Markets continue to hold in green; Sensex trades past 28300 level

Markets continued trading into positive territory, with little gains of over one tenth of a percent on sustained value-buying activities by market-participants thanks to positive global cues that kept both Sensex and Nifty above psychologically crucial 28,300 and 8,550 levels respectively. Sentiments were buttressed with strength of rupee, which appreciated substantially on RBI’s intervention, while Fitch report that highlighted India as the only BRIC nation, where growth would accelerate to 8 per cent in FY16 and 8.3 per cent in FY17, based on revised data series also aided gains at Dalal Street. Fitch had earlier forecasted growth rates of 6.5 per cent for 2015-16 and 6.8 per cent for 2016-17, based on the old series. However, the trend was different for broader indices, which underperforming larger counterparts were trading with losses in the range of 0.30-0.50%.

On the global front, Asian markets continued trading strong after a weaker dollar help fuel gains on Wall Street. The dollar started trade in Asia on Monday on the defensive, after a volatile few days in the wake of Federal Reserve’s dovish comments, which cast doubts on a June rate increase and bullish positions in the greenback. Closer home, despite the positive trend, most of the sectoral indices on BSE were holding into negative territory, nevertheless much of drubbing was witnessed by stocks from Consumer Durables, IT and Oil & Gas counters. On the flip side, investors incrementally lapped up stocks from Auto, Infra and Power counters which were the top gainers of the session. Meanwhile, bank stocks were mixed after the Securities & Exchange Board of India yesterday, March 22, 2015, relaxed its norms for conversion of bank's bad debt into equity. The overall market breadth on BSE is in the favour of declines which thumped advances in the ratio of 1703:906; while 112 shares remained unchanged.

The BSE Sensex is currently trading at 28309.04, up by 47.96 points or 0.17% after trading in a range of 28248.55 and 28385.14. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.32%, while Small cap index down by 0.55%.

The gaining sectoral indices on the BSE were Auto up by 0.62%, INFRA up by 0.62%, Power up by 0.57% and Capital Goods up by 0.08% while, Consumer Durables down by 0.71%, IT down by 0.48%, Oil & Gas down by 0.33%, Realty down by 0.29% and TECK down by 0.28% were the losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 2.91%, Mahindra & Mahindra up by 2.05%, NTPC up by 1.79%, GAIL India up by 1.48% and Cipla up by 1.33%. On the flip side, BHEL down by 2.30%, Reliance Industries down by 1.06%, SBI down by 0.63%, Maruti Suzuki down by 0.57% and Coal India down by 0.57% were the top losers.

Meanwhile, paving the way for resumption of iron ore mining in the coastal state’s economy, the Union Ministry of Environment and Forest (MoEF) finally issued the much-awaited order and lifted the suspension on the environment clearances (ECs) of 72 mining leases. However, this came with the rider that any violation of rules in the near future would result in direct cancellation of ECs, whose validity is valid till the expiry of mining lease period. 

Of the 72 mining leases, five leases belong to Pandurang Timblo industries, five belong to Sociedade Timblo Irmaos, seven belong to Chowgule and company, four of Sesa Goa, three mines of Dempo Mining (now with Sesa Goa), three of Damodar Mangalji and two belong to Salgocar Brother. The other mining companies include Bandekar Brothers, Raghuvir Sinai Gharse, Cosme Costa, Lithoferrao, Kadnekar mines, H L Nathurmal, Shantilal Khushaldas Bros amongst others.

Nevertheless, with the present order, the lease owners would not require any fresh ECs at the time of renewal. Presently, the state government has already renewed 88 mining leases under Mines and Minerals Development Regulation (MMDR) Act.

However, out of the total 137 mining leases, whose ECs were kept in abeyance since September 14, 2012, the ECs of 18 leases have been cancelled since they were in protected areas such as wildlife sanctuaries and national park. Additionally, the MoEF has also withdrawn ECs of two mining leases, Sesa Goa and Shree Jaisin Maganlal on account of submission of false data pertaining to the natural resources in their Environment Impact Assessment (EIA) report.

Meanwhile ECs of 23 mining leases, located within one kilometer of the buffer zone, have been put for consideration after the modification of the Supreme Court order dated August 4, 2006 that prohibited mining within the one km buffer zone. Besides, MoEF has prepared a list of 22 mining leases, which continue to remain in abeyance as these are located in the forest land and have not obtained forest clearances.

The CNX Nifty is currently trading at 8580.30, up by 9.40 points or 0.11% after trading in a range of 8559.70 and 8608.35. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.03%, Mahindra & Mahindra up by 2.38%, Power Grid Corpn. up by 1.96%, NTPC up by 1.79% and Tata Motors up by 1.35%. On the flip side, Jindal Steel & Power down by 7.99%, NMDC down by 2.70%, BHEL down by 2.40%, Tech Mahindra down by 2.34% and Cairn India down by 1.51% were the top losers.

Asian markets were trading mostly higher; with FTSE Bursa Malaysia KLCI trading higher by 0.01 points or 0% to 1,803.66; Straits Times trading higher by 5.38 points or 0.16% to 3,417.82; Jakarta Composite trading higher by 6.44 points or 0.12% to 5,449.51; Taiwan Weighted trading higher by 8.4 points or 0.09% to 9,758.09; Shanghai Composite trading higher by 65.74 points or 1.82% to 3,683.05; Hang Seng trading higher by 98.57 points or 0.4% to 24,473.81; Nikkei 225 trading higher by 194.14 points or 0.99% to 19,754.36. On the flip side, KOSPI Index down by 0.65 points or 0.03% to 2,036.59 was the sole loser amongst Asian pack.