Benchmarks pare loses; trade continues in subdued note

Indian equity indices pared off some losses but still trading under pressure on a subdued note amid lot of volatility as investors lacked the buying conviction. Though the local bourses got some support from reports that the finance ministry may consider a cut in securities transaction tax (STT) and propose a concession on stamp duty on equities. Market participants were seen piling up the positions in TECk sector while selling was witnessed in Consumer Durables, Metal and PSU sector. Stocks like Kajaria Ceramics, Tilak Finance, Residency Projects, Banas Finance, Surana Industries, Esaar India, PFL Infotech, Gravita India and PG Electroplast hit new high while stocks like MTNL, Dishman Pharma, Indo Tech Transformer, Punj Lloyd, Great Offshore, Tanla Solutions, REISIX TEN Retail, DB Corp, DB Realty, Ramky Infra, MOIL, Punjab & Sind Bank, PTC India Financial Services and Brooks Laboratories hit new low. Eveready Industries India is trading in green on reports that the company is looking to sell land to cut its debt. JSW Steel is down as the company’s fate lies hanging in the Supreme Court where the case of lifting the ban on iron ore production in Bellary will be heard today. Bajaj Auto is trading in red on reports that the company's promoter had sold 4.10 lakh shares.

In other scrip specific development, EIH and EIH Associated Hotels are trading firm after the Securities and Exchange Board of India (SEBI) notified the new law governing takeover of listed firms with effect from October 22, 2011. Under the new law, the size of the open offer to be made by acquirers was increased to 26% from the earlier 20%. The open offer trigger limit has been increased from 15% to 25%. The market regulator also scrapped a non-compete fee. Engineers India is trading in green as the government is likely to accord the coveted Navratna status to it which will provide the company greater operational autonomy. 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. On the global front, Asian markets were trading in red while the European markets were trading in green on optimistic note.  Back home, the NSE Nifty and BSE Sensex were trading below their psychological 4,900 and 16,100 levels, respectively. The market breadth on the BSE was negative in the ratio of 642:2024 while, 94 scrips remained unchanged.

The BSE Sensex is currently trading at 16,055.84 down by 106.22 points or 0.66% after trading as high as 16,209.19 and as low as 15,801.01. There were 7 stocks advancing against 23 declines on the index.

The broader indices were trading on a somber note; the BSE Mid cap index plunged 1.57% while Small cap sank 1.65%.

On the BSE sectoral space TECk up 0.22% was the lone gainer while Consumer Durables down 5.04%, Metal down 2.94%, PSU down 1.63%, Realty down 1.54% and Capital Goods down 1.49% were the major losers on the index.

JP Associates up 2.30%, Bharti Airtel up 1.91%, ICICI Bank up 1.84%, Cipla up 1.27% and Wipro up 0.74% were the major gainers on the Sensex, while Coal India down by 5.26%, Sterlite down 4.56%, Hindalco down 4.40%, Hero MotoCorp down 3.04% and Baja Auto down 2.32% were the major losers on the index.

Meanwhile, India and China at their first comprehensive Strategic Economic Dialogue (SED), have reached to an understanding to deepen their bilateral investment cooperation, by opening their domestic market for each other and improve the investment environment. 

The high level delegations led by Montek Singh Ahluwalia Deputy Chairman Planning Commission (India), and Zhang Ping Chairman, National Development and Reform Commission (China) had very optimistic successful dialogue on stepping up cooperation and coordination on a host of economic issues.

Both the nations have agreed to stay committed to deepening bilateral investment cooperation, further opening markets and improving the investment environment in both the nations to put down a strong foundation for pragmatic cooperation between the businesses of the both the economic power houses on the basis of complementarities, mutual benefits and win-win outcome.

In order to promote sustainable development, along with the businesses and investment cooperation, both the economies agreed to strengthen their cooperation on energy efficiency and conservation as well as on environment protection. India and China also agreed to speed up the cooperation on energy, including the removable energy sector.  

Given the current global economic situation, increased exchanges in these spheres would provide additional opportunities to grow the businesses activities, and new engine for greater cooperation between the two sides, the SED minutes said.

The S&P CNX Nifty is currently trading at 4,831.50, lower by 36.25 points or 0.74% after trading as high as 4,879.80 and as low as 4,758.85. There were 12 stocks advancing against 38 declines on the index.

The top gainers on the Nifty were JP associates up 2.82%, Ranbaxy up 2.52%, ICICI Bank up 2.03%, Bharti Airtel up 1.84% and Cipla up 1.44%.

Sterlite down 4.73%, Hindalco down 4.56%, Cairn down 3.74%, SesaGoa down 3.43% and Hero MotoCorp down 3.30% were the major losers on the index.

Asian markets traded on a depressing note, Shanghai Composite plunged 1.64%, Hang Seng got decimated 1.48%, Jakarta Composite got bludgeoned by 3.52%, KLSE Composite nosedived 2.57%, Nikkei 225 got butchered by 2.17%, Straits Times slumped 1.60%, Seoul Composite deposed 2.64% and Taiwan Weighted shaved off 2.40%.

The European markets were trading in green with, France’s CAC 40 up 1.74%, Germany's DAX rose 1.84% and Britain’s FTSE 100 edged higher 0.11%.