friday stated that it required $23.8 billion in state aid to guard itself up against bad loans largely from real estate sector. However, the optimistic close of regional counterparts supported the sentiments of Indian equity markets.

Fresh policy stimulus from Beijing largely buoyed the sentiment across Asian pacific region. For Chinese stocks, the performance marked the second straight day of strong gains, amid reports that policy makers were accelerating approvals for investment projects after Premier Wen Jiabao last week highlighted the need to stimulate growth.

Closer home, the weakness of the Indian currency, prompted hefty position squaring, as this sparked concerns over domestic growth story. Snapping three sessions appreciating trend; Indian currency weakened to 55.74 against the US dollar, Month-end demand for the American currency from importer amid new worries about the health of Spanish banks bogged down on the sentiment of Asian currency. However, this came as solace for Information Technology stocks, which derive lion share of revenue through exports. Stocks from Technology and Realty counters were among the best performer list. On the flip side, stocks from Fast Moving Consumer Goods (FMCG), Consumer Durable (CD) and Health Care counters contributed the underlying weakness of the bourses. Further, even Auto stocks, after staying in green for entire trading session, capitulated to the selling pressure in the final leg of trade as investor’s weighed buzz of ‘excise duty on diesel cars’ against hold in diesel price hike decision. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1404: 1288 while 138 scrips remained unchanged. (Provisional)

The BSE Sensex gained 21.74 points or 0.13% and settled at 16,416.84 .The index touched a high and a low of 16,544.38 and 16,410.21 respectively. There were 19 stocks advancing against 11declines on the index (Provisional)

Broader indices remained mixed, the BSE Mid-cap index lost 0.14% while Small-cap index was up by 0.17%. (Provisional)

On the BSE sectoral front, Information Technology (IT) up 1.19%, TECk up 0.74%, Realty up by 0.62%, Public Sector Undertaking (PSU) up by 0.49% and Metal up 0.35% were the top gainers while Fast Moving Capital Goods (FMCG) down 0.93%, Consumer Durables (CD) down 0.67%, and Health Care (HC) down by 0.30% CG down by 0.15% were losers. (Provisional)

The top gainers on the Sensex were, Wipro up 2.72%,  Coal India up by 1.97%, Maruti Suzuki up 1.66%, Gail India up 1.37% and TCS up 1.16% while, ITC down 1.60%, Sterlite Industries down by 1.32%, Tata Motors down by 1.12%, DLF down by 1.06% and Sun Pharma down 0.97% were the top losers. (Provisional)

After the recent uproar over petrol price hike, government in India buckling under the pressure has decided against raising the prices of diesel. Though it cannot be called as an imprudent decision at a time when inflationary pressure is showing signs of regaining momentum. However, amid the broadening price difference between petrol and diesel, the government is now mulling over another unpopular move that is to hike excise duty on diesel cars which will in turn dissuade demand for cars that run on heavily subsidized fuel.

The Oil ministry has been demanding the excise duty hike for quite some time now. Oil minister Jaipal Reddy had called for additional excise duty of Rs 80,000 on diesel vehicles before the Union Budget for 2012-13 was presented. However, after facing opposition from the automobile industry and the department of heavy industries, the proposal was swept under the carpet and no decision was taken.

But now given the huge gap between the retail prices of diesel and petrol, the finance ministry appears to be giving the proposal a serious thought. After the meeting of inter ministerial group  on inflation, the oil minister made it clear that the government is not considering hikes in diesel, LPG and kerosene prices as it could adversely impact inflation and put unnecessary pressure on the economy. The meeting of Empowered Group of Minister (EGoM) on LPG and fuel prices has also been deferred and no date has been fixed yet for the meet.

Though, the price of diesel is likely to remain unaltered, the finance ministry’s decision to hike excise duty on diesel-powered cars would become another point of debate as it would directly impact the sales of automobile companies.

India VIX, a gauge for market’s short term expectation of volatility gained 1.47% at 24.03 from its previous close of 23.68 on Monday. (Provisional)

The S&P CNX Nifty gained 4.45 point or 0.09% to settle at 4,990.10. The index touched high and low of 5,020.15 and 4,982.15 respectively.26 stocks advanced against 24 declining on the index. (Provisional)

The top gainers on the Nifty were HCL Tech up 2.63%, Cairn up 2.27%, Wipro up 2.16%, Coal India up 1.92% and Ranbaxy up 1.87%. (Provisional)

On the other hand, ACC down 2.44%, BPCL down 2.26%, IDFC down 1.93%, SAIL down 1.61% and Grasim down 1.54% and were the top losers. (Provisional)

The European markets were trading mixed, with France's CAC 40 up 1.34%, Germany's DAX up by 0.38%, while Britain’s FTSE 100 down by 0.14%.

Sentiments continued to remain bullish in the Asian region for second straight day and all the Asian equity indices snapped the day’s trade in the positive terrain on Tuesday, as investors taking positions in fundamentally strong stocks after intense selling through May, amid hopes that Greece will avoid exiting the euro-zone. Moreover, hopes that China will implement new stimulus policies to lift domestic demand and fast track some major construction projects too aided the regional sentiments. However, market-men remained cautious by euro-zone woes as attention turned to Spain, where a growing banking and borrowing crisis has raised fears the country could be forced to ask for a bailout.

Meanwhile, Chinese index Shanghai Composite ended up 1.20 percent led by consumer stocks after Chinese Premier Wen Jiabao called for a faster opening of the country’s services sector while, Hong Kong benchmark rose 1.35 percent, lifted by hopes Chinese authorities will announce fresh monetary easing measures. In addition, Japanese Nikkei reversed its early losses to close with a gain of over 0.70 percent after Japan and China said they would allow direct trading in each other's currencies for the first time. However, Nikkei had made a start in red on report that unemployment unexpectedly rose in the country. The unemployment rate increased to 4.6 percent in April from 4.5 percent in March, the first increase in three months.

Sentiments continued to remain bullish in the Asian region for second straight day and all the Asian equity indices snapped the day’s trade in the positive terrain on Tuesday, as investors taking positions in fundamentally strong stocks after intense selling through May, amid hopes that Greece will avoid exiting the euro-zone. Moreover, hopes that China will implement new stimulus policies to lift domestic demand and fast track some major construction projects too aided the regional sentiments. However, market-men remained cautious by euro-zone woes as attention turned to Spain, where a growing banking and borrowing crisis has raised fears the country could be forced to ask for a bailout.

Meanwhile, Chinese index Shanghai Composite ended up 1.20 percent led by consumer stocks after Chinese Premier Wen Jiabao called for a faster opening of the country’s services sector while, Hong Kong benchmark rose 1.35 percent, lifted by hopes Chinese authorities will announce fresh monetary easing measures. In addition, Japanese Nikkei reversed its early losses to close with a gain of over 0.70 percent after Japan and China said they would allow direct trading in each other's currencies for the first time. However, Nikkei had made a start in red on report that unemployment unexpectedly rose in the country. The unemployment rate increased to 4.6 percent in April from 4.5 percent in March, the first increase in three months.