Post Session: Quick Review

Extending last session’s somber run, benchmark equity indices ended the final trading session of the week in red, lacking any positive trigger that could take the markets higher.  Although, benchmarks momentarily broke out in green in the afternoon deals, ferocious selling pressure soon followed and dragged the markets to lowest point by the close. Both, Sensex and Nifty lost over quarter of a percent to shut shop below the crucial 20,700 and 6,150 levels respectively.  Meanwhile, broader indices too witnessed intense selling pressure and ended down with cut of over half a percent. Prevailing caution ahead of RBI’s policy next week, mainly made investors finicky about investing into local equities amidst negative global set-up. Further, Finance Minister asking for being prepared for US tapering to regulators, also added to the underlying weakness of the bourses, which for the week ended with cut of over half a percent (Sensex lower by 0.70%, Sensex down by 1.1%).

On the global front, European shares slipped back in red on Friday hit by some weak earnings from leading blue-chip companies. Asian pacific shares too ended downbeat, affected by mixed bag of earnings reports.

Closer home, downgrade of India’s GDP growth forecast by yet another rating agency, ICRA, to 4.7-4.9% for FY14 from 4.9-5.1%, also added to negative environment. Meanwhile, sentiment failed to get a fillip after global financial services major HSBC lowered India's current account deficit (CAD) forecast for this financial year to 3.4% of GDP from 4.1% earlier. Back on Dalal Street, stocks from Realty, Capital Goods and Fast Moving Consumer Goods counters were the negative forces. While, those from Information Technology, Technology and Consumer Durable counters, limited their losses.  The market breadth on the BSE ended in red; advances and declining stocks were in a ratio of 1035: 1402, while 164 scrips remained unchanged. (Provisional)

The BSE Sensex lost 70.42 points or 0.34% to settle at 20655.01.The index touched a high and a low of 20782.16 and 20622.55 respectively. Among the 30-share Sensex, 7 stocks gained, while 23 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended lower by 0.66% and 0.53% respectively. (Provisional)

On the BSE Sectoral front, IT up by 1.46%, Teck up by 0.90% and Consumer Durables up by 0.24%, were the only gainers, while Realty down by 2.37%, Capital Goods down by 1.63%, FMCG down by 1.41%, Metal down by 1.33% and Auto down by 1.26% were the top losers in the space. (Provisional)

The top gainers on the Sensex were TCS up by 2.66%, Wipro up by 2.42%, NTPC up by 1.71%, SSLT up by 1.59% and Infosys up by 0.55%, while, Hindalco Industries down by 4.80%, Tata Steel down by 3.04%, Gail India down by 2.68%, Hero MotoCorp down by 2.37% and Hindustan Unilever down by 2.36% were the top losers in the index. (Provisional)

Meanwhile, market regulator SEBI has floated detailed guidelines for listing of start-ups and small and medium enterprises (SMEs) on bourses without an initial public offer (IPO). The guidelines come on the heels of notification of new norms by the market regulator earlier this month for permitting listing of start-ups and SMEs through Institutional Trading Platform (ITP) of exchanges.

As per the new guidelines, a company would be eligible for such listing if it has not completed a period of more than 10 years after incorporation and the revenues have not exceeded Rs 100 crore in any of the previous financial years, among others. Further, guidelines mandate company to have an investment of at least Rs 50 lakh, by an alternative investment fund, or a venture capital fund, or by a merchant banker, or an angel investor, or a specialized international multilateral agency, or a public financial institution, among other such investors, to be listed through ITP. 

Moreover, the guidelines require promoters of the company to hold not less than 20% of the post listing capital, which shall be locked for a period of three years. Further, while the company listed on the ITP shall not make an IPO, it would be allowed to raise funds through the rights issue or private placement route.

However, SME would be required to exit the ITP within 18 months if it achieves any of the following milestones -has been listed on the platform for a period of 10 years; has paid-up capital of more than Rs 25 crore; has revenues of more than Rs 300 crore in the last audited financial statement or market capitalisation of Rs 500 crore.

India VIX, a gauge for markets short term expectation of volatility lost 1.06% at 20.42 from its previous close of 20.20 on Thursday. (Provisional)

The CNX Nifty lost 30.75 points or 0.50% to settle at 6,133.60. The index touched high and low of 6,174.75 and 6,125.95 respectively. Out of the 50 stocks on the Nifty, 14 ended in the green, while 36 ended in the red.

The major gainers of the Nifty were TCS up 2.80%, HCL Tech up by 2.48%, Wipro up by 2.37%, NTPC up by 1.54% and SSLT up by 1.33%. The key losers were Hindalco down by 4.93%, DLF down by 4.83%, NMDC down by 3.68%, Cairn down by 3.53% and Tata Steel down by 3.10%. (Provisional)

Most of the European markets were trading in red with, France’s CAC 40 down by 0.22% and Germany’s DAX down by 0.05%, while the United Kingdom’s FTSE 100 up by 0.09%.

All the Asian markets concluded Friday’s trade in red as investors grew increasingly cautious by the end of the session. Indonesia’s rupiah led advances in emerging-market currencies this week on speculation that Federal Reserve will delay cutting stimulus. Malaysia is expected to introduce an unpopular consumption tax in its 2014 budget along with other measures to address soaring debt that has raised the specter of a credit downgrade. Malaysia has one of Asia’s highest debt-to-GDP ratios, its budget deficit swelling in recent years on massive populist spending. South Korea’s economic growth maintained the same robust pace in the third quarter as the preceding quarter, beating market expectations and bolstering hopes that Asia’s fourth-largest economy stays on a recovery track. Gross domestic product rose a seasonally adjusted 1.1% in the July-September period from the previous quarter, when the economy grew at the same pace. That is the strongest pace since the first quarter of 2011, when the economy grew 1.3% on quarter.

Japan’s corporate services price index remained unchanged at a seasonally adjusted annual rate of 0.7%, from 0.7% in the preceding month whose figure was revised up from 0.6%. Tokyo’s core CPI, which excludes fresh food costs rose to at an annualized rate of 0.3%, from 0.2% in the preceding month. Japan’s National Core CPI fell to a seasonally adjusted 0.7%, from 0.8% in the preceding month. Singapore's Industrial Production rose to an annual rate of 9.3%, from 4.0% in the preceding month whose figure was revised up from 3.5%.