Markets consolidate ahead of key eco data, US Fed meet

Auto, Healthcare and Realty sectors ended with gains while Bankex and IT sectors were the top losers.

In the truncated week ended March 11, the BSE Sensex ended 72 points higher to close at 24,718 and the National Stock Exchange's Nifty ended up 0.3 per cent at 7,510. Markets were closed on Monday on account of Mahashivratri.

"With key Bills connected to gas, real estate, mining sectors being passed in Parliament, investors are increasingly becoming assured that the government is back on the reform path. The cautiousness that prevailed through the session was, however, not unexpected, given the slew of event risks lined up for the next week, including India's inflation figures and US FOMC meeting," said Anand James, Co Head Technical Research Desk, Geojit BNP Paribas Financial Services.

Industrial output fell for the third consecutive month by contracting 1.5 per cent in January, government data showed on Friday.

The Lok Sabha on Friday passed the Aadhaar Bill which will provide a unique identity to citizens and also ensure the subsidies reach directly to the beneficiaries.

The Rajya Sabha on Thursday passed by voice vote a real estate regulation Bill, aiming to protect homebuyers from erring developers, besides bringing transparency in the sector.

The government also announced a new Hydrocarbon Exploration & Licencing Policy to boost production, and also streamline several hurdles faced by oil exploration companies.

Foreign investors continued to remain buyers of Indian equities, with net purchases of Rs 3,021 crore during the week under review, according to the provisional data from stock exchanges.

Automobile, health care and realty sectors ended with gains, while banking and information technology sectors were the top losers.

Metal shares rallied after recovery in global commodity prices. Globally, iron ore prices (of 62 per cent ferrous content) shot up 19 per cent to $63.74 a tonne during the week, taking year-to-date gains to 46 per cent. Hindalco, Tata Steel, Steel Authority of India and NMDC ended up 2.1-6.5 per cent.

Banking shares, which had led the rally last week, witnessed profit taking, with state-owned banks losing the most. ICICI Bank dropped three per cent and State Bank of India declined 4.3 per cent, Punjab National Bank lost 1.3 per cent and Bank of Baroda ended down 5.4 per cent. HDFC Bank gained nearly one per cent, while YES Bank surged 5.3 per cent.

Capital goods shares weakened, with Bharat Heavy Electricals down 3.4 per cent after credit rating agency CRISIL downgraded the long-term bank facilities of the state-owned engineering major. Larsen & Toubro ended with marginal losses.

Select realty shares ended higher after the clearance of the real estate Bill. DB Realty, Phoenix Mill and Unitech ended up 11.5-20.5 per cent each. Mortage lender HDFC also ended three per cent higher.

Oil explorers gained after the announcement of the new hydrocarbon policy. Cairn India surged nearly 15 per cent, while Oil India ended with marginal gains. Reliance Industries ended nearly one per cent higher after the announcement of an interim dividend of Rs 10.50 per share.

Week ahead

The government will release data on inflation based on the Wholesale Price Index and Consumer Price Index for February 2016 on Monday.

Meanwhile, stock-specific action will be seen after companies announce their advance tax numbers from Tuesday onwards. A higher advance tax payment generally indicates earnings growth.

Investors would keenly await the US Federal Reserve's stance on key policy rates after its two-day policy meet scheduled for March 15-16.