Post Session: Quick Review

It turned out to be an interesting session of trade for the Indian markets, where benchmark equity indices after slipping into negative territory, recouped substantial losses and ended well in green, up by over two tens of a percent. However, bit of profit-booking witnessed during the fag end of trade dragged benchmarks from day’s high. Nevertheless, the underlying tone at Dalal-Street remained fairly positive for the entire trading session on the back of positive global set-up. Commendably, gains of local bourses were in absence of participation of IT stocks, which featured among the list of top losers for today’s trading session. It was the rally of banking and Auto stocks that drove benchmarks higher, with both Sensex and Nifty, ending above the psychological 21,250 and 6,300 levels respectively. Meanwhile, broader indices outperforming larger peers went home with gains of over 3/4 of a percent.

On the global front, most Asian markets ended higher on Tuesday, with Japan's Nikkei index turning up as the standout performer, thanks to a weaker yen as investors moved in for cheaper stocks following the previous day's sell-off. Additionally, European shares hit fresh 5-1/2 year highs on Tuesday, tracking higher Asian shares as Chinese money rates eased, while the dollar got a boost from a report the Federal Reserve would again trim its bond buying next week.

Closer home, drubbing in stocks of Information Technology, Power and Oil & Gas, mainly capped bourses’ gains, while those from Banking, Metal and Capital Goods counters, bolstered the underlying positive undertone of markets. Sentiment took a bit of hit after disappointing earnings from Kotak Mahindra Bank. Private sector lender disappointed street with its third quarter earnings (October-December) on every parameter with the asset quality weakening. The bank’s standalone net profit fell 6% year-on-year to Rs 340 crore and net interest income grew nearly 11 percent to Rs 912.7 crore, the stocks of the bank plunged by 3%.

In other sector-specific activities, select retail stocks such as Shoppers Stop, Future Retail and Provogue (India) gained traction after commerce minister highlighted that he would seek legal opinion on whether a state can opt out of FDI multi-brand retail policy. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1364: 1254, while 162 scrips remained unchanged. (Provisional)

The BSE Sensex gained 53.24 points or 0.25% to settle at 21258.29. The index touched a high and a low of 21302.52 and 21189.20 respectively. Among the 30-share Sensex, 16 stocks gained, while 14 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 0.44% and 0.43% respectively. (Provisional)

On the BSE Sectoral front, Bankex up by 1.64%, Auto up by 0.98%, Metal up by 0.91%, Capital Goods up by 0.65% and Realty up by 0.61% were the top gainers, while IT down by 0.63%, Power down by 0.62%, Teck down by 0.55%, Oil & Gas down by 0.49% and FMCG down by 0.24% were the only losers in the space. (Provisional)

The top gainers on the Sensex were ICICI Bank up by 3.35%, Tata Steel up by 2.87%, Tata Motors up by 2.50%, Axis Bank up by 2.28% and SSLT up by 1.78%, while, Coal India down by 2.45%, TCS down by 2.31%, BHEL down by 2.13%, Sun Pharma down by 1.89% and Gail India down by 1.46% were the top losers in the index. (Provisional)

Meanwhile, encouraged by turnaround in the textile exports, the government has set textile exports target of $60 billion in 2014-15, which is 30% higher from the target in the current financial year as it aims to cash in on developed nations' increasing dependence on India while focusing on skill development in the country. Meanwhile, for the current fiscal year, government has set a target of $43 billion.

Exuding confidence that March 2015’ export target is not difficult to achieve, Textile minister K S Rao underscored that only by addressing issues related to procedural clearances there will be an increase of 8% in textile exports. Additionally, he ensured that he would get all the proposals from the industry and would clear all the procedural hurdles for exports during his tenure.

Further, the minister unveiled that garment exports has been growing at 15% since the last nine months, while Apparel exports has grown at over 15% during April-December, 2013.

India VIX, a gauge for markets short term expectation of marginally gained 1.30% at 15.55 from its previous close of 15.35 on Monday. (Provisional)The CNX Nifty gained 12.55 points or 0.20% to settle at 6,316.50. The index touched high and low of 6,330.30 and 6,297.90 respectively. Out of the 50 stocks on the Nifty, 28 ended in the green, while 22 ended in the red.

The major gainers of the Nifty were ICICI Bank up 3.41%, Tata Steel up by 3.06%, Tata Motors up by 2.49%, JP Associate up by 2.32% and Axis Bank up by 2.20%. The key losers were Kotak Bank down by 3.14%, BHEL down by 2.44%, Coal India down by 2.41%, TCS down by 2.26% and Asian Paint down by 2.14%. (Provisional)

The European markets were trading in green; France’s CAC 40 was up 0.37%, Germany’s DAX added 0.27% and UK’s FTSE 100 gained 0.03%.

The Asian markets, barring Taiwan Weighted concluded Tuesday’s trade in green after Chinese central bank injected emergency funding support to commercial banks, in order to cater to rising demand for cash ahead of the Chinese New Year. China’s business climate index, a major gauge of the country’s macro-economic outlook, fell in the fourth quarter. The index was 119.5 points for the fourth quarter, down two points from the previous quarter. The Bank of Japan has started two days monetary policy meeting. Japan’s industrial production fell to a seasonally adjusted -0.1%, from 0.1% in the preceding month. Thailand’s escalating political crisis may lead the country’s central bank to further cut its benchmark interest rate.

Indonesia companies avoided borrowing funds from overseas lenders last year due to a slower economic growth; a condition that can prop up confidence in the country’s weakened currency. The total overseas debt compiled by the country’s private businesses barely changed to stand at $137 billion in November 2013, up 10 percent from the previous year. Hong Kong Unemployment Rate fell to a seasonally adjusted 3.2%, from 3.3% in the preceding month. The overall consumer prices in Hong Kong rose 4.3% year-on-year in December, same as in November. Netting out the effects of the Government’s one-off relief measures, the underlying inflation rate increased 3.9% year-on-year, slightly less than in November (4%), mainly due to the smaller increases in the prices of fresh vegetables.