Markets end special trading session tad lower

Key share indices ended flat on Saturday on lack of investor participation in a special truncated trading session held for an upgrade of software by one of the stock exchanges.

Today’s special two hour trading session was conducted for the upgrade of Futures & Options system infrastructure of the National Stock Exchange.

The 30-share Sensex ended at 15,848, down 19 points and the 50-share Nifty ended at 4,747, down 7 points.

All the sectoral indices traded on a subdued note. BSE Auto, Oil & Gas, Bankex and FMCG indices ended marginally down.

Bajaj Auto, Mahindra & Mahindra and Hero MotoCorp, were the notable losers from the Auto space.

ICICI Bank, HDFC Bank, Kotak Mahindra Bank and State Bank of India were the prominent losers from among the financials.

BSE Realty, Metal, IT and Consumer Durables indices ended marginally higher.

JP Associates shed 2% at Rs 52 and was the top loser among the Sensex 30 stocks. The scrip shed on reports that market regulator SEBI (Stock Exchange Bureau of India) has slapped Rs70 lakh fine on senior JP Associates’ executives and family. SEBI in its investigation report issued notices to the executive chairman Manoj Gaur and others for violating guidelines related to insider trading by purchasing shares during the period when trading was closed.

Other prominent losers were ICICI Bank, Bajaj Auto, Hindalco Industries and Sterlite Industries, down 1-2% each.

The gainers from the pack were DLF, Maruti SUzuki, Coal India, Hindustan Unilever and Sun Pharma Industries, up nearly 1% each.

Among the mid-cap shares, PSUs gained sharply as Sebi board cleared regulatory changes to allow PSU buybacks. The market regulator has cleared the proposal to allow promoters to sell their stake through share auctions. The change will help promoters to maintain 25% public shareholding.  STC gained 8%, HMT gained 12%, Rashtriya Chemicals & Fertilizers gained 16% and National Fertlizers gained nearly 20%.

Airline stocks traded higher over reports that the civil aviation ministry is likely to drop its opposition to higher investment sector and agree to let them hold up to 49% in domestic carriers, handing out a possible lifeline to cash-strapped airlines. Kingfisher Airlines, Spice Jet and Jet Airways ended higher by 1-4% each. Meanwhile, Jet Airways also gained on reports that the company will merge its no-frills brands JetLite and Jet Konnect and operate under the brand name of the latter.The move to arrest losses and compete with other low-cost airlines had been in the management's mind for some time, but the decision has been taken now. No date has been announced regarding the re-branding exercise.

Stocks of companies in the retail sector staged a smart rally at the bourses today, gaining between 3 – 20 per cent in the special trading session.The government on Friday said it would reach out to domestic retailers later this month in its bid to evolve a consensus on allowing foreign direct investment in multi-brand retail. Trent (up 3%), Pantaloon Retail (up 5%), Shoppers Stop (7%), Provogue (13%) and Brandhouse Retail (up 20%) were the top gainers in this pack.

The overall market breadth was positive as 1,570 stocks advanced against 652 declining ones, on the BSE.