Post Session: Quick Review

Rallying for fourth straight session, Indian equity markets ended near three week’s high level on Wednesday with gains of close to half a percent post the crucial 20,700 (Sensex) and 6,150 (Nifty) levels respectively. Late surge of bourses mainly took the markets near day’s high point in the otherwise range-bound session of trade. Although, benchmarks kept gaining ground gradually from the start of trade, but witnessed a major breakthrough in the last hour of trade when the massive buying took place. Mostly positive global cues kept local equity markets momentum positive in absence of any domestic positive catalyst which otherwise could take the markets higher. Today’s session gains also were on the back of contribution made by broader indices, which went home with profit of close to half a percent.

On the global front, China led Asian stocks higher, on the flip side, European shares were trading mixed after three sessions of gains as investors awaited a report on US housing starts, while companies from Societe Television Francaise 1 to Lafarge SA (LG) reported results.

Closer home, while most of the sectoral indices ended in green, stocks from Information Technology, Technology and Healthcare counters were the outperformers. While gains of Sun pharmaceuticals bolstered the spirit of other pharmaceuticals stocks, the up-move of Infosys lifted the entire IT pivotal higher. Additionally, non sectoral gauge of sugar was in jubilant mood after Indian Sugar Mills Association (ISMA) reported that the country’s sugar output fell over 13 per cent to 14.4 million tonnes so far this year on delayed crushing, compared to 16.6 million tonnes of sugar in the corresponding period of the 2012-13. On the flip side, Metal, Power, Fast Moving Consumer Goods (FMCG) and Auto counters were the top losers of the session. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1463: 1210, while 156 scrips remained unchanged. (Provisional)

The BSE Sensex gained 106.77 points or 0.52% to settle at 20740.98. The index touched a high and a low of 20750.52 and 20629.56 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 0.50% and 0.64% respectively. (Provisional)

On the BSE Sectoral front, IT up by 1.77%, Teck up by 1.46%, Healthcare up by 1.19%, Consumer Durables up by 0.93% and Capital Goods up by 0.88% were the top gainers, while Metal down by 1.08%, Power down by 0.57%, FMCG down by 0.10% and Auto down by 0.06% were the top losers in the space. (Provisional)

The top gainers on the Sensex were Sun Pharma up by 2.21%, Infosys up by 2.12%, TCS up by 2.01%, Wipro up by 1.97% and HDFC Bank up by 1.51%, while, Tata Power down by 2.59%, SSLT down by 1.82%, Hero MotoCorp down by 1.65%, NTPC down by 1.38% and Tata Steel down by 1.31% were the top losers in the index. (Provisional)

Meanwhile, non-performing assets (NPAs), one of the major problematic areas of the Indian banking sector are continuously rising and it is estimated that currently upto a quarter of bank loans are under stress. Finance Minister P Chidmabram in his interim budget just acknowledged that banks are under strain owing to rising non-performing assets and that bankers have assured that as the economy turns they will be able to contain the NPAs, recover more loans, and build healthier balance sheets, However, he failed to offer any relief and merely announced that he will recapitalise banks to the extent of Rs 11,200 crore, which was again lower than last fiscal.

A study done by NPAsource.com, a first-of-its-kind portal which focuses on resolution of stressed assets and an online portal for e-auction of NPAs of financial institutions, has said that gross non-performing assets (NPAs) of 40 listed banks shot up 35.2 per cent or Rs 63,386 crore in the nine months ended December 31, 2013. The study further elaborated that 10 out of the 40 listed banks accounted for nearly 70 per cent of the total gross NPAs. State Bank of India at 28 per cent at Rs 67,799 crore has the largest share in total gross NPAs of the 40 listed banks, followed by Punjab National Bank with 7 per cent share at Rs 16,596 crore and Bank of Baroda and Central Bank of India with 5 per cent share each at Rs 11926 crore and Rs 11599 crore respectively. On the other hand Yes Bank, DCB and City Union Bank were having the lowest gross NPAs at Rs 196 crore, Rs 208 crore and Rs 269 crore respectively.

Recently, Reserve Bank of India Governor Raghuram Rajan too in the foreword of the Financial Stability Report has said that non-performing assets of the banking sector need to be tackled on a priority basis to ensure that they do not grow to alarming proportions. Further, despite assuring that the current levels of NPAs do not pose a systemic concern, has said that we cannot be complacent.

India VIX, a gauge for markets short term expectation of marginally lost 2.07% at 15.09 from its previous close of 15.41 on Tuesday. (Provisional)

The CNX Nifty gained 31.35 points or 0.51% to settle at 6,158.45. The index touched high and low of 6,160.35 and 6,125.75 respectively. Out of the 50 stocks on the Nifty, 27 ended in the green, while 23 ended in the red.

The major gainers of the Nifty were Ranbaxy up 2.79%, TCS up by 2.17%, Sun Pharma up by 2.16%, Lupin up by 2.14% and Infosys up by 2.12%. The key losers were Tata Power down by 2.83%, Jindal Steel down by 2.79%, Hero MotoCorp down by 1.89%, SSLT down by 1.53% and Tata Steel down by 1.49%. (Provisional)

Most of the European markets were trading in green; UK’s FTSE 100 up by 0.09% and France’s CAC 40 was up 0.01%, while Germany’s DAX down by 0.10%.

The Asian markets barring Nikkei 225 and Seoul Composite concluded Wednesday’s trade in green some of the regional gauges heading for a one-month high, led by health-care stocks. Sentiment remained muted elsewhere across the Asia-Pacific region after some disappointing economic data out of the United States and due to caution ahead of the minutes of the Federal Reserve's January 28-29 meeting due to be released later in the global day. China’s Shanghai Composite index rose as energy companies strengthened and investors speculated smaller banks will form alliances to expand their business on mobile devices. China is targeting 9.5 percent growth in industrial production this year, slightly below the 9.7 percent growth posted in 2013.

Japanese stocks fell, with a pause in the yen's slide and some profit taking after the previous session's sharp rally. The yen was trading above 102 against US dollar. Malaysia's inflation increased in January, and exceeded economist’s expectations. According to the Department of Statistics, inflation from 3.2 percent in December accelerated to 3.4 percent in January. Economists had forecast a modest rise to 3.3 percent. The consumer price index moved up 0.6 percent in January on a monthly basis.