Benchmarks continue to trade in fine fettle

Even though slipping from their day’s high, benchmarks continue to trade in fine fettle, tracking jubilant gains of defensive stocks, which rallied the most in an uncertain market environment on confidence about their growth prospects.  Indian equity markets have put tough resistance amidst mixed regional counterparts, which are largely weighed by the decline of Chinese markets on concern over financing available to property developers. Closer home, benchmark 30 share index, Sensex, gaining over quarter of a percent is trading at striking distance of 20,000 mark and 50 share index, Nifty, apparently is steadily approaching its 6000 mark. Broader indices too are holding in green. On the BSE sectoral front, besides FMCG and HealthCare, stocks from Capital Goods and Oil & Gas counters have also gained substantial traction. However, losses of Banking, Auto and Metal counters are weighing the bourses.  The overall market breadth on BSE is in the favour of declines which outnumbered advances in the ratio of 889: 953; while 133 shares remained unchanged.

The BSE Sensex is currently trading at 19996.46, up by 47.73 points or 0.24% after trading in a range of 20059.03 and 19971.01. The broader indices were trading in green; the BSE Mid cap and Small cap indices were trading up 0.04% and 0.14% respectively.

The top gaining sectoral indices on the BSE were, Health Care up by 1.11%, Capital Goods up by 0.88%, Oil & Gas up by 0.76%, FMCG up by 0.65% and Teck up by 0.63%, while Bankex down by 0.82%, Auto down by 0.64% and Metal down by 0.03% were the top losers on the index.

Out of the 30 share, 17 stocks were advancing while 13 were declining on Sensex. The top gainers on the Sensex were ONGC up by 3.47%, Hindalco Industries up by 2.94%, BHEL up by 2.46%, Jindal Steel up by 2.12% and Infosys up by 1.90%. On the flip side, Mahindra & Mahindra down by 2.66%, ICICI Bank down by 1.68%, Sterlite Industries down by 1.15%, Coal India down by 1.06% and NTPC 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 start 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 5,986.35, up by 13.05 points or 0.22% after trading in a range of 6,005.60 and 5,976.15.

Out of the 50 share index, 29 stocks were gaining, while 20 stocks were losing and one stock remained unchanged; top gainers of the Nifty were ONGC up by 3.52%, Hindalco Industries up by 3.04%, BHEL up by 2.84%, Asian Paint up by 2.56% and Lupin up by 2.31%. On the flip side, Kotak Bank down by 3.49%, M&M down by 2.70%, ICICI Bank down by 1.78%, Axis Bank down by 1.72% and HCL Tech down by 1.63% were the major losers on the index.

The Asian equity indices were trading on mixed; Jakarta Composite increased 0.60%, KLSE Composite jumped 0.10%, Nikkei 225 surged 1.32% and Straits Times was up by 0.36%.

On the flip side, Hang Seng down by 0.14%, Shanghai Composite declined 0.88%, Seoul Composite contracted 0.64% and Taiwan Weighted was down by 0.75%.