Markets make a gap-up start of the new series

Indian markets have got a good gap-up start of the new series on the back of sharp plunge in the international crude prices. Both the benchmarks with gain of about a percent are trading at their all time highs. Not only the PSU oil marketing companies but all companies who use crude as have surged in the morning trade after crude slumped to the lowest level since May 2010, when OPEC after its highly anticipated meeting said that it would keep its official production target unchanged at 30 million barrels a day. Traders were also getting some support with global ratings agency Moody’s report which expects the country's GDP to grow at 5.3 per cent in the July-September quarter of the current fiscal, better than 4.8 per cent clocked in the year-ago period. The NBFC pack is also in the jubilant mood after Reserve Bank of India issued final guidelines for companies seeking to set up payments banks and small finance banks in a bid to expand banking services to more people and small businesses. The central bank has included non-bank prepaid card issuer, mobile companies, telecom companies, business correspondents, PSU companies, real sector cooperatives and supermarket chains as promoters of payments banks, while it has allowed NBFCs, MFIs and local area banks to convert to small banks.

The BSE Sensex is currently trading at 28740.85, up by 301.94 points or 1.06% after trading in a range of 28483.99 and 28765.99. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.10%, while Small cap index gained 1.01%.

The gaining sectoral indices on the BSE were Bankex up by 2.40%, PSU up by 1.73%, Auto up by 1.23%, Consumer Durables up by 1.20%, Capital Goods up by 1.00%

The top gainers on the Sensex were SBI up by 3.78%, Axis Bank up by 2.99%, ICICI Bank up by 2.31%, HDFC up by 1.87% and Hero MotoCorp up by 1.66%. On the flip side, Bharti Airtel down by 0.22%, Sesa Sterlite down by 0.17% and Dr Reddys Lab down by 0.03% were the top losers.

Meanwhile, the government is considering amendment to various labour laws in order to bring them in tune with better enforcement of labour laws, streamlining inspection mechanism, more coverage of labour rights and with emerging needs of the economy which include facilitating investments. Union minister for Labour and Employment Bandaru Dattatreya has stated that the Ministry is actively pondering amendments in the Child Labour (Regulation and Abolition) Act 1986, Factories Act 1948, Mines Act 1952, Minimum Wages Act 1948, the Apprenticeship Act 1961 and Labour Laws Act 1988.

Bandaru Dattatreya stressed that proposal to amend the various labour laws is formulated on the basis of consultations held with union ministries, state governments, employers' and employees organizations.

Giving details of amendment in labour laws, Labour and Employment Minister asserted that amendment in the Child Labour (Regulation and Abolition) Act 1986 proposes linking the definition of child under this Act to Right to Education Act 2009, complete prohibition of employment of children below 14 years, prohibition of working of adolescents in mines, explosives and other hazardous occupations under Factories Act 1948 and more strict punishment to offenders.

Further, elaborating on the proposed amendments in the Factories Act 1948, Bandaru Dattatreya emphasized that there are proposals to amend Section 66 of the Act relating to permission for employment of women for night work with adequate safeguards, amendment of sections 64 and 65 of the Act to enhance limit of overtime hours from the present limit of 50 hours per quarter to 100 hours per quarter amongst others. Another proposal is to empower the central government to make rules under the Factories Act on some important provisions

The CNX Nifty is currently trading at 8586.70, up by 92.50 points or 1.09% after trading in a range of 8516.25 and 8593.20. There were 41 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Bank of Baroda up by 4.65%, BPCL up by 4.55%, PNB up by 4.29%, SBI up by 4.09%, Asian Paints up by 3.30%. On the flip side, Cairn India down by 3.30%, DLF down by 1.35%, BHEL down by 0.30%, Bharti Airtel down by 0.25% and Dr Reddys Lab down by 0.19% were the top losers.

Asian markets were showing mixed trend, Straits Times gained 11.32 points or 0.34% to 3,352.28, Taiwan Weighted was up by 15.8 points or 0.17% to 9,181.11, Shanghai Composite increased by 19.09 points or 0.73% to 2,649.57 and Nikkei 225 surged by 175.77 points or 1.02% to 17,424.27. On the other hand Hang Seng declined by 25.7 points or 0.11% to 23,978.58, Jakarta Composite was lower by 12.73 points or 0.25% to 5,132.58, FTSE Bursa Malaysia KLCI lost 7.64 points or 0.42% to 1,822.27 and KOSPI Index was down by 3.37 points or 0.17% to 1,978.72.