Post Session: Quick Review

F&O expiry session at Indian equity market turned out to be no different than previous four trading sessions as bourses once again closed in red, with sharper cuts of around 3 /4 of a percent. After opening negative for fifth straight session in row benchmarks kept losing ground, however some recovery which emerged during the dying hours of trade mainly pulled the markets off day’s low. Shorting of position by some traders during the last hour of trade, F&O related adjustments combined with initiation of bargain-buying by investors in the oversold market, prevented a close around low point of the session. Despite this negative undertone of Indian equity markets that was akin to most of the emerging markets, both Sensex and Nifty, ended above the crucial 20,500 and 6,050 levels respectively. Meanwhile, broader indices witnessing nasty laceration, ended with broader cuts of over a percent.  For the series, both Sensex and Nifty plunged over massive 3%. Markets recorded fourth highest turnover of Rs 4.46 lakh crore. (Provisional)

Markets across the globe, including Asia and Europe, went into a tizzy after the U.S. Federal Reserve further trimmed its stimulus, which bolstered the appeal of safe haven instruments such as gold and dollar. After a two-day meeting, the last to be headed by outgoing chairman Ben Bernanke -the Fed announced a $10 billion cut to its $75 billion-a-month bond-buying programme, known as quantitative easing (QE). While, Fed’s decision was a widely anticipated one, but the failure to address the strains of the emerging markets, mainly worries investors.

Closer home, amidst the sea of red, stocks from Banking, Metal and Realty counters were the major pockets of weakness, while only those from Consumer Durables and Auto counters managed to show a degree of performance. Additionally, fertilizer stocks, like Chambal Fertilisers & Chemicals, Rashtriya Chemicals & Fertilizers (RCF) and National Fertilizers gained after Group of Ministers okayed the proposal to hike fixed cost of Urea by Rs 350 per tonne. Moreover, public oil marketing companies (OMC), like BPCL and IOC, managed to hold the fort in green for the session despite the Union Cabinet’s decision of approving a proposal to raise the quota of subsidized LPG cylinders from 9 to 12 per household in a year. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 869: 1705, while 130 scrips remained unchanged. (Provisional)

The BSE Sensex lost 126.48 points or 0.81% to settle at 20520.82. The index touched a high and a low of 20527.90 and 20343.78 respectively. Among the 30-share Sensex, 13 stocks gained, while 17 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended lower by 1.09% and 1.39% respectively. (Provisional)

On the BSE Sectoral front, Consumer Durables up by 1.74%, Auto up by 0.44% and IT up by 0.07% were the top gainers, while Bankex down by 2.66%, Realty down by 2.43%, Metal down by 2.34%, PSU down by 1.36% and Oil & Gas down by 1.02% were the top losers in the space. (Provisional)

The top gainers on the Sensex were Tata Motors up by 3.03%, Bharti Airtel up by 2.11%, Gail India up by 1.54%, BHEL up by 1.29% and Mahindra & Mahindra up by 0.97%, while, SBI down by 3.56%, Hindalco down by 3.44%, Hero MotoCorp down by 3.42%, SSLT down by 3.02% and Tata Steel down by 2.60% were the top losers in the index. (Provisional)

Meanwhile, as per the United Nation report, foreign direct investment (FDI) in India grew by 17 percent in 2013 to $28 billion in spite of unexpected capital outflows in the middle of the year. However, India's FDI ranking has slipped by one notch to 16th position in 2013 among the top 20 global economies receiving FDI. The report further added that risks related to the US Fed tapering of quantitative easing and uneven levels of growth, fragility and unpredictability in a number of economies could dampen the FDI recovery.

Referring to global growth in FDI, the United Nation report highlighted that foreign investment across the world rose to highest levels since the start of the global economic crisis in 2008. Global FDI increased by 11 percent in 2013 to an estimated $1.46 trillion, with the major share going to developing countries. FDI flows to developing economies reached to a new high of $759 billion dollars, which account for around 52 percent in the reported period. Among the developing nations, the BRICS - Brazil, Russian Federation, India, China and South Africa continued to be strong performers in attracting FDI with a 22 percent share of global FDI, which was twice that of their pre-crisis level. Further, total inflows to these five leading emerging economies reached $322 billion in 2013, 21 percent higher than 2012. South Africa outperformed other emerging countries within the group, with FDI inflows rising by 126 percent in the reported period. China again ranked second in the world for FDI inflow with estimated foreign investment at $127 billion, including both financial and non-financial Sectors.

On the other hand, FDI inflows to developed countries increased by 12 percent to $576 billion, however with around 39 percent share, developed countries remained at an historical-low for the second consecutive year. Among developed nations, some European nations witnessed positive signs of recovery.

India VIX, a gauge for markets short term expectation of volatility lost 4.37% at 17.25 from its previous close of 18.04 on Wednesday. (Provisional)

The CNX Nifty lost 38.25 points or 0.62% to settle at 6,082.00. The index touched high and low of 6,082.80 and 6,027.25 respectively. Out of the 50 stocks on the Nifty, 15 ended in the green, while 34 ended in the red and one stock remained unchanged.

The major gainers of the Nifty were Tata Motors up 3.41%, Bharti Airtel up by 1.81%, BHEL up by 1.67%, HCL Tech up by 1.45% and Gail up by 1.44%. The key losers were DLF down by 4.46%, PNB down by 4.43%, Bank Baroda down by 4.16%, SBI down by 3.66% and Hero MotoCorp down by 3.50%. (Provisional)

The European markets were trading in red; France’s CAC 40 was down 0.28%, Germany’s DAX was down 0.44% and UK’s FTSE 100 was down 0.40%.

The Asian markets, barring Jakarta Composite and KLSE Composite concluded Thursday’s trade in red, extending a global rout on renewed fears about emerging economies after the US Federal Reserve pressed ahead with its stimulus reduction and central banks in Turkey and South Africa jacked up interest rates. Indonesia’s rupiah headed for its second weekly drop and government bonds fell after the Federal Reserve pressed ahead with stimulus cuts that have spurred outflows from the nation’s assets.

China’s manufacturing activity declined for the first time in six months in January. The HSBC China Manufacturing Purchasing Managers’ Index fell to a final reading of 49.5 in January from 50.5 in December. A reading below 50 in the gauge of nationwide manufacturing indicates a contraction from the previous month and above indicates expansion. The final reading was slightly lower than HSBC’s preliminary January PMI of 49.6 published on January 23. Japan’s retail sales fell to a seasonally adjusted annual rate of 2.6%, from 4.0% in the preceding month.

Taiwan stock exchange was closed on account of ‘Lunar New Year's Eve’ holiday while South Korea market was closed due to ‘Seollal Holiday’.