Closing session sees steep decline

BSE Sensex gained more than 300 points in the morning session, however, ended the day with a loss of 150 points. NSE-Nifty closed the day in red with a loss of 50 points after gaining nearly 100 points in the morning. Banks lead the gains, however, turned into the biggest loser in the second half of the trading session. All the sectoral indices ended in the red barring the Healthcare sector and Consumer Durables sector.

BSE Mid Cap and BSE Small Cap companies fell over 0.6% each. Commodities, however, have managed to maintain their momentum of gains. Gold prices, per 10 grams, have gained over 1% or Rs 250 and gold is currently trading at Rs 25,900 levels while Silver prices, per kilogram, have gained over 1.7% or Rs 600 and are trading at Rs 35, 900 levels. Crude oil gained in the second half of the trading session with 2%. Per barrel, the commodity gained Rs 60 and is trading at Rs 2890 levels. Indian Rupee fell 0.2% or 0.10 and is trading at Rs 62.58 levels.

European stocks erased early gains of early trading sessions. While the German markets are trading marginally in the red with 0.08%, FTSE is trading with slight gains of 0.12%.

Capital goods, like most of the indices, started the trading session with robust gains but fell prey to profit booking. The sector closed today's session with 1% losses. Engineering major, Larsen & Toubro gained as much as 2% after it won a slew of orders. The engineering giant secured orders worth Rs 12.55 bn which included designing of factories, construction of building and power transmission and distribution. Rs 8.25 bn is attributed to the orders that involve design and construction while the remaining is attributed to power distribution and transmission. Internationally, the company also bagged orders for setting up a power substation.

Information technology sector ended in red amidst profit booking today. However, companies like Wipro and TCS were the biggest gainers in today's trading session. Wipro and HCL are the lead runners for securing a project from the SEBI which involves integration of security systems of all the trades that take place. Currently this mechanism which falls under Data Warehousing and Business Intelligence System is being over looked by TCS. The new bidder, when selected will have to work with TCS is strengthening the system. Shares of TCS increased by 1.3% in today's trade.

Last hour selloff!
03:30 pm

Indian markets receded from early gains after investors booked profits in the second session. BSE Sensex is trading with a loss of 200 points while NSE-Nifty is trading lower by about 50 points. Selling pressure is seen in banking and IT stocks while consumer durables sector continues to outperform. BSE Mid Cap and BSE Small Cap are trading with losses of 0.7% and 0.6% respectively.

Commodities sustained their gains on the back of comments from the Federal Reserve. Gold increased about 1% or Rs 250 and is trading above 25,800 (per 10 grams) levels while silver increased over 1.5% or Rs 560 and is trading at Rs 35,900 per kg. Crude oil prices retreated from their session highs, though are still trading in the green with 2% profits. Per barrel crude oil prices stand at Rs 2,880, up Rs 60. The value of Indian rupee pared its early losses and is currently trading with minor loss of 0.2% or 0.11 at Rs 62.58.

European markets are trading with moderate gains. German market gained 0.1% while French market gained about 0.2%.

PVR Cinemas and Vatika group have partnered each other to operate 26 screens in Gurgaon, Jaipur and Ambala. The total investment in this venture is expected to be nearly Rs 3 bn. The multiplexes expect seating capacity to be around 5,000 and are expected to break-even and make profit in the fourth quarter of 2018-19. Shares of PVR gained 1.4% after such developments.

The debt-ridden Spicejet group received a jolt when the Delhi High Court ordered Directorate General of Civil Aviation (DGCA) to deregister six SpiceJet airplanes that had been leased by the company. Last week, the promoter of company had paid US$ 10 m in dues for 3 Boeing 737 aircrafts. Moreover, J.P Morgan and a domestic investor are also expected to infuse Rs 14 bn in the company, which will provide a vital life line to the company. Shares of Spice Jet fell 4% after this news was released.

Indian markets pare early gains
01:30 pm

Federal Reserve comments catapulted Indian Markets with solid gains; however, the same got erased marginally in the post-noon session owing to profit booking. BSE Sensex is trading with a gain of 200 points while NSE-Nifty has advanced with gains of about 60 points. All the sectoral indices are trading in the green within which pharma stocks have gained the maximum, while IT stocks have gained the minimum. BSE Mid Cap and BSE Small Cap have traded with moderate gains of about 0.6% each.

Commodities, too, have gained on the back of Fed's comments on interest rates. Gold prices, per 10 grams, have gained over 1% or Rs 250 while silver prices, per kilogram, have increased over 1.8% or Rs 662. Crude oil prices which declined nearly 15% within one week have gained over 2%. Per barrel, crude oil prices have gained Rs 65. Indian currency has shown weakness since the Fed did not provide any clues of an immediate hike in interest rates. The value of Indian Rupee declined against the U.S Dollar by 0.44% or 0.28 and is currently trading near Rs 62.38 levels.

Most of the Asian stock markets closed today's trading session in the green. However, Japanese market suffered moderate losses of 0.4%. Chinese, Hong Kong, Taiwanese and Korean markets closed with 0.2%, 1.3%, 0.9% and 0.5% respective gains.

Shares of Religare securities gained nearly 1% after the company announced its futures plans of creating a portfolio of "social relevant assets" which fall under the REIT. Religare Global Asset Management, an arm of Religare securities, is planning to build a portfolio which would include assets that are socially relevant. It would predominantly include schools, hospitals, malls and cinemas. The company plans to raise nearly Rs 10 bn via this route within one year starting from June. On the back of real estate investments, Religare plans to raise nearly $500 mn.

Pharma stocks gained the maximum during today's trading session. Lupin lead the rally with more than 4% gains. Lupin's drug Celebrex received approval from ANDA following which shares of Lupin received investors' attention. Sun Pharma and Suven Life sciences, which are amongst today's lead gainers, have also received many drug approvals recently.

Indian Markets Open Strong
09:30 am

Investors' sentiment towards international equity markets received a boost after the Federal Reserve Chairman provided clarity over raising of interest rates. While the Fed Reserve showed that they were in no hurry to raise the rates, they also removed the word "patience" giving a hint they might change the rates soon. European equities finished yesterday's trading session mixed as German market closed with losses of 0.5% while FTSE closed with gains of 1.6%. U.S. markets minted profits of over 1.3% after Fed's comments interest rates. Asian markets started their trading with gains of about 1%, however, losses of about 0.7% were witnessed by the Japanese market because of a stronger yen.

Indian markets too opened strong following the international cues comments of Fed Chief, Janet Yellen, over interest rates. BSE-Sensex gained over 200 points while NSE-Nifty gained over 50 points in the opening trade. S&P BSE Midcap and S&P BSE Smallcap have gained 0.8% and 0.6%, respectively. All the sectoral indices are trading in the green owing to increase in investor optimism towards equities.

Commodities showed positive movements after the investors' concern eased after the Fed comments. Gold prices, per 10 grams, gained 0.12% or Rs 25 and is available at Rs 25,650 levels while Silver prices also showed a positive momentum and gained 0.1% or Rs 40 and is trading at Rs 35, 400 levels. Crude oil prices continue to slide as international pressure continue to persist over domestic prices. Crude oil, per barrel, slid nearly 3.4% or Rs 60 and is currently available at Rs 2660 levels. Indian Rupee weakened 0.5% or 0.30 and is trading at Rs 62.38 against the U.S. Dollar. The declination in the Indian rupee is the effect of Fed's comments issued by Fed chief Janet Yellen.

Healthcare sector gained over 0.8% in early trade. As per the financial daily, Wockhardt said that USFDA did not find problems on the drugs manufactured from Aurangabad's L1- Chikalthana site. Reportedly, in November 2013, the FDA had issued a notice of non-compliance over good manufacturing practise. The last visit of the FDA in the site was the last leg of investigation and came out with no issues regarding control measures or data security. Shares of Wockhardt gained over 4% after such report.

Power companies, too, have witnessed gains, however, shares of NTPC fell nearly 1% after the Government issued a cabinet note to sell 10% of NTPC for disinvestment in the next financial year. The government plans to raise nearly Rs 695 bn that would cover nearly 3.9% of the fiscal deficit target. At 10% of NTPC on sale, the Government can raise about Rs 126 bn at current price. According to a leading financial source, the official proposal is yet to be declared, however, the stake might be sold at a discount of 4% - 5% to retail investors.

Could poor exports derail growth plans?

The new forecast for GDP has more than one challenge to come true. As we all know, the corporate earnings have been disappointing. There has been further nervousness on account of exports, a key variable of the GDP equation. The exports in the fist two months of the current calendar year have seen a double digit decline. This should be seen in the light of the fact that last quarter is generally strong for exports.

So what is dragging Indian exports down? A slowdown in the global demand, fall in the commodity prices, currency wars , Government's policies (such as gold import restrictions that in turn impact jewellery exports) and lower oil prices are some of the reasons that have led to the decline in the value of exports from India. As mentioned in an article in Business Standard, it is quite likely that India will fall short of the not just the ambitious target set for 2014-15, but may not reach even the levels touched last year. While the much awaited Foreign Trade Policy still remains elusive, even the global factors are not in favor. For instance, decline in the value of Euro has made pricing an issue in the European market , that is one of the key export markets for India.

However, it would not be fair to put all the blame on global factors and Indian Government. One of the prime reasons why exports are in the downtrend is lack of geographical diversification and too much reliance on economies in US and Europe. The incentives that have been offered to export in other regions such as Africa have failed to dilute any interest of India exporters in conventional export markets. Going forward, global uncertainties and hence currency volatility are only likely to go up. And unless the Government and India Inc. both put in efforts, the poor export performance may play spoilsport to India's growth plans.