Benchmarks trim losses; trade gyrates near neutral line

Indian equities trimmed losses with trade gyrating near neutral line in the late afternoon session in absence of any positive triggers. PMEAC chairman C Rangarajan has exuded confidence that the country’s economic growth would be around 5.5 percent in the current fiscal while rejecting slower growth projections of IMF and World Bank. Traders were seen piling position in IT, TECK and FMCG stocks while selling was witnessed in Realty, Capital Goods and Auto sector stocks. In scrip specific development, ICICI Bank was trading in green after the country’s largest private-sector lender by assets, posted 20.1 percent rise in second-quarter profit led by higher credit growth and income from fees, beating estimates. Deepak Fertilisers and Petrochemicals Corporation was trading in green on posting September quarter results. The company’s net profit jumped 11.8 percent to Rs 45.44 crore for the second quarter ended on September 30 on higher income. Idea Cellular was trading in red on reporting lower-than-expected September quarter results.

On the global front, all the Asian markets were trading in red while the European markets were too trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 6,150 and 20,700 levels respectively. The market breadth on BSE was negative in the ratio of 916:1330 while 153 scrips remained unchanged.  

The BSE Sensex is currently trading at 20740.24, up by 14.81 points or 0.07% after trading in a range of 20782.16 and 20622.55. There were 13 stocks advancing against 17 declines on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.24%, while Small cap index has lost 0.34%.

The top gaining sectoral indices on the BSE were IT up by 1.30%, TECK up by 0.84%, FMCG was up by 0.18%, Power up 0.06% and Bankex up 0.05%. On the other hand, Realty down by 1.63%, Capital Goods down by 1.46%, Auto down by 0.92%, Metal down by 0.83% and Health Care down by 0.66% were the major losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.31%, NTPC up by 1.99%, Wipro up by 1.82%, SSLT up by 1.69% and ITC up by 0.92%. On the flip side, Hindalco Industries down by 3.75%, M&M down by 2.35%, Tata Steel down by 2.17%, Hero MotoCorp down by 1.94% and Hindustan Unilever down by 1.87% were the major losers on the Sensex.

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. 

The CNX Nifty is currently trading at 6,163.20, down by 1.15 points or 0.02% after trading in a range of 6,174.75 and 6,125.95. There were 20 stocks advancing against 30 declines on the index.

The top gainers of the Nifty were HCL Tech up by 2.35%, TCS up by 2.35%, NTPC up by 2.23%, Wipro up by 2.02% and SSLT up 1.71%. On the flip side, DLF down by 4.02%, Hindalco down by 3.71%, NMDC down by 3.50%, Cairn India down by 2.69% and Hero MotoCorp down by 2.18% were the major losers on the index.

All the Asian equity indices were trading in red; Shanghai Composite plunged by 1.45%, Hang Seng lost 0.60%, Jakarta Composite dropped 0.47%, KLSE Composite slipped 0.22%, Nikkei 225 slumped by 2.75%, Straits Times declined by 0.44%, Seoul Composite lost 0.60% and Taiwan Weighted was down by 0.80%.

The European markets were trading in red; France’s CAC 40 was down 0.44%, Germany’s DAX dropped 0.19% and UK’s FTSE 100 lost 0.07%.