Benchmarks turn red; Nifty slips below 6000 mark

Indian equities trimmed gains to continue weak trade in the late afternoon session on account of selling in frontline counters and taking cues from weak global markets. The sentiments were on cautious note after CPI rose to double digit in October 2013 after seven months. The headline CPI inflation (combined) for October 2013 stood at 10.09% (y-o-y) higher than 9.84% (y-o-y) seen in September 2013. Traders were seen piling positions in Auto, Consumer Durables and PSU stocks while selling was witnessed in Bankex, Realty and Capital Goods sector stocks. In scrip specific development, Bata India was trading firm after parent company Bata BN BV increased its stake in the company by buying shares from open market on yesterday. GSS Infotech jumped after the board of directors increased in the limit of shareholding by registered foreign institutional investors (FII) from 22% to 49% of the paid up capital of the company. Aban Offshore was trading in green after its second quarter consolidated net profit rose 58% year-on-year to Rs 77.7 crore on good operational performance and higher revenues.

On the global front, 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 below their psychological 6,000 and 20,300 levels respectively. The market breadth on BSE was negative in the ratio of 953:1291 while 144 scrips remained unchanged.

The BSE Sensex is currently trading at 20205.78, down by 76.13 points or 0.38% after trading in a range of 20,365.59 and 20,188.04. There were 14 stocks advancing against 16 declining on the index.

The broader indices were trading in red; while BSE Mid cap index was down by 0.52% while Small cap index was down by 0.47%.

The gaining sectoral indices on the BSE were Auto up by 0.44%, Consumer Durables up by 0.43%, PSU up by 0.22% and Power up by 0.17% while, Bankex down by 1.24%, Realty down 1.16%, Capital Goods down by 0.49%, FMCG down 0.47% and IT down by 0.43% were the losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.31%, Sun Pharma up by 1.96%, SBI up by 1.76%, Hindalco Industries up by 1.62% and Tata Motors up by 1.60%. On the flip side, SSLT down by 2.97%, Bharti Airtel down 2.09%, Cipla down by 2.01%, Gail India down by 1.96% and HDFC Bank down by 1.70% were the top losers on the Sensex.

Meanwhile, in order to check frauds related to the property, the Reserve Bank of India (RBI) has asked the non- banking financial companies (NBFCs) to register the records of all equitable mortgages created in their favour on and after 31st March 2011 with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) set up by the government in order to keep records of all mortgages deal.

As per the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) 2002, financial institutions and banks are required to file the details of all mortgages created in their favor by way of deposit of title deeds on the portal of the CERSAI in the prescribed format.

Institutions notified under the SARFAESI Act have to mandatorily register with CERSAI, while the institutions that are not notified under the act, too have to register mortgages created in their favor by deposit of title deeds with the CERSAI.

The move is aimed to reduce frauds related to the property as the central bank is of the view that the potential fraud or multiple financing against the same property may not be fully prevented in the absence of the records of all the equitable mortgages obtained even by non-SARFAESI notified banks or financial institutions (including NBFCs) with the CERSAI.

The CNX Nifty is currently trading at 5,988.60, down by 29.45 points or 0.49% after trading in a range of 6,042.25 and 5,983.95. There were 18 stocks advancing against 32 declining stocks on the index.

The top gainers of the Nifty were Hindustan Unilever up by 2.45%, Sun Pharma up by 1.97%, SBI up by 1.84%, Hindalco Industries up by 1.66% and Tata Motors up by 1.58%. On the flip side, IndusInd Bank down by 3.65%, SSLT down by 3.13%, Axis Bank down by 2.99%, Cipla down by 2.19% and Bharti Airtel down by 2.10% were the major loser on the index.

The Asian equity indices were trading in red; Nikkei 225 down by 0.15%, Shanghai Composite down by 1.83%, Taiwan Weighted down by 1.11%, Seoul Composite down by 1.60%, KLSE Composite down by 0.55%, Straits Times down by 0.41%, Hang Seng down by 1.91% and Jakarta Composite down by 1.84%.

The European markets were trading in red; France’s CAC 40 was down 0.09%, Germany’s DAX lost 0.09% and UK’s FTSE 100 dropped 0.52%.