Markets off day’s high; early euphoria fizzles out

After hitting record high levels in early deals, benchmark equity indices are currently off their day’s high and are just about holding slender gains of close to one tenth of a percent, with Sensex trading below the 22,400 mark and Nifty above the crucial 6700 level. Nevertheless, broader markets continued to outperform the benchmarks at this point of time with both Mid-cap and small-cap indices trading higher in the range of 0.75%-1%. Strong dollar inflows and positive global peers aided benchmark equity indices to extend its winning streak for third consecutive session and hit all time high level, however profit booking which crept in on high levels tempered with bourses’ early enthusiasm.

On the global front, Asian stocks were up slightly in a cautious start to the week on Monday, with investors holding out hopes that China would take steps to stimulate its economy. China's Premier Li Keqiang on Friday sought to reassure jittery global investors that Beijing was ready to support the cooling economy, saying the government had the necessary policies in place and would push ahead with infrastructure investment.

Closer home, while stocks from IT, FMCG and Power counters have succumbed the most to selling pressure, stocks from Consumer Durables, Metal and Auto counters were the top gainers of the session. Metal and mining stocks extended recent gains triggered by growing expectations that China, the world's largest consumer of copper and aluminum, will take steps to stimulate its sagging economy. On the flip side, Power stocks sulked in trade after Central Electricity Regulatory Commission's (CERC's) order allowing Tata Power and Adani Power higher tariffs to compensate for increased cost of coal imports was challenged in the Appellate Tribunal for Electricity (APTEL). The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1326:515; while 21 shares remained unchanged.

The BSE Sensex is currently trading at 22361.95, up by 21.98 points or 0.10% after trading in a range of 22,467.21 and 22344.00. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.79%, while Small cap index up by 1.06%.

The gaining sectoral indices on the BSE were Consumer Durables up by 3.10%, Metal up by 2.59%, Auto up by 1.43% and Capital Goods up by 0.60%. While, IT down by 0.93%, FMCG down by 0.49%, TECK down by 0.46%, Power down by 0.27% and Healthcare down by 0.19% were the losing indices on BSE.   

The top gainers on the Sensex were Hindalco Inds up by 3.03%, Hero MotoCorp up by 2.27%, Tata Steel up by 2.24%, SSLT up by 2.02% and Bharti Airtel up by 1.80%. On the flip side, Dr Reddy’s Lab down by 2.47%, Tata Power down by 1.85%, Wipro down by 1.72%, Gail India down by 1.65% and ITC down by 1.28%.

Meanwhile, after securing approval from Election Commission and Cabinet on Re-promulgation of the SEBI ordinance and importantly the president, capital market regulator- Securities and Exchange Board of India (SEBI), has yet again got back the power for acting against ponzi schemes, illegal deposit schemes and assess call data records in securities-related offences, besides others.

SEBI’s Ordinance lapsed on January 17 after the Government failed in securing the Securities (laws) Amendment Bill passed in the monsoon, winter and extended winter session of the 15th Lok Sabha, which was adjourned sine die on February 21 and finally prorogued.

Besides keeping in force the amendments that gave legal backing to Sebi to tackle critical issues, including powers to respond to the growing menace of illegal deposit taking and pyramid schemes, the ordinance mandates that an authorized officer may requisition the services of a police officer or any officer of the central government to assist in search and seizure. However, the re-promulgated Securities Laws (Amendment) Ordinance, 2014 provides that the SEBI chairman shall record the reasons in writing while issuing an order for search and seizure.

Further, it also empowers market regulator's board to recall and enhance the penalty imposed by the adjudicating officer. With this, market watchdog could seek information, such as telephone call records, from any persons or entities with respect to any securities transaction being investigated.

The CNX Nifty is currently trading at 6,703.15, up by 7.25 points or 0.11% after trading in a range of 6,730.05 and 6,692.55. There were 30 stocks advancing against 19 declining stocks on the index, while 1 stock remained unchanged.

The top gainers of the Nifty were Jindal Steel up by 3.95%, Bharti Airtel up by 2.19%, Hindalco Industries up by 1.99%, Tata Steel up by 1.86% and Bajaj Auto up by 1.85%. On the flip side, Dr Reddy’s Lab down by 2.33%, Tata Power down by 1.96%, Tech Mahindra down by 1.94%, IDFC down by 1.87% and Wipro down by 1.86% were the major losers on the index.

Asian equity indices were trading in green; Straits Times was up by 0.50%, Jakarta Composite was up by 0.96%, Nikkei 225 up by 0.90%, Hang Seng up by 0.04% and Taiwan Weighted was up by 0.85%. While, Shanghai Composite down by 00.67% was the lone loser on the index.