Benchmarks make gap up opening; Nifty trades above 8350 mark

After falling for last couple of sessions, Indian benchmarks have made a gap up opening and are trading in fine fettle in early deals on Wednesday on account of sustained buying by funds and retail investors. At present, both Sensex and Nifty were trading above the crucial 27,500 and 8,350 levels respectively, with gains of above quarter a percent.  The session was also fruitful for broader indices, which outperforming larger counterparts were trading with gains in the range of 0.70-0.90%. Appreciation in Indian rupee against dollar too supported the sentiments. The rupee gained 6 paise to 63.85 against the US dollar in early trade today at the Interbank Foreign Exchange. However, some volatility is likely to prevail in the markets ahead of the derivatives expiry for the month of July, due tomorrow. Meanwhile, foreign portfolio investors sold shares worth a net Rs 1375.66 crore on July 28, 2015, as per provisional data.

In scrip specific development, shares of SpiceJet was trading higher after the company posted a net profit of Rs 72 crore for the quarter ended June 2015, owing to lower fuel prices, improved fleet utilisation and renegotiation of contracts. Dalmia Bharat also surged 14% in early morning trade, after the company reported consolidated net profit of Rs 42 crore for the quarter ended June 2015 (Q1), supported by an increase in sales volume and realization.

On the global front, the US markets ended higher, snapping a five-day losing streak as attention shifted from trouble in Chinese equities to U.S. corporate earnings. Asian markets were trading mostly mixed; while Chinese stock markets once again declined.

Back home traders were seen piling up position in Metal, Auto, IT, Capital Goods and Bankex. The market breadth on BSE was positive in the ratio of 1238: 507 while 45 scrips remained unchanged.

The BSE Sensex is currently trading at 27544.16, up by 84.93 points or 0.31% after trading in a range of 27470.09 and 27591.65. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.86%, while Small cap index gained 0.70%.

The top gaining sectoral indices on the BSE were Metal up by 0.84%, Auto up by 0.76%, IT up by 0.49%, Capital Goods up by 0.46% and Bankex up by 0.38%, while Consumer Durables down by 0.63%, Realty down by 0.05%, PSU down by 0.04%, Oil & Gas down by 0.03% and FMCG down by 0.01% were the losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 2.09%, Tata Steel up by 1.97%, Vedanta up by 1.71%, HDFC up by 1.65% and BHEL up by 1.60%. On the flip side, ITC down by 1.59%, ONGC down by 1.35%, NTPC down by 0.91%, Lupin down by 0.75% and Bharti Airtel down by 0.62% were the top losers.

Meanwhile, the Union Cabinet is likely to approve a new Consumer Protection Bill 2015, that seeks to replace the existing law and proposes setting up a regulatory authority to curb unfair trade practices. Once the bill gets Cabinet approval, the Consumer Affairs Ministry will be introducing the bill in the ongoing monsoon session of Parliament.The new bill, which will repeal the 29-year-old Consumer Protection Act, seeks to create a Consumer Protection Authority on the lines of the US and European countries for fast-tracking redressal of consumer grievances. It will also set up an authority with power to look into complaints, investigate and even order recall of unsafe products and order compensation to buyers. The authority will also be empowered to impose fine and declare terms of contracts as 'null and void' which are unfair to consumers. It will also protect consumers who are placed in an 'unequal bargaining capacity'.

As per the new bill, the consumers will be allowed to file cases from the place of stay or work against the present practice of filing such cases at place where a product was bought. Consumers can also file cases through electronic mode. For speedy disposal of consumer court cases, the bill seeks to provide 'mediation' as an alternative route to resolve the disputes and also suggests simplified judicial process to ensure inexpensive justice.

Earlier, Union Consumer Affairs Minister Ram Vilas Paswan had said that the government is planning to make consumer forums simpler so that one does not need a lawyer for presenting the case. He had also said that to ensure speedy, inexpensive and simple dispensation of justice for the consumers, the government has also decided to set up a National Consumer Protection Authority (NCPA) with all the executive and enforcement powers for redressal of consumer grievances and to take penal action against defaulting companies.

The CNX Nifty is currently trading at 8363.30, up by 26.30 points or 0.32% after trading in a range of 8338.45 and 8374.90. There were 30 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 1.90%, Tata Steel up by 1.89%, HDFC up by 1.58%, HCL Tech. up by 1.52% and Vedanta up by 1.44%. On the flip side, PNB down by 2.71%, ITC down by 1.83%, ONGC down by 1.52%, NTPC down by 1.09% and Lupin down by 0.99% were the top losers.

Asian markets were trading mixed; Straits Times increased 0.35 points or 0.01% to 3,281.44, KOSPI Index increased 11.5 points or 0.56% to 2,050.60, Hang Seng increased 17.18 points or 0.07% to 24,521.12 and Jakarta Composite increased 37.38 points or 0.79% to 4,752.14.

On the flip side, Nikkei 225 decreased 53.84 points or 0.26% to 20,275.05, Taiwan Weighted decreased 20.68 points or 0.24% to 8,561.81, Shanghai Composite decreased 7.74 points or 0.21% to 3,655.27 and FTSE Bursa Malaysia KLCI decreased 0.11 points or 0.01% to 1,699.59