Post session - Quick review

Indian equity markets managed to negotiate a flattish close in absence of any major positive catalyst amidst mostly negative global set-up. However, benchmark equity indices, snapping two session’s gaining trend, failed to lure traction as optimism surrounding the passing of a banking bill fizzling out prompted some profit-booking. Risk appetite at D-street remained frail after assembly election results suggested Narendra Modi being re-elected as chief minister of Gujarat for third time in a row, defeating ruling Congress party coupled with US fiscal woes. Modi, a BJP leader, won from the Maninagar assembly constituency on Ahmedabad's outskirts, defeating Bhatt by more than 70,000 votes.

On the global front, Asian markets ended mixed early as concerns over the U.S. fiscal cliff weighed on sentiment. President Barack Obama accused Republicans of digging in their heels due to a personal grudge against him, while a top Republican called the president “irrational”. Meanwhile, European shares paring earlier losses to turn positive briefly on Thursday, with UK engineering group Weir among the main gainers as it benefited from a broker upgrade.

Closer home, in the choppy session of trade, 30 share index of BSE, despite losing quarter percent, settled above 19400 psychological level. Similarly, widely followed index, declining by 2/10 percent, concluded above 5900 bastion. Broader indices, too enticing weakness, went home with loss of over quarter percent.

Much of the weakness crept in from stocks belonging to Consumer Durable, Auto and Capital Goods counters; however stocks from Metal, Information Technology counters bucking the trend, emerged as top gainers. Metal stocks continued to stage positive trend for fifth consecutive session in a row. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1291:1600 while 135 scrips remained unchanged. (Provisional)

The BSE Sensex lost 48.16 points or 0.25% and settled at 19427.84. The index touched a high and a low of 19520.51 and 19335.72 respectively. 12 stocks were seen advancing while 18 stocks were declining on the index (Provisional)

The BSE Mid-cap index was down by 0.33% and Small-cap index was down by 0.41%. (Provisional)

On the BSE Sectoral front, Metal was up by 1.19%, TECk up by 0.16%, IT up by 0.14% and FMCG up by 0.12% were the only gainers, while Consumer Durables down by 1.05%, Auto down by 0.98%, Capital Goods down by 0.87%, Power down by 0.73%   and Realty down by 0.72% were the losers in the space.

The top gainers on the Sensex were Jindal Steel up by 2.67%, Hindalco Industrys up 2.44%, Tata Steel up by 2.04%, Hindustan Unilever up by 1.93% and TCS up 1.30%, while, Sun Pharma down by 2.11%, Mahindra & Mahindrad own by 1.65%, Bajaj Auto down by 1.40%, L&T down by 1.17% and Wipro down by 1.06% were the top losers in the index. (Provisional)

Meanwhile, in an effort to mitigate risks arising out of algorithmic trading and safe-guarding the markets from erroneous or manipulative trading activities, market regulator Securities and Exchange Board of India (SEBI) has hiked the Base Minimum Capital (BMC) for stockbrokers to Rs 50 lakh from Rs 10 lakh earlier. The BMC is the deposit given by the member of the exchange against which no exposure for trades is allowed.

The changes will be in place by March 31 next year. The last time the BMC requirement was hiked was in 1996. The order follows a 900-point flash crash of NSE’s 50-stock share index, Nifty, on October 5, due to erroneous orders worth Rs 650 crore being executed by a broker on behalf of one of its clients. However, the BMC deposit requirement prescribed for the different profiles ranges from Rs 10 lakh to Rs 50 lakh for members of stock exchanges with nation-wide trading terminals. For members of other stock exchanges the requirement would be 40% of the same.

The new rules will require brokers and trading members to deposit Rs 10 lakh if they opt for only proprietary trading without the algorithmic option, Rs 15 lakh for trading only on behalf of clients (without proprietary and algorithmic options). However, a deposit of Rs 25 lakh would be required for proprietary trading and trading on behalf of clients (without algorithmic trading) and Rs 50 lakh for trading with the algorithmic option.

Further, the exchanges can seek for higher deposits if they perceive greater risks for any broker. A minimum 50% of the deposit would be required to be in the form of cash and cash equivalents.

India VIX, a gauge for markets short term expectation of volatility lost 1.03% at 14.32 from its previous close of 14.47on Tuesday. (Provisional)

The S&P CNX Nifty lost 22.40 points or 0.38% to settle at 5,907.20. The index touched high and low of 5,937.60 and 5,881.45 respectively. 14 stocks advanced against 36 declining on the index. (Provisional)

The top gainers on the Nifty were Jindal Steel was up 2.46%, Hindalco Industrys was up 2.39%, Tata Steel was up 1.74 %, Hindustan Unilever was up 1.72% and TCS was up 1.53%.

On the other hand, Ambuja Cement down 3.10%, Sun Pharma down by 2.68%, BPCL down by 2.14%, JP Associate down by 2.08% and Cairn down by 1.89% were the top losers. (Provisional)

Most of the European equity indices were trading in green, France’s CAC 40 up by 0.32% and the United Kingdom’s FTSE 100 up by 0.04%. On the other hand Germany’s DAX down by 0.11%.

Asian markets ended mixed on Thursday amid worries over U.S. budget negotiations. Japan’s Nikkei ended with huge losses as a surging yen weighed on even after the Bank of Japan boosted its asset purchases for the third time. South Korea’s Kospi went home with green mark after Park Geun Hye was elected president of South Korea, the first woman to lead the nation. Shanghai Composite managed a green close after spending most part of the session in red amid negative leads from Wall Street, while Hang Seng Index closed marginally higher.