MARKETS REMAIN CAUTIOUS

Trade continues to remain weak at the Dalal Street, as traders are taking cautious step ahead of the announcement of September quarter GDP data. Though, the numbers are likely to remain weak, impacted by the repeated rate hikes by the RBI.  However, the benchmarks are trading in a narrow range but the pressure is being seen on the broader indices that have lost more ground than their larger peers in the mid morning trade. All the sectotal gauges on the BSE are in red, with realty and consumer suffering the most. The retail stocks too are still under pressure as the logjam over the FDI issue continues in the parliament, though PM has said that the government would not roll back the decision to allow 51% FDI in multi-brand retail, but in a latest development Finance Minister Pranab Mukherjee has met Congress president Sonia Gandhi in New Delhi to discuss the issue, ahead of his meeting with Congress MPs to allay their apprehensions on FDI.
The BSE Sensex is currently trading at 15,893.93, down by 114.41 points or 0.71%. The index has touched a high and low of 15,961.17 and 15,849.57 respectively. There were just 6 stocks advancing against 24 declining ones on the index.
The broader indices too were trading lower; the BSE Mid cap index was down by 1.02% while, Small cap index was down by 0.56%.
None of the sectoral indices was in green, while CD down by 2.60%, Realty down by 1.93%, CG down by 1.56%, Auto was down by 1.22% and Metal was down by 1.12%.
The top gainers on the Sensex were HUL up by 1.07%, Sun Pharma up by 0.89%, ONGC up by 0.35%, TCS up by 0.26% and Maruti Suzuki was up by 0.17%.
On the flip side Sterlite Inds. down by 2.59%, M&M down by 2.395, BHEL down by 2.28%, JP Associates down by 2.22% and ICICI Bank down by 2.08% were the top losers on the index.
Meanwhile, the Securities and Exchange Board of India (SEBI) hopes to finalise regulations for alternative investments in the next two months. All Alternative Investment Funds in the securities market, irrespective of their legal domicile shall be bound by these regulations and be subject to registration and oversight of the Board.
Earlier the market regulator has put up a concept paper for regulation of alternative investment funds, or AIFs, on its website in August. AIFs have been classified into nine categories, including a category for private equity funds. Any fund operating as a hedge fund shall be required to be registered as 'strategy fund' under the AIF regulations. The minimum size of the AIF shall be Rs 20 crore, with a minimum investment of Rs 1 crore, or 0.1%, of the fund size, whichever is higher, according to the concept paper.

The draft paper had also created separate segments of funds based on their investment objective, such as PIPE fund, debt fund, real estate fund, infrastructure fund, SME fund and social venture fund. PE players found such segmentation restrictive, as most funds invest across sectors and use different instruments such as equity shares, preference shares or debentures.

However, in a big relief for big private equity funds investing in India, SEBI has said the proposed regulatory framework for Alternative Investment Funds will not cover those raising money from investors abroad.
The S&P CNX Nifty is currently trading at 4,764.90, down by 40.20 points or 0.84%. The index has touched a high and low of 4,789.30 and 4,754.80 respectively. There were 10 stocks advancing against 40 declining ones on the index.
The top gainers of the Nifty were HUL up by 0.95%, Powergrid up by 0.74%, GAIL up by 0.67%, Sunpharma up by 0.62% and Kotak Bank was up by 0.43%.
On the other hand, Ranbaxy down by 3.67%, SAIL down by 3.40%, Siemens down by 3.09%, Sterlite Industries down by 2.73% and M&M down by 2.56% were the major losers on the index.
Asian indices continue to trade mixed; Shanghai Composite gained 0.56%, Hang Seng added 0.46%, Jakarta Composite spurted 1.15%, KLSE Composite soared 1.57%, Nikkei 225 accumulated 1.41%, Seoul Composite rallied 1.98% and Taiwan Weighted rose 1.25%. Shanghai Composite was down by 2.49%, Hang Seng plunged by 1.89%, Nikkei 225 lost 0.92% to, Seoul Composite was down by 0.41% and Taiwan Weighted declined by 1.54%.
On the other hand, Jakarta Composite advanced 0.17%, KLSE Composite gained 0.81% and Straits Times was flat.