Markets trade with modest gains in range-bound session of trade

Stuck in a narrow band, local equity markets were trading with modest gains which kept Sensex and Nifty above psychologically crucial 27,500 and 8,300 levels respectively, on value buying activities by market-participants amidst mixed regional counters. However, lack of fresh positive triggers kept the gains in check. Meanwhile, the session was turning out to be splendid one for broader indices, which outperforming larger counterparts were trading with gains in the range of 0.30-0.65%.

On the global front, Asian stock markets retreated on Tuesday after the Australian central bank cut interest rates for the second time in four months as the region's growth falters in the face of slowing demand from China. The Reserve Bank of Australia cut its cash rate a quarter point to an all-time low of 2.0 percent to buttress the economy against slowing mining investment and push the stubbornly strong local dollar lower, in line with market expectations.

Closer home, most of the sectoral indices on BSE were trading into positive territory, maximum buying activities was witnessed by stocks from Metal, Capital Goods and Realty counters. Meanwhile, Realty stocks were witnessing buying activity even as the fate of Real Estate Bill, which seeks to regulate realty business, will be tested today in Rajya Sabha where it is up for consideration. On the flip side, prominent losers were the stocks from Power, Infrastructure and banking counters.  In stock-specific activity, Railway stocks were mostly trading positive after reports suggested that Railways have initiated the process for setting up a regulatory body on the lines of telecom and power sector. The overall market breadth on BSE were trading in the favour of advances which thumped declines in the ratio of 1267:1176; while 105 shares remained unchanged.

The BSE Sensex is currently trading at 27510.56, up by 19.97 points or 0.07% after trading in a range of 27402.94 and 27603.71. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.60%, while Small cap index up by 0.38%.

The gaining sectoral indices on the BSE were Metal up by 2.18%, Capital Goods up by 0.84%, Realty up by 0.61%, Oil & Gas up by 0.52%, PSU up by 0.29% while, Power down by 0.50%, INFRA down by 0.17%, Bankex down by 0.13%, TECK down by 0.04% were the losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 5.09%, Tata Steel up by 4.28%, ONGC up by 3.27%, Hindalco up by 2.78% and TCS up by 1.73%. On the flip side, Cipla down by 1.88%, Bharti Airtel down by 1.71%, Bajaj Auto down by 1.50%, NTPC down by 1.25% and SBI down by 1.24% were the top losers.

Meanwhile, the fate of Real Estate Bill, which seeks to regulate realty business, will be tested today .i.e. Tuesday in Rajya Sabha where it is up for consideration as main opposition Congress has upped the ante against it. 

After witnessing a number of hurdles mainly from opposition, the government had to defer the bill on April 29, with the Urban Development Minister M Venkaiah Naidu negotiating more time for government for holding more consultations with parties.

NDA government had to defer the bill after Congress demanded the bill to be referred to a Select Committee of Parliament. Since then, the approach of Congress against the bill has become more aggressive, with Congress Vice President Rahul Gandhi meeting home buyers from NCR region and accusing the government of working against middle class home-buyers by 'diluting' the bill and making it “pro-builders”.

Both the parties are loggerheads over the bill, with Congress deciding to bring out the 'contrast' between UPA's Real Estate Bill and NDA's legislation on the lines of what it did in the case of Land Acquisition Bill, while Government, on its part would be working to garner the support of some regional parties for passage of the bill.

According to NDA government, this bill is aimed to regulate and promote real estate sector and protect the interest of consumers, however Opposition in Rajya Sabha rejected this bill citing that the amendments proposed were based on suggestions of the Standing Committee, which is nothing but representation of all political parties, and therefore wanted it to be referred to select Committee of Parliament.

The CNX Nifty is currently trading at 8331.50, down by 0.45 points or 0.01% after trading in a range of 8299.20 and 8355.65. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 5.08%, Tata Steel up by 4.59%, ONGC up by 3.02%, Hindalco up by 2.93% and NMDC up by 2.39%. On the flip side, Cairn India down by 2.55%, Cipla down by 1.83%, Bharti Airtel down by 1.76%, Zee Entertainment down by 1.56% and Hero MotoCorp down by 1.41% were the top losers.

Asian markets were trading mostly higher; with FTSE Bursa Malaysia KLCI trading higher by 3.61 points or 0.2% to 1,821.88; KOSPI Index trading higher by 5.06 points or 0.24% to 2,132.23; Jakarta Composite trading higher by 5.35 points or 0.1% to 5,146.48 and Nikkei 225 trading higher by 11.62 points or 0.06% to 19,531.63.

On the flip side, Hang Seng trading lower by 447.67 points or 1.59% to 27,676.15; Shanghai Composite trading lower by 158.66 points or 3.54% to 4,321.80; Taiwan Weighted trading lower by 24.91 points or 0.25% to 9,820.13 and Straits Times trading lower by 17.91 points or 0.51% to 3,464.79.