Benchmarks pare loses; trade continues in subdued note

Indian equity indices recovered most of the losses hovering near the neutral line and are trading on a subdued note amid lot of volatility. Market participants were seen piling up the positions in TECk, IT and Power sector while selling was witnessed in Metal, Capital Goods and Consumer Durables sector. Stocks like Tilak Finance, Residency Projects, Banas Finance, Esaar India, PFL Infotech and Astral Poly hit new high while stocks like Dishman Pharma, Indo Tech Transformer, Great Offshore, Tanla Solutions, Refex Refrigerant, REISIX TEN Retail, Adani Power, IndiaBulls Power, DB Realty, Nitesh Estate, Ramky Infra, Prestige Estates, MOIL, Punjab & Sind Bank, Rupa & Company and Brooks Laboratories hit new low. Information Technology companies TCS, Infosys, Wipro and HCL Tech are in green as the rupee hit 50 against dollar for first time in more than 28-months. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives major share of revenue from exports.

In other scrip specific development, Metal and Mining shares like SAIL, Tata Steel, Hindalco, NALCO, SesaGoa, JSL, Uttam Galva and Hindustan Zinc were trading in red as LMEX, a gauge of six metals traded on the London Metal Exchange, slumped. Everonn Education is trading in green on reports that Varkey Group has made open offer for additional 20% in the company at Rs 528 per share. ITC is firm as the company has increased some cigarette prices by up to 10%. On the global front, Asian markets were trading in red barring Jakarta Composite while the European markets were trading in green on optimistic note.  The tentative optimism in sentiments came after the Group of 20 finance ministers and central bank Governors reassured markets that they would take all necessary measure to preserve financial stability and increase the flexibility of the euro zone's rescue fund. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 4,950 and 16,400 levels, respectively. The market breadth on the BSE was negative in the ratio of 916:1753 while, 91 scrips remained unchanged.

The BSE Sensex is currently trading at 16,332.33 down by 28.82 points or 0.18% after trading as high as 16,355.73 and as low as 16,052.47. There were 18 stocks advancing against 12 declines on the index.

The broader indices were trading on a negative note; the BSE Mid cap index plunged 0.37% while Small cap was down 0.83%.

On the BSE sectoral space, TECk up 0.92%, IT up 0.68%, Power up 0.60%, Health Care up 0.33% and FMCG up 0.31% were the top gainers while Metal down 1.60%, Capital Goods down 1.03%, Consumer Durables down 0.42%, Auto down 0.38% and PSU down 0.30% were the major losers on the index.

Cipla up 2.48%, SBI up 2.07%, Bharti Airtel up 2.04%, JP Associates up 1.86% and Tata Power up 1.50% were the major gainers on the Sensex, while Tata Motors down by 2.74%, Hindalco down 2.69%, HDFC down 2.19%, HDFC Bank down 2.18% and Sterlite down 2.04% were the major losers on the index.

Meanwhile, the Reserve Bank of India (RBI) on September 22 in its notification tightened the return filing format for non-banking financial companies (NBFCs) under which they will have to make disclosures about their deposit and lending activities to the central bank more frequently. According to the revised format the NBFCs have to make disclosures about their deposit and lending activities to the central bank on a quarterly basis. NBFCs are also required to file various returns related to deposit acceptance, prudential norms, capital market exposure, etc.

Likewise, the RBI has also asked non deposit taking NBFCs to submit statements on capital funds, risk weighted assets, risk asset ratio, among others on quarterly basis. However, norms relating to reporting about liquid asset exposure to capital market among other have not been changed. The NBFCs which accepts deposits will have to submit quarterly returns on liquid assets to the RBI.

The NBFCs with total asset of Rs 100 crore and above will have to submit monthly returns on exposure to capital market. However, the non-deposit taking NBFCs would continue to file monthly returns on important financial parameters.

In its notification RBI said, the returns, under the new norms, concerning deposits, prudential norms for deposit taking NBFCs and statement of capital funds, risk weighted assets, risk asset ratio for non-deposit taking NBFCs should be submitted for the July-September quarter. All these filings will have to be done by NBFCs to the central bank in the revised formats notified by the apex bank, the RBI added.

The S&P CNX Nifty is currently trading at 4,923.90, higher by 0.25 points or 0.01% after trading as high as 4,925.50 and as low as 4,829.60. There were 33 stocks advancing against 17 declines on the index.

The top gainers on the Nifty were Reliance Power up 5.15%, Reliance Capital up 2.74%, JP Associates up 2.54%, HCL Tech up 2.48% and Cipla up 2.43%.

Tata Motors down 2.68%, Hindalco down 2.58%, Cairn down 2.28%, HDFC Bank down 2.24%, and HDFC down 2.11% were the major losers on the index.

Asian markets traded on a negative note, Shanghai Composite eased 0.41%, Hang Seng shed 1.36%, KLSE Composite slipped 1.41%, Straits Times dived 0.99%, Seoul Composite deposed 5.73% and Taiwan Weighted got pounded by 3.55%. On the other hand, only Jakarta Composite surged 0.52%.

Stock markets in Japan remained closed in observance of a public holiday.

The European markets were trading in green with, France’s CAC 40 surged 0.48%, Germany's DAX garnered 0.61% and Britain’s FTSE 100 soared 1.00%.