Kotak Securities launches global trading platform
Kotak Securities has launched a global trading platform — Kotak Trader — for Indian investors in association with Saxo Capital Markets, a subsidiary of Denmark’s Saxo Bank.
The platform will provide direct access to equities, exchange traded funds and real estate investment trusts in 24 stock exchanges across USA, Europe, Asia and Australia.
Besides it will also provide the investor with transparent pricing, real-time streaming news, data analysis system, recommendations and research reports on sectors and stocks.
NSE + BSE Trading Halted – Rules & Regulations on Halt + Resume
After the domestic equity markets opened in circuit limits, markets have been halted for trade till 11:55 am, following the rule of circuit breakers of different variations as under:
The index-based market-wide circuit breaker system applies at three stages of the index movement, either way viz. at 10%, 15% and 20%. These circuit breakers when triggered bring about a coordinated trading halt in all equity and equity derivative markets nationwide. The market-wide circuit breakers are triggered by movement of either the BSE Sensex or the NSE S&P CNX Nifty, whichever is breached earlier.
In case of a 10% movement of either of these indices, there would be a one-hour market halt if the movement takes place before 1:00 p.m.
In case of a 15% movement of either index, there shall be a two-hour halt if the movement takes place before 1 p.m. If the 15% trigger is reached on or after 1:00 p.m., but before 2:00 p.m., there shall be a one-hour halt.
In case of a 20% movement of the index, trading shall be halted for the remainder of the day.
In the current case, the NSE Nifty surged 14.48%, which has led to a halt in trading for two hours.
India Equity Strategy – Post Elections
The incumbent Congress-led UPA alliance has achieved a near majority; an almost best-case scenario, and should translate into: a) Stable Government for next five years; b) More reform-oriented agenda, with greater policy making flexibility; and c) More economic/results-oriented governance.
A strong Government mandate should result in: a) Upward bias in growth expectations (maintain 5.5% FY10 expectations for now) – investment rather than consumption driven; b) Stronger currency – return of enhanced capital flows; c) Stable rate scenario, with a 50bps downward bias.
This should be a big bang for the market – we expect it to hold gains at the 13000-13500 index levels for now. The big question – is it a game changer? Can India get back to the high growth – high valuation of recent years? This event probably does open up meaningful possibilities, but there’s a lot to do, and there could be a lot in the way. We see capital/liquidity-driven and beta-plays as the bigger immediate beneficiaries – infrastructure, banks and stressed balance-sheets.
LIC parks Rs 40,000 cr in equity this fiscal
India’s largest insurer – Life Insurance Corporation of India (LIC) – has invested around Rs 40,000 crore in equity this fiscal, exceeding the total equity investments made in the last financial year.
Every year LIC invests around 8-9% of its total premium collection in the stock markets, majority being in the banking sector.
This year the state owned insurer picked up a 2.11% stake in State Bank of India (SBI) for Rs 1,484.12 crore, taking its total shareholding to 9.16% (4.94 crore shares).
The insurer hiked its stake in Indian Overseas Bank (IOB) by 2.86%, in Cummins India by 2.18% and increased its stake in ICICI Bank to 9.38%.
It also upped its stake in various other state-run banks like Union Bank of India (2.18 per cent), Oriental Bank of Commerce (2.60 per cent), Bank of India (1.63 per cent), Canara Bank (1.21 per cent) and Punjab National Bank (0.38 per cent).
FIIs net sellers of Rs 186.86 cr in cash segment on Thursday
Foreign institutional investors (FIIs) were net sellers of Rs 186.86 crore (provisional) in the cash segment on Thursday, according to information available on the BSE website. While FIIs made gross purchases of Rs 1,863.16 crore, their gross sales aggregated Rs 2,050.02 crore.
Domestic institutional investors (DIIs) were net buyers of Rs 227.10 crore (provisional) on the same day. While DIIs made gross purchases of Rs 725.96 crore, their gross sales stood at Rs 498.86 crore.
A Week of collateral damage in Indian Equity
The markets across the world have slipped to new multi-year lows on account of the deepening economic recession globally. In the USA, the economic realities have overshadowed the short-lived euphoria that was created by the rhetoric of the Obama administration.
The Indian equity markets have also witnessed a sell-off in line with the meltdown in the global markets. Apart from the global concerns, there are India-specific issues that have spooked the markets. First, the higher than anticipated consolidated fiscal deficit of 11.4% for the current fiscal 2008-09 and its fall-out on the economy (eg a possible review of the country’s sovereign rating). Second, the outcome of the forthcoming general elections remains uncertain with the growing possibility of a coalition government heavily dependent on the regional and smaller parties. Third, the recent incidents in neighboring countries like Pakistan, Sri Lanka and Bangladesh have added a new dimension of regional instability as a potential risk for the foreign investors.
Given the growing concerns (global and domestic) and the absence of any positive triggers till the new government comes in place by June this year, the risk of a break-down from the trading range of the past four months has increased substantially. However, the silver lining is that such an eventuality could be a once in a lifetime opportunity for building a long-term portfolio. Moreover, the markets would continue to provide strong trading rallies despite the downward bias.
By the end of 2009, corporate performance should show a distinct improvement on the back of the lag effect of the central bank’s loose monetary policy, lower energy cost and favorable base effect. In terms of valuation, the Sensex is trading at around 10x FY2010 earnings considering a flattish growth in FY2009 and a marginal decline in its earnings in FY2010
FII net sellers of Rs 591 cr in cash segment on Thursday
Foreign institutional investors (FIIs) were net sellers of Rs 590.92 crore (provisional) in the cash segment on Thursday, as per information posted on the BSE website. While FIIs made gross purchases of Rs 1,533.35 crore, their gross sales stood at Rs 2,124.27 crore.
Domestic institutional investors (DIIs) were net buyers of Rs 479.04 crore (provisional) on the same day. While DIIs made gross purchases of Rs 1,127.91 crore, their gross sales amounted to Rs 648.87 crore.
FIIs were net sellers of Rs 454.20 crore on Wednesday, March 4, according to SEBI data. While FIIs made gross purchases of Rs 936.90 crore, their gross sales aggregated Rs 1,391.10 crore.
FII net sellers of Rs 463 cr in cash segment on Friday
Foreign institutional investors (FIIs) were net sellers of Rs 463.03 crore (provisional) in the cash segment on Friday, as per the information posted on the BSE website. While FIIs made gross purchases of Rs 1,824.15 crore, their gross sales amounted to Rs 2,287.18 crore.
Domestic institutional investors (DIIs) were net buyers of Rs 649.26 crore (provisional) on the same day. While DIIs made gross purchases of Rs 1,181.59 crore, their gross sales aggregated Rs 532.33 crore.
FII net sellers of Rs 384 cr in cash segment on Wednesday
Foreign institutional investors (FIIs) were net sellers of Rs 384.37 crore (provisional) in the cash segment on Wednesday, as per information available on the BSE website. While FIIs made gross purchases of Rs 831.33 crore, their gross sales stood at Rs 1,215.70 crore.
Domestic institutional investors (DIIs) were net buyers of Rs 367.84 crore (provisional) on the same day. While DIIs made gross purchases of Rs 752.76 crore, their gross sales aggregated Rs 384.92 crore.
FII net sellers of Rs 431 cr in cash market on Tuesday
Foreign institutional investors (FIIs) were net sellers of Rs 431.18 crore (provisional) in the cash segment on Monday, as per the information posted on the BSE website. While FIIs made gross purchases of Rs 703.32 crore, their gross sales aggregated Rs 1,134.50 crore.
Domestic institutional investors (DIIs) were net buyers of Rs 358.71 crore (provisional) on the same day. While DIIs made gross purchases of Rs 778.32 crore, their gross sales amounted to Rs 419.61 crore.