Post session - Quick review

Consolidation gripped D-street after six consecutive sessions of downfall, with benchmark equity indices snapping the session almost on flattish note albeit with positive bias. Cautiousness ahead of the winter session of parliament, which is all set to start on Thursday, mainly kept traders at the bay. The Congress-led United Progressive Alliance (UPA) Government could face its toughest challenge in Parliament during the winter session when Trinamool Congress chief Mamata Banerjee plans to bring a no-confidence motion. Additionally, jitters were also witnessed at D-street after reports suggested that amendments to the controversial law against tax avoidance through foreign investments, ‘GAAR’, were been finalized, which after going through Prime Minister Office (PMO) will be reflected in the amended Chapter 10A. However, selective buying of funds and retail investors in dying hours of trade, pumped in some strength into ailing equity markets. In a nothing sort of session, 30 share barometer index, Sensex, garnered over quarter percent, to end past the crucial 18300 level, while 50 share widely followed index, Nifty, scooping up slender gains above neutral line, negotiated a positive close, which again was sub 5600 psychological bastion. However, broader indices, witnessed deeper gashes, with both Midcap and Smallcap indices going home with cuts of above 3/ 4 percent.

Meanwhile, global print, which remained subdued, too added to pessimistic milieu. However, Asian shares ended higher on Monday, supported by hopes US politicians can overcome an imminent fiscal crunch while the yen fell to a near seven-month low against the dollar on expectations a new government chosen in next month's election could pump large amounts of stimulus cash into the economy. On the flip side, European shares, squandering a positive start, were oscillating into negative territory. European stocks climbed in early trade on Monday as U.S. President Barack Obama expressed confidence that he will strike a deal with Congress on a new budget.

Back on the home turf, in the rather range-bound session of trade, Auto, Fast Moving Consumer Goods, Technology making to the buyer’s list, triggered gains in 30 share barometer index. On the flip side, Consumer Durable (CD), Capital Goods (CG) and Metal counter, were the top laggards on BSE sectoral front. Telecom stocks showcased mixed trend after last week's auction of 2G spectrum fetched lower prices than the government had targeted. Bharti Airtel and Reliance Communication were on gaining side, while MTNL and Idea Cellular were on the losing side.  Additionally auto stocks too beefed up gains after SIAM reported that it expected auto sales to be higher for November on account of ‘Diwali’. On the other hand, three PSU OMCs, HPCL, BPCL and IOC lost out on steam after the oil ministry said that under-recovery on High Speed Diesel applicable for 2nd fortnight of November effective November 16, 2012 remains high. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1088:1736 while 145 scrips remained unchanged. (Provisional)

The BSE Sensex gained 49.50 points or 0.27% and settled at 18,358.87. The index touched a high and a low of 18,386.78 and 18,256.07 respectively. 12 stocks were seen advancing and 18 stocks were declining on the index (Provisional)

The BSE Mid-cap index was down by 0.88% while Small-cap index was down by 0.83%. (Provisional)

On the BSE Sectoral front, Auto up 1.15%, FMCG up by 0.88%, TECk up 0.20%, Realty up 0.04% and Bankex up 0.01% were the only gainers, while Consumer Durables down by 1.34%, Capital Goods down by 0.72%, Metal down by 0.68%, Health Care down by 0.58% and PSU down by 0.29% were the top losers in the space.

The top gainers on the Sensex were Maruti Suzuki up 3.63%, Bharti Airtel up by 3.34%, ITC up 2.71%, Bajaj Auto up 2.12% and M&M up 1.85%, while, Tata Power down by 2.42%, TCS down by 1.80%, Tata Steel down by 1.63%, Gail India down by 1.50% and Dr. Reddy’s Lab down by 1.27% were the top losers in the index. (Provisional)

Meanwhile, Department of Telecommunications (DoT) has again sought legal opinion on the matter of refunding entry fee to telecom operators whose licenses were quashed by the Supreme Court, after an EGoM decided to adjust fees of only those companies who win spectrum in the auction. This dilemma arises in light of several telecom operators such as Etisalat DB, Sistema Shyam, ByCell, S Tel, and Loop Telecom sending notices to the government and seeking protection of their investment.

According to reports, DoT has asked for the Attorney General’s opinion on “whether entry fee, paid by licensees whose licenses have been ordered to be quashed by the Supreme Court needs to be refunded/released/adjusted to all the licencees, as requested by them, whether participating in auction or not.” The Supreme Court cancelled 122 telecom licences belonging to eight telecom operators in the 2G scam in February this year. However, Attorney General in August 2012 ruled out the need to refund licence fee paid by operators affected by SC judgment, stating none of its need arising at this stage.

Further, it remains important to be noted that, of eight companies whose licenses were cancelled, only three companies -Idea Cellular, Videocon and Telenor (majority stakeholder in Uninor), participated and won spectrum in the auction held last week. Meanwhile, the story was far worse with regard to another 60 blocks with Bharti and Vodafone being the only bidders as the other telecom companies - annoyed over an exorbitantly high reserve price of Rs 13,850 crore for all 22 circles set at the auction-- remained at the bay.

India VIX, a gauge for markets short term expectation of volatility gained 2.83% at 16.68 from its previous close of 16.22 on Friday. (Provisional)

The S&P CNX Nifty gained 2.25 points or 0.04% to settle at 5,576.30. The index touched high and low of 5,592.75 and 5,549.25 respectively. 19 stocks advanced against 31 declining ones on the index. (Provisional)

The top gainers on the Nifty were Maruti Suzuki was up 4.05%, Bharti Airtel up 3.19%, ITC up 2.64%, Bajaj Auto up 2.01% and Hero MotoCorp was up 1.75%. On the other hand, IDFC down 3.07%, Lupin down by 2.60%, JP Associates down by 2.14%, Tata Power down by 2.12% and TCS down by 1.83% were the top losers. (Provisional)

The European markets were trading mixed with, France’s CAC 40 up 0.19%, Germany’s DAX down 0.05% and the United Kingdom’s FTSE 100 down 0.33%.

Most Asian markets went home with green mark on Monday as investors were hopeful that US lawmakers will be able to agree a deal to avert a fiscal cliff. Japan’s Nikkei touched two-month high due to sustained weakness in the yen. Moreover, Shanghai Composite market closed in positive territory ahead of preliminary manufacturing data November.