Indian stock markets dipped slightly on Thursday to close lower as the December series of Future & Options contracts expired today. BSE Sensex dropped 63.78 or 0.19% to finish at 33,848.03 while NSE Nifty slid 12.85 points or 0.12% to conclude at 10,477.9. Shares of Tata Steel, Dr Reddy’s, HDFC Bank, Wipro, ICICI Bank emerged as the only notable gainers on BSE Sensex. During the day, the benchmark Sensex shuttled between the range of 33,928.86 and 33,752.03 while NSE Nifty hovered between 10,534.55 and 10,460.45. The key equity indices Sensex and Nifty have returned around 30% in the last 12-months period. Earlier on 27 December 2017, BSE Sensex made an all-time high of 34137.97 while NSE Nifty marked it a high of 10,552.4. The heavyweight stocks of SBI, HDFC, Axis Bank, Sun Pharma, Kotak Mahindra Bank contributed the most to the Sensex decline. Collectively these five stocks alone washed off about 77 points from the index.
The sectoral indices of NSE settled mixed with Nifty Realty and Nifty Metal rising up to 3.05% while Nifty PSU Bank index lost 1.94% led by the slump in the shares of heavyweight companies such as PNB, SBI and Bank of Baroda. In a major development today, Indian capital market watchdog SEBI (Securities and Exchange Board of India) said all the stock and commodity exchanges can facilitate trading in stocks and commodities derivatives from October 2018. SEBI has taken a series of reforms at its board meeting held on Thursday. With the latest reform of SEBI converge the bourses from October 18, BSE and NSE will be able to provide commodity derivatives trading on their respective platforms. In addition to this, SEBI said the promoters of the companies will now be allowed to sell up to 2% of their equity through secondary markets.
SEBI decided to put a 10% cap cross-shareholding on all the mutual funds and moreover will now up to 10% and all the mutual funds will now have a year to conform to new cross holding terms. The new measure may have an impact on the shareholding pattern of UTI Asset Management Company (AMC), requiring its promoters to lower their stake to 10% or below in next one year. As State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation are having their own mutual funds and at the same time, each of them holds an 18.24% stake in UTI AMC will now be required to limit their shareholding to 10%. SEBI Chief Ajay Tyagi said that the regulator is trying to simplify, rationalise norms for REITs (Real Estate Investment Trusts) and all the firms to face action for WhatsApp leak of financial details investigating more companies in information leak case.