Benchmarks trims early gains on mixed Asian cues

Key benchmarks despite surrendering some of their early gains, continued to move on positive note led by gains in capital goods, metals and oil & gas sectors, as sentiment turned bullish after the US Federal Reserve Chairman Ben Bernanke said the timeline for winding down the stimulus program is flexible and depends more on economic outlook. Sentiments got some support from increased buying by funds amid a mixed trend in the Asian region following overnight gains on the US market after US Federal Reserve Chief Ben Bernanke said the bank had no plan to wind down its stimulus until the economy was back on track. Besides, expectations of encouraging earnings from corporates also generated buying. While, Foreign institutional investors (FIIs) sold shares worth a net Rs 26.09 crore on Wednesday, 17 July 2013, as per provisional data from the stock exchanges. However, the Indian rupee fell to 59.65 against Wednesday's close of 59.34/35 tracking renewed strength in the dollar.

On the global front, Asian shares were trading mixed at this point of time tracking overnight gains in Europe and Wall Street. Meanwhile, Japanese Nikkei share average rose to an eight-week high after Bernanke said that the timing of winding down its stimulus by the US central bank was flexible. Back home, the traders were seen piling up positions in Health Care, FMCG and IT, while selling was seen in Auto, Banking and Metal sector. In sector specific developments, stocks from oil and gas counter edged higher after the Union Petroleum and Natural Gas Minister Veerappa Moily has emphasized the need for greater investment in the oil and gas sector and has said that the government is committed to deal with the energy security issues .while banking stocks remained under pressure for a third day, as the RBI's decision to raise short-term interest rates (to curb the rupee’s slide) is seen hurting growth. There are concerns that the tightening will push back lending rate cuts.

Meanwhile, the NSE Nifty and BSE Sensex were trading near the psychological 5,950 and 19,900 levels respectively. The market breadth on BSE was showing positive trend with advances to declines in the ratio of 775:773.

The BSE Sensex is currently trading at 19973.60, up by 24.87 points or 0.12% after trading in a range of 20059.03 and 19972.07. There were 18 stocks advancing against 12 declines on the index. The broader indices were trading in green; the BSE Mid cap index was up by 0.10% and Small cap index gained 0.25%.

The top gaining sectoral indices on the BSE were, Health Care up by 0.98%, FMCG up by 0.88%, IT up by 0.80%, Realty up by 0.62%, and TECK up by 0.59%, while Auto down by 1.04%, Bankex down by 1.00%, Metal down by 0.23% and Power down by 0.21% were the top losers on the BSE.

The top gainers on the Sensex were ONGC up by 2.74%, Infosys up by 1.94%, Hindalco Industries up by 1.81%, BHEL up by 1.72% and Jindal Steel up by1.61%.On the flip side, Mahindra & Mahindra was down by 2.80%, ICICI Bank was down by 1.82%, Sterlite Industries was down by 1.55%, Tata Motors was down by 1.50% and NTPC was down by 1.05% were the top losers on the Sensex.

Meanwhile, In a bid to provide more powers to the Securities and Exchange Board of India (SEBI) to crack down on ponzi schemes, the government of India (GoI) has approved a proposal to amend SEBI Act. The decision will also give Sebi powers to conduct search and seizure operations and access call data records. The same have been approved by the government at a meeting of the Cabinet.

These amendments will be finalized after thorough discussion with the market regulator and once the SEBI Act gets modified, the regulator would have direct powers to carry out search and seizure operations and for attachment of assets, as part of efforts to crackdown on ponzi schemes. In addition, the regulator would also have authority to seek out information, such as telephone call data records, from any persons or entities in respect to any securities transaction being probed by it.

The capital market watchdog has been seeking regulatory amendments as well as a mandate for a longer period given the changing nature of the securities market in general and fresh tools being used by manipulators to take gullible investors for a ride. Among others, SEBI Chairman would have the powers to authorise conducting of search and seizure.

At present, the market regulator can precede their search and scrutiny only after receiving approval from the Chief Metropolitan Magistrate, though this process delays the scrutiny proceedings and hamper the confidential nature of probe.

The CNX Nifty is currently trading at 5,981.90 up by 8.60 points or 0.14% after trading in a range of 6,005.60 and 5,978.20. There were 27 stocks advancing against 22 declines, while 1 stock remained unchanged on the index.

The top gainers of the Nifty were ONGC up by 2.81%, Lupin up by 2.70%, Hindalco Industries up by 2.11%, Jindal Steel up by 1.80% and   Infosys up by 1.79% On the flip side, M&M down by 3.29%, Kotak Bank down by 2.02%, AXIS Bank down by 1.76%, ICICI Bank down by 1.76% and IDFC down by 1.72% were the major losers on the index.

The Asian equity indices were trading on mixed; Jakarta Composite increased 31.30 points or 0.67% to 4,710.30, KLSE Composite jumped 2.70 points or 0.15% to 1,791.36, Nikkei 225 surged 177.49 points or 1.21% to 14,792.53 and Straits Times was up by 10.46 points or 0.29% to 3,217.33.

On the flip side, Hang Seng down by 4.02 points or 0.02% to 21,376.85, Shanghai Composite declined 10.61 points or 0.52% to 2,034.32, Seoul Composite contracted 10.08 points or 0.53% to 1,877.41 and Taiwan Weighted was down by 65.97 points or 0.80% to 8,192.98.