Post Session: Quick Review

Indian equity markets ended in shambles after a session of mild gains, as investors started sheding positions ahead of the June series futures and options contract settlement. Gloomy global leads combined with disappointment domestic developments, continued to haunt market-participants. Witnessing a nasty laceration of around a percent and half, benchmark indices, Sensex and Nifty ended below the psychological level of 18,600 and 5,600 respectively, levels last seen on April 16, 2013.

On the global front, Chinese shares led the drag in the Asian bourses to a fresh 9-1/2-month low on Monday, as investors remained worried about Beijing's economic and financial stability, markets also scrambled to price in the Federal Reserve's plan to slow its stimulus drive later in 2013. Sentiments also took a hit for the worst after European finance ministers failed to secure consensus on the banking resolution and recovery directive over the weekend after almost 20 hours of negotiations.

Back home, rupee, which traded near record low on the back of month-end importer dollar demand, perturbed investors’ which remained worried about the impact of weak rupee on Indian economy, given that its continuous decline can bully the recent gains in inflation and demoralize much needed capital flows. Amidst the board-based selling pressure, stocks from Realty, Consumer Durable and Capital Goods counters were the worst performers of the session. Meanwhile, shares of gems and jewellery firms also slumped on Monday on the back of falling gold prices and the Reserve Bank of India's measures to curb gold sales. While, Gitanjali Gems fell by its daily limit of 20 per cent and was locked in lower circuit at Rs 400.90. Other jewellery stocks such as PC Jeweller scaled its 52 week low level, shares of Tribhovandas Bhimji Zaveri and Shree Ganesh Jewellery too plunged in the range of 8-10% each. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 661: 1624, while 115 scrips remained unchanged. (Provisional)

The BSE Sensex lost 206.60 points or 1.10 % to settle at 18567.64.The index touched a high and a low of 18714.06 and 18467.16 respectively. Among the 30-share Sensex pack 7 stocks gained, while rest of 23 declined. (Provisional)

Broader indices concluded in red; BSE Mid cap and Small cap indices were down by 2.52% and 2.19% respectively. (Provisional) On the BSE Sectoral front, Realty down by 4.57%, Consumer Durables down by 3.39%, Capital Goods down by 2.73%, PSU down by 2.19% and FMCG down by 2.05% were the top losers, while there were the no gainers in the space. (Provisional)

The top gainers on the Sensex were Jindal Steel up by 1.64%, HDFC up by 0.73%, ICICI Bank up by 0.69%, Hindalco Industries up by 0.43% and RIL up by 0.32%. While, Sterlite Industries down by 3.85%, Bharti Airtel down by 3.09%, BHEL down by 2.96%, Hero MotoCorp down by 2.90% and ONGC down by 2.69% were the top losers in the index. (Provisional)

Meanwhile, constituted to liberalise the India's foreign direct investment (FDI) policy, the Arvind Mayaram committee has recommended nine sectors be categorised as those where Indian ownership and control will be mandatory. These sectors include FM radio, print media (news & current affairs), stock exchanges along with depositories and clearing corporation, power exchanges, petroleum & natural gas refining, insurance, defence production and private security agencies among others.

The committee has suggested keeping the FDI cap at 49 per cent in these nine sectors through the automatic route except for defence production and private security agencies to protect India's strategic interests in these sectors and will be subject to FIPB scrutiny. Further, it has also clarified that FDI will not include portfolio investments in insurance and petroleum & natural gas refining.

The proposal is currently needed to be vetted by the Foreign Investment Promotion Board (FIPB) and if accepted will lead to significant liberalization of some sectors, such as commodity exchanges, stock exchanges and insurance, in which FDI up to 49 per cent will be allowed. The panel has also suggested for 100 per cent foreign investment in those sectors where Indian control and ownership are not material. Presently, 100 per cent FDI is allowed under the automatic route in infrastructure, energy and manufacturing sectors.

Further, there are many sectors in India, which are still in their nascent stage and require financial security and the panel has also recommended many sectors including IP services in telecom, broadcasting carriage services, uplinking and down linking of non-news and current affairs and TV channels, printing among others for 100 per cent FDI under automatic route.  

India VIX, a gauge for markets short term expectation of volatility gained 10.40% at 21.01 from its previous close of 13.03 on Friday. (Provisional)

The CNX Nifty lost 68.35 points or 1.21 % to settle at 5,599.30. The index touched high and low of 5,640.00 and 5,566.25 respectively. 11 stocks advanced against 39 declining on the index. (Provisional)

The top gainers on the Nifty were Jindal Steel up by 1.61%, Lupin up by 1.14%, ACC up by 0.79%, ICICI Bank up by 0.64% and HDFC up by 0.51%

On the other hand, JP Associate down by 11.45%, Ranbaxy down by 6.99%, DLF down by 6.14%, Kotak Bank down by 4.50% and Asian Paints down by 3.68%.

The European markets were trading in red; France’s CAC 40 was down by 1.37%, Germany’s DAX was down by 0.90% and the United Kingdom’s FTSE 100 edged lower by 1.48%.