Post session - Quick review

Consolidation remained constant companion for Indian equity market for yet another session, as investor’s reluctance to add position on the penultimate day of F&O expiry led to third consecutive lackluster session at Dalal Street. However, not much of correction was witnessed in Indian equity markets on account of continued inflow of foreign money. Nevertheless, bleak global cues thanks to riots over Spain's austerity amidst absence of any fresh positive trigger at domestic markets mainly led to the downside of the bourses. After listlessly gyrating in the choppy session of trade, 30 benchmark index of BSE, Sensex, lost over 0.30% to shut shop below the 18650 level. While, 50 share index, Nifty, too off loading over 0.15%, managed to close only above 5650 level. Meanwhile, broader indices outperformed, as both Midcap and Smallcap indices went home with decent amount of gains.

On the global front, Asian shares dropped as investors turning their back on perceived stimulus effects from central bank easing focused on Europe's fiscal challenges as Spain faces bitter protests against budget austerity measures. Meanwhile, European stocks also were trading at two months lower after Federal Reserve Bank of Philadelphia President Charles Plosser said that the third round of bond buying may fail to stimulate growth or hiring.

Closer home, much of the recovery which came to the bourses in the second half of the trading session proved to be futile as bears acting adamant, led to a red close at Dalal Street. However, stocks from defensive Healthcare, Fast Moving Consumer Goods and realty counters deserve a mention for cutting short the losses of the bourses. On the flip side, stocks from Metal, Technology and Public Sector Undertaking, topping the BSE sectoral chart from behind, underscored the underlying weakness of the bourses.

In sector-specific action, shares of aviation companies, viz., Spicejet, Kingfisher Airlines and Jet Airways, flew higher on lower Brent crude prices. Brent crude oil dipped more than $1 per barrel to below $110 on Wednesday, weighed down by a stronger dollar, worries over growth and the euro zone debt crisis as Greece faced its biggest anti-austerity strike for months. Additionally, cement companies, namely, AC, UltraTech Cement, Prism Cement, Heidelberg Cement India, firmed up on optimism of higher demand since construction activity gains momentum after monsoon season comes to an end. Moreover, Realty stocks too were on buyer’s radar on hopes of approval of contentious land acquisition bill. Continuing UPA's reforms juggernaut, the controversial Land Acquisition, Rehabilitation and Resettlement Bill, is likely see the light of the day, as EGoM meets on September 27. The market breadth on the BSE ended neutral; advances and declining stocks were in a ratio of 1441:1446 while 122 scrips remained unchanged. (Provisional)

The BSE Sensex lost 77.71 points or 0.42% and settled at 18,616.70. The index touched a high and a low of 18,670.48 and 18,573.18 respectively. 9 stocks were seen advancing while 21 stocks were declining on the index (Provisional)

The BSE Mid-cap index was up by 0.20% while Small-cap index was up 0.58%. (Provisional)

On the BSE Sectoral front, FMCG up by 0.69%, Health Care was up 0.55%, Oil & Gas up by 0.04%, Consumer Durables was up 0.02% and Realty was up 0.01% were the only gainers, while Metal down 1.42%, TECk down by 0.82%, PSU down by 0.64%, Power down by 0.54% and IT down by 0.48% were the top losers in the space.

The top gainers on the Sensex were Cipla up 2.37%, Hero MotoCorp up 1.61%, SBI up by 1.22%, ITC up 0.98% and Gail India up 0.53% while, Bharti Airtel down by 4.00%, Coal India down by 3.05%, Hindalco Industries down by 2.35%, Tata Motors down by 2.32% and Tata Steel down by 1.54% were the top losers in the index. (Provisional)

Meanwhile, Continuing UPA's reforms juggernaut, the controversial Land Acquisition, Rehabilitation and Resettlement Bill, too may see the light of the day, as EGoM meets on September 27. However, ahead of the first meeting of the Group of Ministers on the land bill, Rural Development Minister, Jairam Ramesh, casting its votes much in the favour of the proposed land bill, asserted that the bill besides balancing the needs of economic growth with concerns of the common man, would also ease the bottleneck caused by litigations to industrial and infrastructure projects.

The land bill, which comes in the wake of tough economic environment for UPA government, provide with an opportunity to showcase how it can give thrust to industrialization and economic growth while protecting the interests of landowners and those whose livelihood depends on the land.

Meanwhile, Jairam Ramesh, in a note for the meeting scheduled for Sept 27, has argued that the existing Land Acquisition Act, 1894 shows little consideration for those whose land is acquired. The current law has led to lengthy litigations resulting in unreasonable cost escalations. Further, government statistics reveal that 70 per cent of acquisitions are challenged in courts because of forced acquisition, absence of safeguards, appeals and rehabilitation and resettlement, indiscriminate invocation of the urgency clause and low rate of compensation.

Batting for the much contentious bill, Ramesh has also underscored on the thorny issue of state autonomy. As according to the bill, states will have autonomy to deal with key issues such as calculating compensation and acquiring multi-crop or irrigated land.

As per the note, although there will be no enhancement of the market value of the land acquired in urban areas , but the compensation to ameliorate hardship on account of acquisition of such lands will be raised to 100 per cent of the market value from 30 per cent earlier. But for rural land, the market value will be enhanced with a multiplier to calculate upon the compensation. The broad principle is that the multiplier will be lower for land in proximity to the urban centre.

India VIX, a gauge for markets short term expectation of volatility lost 0.81% at 16.97 from its previous close of 17.11 on Tuesday. (Provisional)

The S&P CNX Nifty lost 16.30 points or 0.29% to settle at 5,657.60. The index touched high and low of 5,672.80 and 5,638.65 respectively. 17 stocks advanced against 33 declining ones on the index. (Provisional)

The top gainers on the Nifty were ACC up 3.88%, Ambuja Cement up 3.87%, Cipla up 2.62%, Axis Bank up 2.16% and SBI was up 1.37%. On the other hand, Bharti Airtel down 3.83%, IDFC down by 3.31%, Coal India down by 3.15%, Hindalco Industries down by 2.63% and Tata Motors down 2.25% were the top losers. (Provisional)

The European markets were trading in red with, France’s CAC 40 down 2.03%, Germany’s DAX down 1.54% and the United Kingdom’s FTSE 100 down 1.11%.

Asian markets ended mostly in red on Wednesday after US Federal Reserve head’s statement that the central bank's huge stimulus plan unveiled this month might not boost the economy as much as hoped. Fall in Japan and Hong Kong’s stocks amid continued worries over territorial dispute between China and Japan also added pressure on the markets. Nikkei ended lower, on the back of speculation about yen-weakening intervention by Japanese authorities. Meanwhile, Seoul closed with red mark on growth worries.