After a jubilant 1,151 points rally last week, the
Indian equity markets have made a flat-to-negative opening tracking
mixed global cues. US markets closed mixed on Friday, while, Asian
equity markets exhibiting mixed trends at this point of time. Back home,
BSE's Sensex breached its crucial 16,800 mark in early trade as profit
booking emerged after a huge rally last week. Sentiments also remained
dampened as global ratings agency Moody's said that tough times are
ahead for the Indian economy and it may revise downwards the country's
growth forecast for 2011-12 to 6.5%. Moreover, the logjam in parliament
is likely to continue as the government is yet to find any resolution to
the retail FDI issue, while one of its allies Trinmool Congress has
said that it won't back the policy. Stocks of metal, banking, oil and
gas and realty firms bore the brunt of the selling pressure, dragging
down the Sensex. The broader indices too were trading flat at this point
of time. The market breadth on the BSE was positive; there were 797
shares on the gaining side against 731 shares on the losing side while
72 shares remained unchanged.
The BSE Sensex opened at 16,812.30; about 34 points lower compared to its previous closing of 16,846.83 and has touched a high and a low of 16,845.87 and 16,739.05 respectively.
The index is currently trading at 16,772.96, down by 73.87 points or 0.44%. There were 13 stocks advancing against 17 declines on the index.
The overall market breadth has made a positive start with 49.81% stocks advancing against 45.69% declines. The broader indices were trading flat; the BSE Mid cap index was down by 0.01% while, Small cap index rose 0.06%.
The top gaining sectoral indices on the BSE were, Realty up by 0.26%, CD up by 0.17%, Auto up by 0.17%, PSU up by 0.13% and Power up by 0.72%. While, Metal down by 0.72%, Banking down by 0.60%, Oil and Gas down by 0.48%, CG down by 0.26% and Auto down by 0.21% were the top losers on the index.
The top gainers on the Sensex were Bharti Airtel up by 1.46%, Jaiprakash Associate up by 1.26%, DLF up by 1.03%, M&M up by 0.92% and BHEL up by 0.73%.
On the flip side, Hindalco was down by 2.14%, Tata Steel was down by 1.85%, Sterlite Indusrties was down by 1.55%, ICICI Bank was down by 1.47% and Wipro was down by 1.17% were the top losers on the Sensex.
Meanwhile, the Insurance Regulatory and Development Authority (IRDA) cleared the way for life insurance companies to raise capital via Initial Public Offering (IPO) or subsequent public fund raising from stock market.
The IPO guidelines have been formed in consultation with capital market watchdog Securities and Exchange Board of India (SEBI). However, the life insurance firms interested in IPO will have to take IRDA's approval followed by SEBI's permission. The offer document will have to list out the risk factors specific to the insurance sector.
IRDA notified that the life insurance companies who have completed 10 years of operations only can raise money from the market. Till now, only four life insurance companies such as ICICI Prudential, SBI, HDFC and Kotak Mahindra have completed 10 years.
The companies should have satisfactory regulatory record and governance and must have maintained a solvency margin of 150% or 1.5 times of their liabilities. The firms must have an embedded value of at least twice the paid up equity capital. The final guidelines also make mandatory for the insurers to get the embedded value prepared by an independent actuarial expert and reviewed by another actuary. This will be important for the insurers as there are not many actuary firms in India.
The life insurance firms have been waiting for the IPO norms for quite some time and have welcomed the move from regulator, as the IPO norms are in accordance with the market expectations. In past several firms has expressed their desire to come out with IPO, depending upon the regulations issued by IRDA. The life insurance industry is a capital-intensive business and most private insurance companies are facing financial crunch from their promoters in investing further capital into the business.
The S&P CNX Nifty opened at 5,036.50; 14 points lower compared to its previous closing of 5,050.15, and has touched a high and a low of 5,049.70 and 4,017.80 respectively.
The index is currently trading at 4,027.80, down by 22.35 points or 0.44%. There were 22 stocks advancing against 28 declines on the index.
The top gainers of the Nifty were RCom up by 3.23%, JP Associates up by 1.41%, Bharti Airtel up by 1.38%, Cairn up by 1.21% and Reliance Power up by 1.05%.
On the flip side, Shanghai Composite was down 14.88 points or 0.63% to 2,345.78, KLSE Composite was down 0.11 points or 0.01% to 1,488.91, Straits Times was down 9.09 points or 0.33% to 2,764.27 and Taiwan Weighted was down by 38.84 points or 0.54% to 7,101.84.
The BSE Sensex opened at 16,812.30; about 34 points lower compared to its previous closing of 16,846.83 and has touched a high and a low of 16,845.87 and 16,739.05 respectively.
The index is currently trading at 16,772.96, down by 73.87 points or 0.44%. There were 13 stocks advancing against 17 declines on the index.
The overall market breadth has made a positive start with 49.81% stocks advancing against 45.69% declines. The broader indices were trading flat; the BSE Mid cap index was down by 0.01% while, Small cap index rose 0.06%.
The top gaining sectoral indices on the BSE were, Realty up by 0.26%, CD up by 0.17%, Auto up by 0.17%, PSU up by 0.13% and Power up by 0.72%. While, Metal down by 0.72%, Banking down by 0.60%, Oil and Gas down by 0.48%, CG down by 0.26% and Auto down by 0.21% were the top losers on the index.
The top gainers on the Sensex were Bharti Airtel up by 1.46%, Jaiprakash Associate up by 1.26%, DLF up by 1.03%, M&M up by 0.92% and BHEL up by 0.73%.
On the flip side, Hindalco was down by 2.14%, Tata Steel was down by 1.85%, Sterlite Indusrties was down by 1.55%, ICICI Bank was down by 1.47% and Wipro was down by 1.17% were the top losers on the Sensex.
Meanwhile, the Insurance Regulatory and Development Authority (IRDA) cleared the way for life insurance companies to raise capital via Initial Public Offering (IPO) or subsequent public fund raising from stock market.
The IPO guidelines have been formed in consultation with capital market watchdog Securities and Exchange Board of India (SEBI). However, the life insurance firms interested in IPO will have to take IRDA's approval followed by SEBI's permission. The offer document will have to list out the risk factors specific to the insurance sector.
IRDA notified that the life insurance companies who have completed 10 years of operations only can raise money from the market. Till now, only four life insurance companies such as ICICI Prudential, SBI, HDFC and Kotak Mahindra have completed 10 years.
The companies should have satisfactory regulatory record and governance and must have maintained a solvency margin of 150% or 1.5 times of their liabilities. The firms must have an embedded value of at least twice the paid up equity capital. The final guidelines also make mandatory for the insurers to get the embedded value prepared by an independent actuarial expert and reviewed by another actuary. This will be important for the insurers as there are not many actuary firms in India.
The life insurance firms have been waiting for the IPO norms for quite some time and have welcomed the move from regulator, as the IPO norms are in accordance with the market expectations. In past several firms has expressed their desire to come out with IPO, depending upon the regulations issued by IRDA. The life insurance industry is a capital-intensive business and most private insurance companies are facing financial crunch from their promoters in investing further capital into the business.
The S&P CNX Nifty opened at 5,036.50; 14 points lower compared to its previous closing of 5,050.15, and has touched a high and a low of 5,049.70 and 4,017.80 respectively.
The index is currently trading at 4,027.80, down by 22.35 points or 0.44%. There were 22 stocks advancing against 28 declines on the index.
The top gainers of the Nifty were RCom up by 3.23%, JP Associates up by 1.41%, Bharti Airtel up by 1.38%, Cairn up by 1.21% and Reliance Power up by 1.05%.
On
the flip side, Hindalco down by 2.18%, Tata Steel down by 1.91%, ICICI
Bank down by 1.59%, Sterlite Industries down by 1.42% and Sesa Goa down
by 1.37%, were the major losers on the index.
Asian markets were trading mixed; Hang Seng was up
74.39 points or 0.39% to 19,114.78, Jakarta Composite was up 2.34
points or 0.06% to 3,782.18, Nikkei 225 was up 33.61 points or 0.39% to
8,677.36 and Seoul Composite was up by 0.19 points or 0.01% to 1,916.23.
On the flip side, Shanghai Composite was down 14.88 points or 0.63% to 2,345.78, KLSE Composite was down 0.11 points or 0.01% to 1,488.91, Straits Times was down 9.09 points or 0.33% to 2,764.27 and Taiwan Weighted was down by 38.84 points or 0.54% to 7,101.84.
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