Post session - Quick review

Brushing aside negative global leads, benchmark equity indices finally negotiated a positive close on Wednesday on select buying by funds and retail investors. After two sessions of consolidation, Indian equity markets which started on optimistic note went on gradually accumulating gains to conclude near high point of the day. Cautiousness ahead of the winter session of parliament, slated to start from Thursday, whereby investors await for positive triggers to emerge from the government's efforts toward reforms for higher economic growth, however, provided a ceiling to bourses’ gains. The parliament session will consider 25 legislative proposals, including key bills to liberalize the insurance and pension sectors. Nevertheless, barometer 30 share index, Sensex, scored over century of points, to end past 18400 psychological level. Similarly, widely followed index, Nifty, on NSE too puffed up over 3/4 percent to reclaim the 5600 bastion. Broader indices, despite underperforming front line equity indices, went home with gains of over quarter points.

On the global front, Asian shares staged mixed close as investors refocused on the risk of a US fiscal crisis following Federal Reserve Chairman Ben Bernanke's remarks that the budget impasse was already damaging growth. However, sentiment in Asian-pacific region were also affected as Japan on Wednesday posted its worst October trade figure in over 30 years, underscoring persistent weakness in the world's third-largest economy amid the global slowdown and a spat with China. Further, even, European shares lost steam in early deals on fresh worries over Greece after international lenders failed to reach a deal for the payment of a new tranche of aid to the debt-stricken country.

Closer home, Realty, Consumer Durable, Fast Moving Consumer Goods, Bankex and Health Care counters, emerging as investor’s darling, toppled BSE Sectoral front. Additionally, Information Technology stocks too witnessed traction on weakening Rupee. The Indian currency hit over two-month low against the US dollar after falling for the fourth consecutive session on fears of a weak Q2 GDP number and fiscal slippage. Moreover, banking stocks too hogged limelight after government said it will table the Banking Laws Amendment Bill, 2011 in the winter session of parliament. Furthermore, sentiments were buttressed by the sparkling gains in Pharmaceuticals stocks, viz. Aurobindo Pharma, Cipla, Ranbaxy Lab and Sun Pharmaceuticals, which rallied ahead of GoM decision for resolving deadlock on Pharma pricing. The GOM meet for resolving deadlock assumes importance with the expected attendance of the finance minister, where hopes are high that the pricing policy, which has been mired since 2003, will be revamped. On the other hand, Power and Auto space, which was beaten out of shape, concluded to only losers. Auto counters, snapped two consecutive sessions’ gaining streak on profit-booking. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1478:1363 while 143 scrips remained unchanged. (Provisional)

The BSE Sensex gained 131.06 points or 0.72% and settled at 18460.38. The index touched a high and a low of 18478.50 and 18309.81 respectively. 19 stocks were seen advancing and 11 stocks were declining on the index (Provisional)

The BSE Mid-cap index was up by 0.37% while Small-cap index was up by 0.94%. (Provisional)

On the BSE Sectoral front, Realty up 2.47%, FMCG up by 1.41%, CD up by 1.40% , Bankex up 1.27% and IT up by 0.85% were the gainers, while Power down by 0.99%, Auto down by 0.24%, PSU down by 0.19% were the only losers in the space.

The top gainers on the Sensex were Cipla up 2.61%, Sun Pharma up by 2.54%, Tata Power up 1.98%, Jindal Steel up 1.97% and ITC up 1.96%, while, NTPC down by 3.46%, BHEL down by 2.70%, Hero MotoCorp down by 1.00%, HDFC down by 0.76 % and Bharti Airtel down by 0.63% were the top losers in the index. (Provisional)

Meanwhile, to distance away retail investors from derivative segment, the capital market watchdog, Securities and Exchange Board of India (SEBI) on Nov 20 banned trading in futures & options (F&O) contracts on two premier indices which came with a minimum contract size of Rs 1 lakh , popularly known as ‘mini-derivatives contracts’. The National Stock Exchange (NSE) had mini contracts for its key benchmark index, the ‘S&P CNX Nifty’. Similarly, the Bombay Stock Exchange (BSE) had applied to SEBI for re-launching mini contracts for ‘Sensex’.

The lot size for mini contracts is half of those for regular index contracts and retail investors, who wanted to trade derivatives, were able to take advantage at half the cost. SEBI, back in 2007, approved introduction of mini derivatives.

Further, as per SEBI, bourses will not be permitted to issue any fresh mini-derivatives contracts of this size, while the existing unexpired contracts ‘may be permitted’ to trade till expiry and new strikes may also be introduced in the existing contract month.

As per the order, NSE will have to discontinue its product after its three-month contract of the Mini Nifty expires in December. However, the third exchange, the new MCX-SX, will not be affected, as its thrust will be mainly on delivery-based trading, rather than derivatives.

India VIX, a gauge for markets short term expectation of volatility lost 2.21% at 15.46 from its previous close of 15.81 on Tuesday. (Provisional)

The S&P CNX Nifty gained 43.25 points or 0.78% to settle at 5,614.80. The index touched high and low of 5,620.20 and 5,561.40 respectively. 34 stocks advanced against 16 declining ones on the index. (Provisional)

The top gainers on the Nifty were JP Associates was up 3.14%, Cipla up 3.00%, Sun Pharma up 2.58%, Ambuja Cement up 2.27% and ICICI Bank was up 2.14%. On the other hand, NTPC down 3.92%, BHEL down by 3.07%, Power Grid down by 1.68%, Cairn down by 1.36% and PNB down by 0.75% were the top losers. (Provisional)

The European markets were trading in red with, France’s CAC 40 down 0.09%, Germany’s DAX  down  0.15% and the United Kingdom’s FTSE 100 down 0.17%.

Asian markets ended mixed on Wednesday as investors were still worried over euro zone debt crisis after European officials failed to reach a deal on a bailout for Greece. Meanwhile, fears on the US fiscal cliff remained in focus after the Federal Reserve Chairman Ben Bernanke warning over the looming economic condition. China's Shanghai Composite went home with green mark reversing early losses, while Hong Kong's market closed in positive territory on signs of a Chinese recovery. However, Seoul shares erased early gains to end lower after Greek aid talks ended inconclusively.