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27 Dec 2011 Evaluate

The Indian equity markets consolidated on Tuesday after posting good gains in previous session. Though, in first half the trade remained rangebound lacking any major global cues, as the US and European markets remained closed for an extended weekend due to Christmas. However, the Asian markets turned weak and the Chinese stocks even dropped to a two-year low, after profit growth for industrial companies slowed, while the Japanese market lost some ground amid weak holiday trading. Back home, the second half turned volatile depicting the nature of the F&O expiry week. Though, the European markets made a positive start but were unable to give any support to the domestic markets.

None of the sectoral gauges looked in a confident mood and profit booking was witnessed in all high beta and rate sensitives that have gained in last session. Also, there was some apprehension that the Reserve Bank of India might not go for any rate reduction in its upcoming monetary policy review after the industrial growth in eight key infrastructure areas bounced back to 6.8% in November after touching a five-year low of 0.3% in October. Good growth in cement, electricity and refinery products led the rebound in eight core infrastructure sector. Out of the 13 sectoral gauges on the BSE only consumer durable was able to keep its head in green otherwise all others closed in red with realty, metal and banking suffering the most. One non sectoral pack, the ADA group companies, Reliance Communications, Reliance Capital, Reliance Infrastructure and Reliance Power, all rallied in the range of 0.5-5% on buzz of a patch-up between the two estranged Ambani brothers. On the same time the market heavy weight Reliance Industries after initial gains, lost about a percent at the last. There was a buzz in whole telecom sector as the Telecom Commission accepted industry regulator Trai’s recommendations to relax rules for mergers and acquisitions in the sector and allow spectrum-sharing among telcos, though barring RCom all other major companies closed in red. The last hour choppiness led the markets shed ground near their crucial levels of 4750 (Nifty) and 15880 (Sensex).The broader indices too remained weak throughout the day and lost close to half a percent.

The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1159:1498, while 131 scrips remained unchanged.

The BSE Sensex lost 94.75 points or 0.59% and settled at 15,876.00. The index touched a high and a low of 16,049.12 and 15,799.63 respectively. 9 stocks advanced against 21 declining ones on the index (Provisional)

The BSE Mid-cap index lost 0.71% while Small-cap index was down by 0.35%. (Provisional)

On the BSE Sectoral front, Consumer Durables up 0.07%was the sole gainers while Realty down 1.51%, Metal down 1.32%, Bankex down 1.25%, PSU down 1.12% and Power down 1.07% were the top losers.

The top gainers on the Sensex were Tata Power up 1.98%, Bajaj Auto up 1.06%, ONGC up 0.82%, L&T up 0.32% and HDFC up 0.29%.

On the flip side, NTPC down 2.68%, Cipla down 2.65%, DLF down 2.57%, Tata Steel down 2.42% and Coal India down 2.36% were the top losers in the index. (Provisional)

Meanwhile, in a move that could lead to consolidation in the Indian telecom sector, the Telecom Commission has approved telecom regulator Trai's proposal on rules for mergers and acquisitions in the sector. Telecom Secretary R. Chandrashekhar opined that the Telecom Commission is also not opposed to the Trai’s recommendation to charge a one-time fee on operators for holding spectrum beyond 6.2 mega hertz.

Chandrashekhar further elucidated that the commission has accepted the regulator’s proposal that mergers and acquisitions will get automatic clearance if the combined market share of the new entity is less than 35% and spectrum holding is less than 25%. Whereas, if the market share of the combined entity is more than 35% but less than 60%, the regulator will examine the case to avoid monopoly in the market.

The move may spur consolidation in the 14-player telecom industry, out of which a number of new players are yet to make a mark even as increasing number of people in the country start using mobile phones every month. The commission also favored a proposal to levy within the next two years a uniform license fee of 8% on companies that offer various telecom services, against 6%-10% previously impose depending on factors such as service and region, said the Telecom Secretary.

Telecom tower companies and internet service providers will also have to share 8% of their annual revenues from now on. Until now, the telecom tower companies and internet service providers were not obliged to pay any annual licence fee. After finalizing all other decisions within a week’s time, the commission is likely to forward the decisions to Telecom Minister Kapil Sibal and subsequently seek Cabinet's nod to implement them.

India VIX, a gauge for market’s short term expectation of volatility lost 1.16% at 26.29 from its previous close of 26.60 on Monday. (Provisional)

The S&P CNX Nifty lost 28.30 points or 0.59% to settle at 4,750.70. The index touched high and low of 4,800.50 and 4,723.65 respectively. 18 stocks advanced against 31 declining ones while 1 stock remained unchanged on the index. (Provisional)

The top gainers on the Nifty were Reliance Communications up 5.11%, Ranabxy up 2.79%, Tata Power up 2.71%, Siemens up 2.14% and Ambuja Cement up 1.87%.

On the other hand, Axis Bank down 3.10%, IDFC down 3.05%, DLF down 2.70%, Cipla down 2.60% and Coal India down 2.56% were the top losers. (Provisional)

The European markets are trading in green, with France's CAC 40 up 0.56% and Germany's DAX up 0.64%.

Asian shares eased on Tuesday as investors squared positions in thin volume before US markets reopen after a long weekend and investors see fresh data that could offer clues about prospects for the world’s largest economy. Meanwhile, Chinese shares ended flat on Tuesday as investors remained cautious ahead of the New Year holiday. Seoul Composite declined about 0.80 percent after South Korean consumer confidence fell to a three-month low in December on concern that the political situation in the region might worsen in the wake of Kim Jong-Il’s death. The sentiment index fell to 99, from 103 in November, the Bank of Korea said in a statement today. A reading below 100 indicates pessimists outnumber optimists.

Jakarta Composite was down 7.73 points or 0.20% to 3,789.43, Nikkei 225 was down 38.78 points or 0.46% to 8,440.56, Straits Times was down 2.85 points or 0.11% to 2,673.62, Seoul Composite was down 14.68 points or 0.79% to 1,842.02 and Taiwan Weighted was down by 7.55 points or 0.11% to 7,085.03.

On the flip side Shanghai Composite was up by 1.12 points or 0.05% to 2,191.23.

Stock market in Hong Kong remained closed on Tuesday in observance of a public holiday.

SEBI Registered: Investment Adviser - INA000013323

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
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Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
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SEBI Registration Number:	INA000013323 Validity - May 16, 2019 - Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Warning: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Disclaimer: Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provides any assurance of returns to investors.

Compliance Officer:

Name: Shrikant Jagtap

Email: shrikant.jagtap@moneyworks4me.com

Mobile No: +91 97638 00745

Grievance Officer:

Name: Mukta Vaze

Email: mukta.vaze@moneyworks4me.com

Mobile No:+91 98609 19463

Principal Officer:

Name: Atharva Bhide

Email: atharva.bhide@moneyworks4me.com

Mobile No:+91 91758 99463

SEBI regional/local office address -

Plot No. C 4-A , G Block, Near Bank of India, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra 400051

Address:

The Alchemists Ark Pvt. Ltd., B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045

Data provided by Accord Fintech Pvt. Ltd.

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*Number is average 3 year rolling returns

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