Benchmarks extend losses; Oil & Gas drag

Indian equity benchmarks extend losses to continue their weak trade in the late afternoon session on account of selling in frontline blue chip counters. Heavy buying was witnessed in Indian equity derivatives by overseas investors pointing towards a big move. Traders were seen piling up positions in Power, IT and TECK while selling was witnessed in Oil & Gas, PSU and FMCG sector stocks. In scrip specific development, Dena Bank and Oriental Bank of Commerce were trading in red following reports that the Finance Ministry has ordered a forensic audit in connection with alleged misappropriation of funds. Just Dial was trading in green after the company’s board approved increasing the shareholding limit of Foreign Institutional Investors in the company from 49% to 75%.

On the global front, the Asian markets were trading mostly in green, while the European markets traded on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 7,900 and 26,400 levels respectively. The market breadth on BSE was positive in the ratio of 1537:1257 while 106 scrips remained unchanged.

The BSE Sensex is currently trading at 26322.10, down by 98.57 points or 0.37% after trading in a range of 26302.14 and 26504.52. There were 10 stocks advancing against 20 stocks declining on the index. The broader indices were trading in green; the BSE Mid cap index was up by 0.11%, while Small cap index up by 0.86%.

The gaining sectoral indices on the BSE were Power up by 0.51%, IT up by 0.22%, TECK up by 0.08% while, Oil & Gas down by 1.07%, PSU down by 0.75%, FMCG down by 0.64%, Auto down by 0.61%, Capital Goods down by 0.52% were the losing indices on BSE.

The top gainers on the Sensex were Cipla up by 4.23%, Sun Pharma up by 3.58%, Dr. Reddy’s Lab up by 2.50%, Tata Power up by 1.83% and Wipro up by 1.21%. On the flip side, ONGC down by 2.57%, GAIL India down by 1.80%, HDFC down by 1.72%, Tata Motors down by 1.23% and Hindustan Unilever down by 1.14% were the top losers.

Meanwhile, in order to ensure timely and adequate disclosures by the listed companies, the Securities and Exchange Board of India (SEBI) proposed a detailed set of norms for listed companies. According to the proposed norms, listed companies will have to disclose price sensitive information within a day along with the reasons for such developments. Any information that impacts company's assets and liabilities and financial condition and influence investor decisions could be considered as price sensitive.

The SEBI’s draft notified that listed companies would have to inform stock exchanges about all events which are material in nature, price sensitive and have bearing on overall business performance. The market regulator further stressed that in cases where the disclosures are made after one day, listed entity shall, along with such disclosure provide suitable explanation for delay in making disclosure. Besides, companies are required to make periodic disclosures on the associated material developments till such time the matter is resolved. As per the SEBI’s draft note, a listed company will have to explain and give reason for change in key managerial personnel, including resignation. The company is also required to disclose the appointment of a director.

SEBI has sought to define material transactions to make sure that price sensitive information is dispersed to stock exchanges on a timely basis. The move came after considering that laxity and liberal interpretations by firms has resulted in inadequate disclosure levels in the securities market.

The CNX Nifty is currently trading at 7872.00, down by 25.50 points or 0.32% after trading in a range of 7866.80 and 7922.70. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Cipla up by 4.35% and Sun Pharma up by 3.58% and Dr. Reddy’s Lab up by 2.29% and Tata Power up by 2.16% and Lupin up by 1.90%. On the flip side, ONGC down by 2.56%, GAIL India down by 1.80%, HDFC down by 1.79%, Ultratech Cement down by 1.59% and IDFC down by 1.51% were the top losers.

The Asian markets were trading mostly in green, FTSE Bursa Malaysia KLCI increased 1.61 points or 0.09% to 1,873.77, KOSPI Index increased 1.64 points or 0.08% to 2,072.78, Nikkei 225 increased 4.66 points or 0.03% to 15,454.45, Straits Times increased 8.83 points or 0.27% to 3,325.26, Jakarta Composite increased 15.4 points or 0.3% to 5,180.56, Hang Seng increased 36.81 points or 0.15% to 25,159.76 and Taiwan Weighted increased 44.27 points or 0.48% to 9,288.05.

On the other hand, Shanghai Composite decreased 5.12 points or 0.23% to 2,240.21 was the sole loser.

The European markets were trading in red; UK’s FTSE 100 decreased 21.8 points or 0.32% to 6,757.51, Germany’s DAX decreased 39.03 points or 0.42% to 9,295.25 and France’s CAC decreased 18.84 points or 0.44% to 4,235.61.