Stocks
MCX-SX launches its new benchmark index SX-40

MCX-SX, which received permission from the regulator to launch its equity trading platform after waiting for over two years, has launched its benchmark index ‘SX-40’ that would compete with incumbent Sensex of the BSE and Nifty of the NSE

Financial Technologies-promoted MCX Stock Exchange (MCX-SX) has launched its benchmark index ‘SX-40’. The index would be based on the free-float formula, which is also the formula used by BSE and NSE for its indices. Interestingly, while BSE’s Sensex has 30 stocks and NSE’s Nifty has 50 stocks, MCX-SX has chosen to be in the middle of two, with 40 stocks.

 

‘SX-40’ would be a free float based index of large market cap and liquid stocks representing most important sectors, the exchange said in a release. MCX-SX said it would collaborate with Indian Statistical Institute (ISI)—India’s premier research institute, FTSE of London and FTKMC in creating various domestic and global indices.

 

However, there is nothing middle-of-the-road about MCX-SX’s transaction charges. A few days ago, the exchange announced drastically lower transaction charges (50% of that charged by rivals) for its equity exchange platform slated to start around Diwali (Price war among stock exchanges to break out soon?). Justifying the lower fee structure, Jignesh Shah, chairman and chief executive of Financial Technologies said, “...the optimisation in transaction charges, along with optimal membership structure will lower the entry barriers to capital markets, thereby fostering inclusive growth.”

 

MCX-SX will charge Rs2 per Rs1 lakh trading in the equity cash segment if the total traded value in a month is under Rs1,000 crore while it will be Rs1.75 per Rs1 lakh if the monthly volume is over Rs1,000 crore and under Rs5,000 crore, Mr Shah said.

 

If the volume is over Rs5,000 crore, then the transaction fee will be Rs1.50 per Rs1 lakh, he added.

 

On the equity futures segment, it the total traded value in a month is under Rs2,000 crore, the charge will be Rs1.20 per Rs1 lakh, and if it is over Rs2,000 crore and under Rs10,000 crore, it will be Rs1.10 per Rs1 lakh. But if the volume exceeds Rs10,000 crore a moth, the chargeable fee will be a low Rs1 per Rs1 lakh, the exchange said.

 

On the equity options front, the fee will be a flat Rs25 per Rs1 lakh of the premium for any the traded volume in a month.

 

The exchange also introduced a cost optimal membership fee and deposit structure of Rs25 lakh as net outlay valid till 18th October, capping the total outlay for an MCX-SX membership to Rs50 lakh.

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COMMENTS

Urvish Chitalia

5 years ago

It seems you have mixed 2 articles here. The headlines and the first 2 paragraphs talk about SX40 index while the remaining paragraphs are about MCX transaction charges.

REPLY

Johnson Creado

In Reply to Urvish Chitalia 5 years ago

Hi Urvish, thanks for writing in. The release from MCX-SX gives very little information. As an when we get more details, we will update our readers.

Andhra Bank cuts interest rates on retail loans

The rate of interest has been reduced on housing loan from 11% to 10.50% up to Rs30 lakh, and above Rs30 lakh from 11.25% to 10.75%

 
Vijayawada: Andhra Bank has slashed its interest rates on retail loans, reports PTI quoting G Ravi Kumar, deputy general manager of the bank.
 
The rate of interest has been reduced on housing loan from 11% to 10.50% up to Rs30 lakh, and above Rs30 lakh from 11.25% to 10.75%, on mortgage loans from 16% to 15.50%, and on cars from 12.25% to 11.50%.
 
The bank targets Rs300 crore retail loans from Krishna district in this financial year, including Rs100 crore worth of housing loans, Rs50 crore for car and mortgage loans and Rs150 crore under non agricultural gold loans, Kumar said.
 
The bank charges 13% interest on non-agricultural gold loans. The amount under gold loan is enhanced from Rs1,650 to Rs2,100 of hallmarked ornaments with 916 purity, he said.
 
Under housing loan, the beneficiary will get one percent interest subversion from the government on loans up to Rs25 lakh, he mentioned.
 
 

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Sensex, Nifty in an uptrend: Wednesday Closing Report

The global monetary easing has created a strong uptrend. However, if the Nifty closes below 5,410, the uptrend will be in doubt

 
Optimism from the German Constitutional Court ruling on the Eurozone bailout fund helped the domestic market close higher. Yesterday we had mentioned that the market awaits fresh signals and the positive global happening helped the Nifty close at 5,431, which is the highest closing since 15 March 2012. From here we see the market in an uptrend, however, if the index goes below 5,412 we may see the uptrend slowing down. The National Stock Exchange (NSE) saw a volume of 58.08 crore shares and the advance decline ratio of 1044:757. 
 
The Indian market witnessed a gap up opening tracking the buoyant global markets ahead of key events that have been lined up for the next two days. Investors gave little importance to the Indian industrial output data for July, which was slated to be announced later in the morning. The Nifty opened 14 points higher at 5,404 and the Sensex resumed trade at 17,916, a gain of 63 points over its previous close. The optimism saw all sectoral indices in the positive in early trade.
 
Buying support in banking, IT, FMCG, metals and auto helped the benchmarks sustain the gains as trade progressed. Even the lacklustre growth in industrial production at 0.1% in July did not have any impact on the market as investors focussed on the global events.
 
India’s industrial production growth rate slowed to just 0.1% in July due to poor show by manufacturing, mining and capital goods sectors Industrial output in the April-July period of this fiscal has thus contracted by 0.1%. 
 
A minor bout of profit booking resulted in the indices touching their intraday lows in noon trade. At this point the Nifty fell to 5,394 and the Sensex retracted to 17,885. A mixed opening of the key European indices also weighed on the sentiments.
 
Reports of the German Constitutional Court permitted the government to ratify the Eurozone new bailout fund, the European Stability Mechanism (ESM), pushed the market higher in the post-noon session. 
 
The market hit its intraday high towards the close of trade with the Nifty rising to 5,436 and the Sensex scaling the 18,000 mark to touch 18,013. The benchmarks closed around the highs of the day, settling in the positive for the sixth day in a row. The Nifty gained 41 points (0.76%) at 5,431 and the Sensex climbed 147 points (0.82%) to finish the session at 18,000.
 
Among the broader indices, the BSE Mid-cap index rose 0.41% and the BSE Small-cap index gained 0.46%.
 
The top sectoral gainers were BSE Metal (up 2.14%); BSE Auto (up 1.26%); BSE Capital Goods (up 1.20%); BSE IT (up 0.95%) and BSE Consumer Durables (up 0.81%). BSE Power (down 0.98%) and BSE Healthcare (down 0.43%) were the only losers.
 
Twenty-one of the 30 stocks on the Sensex closed higher. The top performers were Tata Motors (up 5.29%); Jindal Steel (up 3.79%); Coal India (up 2.91%); Larsen & Toubro (up 2.84%) and Tata Steel (up 2.68%). The ones that ended at the bottom of the index were Cipla (down 2.73%); NTPC (down 2.18%); GAIL India (down 1.66%); BHEL (down 1.64%) and Hero MotoCorp (down 0.92%).
 
The top two A Group gainers on the BSE were—Apollo Tyres (up 6.36%) and Tata Motors (up 5.29%).
The top two A Group losers on the BSE were—Siemens (up 3.24%) and GlaxoSmithKline Pharmaceuticals (up 2.83%).
 
The top two B Group gainers on the BSE were—Nikki Global Finance (up 19.99%) and Excel Corpcare (up 19.99%).
The top two B Group losers on the BSE were—Vinayak Polycon International (down 18.36%) and Vybra Automet (down 17.41%).
 
Out of the 50 stocks listed on the Nifty, 36 stocks settled in the positive. The top gainers were Tata Motors (up 5.08%); L&T (up 3.60%); Jindal Steel (up 3.43%); Tata Steel (up 2.90%) and SAIL (up 2.80%). The main losers were Siemens (down 2.90%); Cipla (down 2.76%); NTPC (down 2.04%); BHEL (down 1.82%) and Reliance Infrastructure (down 1.39%).
 
Reacting to reports of the German Constitutional Court’s move to allow the government to ratify the ESM bailout fund pushed the Asian markets higher today. The gains were also supported by Chinese premier Wen Jiabao’s reiteration to use a 100 billion yuan fiscal stability to nurture growth, if required. 
 
The Shanghai Composite gained 0.28%; the Hang Seng surged 1.10%; the Jakarta Composite rose 0.45%; the Nikkei 225 jumped 1.73%; the Straits Times advanced 0.44%; the Seoul Composite climbed 1.56% and the Taiwan Weighted closed 1.14% higher. Bucking the trend, the KSLS Composite lost 0.03%.
 
At the time of writing, the key European indices, which opened mixed, were trading with gains of 0.22% to 0.92% and the US stock futures were in the positive, signalling a green opening for US stocks.
 
Back home, foreign institutional investors were net buyers of equities totalling Rs423.59 crore on Tuesday. On the other hand, domestic institutional investors were net sellers of stock amounting to Rs365.80 crore.
 
Aurobindo Pharma today said it has received final approval from the US FDA to manufacture and market generic version of anti-depressant Lexapro in the American market. The escitalopram oxalate tablets are generic equivalent of Forest Laboratories Inc's patented Lexapro, it said, adding “the product is ready for launch”. The stock declined 1.37% to close at Rs129.50 on the NSE.
 
Air cooler maker Symphony today said its global turnover is likely to grow by 59% in FY13 to Rs500 crore, including Rs100 crore in sales from its new industrial and commercial segment in India. Out of the targeted Rs500 crore revenue for the current fiscal, Rs400 crore would come from the domestic market and the rest from its wholly-owned subsidiary in the US, IMPCO. The stock closed 0.35% up at Rs377 on the NSE.
 

 

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