Barometer gauges slip to day’s low in absence of positive catalyst

Benchmark equity indices, extending its declining spree, have slid to day’s lowest point in absence of any positive catalyst amidst prevailing caution ahead of October IIP, November CPI data which could provide clues on RBI’s stance in its upcoming monetary policy meet in the coming week. On the macro-front, the IIP is estimated to fall to 1.2% from 2% in the previous month, while CPI is expected to be in double digits, at 10%.

Besides, negative regional counterparts also are underpinning investors to cash out their profits. On the global front, Asian shares stumbled to a 2-1/2 month low on Thursday on heightened expectations the Federal Reserve may act sooner than later to unwind its stimulus after a provisional budget deal in Washington eased some of the fiscal drag on the U.S. economy.

Closer home, languishing at the day’s low, both Sensex and Nifty, are trading near the crucial 21,000 and 6,250 psychological levels, with cut of over 3/ 4 of a percent. Sectorally, Power, Realty were the only two resilient counters, while profit-booking is witnessed among the rest of the 11 sectoral indices. Nevertheless, top losers were Auto, Banking and Metal counters. Banking pivotal, witnessing a cut of over a percent, was trading downbeat on expectation of another rate hike in RBI’s upcoming monetary policy meet next week. Additionally, sugar stocks, viz Shree Renuka Sugars, Balrampur Chini and Dhampur Sugar Mills, too surrendered to profit-booking on concerns over 8.5 million tonnes of surplus sugar and bumper cane crop this year. The overall market breadth on BSE is in the favour of declines which have thumped advances in the ratio of 1124:835; while 135 shares remained unchanged.

The BSE Sensex is currently trading at 21010.21, down by 161.20 points or 0.76% after trading in a range of 21103.80 and 21004.89. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices too trimmed gains; the BSE Mid cap and Smallcap indexes were trading higher by 0.09% and 0.10% respectively.

The gaining sectoral indices on the BSE were Power up by 1.03% and Realty up by 0.20%, while Auto down by 1.15%, Bankex down by 1.05%, Metal down by 0.90%, Oil & Gas down by 0.88% and IT down by 0.67%.

The top gainers on the Sensex were Tata Power up by 4.89%, BHEL up by 0.89%, HDFC up by 0.59%, Gail India up by 0.52% and NTPC up by 0.32%. On the flip side, Tata Motors down by 3.11%, ONGC down by 1.65%,  Maruti Suzuki down by 1.54%, Coal India down by 1.47% and Bharti Airtel down by 1.42%, were the top losers on the Sensex

Meanwhile, to rein in the growing menace of insider trading activities in the stock market, Securities and Exchange Board of India (SEBI) panel, headed by former chief justice of India N. K. Sodhi, has proposed tougher law. The panel has recommended widening the definition of 'insider trading', with plans to include company employees, directors, their immediate relatives and public servants handling market sensitive information, as the securities regulator moves to crack down on offenders.

The 19-member committee headed by former presiding officer of the Securities Appellate Tribunal proposed that public servants and persons holding statutory positions be banned from trading, while in possession of unpublished price-sensitive information (UPSI). Under the proposals, trades by stakeholders, employees, directors and their immediate relatives would also need to be disclosed internally to the company.

The proposal makes it compulsory for every listed company and market intermediary to formulate a code of conduct to regulate, monitor and report trading in securities by its employees or connected persons. The new norms, once implemented, would also apply to mutual funds and trusts issuing securities, or schemes that get listed on stock exchanges.

Further, the panel on insider trading also recommended that trades within a calendar quarter of a value beyond Rs 10 lakh (or such other amount as the capital market regulator may specify) would be required to be disclosed to the stock exchanges. It also has suggested that each regulatory provision may be backed by a note on legislative intent.

The CNX Nifty is currently trading at 6,258.55, down by 49.35 points or 0.78% after trading in a range of 6,286.85 and 6,254.50. There were 9 stocks advancing against 41 declining on the index.

The top gainers of the Nifty were Tata Power up by 4.89%, Ranbaxy up by 1.28%, BHEL up by 1.05%, HDFC up by 0.60% and NTPC up by 0.57%. On the flip side, Tata Motors down by 2.95%, Ambuja Cement down by 2.39%, ACC down by 1.87%, ONGC down by 1.82% and PNB down by 1.64% were the major losers on the index.

The Asian equity indices were trading in red; Seoul Composite down by 0.51%, Hang Seng down by 0.29%, Straits Times down by 0.30%, Nikkei 225 down by 1.12%, Taiwan Weighted down by 0.86%, Jakarta Composite down by 0.78%, and KLSE Composite down by 0.37%.  While, Shanghai Composite up by 0.36% was the lone gainer amongst Asian pack.