The choppy session of trade surprisingly turned out to be positive one after BSP decided to caste its vote in the favour of UPA government which braces for vote on FDI in Retail at Rajya Sabha, thereby sparking hopes for further reforms, which could lower India's twin deficit. After trading lackluster for major part of the session, benchmarks equity indices which bounced back to life in the wee hours of trade, registered third consecutive session of gains for Indian equity markets. Even after tasting victory at Lok Sabha post BSP and SP walkout, Indian equity markets were trading downbeat after reports suggested that Samajwadi Party (SP) would not support UPA during voting on the issue in the Upper House. However, even profit-booking post two session of gain’s played its part behind the downtrend of Indian equity markets. Nevertheless, the buying which took place in the wee hours of trade, pairing losses of benchmarks, mainly triggered a positive session of trade, taking 30 share index, Sensex and 50 share index, Nifty, higher above their respective psychological levels of 19400 and 5900. The show clearly belonged to broader indices, which went home with gains of over and close to half a percent.
The sentiment were also bolstered on reports, which suggested Goldman Sachs bearing a bullish outlook on Indian economy, and expecting the economy to grow from 5.4% in 2012 to 7.2% in 2014, and remain high through 2015-2016.
Additionally, positive global set-up encouraged investor’s in piling up position ahead of the crucial day, which would see a final FDI vote in Rajya Sabha, where in the government is confident of numbers after Mayawati announcing 15 seats of BSP on UPA’s side. Asian pacific shares concluded off 16-months high level on Thursday after U.S. President Barack Obama said a deal to avert the so-called fiscal cliff of year-end tax hikes and spending cuts was possible in 'about a week' if Republicans compromise on taxes. Additionally, European shares, extended a week-long rally even as investors awaited a European Central Bank policy meeting for signs of any future interest rate cuts. The ECB is expected to keep its benchmark rate at 0.75%. However, markets are looking for clues on whether the deepening recession across the euro zone will prompt President Mario Draghi to signal a further easing in policy.
Closer home, only Information Technology and TECk counters, failed to stage a turnaround, with remaining 11 sectoral indices concluding positive. The prominent gainers on BSE sectoral front were Realty, Power and Bankex counters. Sparkling gains were also witnessed in fertilizers stocks, such as RCF, National Fertilisers and Chambal Fertilisers, ahead of CCEA meet on urea policy, where it is expected that new urea investment policy, to incentivise fertiliser firms setting up new plants and expanding existing capacity, would be approved. With no surprises, even retail stocks, viz, Provogue, Shopper’s Stop, Pantaloon Retail, gained momentum. However, IT stocks ended in red, after a routine regulatory filing by Cognizant indicated that company’s growth expectations are lowered and also Rupee recovered some losses. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1581:1315 while 105 scrips remained unchanged. (Provisional)
The BSE Sensex gained 113.16 points or 0.58% and settled at 19,505.02. The index touched a high and a low of 19,523.25 and 19,186.24 respectively. 23 stocks were seen advancing and 7 stocks were declining on the index (Provisional)
The BSE Mid-cap index was up by 0.72% while Small-cap index was up by 0.46%. (Provisional)
On the BSE Sectoral front, Realty up 1.63%, Bankex up by 1.60%, Power up by 1.53%, PSU up 1.12% and Capital Goods up 1.02% were the top gainers, while IT down by 1.41%, TECk down by 1.10% and Health Care down by 0.17% were the only losers in the space.
The top gainers on the Sensex were BHEL up 2.36%, SBI up by 2.24%, Sterlite Industries up 2.22%, Tata Motors up 2.16% and ICICI Bank up 2.16%, while, Bharti Airtel down by 1.98%, Infosys down by 1.85%, TCS down by 1.34%, Cipla down by 0.62% and Sun Pharma down by 0.54% were the top losers in the index. (Provisional)
Despite a cool response to the recently concluded 2G spectrum auction, the telecom minister Kapil Sibal has said that the government does not intend to change the policy to auction spectrum for mobile phone operators.
In Lok Sabha, replying to a question to whether the government would return to the policy of 'first come, first serve’, the minister reiterated that government has no intention of doing so. He further stated that there was a drop of 27.82 million mobile phone subscribers in the July-September period and the number was expected to touch 208 million, decline was mainly due to removal of inactive mobile telephone connections.
Further he added that the tele-density in the country was 680 million and 500 million still do not have a mobile phone. He admitted that poor connectivity on state-run BSNL network is due to the outdated networks but BSNL is trying to complete the tendering process to set up its second core network.
India VIX, a gauge for markets short term expectation of volatility lost 8.30% at 15.24 from its previous close of 16.62 on Wednesday. (Provisional)
The S&P CNX Nifty gained 37.90 points or 0.64% to settle at 5,938.40. The index touched high and low of 5,942.55 and 5,838.90 respectively. 36 stocks advanced against 14 declining ones on the index. (Provisional)
The top gainers on the Nifty were JP Associates was up 4.07%, Axis Bank up 3.16%, Reliance Infrastructure up 2.87%, BHEL up 2.61% and Tata Motors was up 2.29%. On the other hand, HCL Tech down 2.46%, Bharti Airtel down by 2.00%, Infosys down by 1.83%, TCS down by 1.45% and Ranbaxy Laboratories down by 0.90% were the top losers. (Provisional)
The European markets were trading in green with, France’s CAC 40 up 0.63%, Germany’s DAX up 1.21% and the United Kingdom’s FTSE 100 up 0.38%.
Asian stock markets ended mixed on Thursday amid U.S. President Barack Obama’s indication that there will be no deal to avert the fiscal crisis unless Republicans are willing to increase the income tax rates on the top 2 percent of Americans. Japan’s Nikkei ended higher after touching seven-month high, supported by the yen's weakness against the dollar. China's Shanghai Composite went home with red mark and Hong Kong's Hang Seng index eased marginally following earlier session’s strong rally. Moreover, Seoul shares closed slightly higher despite concerns about stalled U.S. budget talks, while Kospi average edged up 1 percent to a fresh seven-week high in relatively thin trading.
Asian Indices
|
Last Trade
|
Change in Points
|
Change in %
|
Shanghai Composite
|
2,029.24
|
-2.67
|
-0.13
|
Hang Seng
|
22,249.81
|
-21.10
|
-0.09
|
Jakarta Composite
|
4,292.60
|
5.77
|
0.13
|
KLSE Composite
|
1,616.23
|
2.44
|
0.15
|
Nikkei 225
|
9,545.16
|
76.32
|
0.81
|
Straits Times
|
3,078.20
|
2.28
|
0.07
|
KOSPI Composite
|
1,949.62
|
2.58
|
0.13
|
Taiwan Weighted
|
7,623.26
|
-25.79
|
-0.34
|
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