Benchmarks sulk at day’s low; yet Nifty holds above 7650 level

Benchmarks equity indices after languishing into negative territory since early deals, were sulking at day’s low point, with loss of over quarter of a percent. Despite this, both Sensex and Nifty were holding above psychologically crucial 25,550 and 7,650 levels respectively. Negative global cues were mainly dampening the sentiment at home front. Globally, Asian pacific shares were set for a red close, with Hong Kong shares leading the region lower after worse than expected employment data. Meanwhile, renewed tensions in Ukraine, along with debt concerns in Argentina and Portugal, also weighed on risk-appetite of investors across the globe. Additionally, European shares opened flat-to-lower on Thursday, with worsening tensions between the West and Russia still in focus and a raft of earning reports due. However, reversal of trade could take place at home front, with recovery of European markets in the run up-to European central bank meetings.

Back on home turf, the sectoral indices on BSE were reeling under pressure, however stocks from Metal, Oil & Gas and Public Sector Undertaking counters were the notable gainers among the rest. On the flip side, Information Technology, Consumer Durables and Infrastructure counters were the top losers of the session. Meanwhile, railway stocks were hogging maximum limelight after Cabinet cleared the long-delayed proposal for raising FDI limit in defence to 49 per cent and fully opened up the railway infrastructure segment, like high-speed trains, for foreign investment. The overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1160:718; while 23 shares remained unchanged.

The BSE Sensex is currently trading at 25564.22, down by 101.05 points or 0.39% after trading in a range of 25558.41 and 25715.36. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; with BSE Mid cap index was down by 0.44%, while Small cap index down by 0.36%.

The gaining sectoral indices on the BSE were Metal up by 0.26%, Oil & Gas up by 0.24%, PSU up by 0.17%, Bankex up by 0.02% while, IT down by 1.24%, TECK down by 1.09%, Consumer Durables down by 0.48%, INFRA down by 0.44%, FMCG down by 0.30% were the losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.55%, BHEL up by 0.74%, Coal India up by 0.68%, ICICI Bank up by 0.56% and Hero MotoCorp up by 0.44%. On the flip side, Infosys down by 1.61%, Sun Pharma Inds. down by 1.31%, TCS down by 1.30%, HDFC down by 1.08% and Hindalco down by 0.97% were the top losers.

Meanwhile, providing more powers to capital markets watchdog SEBI to deal with fraudulent collective schemes, Lok Sabha passes the crucial Securities Laws (Amendment) Bill, 2014 aimed at tackling the ponzi menace. The Bill, 2014, has been brought in the backdrop of lakhs of small investors being duped by fraudulent investment schemes, like in the alleged Saradha scam.

The Securities Laws (Amendment) Bill, 2014 will allow SEBI search and seizure powers and seek information and call records from even those firms not directly related to securities market. However, the market regulator will have to take approval from designated court in Mumbai before using these powers. 

Further, the government is also of the view that financial inclusion will help to check the  menace of ponzi scheme. Prime Minister Narendra Modi is slated to launch the Financial Inclusion Mission on Independence Day. About 60 percent of the population in India does not have bank accounts and the Financial Inclusion Mission envisages making two bank accounts per family mandatory. The mission envisages giving a Rs 5,000 overdraft facility to around 8 crore new account holders and credit guarantee fund will provide a cushion to banks and cover defaults in overdraft accounts.

The CNX Nifty is currently trading at 7655.55, down by 16.50 points or 0.22% after trading in a range of 7638.70 and 7686.70. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Jindal Steel & Power up by 4.48%, ACC up by 1.95%, Tata Steel up by 1.60%, Power Grid Corpn. up by 1.27% and BPCL up by 1.19%. On the flip side, HCL Tech. down by 2.27%, Infosys down by 1.59%, Bank of Baroda down by 1.41%, TCS down by 1.39% and PNB down by 1.17% were the top losers

Asian markets were mostly set for red close; with Hang Seng down by 193.27 points or 0.79% to 24,390.86; Shanghai Composite down by 27.57 points or 1.24% to 2,189.90; Taiwan Weighted down by 12.53 points or 0.14% to 9,131.44; Straits Times down by 11.17 points or 0.34% to 3,309.06; Jakarta Composite down by 10.33 points or 0.2% to 5,047.90; KOSPI Index down by 6.22 points or 0.3% to 2,054.51; FTSE Bursa Malaysia KLCI down by 3.74 points or 0.2% to 1,866.18; while Nikkei 225 up by 72.58 points or 0.48% to 15,232.37 was the lone gainer amongst Asian pack.

European markets  got off to a negative start; with Germany’s DAX down by 59.7 points or 0.65% to 9,130.04; UK’s FTSE 100 down by 46.32 points or 0.69% to 6,636.16 and  France’s CAC down by 25.74 points or 0.61% to 4,207.14