Nifty, Sensex face minor jolt: Friday Closing Report

A close below 5,735 on the Nifty may see some change in trend


The market snapped its four-day winning steak and closed lower on pressure from technology, healthcare and banking stocks. A brief halt in trading on the NSE after erroneous orders executed by Emkay Global Financial Services also weighed on the sentiments. A technical mishap brought down the indicators, however the Nifty recovered from it to close 41 points down at 5747. The benchmark may continue its uptrend, however, look out for the level of 5,735 after which the index may see some reversal. The National Stock Exchange (NSE) saw a volume of 96.80 crore shares and an advance decline ratio of 563:1237.


The Indian market opened in the green following the reforms announcement made by the government after market hours on Thursday. Positive comments from European Central Bank president Mario Draghi that the central bank is ready to buy bonds of debt-ridden countries also supported the sentiments.


The Nifty opened 27 points higher at 5,815 and the Sensex resumed trade at 19,116, up 58 points over its previous close. Stocks of auto, fast moving consumer goods, realty and capital goods sectors were in demand in initial trade.


However, the benchmarks could not sustain the gains as profit booking after four straight days took the indices into the red in a few minutes.


A freak trade at 9.50am on the NSE Nifty saw the index plunging nearly 900 points after which trade on the exchange was halted for 15 minutes. While the National Stock Exchange (NSE) blamed ‘abnormal’ orders placed by stock broker Emkay Global in multiple trades of various stocks at low prices for the crash, market regulator Securities and Exchange Board of India is looking into all aspects of the incident. However, trade at the BSE functioned without any hitch but the Sensex also plunged to its intraday low at the same time. At the lows the Nifty slumped to 4,888 and the Sensex dipped to 18,757, both going below their psychological levels of 5,000 and 19,000 respectively.


Select buying after the freak incident helped the market emerge into the green a short while later and hit its intraday high. The Nifty rose to 5,815 and the Sensex jumped to 19,137 at the highs.


Selling in technology, banking, oil & gas and capital goods stocks pushed the indices lower once again in mid-morning trade. A mild recovery was seen in noon trade following a positive opening of the European markets but the gains lagged strength which kept the indices in the red.


Snapping its four-day winning streak, the market closed lower today as investors had already factored the latest round of FDI reforms announced on Thursday. The Nifty settled 41 points lower at 5,747 and the Sensex dropped 120 points to end the session at 18,938.


The broader indices underperformed the Sensex today as the BSE Mid-cap index declined 0.79% and the BSE Small-cap index dropped 0.90%.


The top sectoral gainers were BSE Consumer Durables (up 0.66%); BSE Fast Moving Consumer Goods (up 0.61%); BSE Auto (up 0.55%); BSE Capital Goods (up 0.43%) and BSE Oil & Gas (up 0.41%). The major losers were BSE TECk (down 1.65%0; BSE IT (down 1.62%); BSE Healthcare (down 1.40%); BSE Bankex (down 1.09%) and BSE PSU (down 0.32%).


Thirteen of the 30 stocks on the Sensex closed in the positive. The major gainers were Tata Motors (up 2.24%); Hindustan Unilever (up 1.60%); Mahindra & Mahindra (up 1.16%); ONGC (up 1.09%) and Hindalco Industries (up 0.89%). HDFC (down 4.89%); Sun Pharma (down 2.48%); Wipro (down 2.41%); Infosys (down 1.84%) and ICICI Bank (down 1.57%) settled as the top losers on the index.


The top two A Group gainers on the BSE were—Essar Oil (up 15.46%) and Indiabulls Real Estate (up 5.52%).

The top two A Group losers on the BSE were—Shree Cement (down 6.70%) and Rashtriya Chemicals & Fertilisers (down 5.63%).


The top two B Group gainers on the BSE were—Swasti Vinayak Art & Heritage Corporation (up 19.81%) and Vinayak Polycontainers (up 19.32%).

The top two B Group losers on the BSE were—Bio Green Industries (down 12.32%) and K-Lifestyle Industries (down 11.11%).


Out of the 50 stocks listed on the Nifty, 14 stocks settled in the positive. The key gainers were Tata Motors (up 2.62%); HUL (up 1.63%); M&M (up 1.23%); Hindalco Ind (up 0.93%) and ONGC (up 0.88%). The main losers were HDFC (down 5.08%); Reliance Infrastructure (down 2.76%); Jaiprakash Associates (down 2.64%); Wipro (down 2.59%) and Sun Pharma (down 2.55%).


Markets in Asia closed higher on positivism exhibited by ECB president on Thursday. Investors are now awaiting the key employment report from the US, hoping that job creation in September will ease the slowdown concerns.


The Hang Seng gained 0.31%; Jakarta Composite surged 0.93%; the Nikkei 225 rose 0.44%; the Straits Times climbed 0.69%; the Seoul Composite added 0.12% and the Taiwan Weighted closed 0.11% up. Bucking the trend, the KLSE Composite lost 0.07%. Markets in China were closed for trade today.


At the time of writing, the three European markets were up between 0.45% and 0.98% and the US stock futures were trading marginally higher.


Back home, foreign institutional investors were net buyers of shares amounting to Rs944.53 crore on Thursday while domestic institutional investors were net sellers of stocks totalling Rs818.55 crore.


Oriental Bank of Commerce has cut the deposit rates on maturities between one and three years by 10 basis points to 9% per annum. The move has come in the wake of softening interest rates in the system and comfortable liquidity. The stock fell 0.37% to close at Rs292.85 on the NSE.


Wind turbine maker Suzlon today said it has bagged a contract from Surat Municipal Corporation (SMC) to set up an 8.4MW project in Gujarat. The company will have to set up, operate and maintain the 8.4MW project, which comprises of four units of Suzlon's S95-2.1 MW turbines. The stock tanked 2.23% to close at Rs17.50 on the NSE.


Essel Group on Thursday pared its stake in IVRCL with sale of shares worth nearly Rs68 crore, around six months after it had expressed interest in raising its holding in the infrastructure firm. Essel Group, which had acquired 10.2% in IVRCL in March 2012, through secondary market transactions and subsequently increased it to 12.27%, had said that the group is keen to increase its stake. IVRCL tumbled 5.77% to close at Rs44.95 on the NSE.


Sahara seeks review of SC verdict on refunding Rs24,000 crore

Interestingly, Sahara filed the review petition a week after promising to the apex court that its two companies would refund the money within stipulated time frame

New Delhi: The Sahara group on Friday moved the Supreme Court seeking review of the verdict ordering it to refund Rs24,000 crore, raised from investors through optionally fully convertible debentures (OFCDs), reports PTI.


Challenging the apex court's 31st August verdict on 55 counts, the group sought the hearing of its review petition in the open court.


Setting the deadline to refund the money, the apex court had said if the group companies -- Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) -- fail to refund the amount, SEBI can attach properties and freeze bank accounts of the companies.


It had asked the companies to refund the money to their investors within three months with 15% annual interest.


It had also asked Sahara to furnish all its documents to SEBI and also appointed one of its retired judges, Justice BN Aggarwal, to oversee the action taken by SEBI against the two Sahara group firms.


Interestingly, the group filed the review petition a week after promising to the apex court that its two firms would refund the money within the stipulated time frame.


"We will refund the amount. There is no question of going back," senior advocate Gopal Subramaniam, appearing for the company, had told the apex court on 28th September.




5 years ago

Being an investor myself, I can relate to the fears and uncertainties of people in times like these. But,with a company like “Sahara”, these fears seem irrational. They have stood strong for the past 33 years,and braved the storms of resentment and injustice. I see the current situation also as a malicious intent to destabilize the image and position of the company. I would request all my fellow investors to support Sahara, in these turbulent times and have patience and faith in this company.

David N

5 years ago

Was Sahara fair in raising such large amount by public deposits? May be Sahara is a clean corporation which would not misuse funds, but think of fly by night operators who could vanish with money raised from public like the Teak Farm Promoters of the Nineties! Companies have to abide by rules and regulations and there can not be exceptions...

Jignesh Shah hints at launching SME platform on MCX-SX


Shah said that at least 1% of the 30 million SMEs have strong balance sheets to get AAA ratings and can look at raising money from the primary market
Mumbai: Announcing MCX Stock Exchange's intent to have a dedicated platform for small businesses, the soon-to-be-launched bourse's promoter and vice-chairman Jignesh Shah on Friday said small and medium enterprises (SMEs) should aspire to raise up to $20 million annually through such platforms, reports PTI.
"Our entrepreneurs are best in class. They require risk capital. If China can raise $12 billion in fresh capital, I think we have to aspire to raise a minimum $10-$20 million of fresh capital by SMEs," Shah said speaking at an industry conference.
The country's first privately promoted bourse MCX-SX, which has announced to go live before Diwali (November) after a protracted battle with the regulator Securities and Exchange Board of India (SEBI), will definitely be launching a dedicated SME platform as has been done by its rivals BSE and NSE, Shah told PTI on the sidelines.
However, he declined to share a timeline for the same.
Shah said that at least 1% of the 30 million SMEs have strong balance sheets to get AAA ratings and can look at raising money from the primary market.
Citing the studies and roadshows done by MCX-SX in the recent past, he said many SMEs depend on the informal system for their financing needs, paying up to 2% per month for debt.
He cited how in spite of such a high cost of servicing debt, the businesses continue to remain competitive and wondered the benefits which will accrue if they shift to the formal way of finance and access the equity markets.
Both the BSE and NSE have launched dedicated SME platforms earlier in the year amidst fanfare after the Sebi gave its nod for such exchanges to boost the small businesses.
Already a few companies have listed on these two platforms.
"We should not be happy (only) about inaugurating an exchange for SMEs, but there should be a market model structure which suits SMEs' requirements, then only it will work," Shah said.
He further said private equity, venture capital and angel funds will invest in companies only if they are confident of an exit route, which can be made easy by the formally platforms like exchanges.
Shah also welcomed the decision to amend the FCRA (Forward Contracts Regulations Act) taken by the Cabinet yesterday, saying it is a very big positive step.
The government yesterday cleared the new FCRA Bill which seeks to provide complete autonomy to the commodities FMC and to introduce new categories of products.


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