24th May 2014, Wednesday turned out to be another session of consolidation for Indian equity markets, which in absence of any fresh triggers, failed to make headway into positive territory. While, there was some caution ahead of the expiry of May derivative contracts on Thursday. Nevertheless, sentiment to some extent took a hit after overseas investors for three consecutive session sold shares worth Rs 203 crore on Tuesday, while anticipation of Jan-March GDP to confirm economy confirming slow-down, too added to the cautious undertone of the markets. Q4 GDP It data is set to be unveiled on May 31, Friday. Further, a report called India’s new ministers ‘underwhelming,’ saying no professionals were brought in for ministries targeted for reforms, such as railways and coal, too limited the uptrend of the markets.

Volatility on penultimate session of F&O expiry mainly took Nifty higher by quarter of a percent and above the crucial 7300 level by close of trade, however Sensex ended the session flat at 24,550 level. Meanwhile, broader indices underperforming larger peers by fat margins, ended with gains in the range of 0.40-1.65%.

On the global front, Strong economic data in the United States shored up Asian stocks to one-year highs on Wednesday. Riskier asset markets sped up overnight after the United States reported an unexpected rise in durable goods orders in April and higher home prices for March. Services industries, which dominate the economy, also grew at a rapid clip in May. Meanwhile, European stocks were little changed, trading near their highest level since January 2008, as GlaxoSmithKline Plc retreated after becoming the subject of a criminal investigation.

Closer home, gains in stocks from Information Technology, Realty and Technology counters were counterbalanced by losses in stocks from Metal, PSU and Consumer Durables counters. IT stocks featured in the list of top gainers for yet another session on good US economic data and Rupee’s depreciation. Meanwhile, in non sectoral gauge activity, cement stocks also witnessed buying interest amid long built-up in these stocks ahead of expiry of May derivative contracts. UltraTech, Ambuja and ACC all rallied over 4%. Besides, fertilizer stocks, namely Chambal fertilizers, National fertilizers, Zuari Agro gained after Fertilizer Minister underscored that government will take steps to revive closed urea plants. Meanwhile, airline stocks, namely Spicejet and Jet Air India too witnessed drubbing after the latter posted a record 8% quarterly loss partly as a result of higher jet fuel expenses and a one-time charge on a unit.

The BSE Sensex is currently trading at 24556.09, up by 6.58 points or 0.03% after trading in a range of 24643.33 and 24488.81. 16 stocks advanced against 14 stocks declining on the index. (Provisional)

The broader indices outperformed larger peers; the BSE Mid cap and Smallcap index settled higher by 0.40% and 1.63% respectively. (Provisional)

The gaining sectoral indices on the BSE were IT up by 1.52%, TECK up by 1.42%, Realty up by 1.40%, Bankex up by 0.56% and Capital Goods up by 0.45%. While, Metal down by 1.62%, PSU down by 1.20%, Consumer Durables down by 0.99%, Oil & Gas down by 0.88% and Auto down by 0.75% were the losing indices on BSE.    (Provisional)

The top gainers on the Sensex were Tata Power up by 3.40%, HDFC Bank up by 2.16%, Hero Motocorp up by 2.11%, Bharti Airtel up by 1.73% and Dr. Reddy’s Lab up by 1.67%. On the flip side, Coal India down by 3.43%, ONGC down by 3.17%, M&M down by 2.85% Gail India down by 2.01% and NTPC down by 1.75%.(Provisional)

Meanwhile, with a view to provide importers with greater flexibility in hedging facility, the Reserve Bank of India (RBI) has decided to allow domestic importers to book forward contracts up to 50 percent of the eligible limit under the past performance route. As per the present guidelines relating to hedging of currency risk of probable exposures based on past performance, Indian importers are allowed to book contracts up to 25 percent of the eligible limit.

The RBI further notified that importers who have already booked contracts up to previous limit of 25 percent in the current financial year, will be eligible for difference arising out of the enhanced limits. The eligible limit is determined on the basis of average of the previous three financial years’ import turnover or the previous year’s actual import turnover, whichever is higher.

The RBI’s latest move is likely to provide some relief to importers as the depreciation in rupee value increases the imports costs. During the FY14, India’s overall imports declined by 8.11% to $450.95 billion as against $490.74 billion reported in the same period of previous fiscal year. Contraction in domestic imports during FY14 was mainly driven by weak domestic demand and lower gold imports.

The CNX Nifty settled at 7,335.30, up by 17.30 points or 0.24% after trading in a range of 7,344.75 and 7,302.60. 28 stocks advanced against 22 declines on the index. (Provisional)

India VIX, a gauge for markets short term expectation lost 8.07% at 17.55 from its previous close of 19.10on Monday. (Provisional)

The top gainers of the Nifty were Ultratech Cement up by 5.67%, Ambuja Cement up by 5.49%, Tata Power up by 4.71%, ACC up by 4.32% and HCL Technologies up by 4.15%. On the flip side, Coal India down by 3.07%, ONGC down by 3.00%, Asian Paints down by 2.86%, M&M down by 2.71% and Jindal Steel down by 2.51% were the major losers on the index. (Provisional)

The European markets were trading mostly in green, with France’s CAC 40 up by 0.13% and UK’s FTSE 100 gained 0.05%, while Germany’s DAX added 0.13% (Provisional)

The Asian markets concluded Wednesday’s trade mostly in green. Details are below :

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2050.23

15.66

0.77

Hang Seng

23080.03

135.73

0.59

Jakarta Composite

4985.58

21.65

0.44

KLSE Composite

1871.66

4.09

0.22

Nikkei 225

14670.95

34.43

0.24

Straits Times

 3271.84

-2.22

-0.07

KOSPI Composite

2017.06

19.43

0.97

Taiwan Weighted

9121.71

66.42

0.73