Post session - Quick review

30 share barometer index-Sensex-once again witnessed a heartrending day of trade as investor’s casted off riskier assets after Greece's prime minister won the backing of his cabinet to hold a referendum on a 130 billion euro bailout package reached just last week, which sparked fears of a disorderly default on the country's debt if Greeks voted against the package. Investor’s scurried away from equities on reports stating the possibility of Greek holding the referendum as earlier as December. Interior Minister Haris Kastanidis said that this would happen if Greece and its international partners worked out the details of the bailout agreement earlier than planned. Kastanidis had said earlier this week that the referendum would most likely be held in January. Meanwhile, back on the home front, although the index made several attempts of recuperation, but all of them remained lackadaisical, as the moment barometer gauge enticed some traction, all of it would be eroded by the intense selling pressure which was witnessed across the board.

30 share index, lacking any positive trigger, prolonged their southbound journey for the fourth consecutive session on Wednesday tracing daunting global set up. As overnight on the Wall Street, US stocks slumped on Tuesday, for the second day on heightened uncertainty over whether Greece would derail European efforts to curb the region’s sovereign debt crisis. Meanwhile, Greece which continued to be the epicenter of global turmoil also led to the downfall of Asian equity markets.

However, 50 share index managed to conclude the trade marginally in green. Some conciliation came to the Indian equity markets in the form of opening of European markets. The European shares rose early on Wednesday, as hopes the Federal Reserve may hint of further measures to boost the U.S. economy overshadowed brewing concerns over the euro zone debt crisis and helped shares halt a sharp two-day sell-off. The U.S. Federal Open Market Committee concludes its two-day policy meeting on Wednesday, and a number of investors expect it to offer hints of further monetary easing to revive the U.S. economic recovery.

Back home, stocks from rate sensitives on the BSE Sectoral front, mainly played foul on the bourses. However, to the name a few losers, stocks from Auto, Bankex and Public Sector Undertaking counter featured in the list of worst performers. However, stocks from Oil & Gas, Healthcare and Fast Moving Consumer Goods counters, skirmishing against the pressure, curbed the loss of the Index. The only silver lining amidst the grey cloud was the diminishing price of Oil. Oil fell in New York for a fourth day, the longest losing streak in three months, on concern of Greek referendum on Europe’s rescue plan will worsen the region’s debt crisis and curb economic growth.

30 share barometer index- Sensex- on BSE declining over 25 points ended sub 17500 mark. However, 50 share index- Nifty- pruning major losses ended near its neutral line. The broader indices too ended in red. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1385:1444 while 117 scrips remained unchanged.

The BSE Sensex lost 31.12 points or 0.18% and settled at 17,449.71. The index touched a high and a low of 17,615.92 and 17,337.65 respectively. 14 stocks advanced against 16 declining ones on the index (Provisional)

The BSE Mid-cap index lost 0.01% while Small-cap index was down 0.05%. (Provisional)

On the BSE Sectoral front, Oil & Gas up 0.69%, Health Care up 0.49% and FMCG up 0.21% were the only gainers while Auto down 0.52%, Bankex down 0.52%, PSU down 0.40%, TECk down 0.40% and Capital Goods down 0.36% were the top losers.

The top gainers on the Sensex were RIL up 1.27%, Tata Power up 0.94%, Jindal Steel up 0.80%, JP Associates up 0.59% and ITC up 0.46%.

On the flip side, Bharti Airtel down 2.71%, Hero MotoCorp down 2.37%, BHEL down 1.25%, ICICI Bank down 1.22% and NTPC down 0.96% were the top losers on the index. (Provisional)

Meanwhile, in a move to enhance competitiveness and promote micro and small enterprises’ (MSEs) growth, the government owned departments and public sector units (PSUs) will have to give first preference to MSEs, including those belonging to SC/ST entrepreneurs. The public procurement policy for MSEs, which the union cabinet approved on November 1, has set an annual target of 20% procurement for the central government departments and PSUs from MSEs.

Additionally, in the minimum limit of 20%, orders worth 4% must be placed to SC/ST entrepreneurs. However, the minimum procurement limit would become compulsory only after 3 years. Till that time, it would be voluntary upon the central government department and PSUs to procure from the MSEs.

Virbhadra Singh, Minister of Micro, Small and Medium Enterprises said the announcement of the new policy has triggered expectations that PSUs would buy goods worth Rs 35,000 crore from the MSEs. Of this, a business of Rs 7,000 crore would go to the SCs/STs. On the other hand, this would also ensure that the public sector, which at present procures a mere 4-5% from the segment, can enhance its purchases from this sector.

The preferential procurement policy for MSMEs also exists in countries such as Australia, China, the European Union and the USA. The industry had welcomed the move of the government, as this move of government will enhance the competitiveness and also promote inclusive growth. The sector has been affected badly from the increasing input cost and interest rates.

The MSMEs plays very important role in the Indian economy as it accounts for 45% of India’s manufacturing output and around 40% of country’s export. The sector also provides employment to 60 million people in 26 million units which produce more than 6,000 products. The MSMEs also contribute around 8% of the county’s Gross Domestic Products.

India VIX, a gauge for market’s short term expectation of volatility gained 3.62% at 24.89 from its previous close of 24.02 on Tuesday. (Provisional)

The S&P CNX Nifty lost 5.80 points or 0.11% to settle at 5,252.15. The index touched high and low of 5,300.10 and 5,204.95 respectively. 25 stocks advanced against 23 declining ones while 2 stock remained unchanged on the index. (Provisional)

The top gainer on the Nifty were, RCOM up 4.97%, Reliance Power up 3.10%, Reliance Infra up 2.16%, HCL Tech up 1.90% and Dr. Reddy’s up 1.68%.

 On the other hand, PNB down 3.37%, Bharti Airtel down 2.72%, Hero MotoCorp down 2.45%, ICICI Bank down 1.39% and Tata Steel down 1.27% were the top losers. (Provisional)

The European markets are trading in mix, with France's CAC 40 down 0.07%, Germany's DAX up 0.39% and FTSE 100 up 0.27%.

After a subdued start, Asian equity indices managed to end the session on mixed note on Wednesday as several Asian counterparts recouped their morning losses as traders awaited the outcome of the US Federal Reserve’s rate-setting meeting later in the global day. Moreover, markets also got support on report that embattled Greek Premier George Papandreou’s plan for a referendum on the country’s latest bailout package had been unanimously passed by the Greek Cabinet earlier in the global day. The referendum is likely to take place before Christmas, slightly earlier than expected. However, Japanese finance minister said that the referendum move had ‘confused people’, ahead of a Group of 20 meeting in France on Thursday where the issue was expected to top the agenda.

Meanwhile, Shanghai Composite surged about 1.40 percent on hopes for looser monetary policy. However, investors still kept distance from riskier assets amid the fresh euro-zone jitters. While, Nikkei share average fell more than two percent on Wednesday to a three-week low on resurgent fears over the euro zone’s debt woes.