Markets trade with losses around 0.20% ahead of Infosys’ earning

Local equity markets, erasing all the early gains and slipped into negative territory and were trading with losses of around two tenths of a percent, which has dragged both Sensex and Nifty below psychologically crucial 27,250 and 8,250 levels respectively. Meanwhile, broader indices also succumbing to selling pressure were trading mixed at this point. Markets have given up their early gains on prevailing caution ahead of Q3 earnings of IT major, Infosys, which has kept market-participants at tenterhooks. However, positive global set-up is prevented any kind of sharper slide of markets.

On the global front, Asian stocks extended gains Friday after other global markets bounced back from a rocky start to the year and oil prices stabilized after dramatic plunges. The gains came ahead of the release of monthly U.S. employment figures, which is a sign not only of the American economy's health but also as an indicator of when the Federal Reserve might start raising interest rates.

Closer home, most of the sectoral indices on BSE were reeling under pressure, nevertheless top losers were stocks from Realty, Infrastructure and Power counters. On the flip side, stocks from Consumer Durables, Oil & Gas and IT counters were the top gainers of the session. IT counter was trading with strength ahead of the earnings of index heavyweight, Infosys, which would be largely eyed by market-participants since this would officially kick start the earning season. The overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1435:1157; while 101 shares remained unchanged.

The BSE Sensex is currently trading at 27216.60, down by 58.11 points or 0.21% after trading in a range of 27119.63 and 27507.67. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.17%, while Small cap index up by 0.04%.

The gaining sectoral indices on the BSE were Consumer Durables up by 0.42%, Oil & Gas up by 0.34%, IT up by 0.13% and FMCG up by 0.05% while, Realty down by 1.14%, INFRA down by 1.03%, Power down by 0.91%, Bankex down by 0.53% and PSU down by 0.49% were the losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 4.00%, Cipla up by 2.39%, Dr. Reddys Lab up by 1.78%, Tata Motors up by 1.52% and Tata Steel up by 1.09%. On the flip side, Bajaj Auto down by 3.02%, NTPC down by 2.55%, Axis Bank down by 1.92%, BHEL down by 1.71% and Bharti Airtel down by 1.55% were the top losers.

Meanwhile, in a move aimed at boosting fund raising from the market and reducing the timeline for listing of shares, the Securities and Exchange Board of India (SEBI), in its discussion paper on  ‘Revisiting the capital raising process’ proposed e-IPO norms, where investors can bid for shares through Internet and eventually on mobiles.

The market regulator is also planning to tweak rules that will help companies with market capitalization of Rs 250 crore or more to fast-track rights issues and follow-on public offers (FPOs) subject to certain conditions. Under the current rules, companies must have a public market cap of at least Rs 3,000 crore. Additionally, it has also proposed to drastically cut the timeline for listing of shares within 2-3 days of the IPO, as against 12 days presently.

Besides, SEBI has proposed a fast-track route for already listed entities for raising funds through follow-on public offers (FPOs) or rights offers, where funds can be raised from existing shareholders.

The regulator felt the need of reviewing capital-raising process from the markets as it had been observed that listed issuers preferred private placements routes, including qualified institutional placement, over other offers such as FPOs or rights issues, mainly on account of shorter time frame and lower cost involved.

Through the proposals, Sebi wants to simplify the IPO process, lower their costs and help companies to reach more retail investors in small towns. In order to put in place final norms for e-IPO and for fast-track issuances, SEBI has invited public comments till January 30, 2015.

The CNX Nifty is currently trading at 8214.70, down by 19.90 points or 0.24% after trading in a range of 8190.80 and 8303.30. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 3.59%, Cipla up by 2.36%, Tech Mahindra up by 1.95%, Dr. Reddys Lab up by 1.77% and Tata Motors up by 1.65%. On the flip side, Jindal Steel & Power down by 3.10%, DLF down by 2.91%, NTPC down by 2.86%, Bajaj Auto down by 2.80% and Axis Bank down by 2.08% were the top losers.

Asian markets were trading mostly higher; with Straits Times trading higher by 0.18 points or 0.01% to 3,345.29; FTSE Bursa Malaysia KLCI gaining by 0.3 points or 0.02% to 1,728.36; Jakarta Composite rising by 17.85 points or 0.34% to 5,229.68; KOSPI Index rallying by 20.05 points or 1.05% to 1,924.70; Shanghai Composite edging higher by 25.5 points or 0.77% to 3,318.96; Nikkei 225 rising by 30.63 points or 0.18% to 17,197.73; Hang Seng advancing by 213.99 points or 0.9% to 24,049.52. On the flip side, Taiwan Weighted down by 22.45 points or 0.24% to 9,215.58 was the lone loser on the index.