Bourses hold minor gains in afternoon deals

The local barometer gauges were holding their minor gains in early afternoon session, on buying by investors amid firm Asian markets. Traders were taking support with report that the Securities and Exchange Board of India (SEBI) board will consider proposals to ease compliance norms for insolvent firms - especially with regard to trading, listing and de-listing, and declaring results-at its meeting on Thursday. The gains at Dalal Street were mainly led by Healthcare, Metal and Power stocks. Moreover, covering-up of pending short positions by speculators in view of tomorrow’s December monthly expiry in the derivatives segment, too supported the market. However, gains were capped as some concern came with Grant Thornton’s latest International Business Report (IBR) stating that though business leaders in India remained largely positive, their level of optimism has dropped to its lowest level in four years. In scrip specific development, Aurobindo Pharma was up by over one and half percent after receiving final approval from the USFDA to manufacture and market Fondaparinux Sodium injection.

On the global front, Asian markets were trading mostly in green, with oil and copper prices rocketing to multi-year highs in an uplifting sign for global growth and inflation. Back home, the BSE Sensex is currently trading at 34061.03, up by 50.42 points or 0.15% after trading in a range of 34014.88 and 34123.14. There were 15 stocks advancing against 15 stocks declining on the index, while 1 stock remained unchanged.

The broader indices were trading in green; the BSE Mid cap index was up by 0.34%, while Small cap index was up by 0.48%.

The top gaining sectoral indices on the BSE were Healthcare up by 2.34%, Metal up by 0.53%, Power up by 0.41%, Basic Materials up by 0.39% and Telecom up by 0.39%, while IT down by 0.26%, Oil & Gas down by 0.20%, TECK down by 0.09% and Capital Goods down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 6.26%, Dr. Reddy’s Lab up by 2.28%, NTPC up by 0.76%, Hindustan Unilever up by 0.75% and Tata Motors up by 0.64%. On the flip side, ICICI Bank down by 0.66%, ONGC down by 0.62%, Infosys down by 0.60%, Coal India down by 0.51% and Wipro down by 0.45% were the top losers.

Meanwhile, a commerce ministry-appointed panel has recommended that the Board of Approval (BoA), the highest decision making body for special economic zones (SEZs), should be accorded extra powers to exempt units and developers from certain rules to promote these zones. Justifying its proposal for change, the panel said that under the current SEZ rules, the BoA has no power to relax any rule. It also said that even when the BoA considers it appropriate, it has to take approval of commerce and industry minister. Therefore, it pointed that wherever BoA feels that there is genuine hardship to the trade and industry and relaxation in SEZ rule is required, it should be empowered to do so.

In order to align the SEZ Rules, 2006 with the Goods and Services Tax (GST) regime as well as for removal of various difficulties faced, a committee under the Chairmanship of Dr. L. B. Singhal, Development Commissioner, Noida, SEZ was constituted by the Department of Commerce, Ministry of Commerce and Industry to review the SEZ Rules, 2006 and to make necessary recommendations. The committee further suggests submission of GST registration certificate in place of sales tax registration, along with obtaining national security clearance as per guidelines issued by the home affairs ministry.

Besides, it has asked for setting up of an SEZ Rules Interpretation Committee to help in ease of operations, as well as suggestions to reduce paper work for setting up of SEZ units. India’s exports from SEZs jumped 15.4% to Rs 1.35 lakh crore during the first quarter (April-June) of the financial year 2017-18. Besides, till September 7, the government has approved as many as 424 zones, of which 222 are operational.

The CNX Nifty is currently trading at 10537.10, up by 5.60 points or 0.05% after trading in a range of 10515.65 and 10548.20. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 6.02%, Dr. Reddy’s Lab up by 2.42%, Aurobindo Pharma up by 1.92%, Vedanta up by 1.60% and Tech Mahindra up by 1.56%. On the flip side, Indian Oil Corporation down by 1.15%, Ultratech Cement down by 1.04%, HPCL down by 0.99%, ICICI Bank down by 0.85% and Ambuja Cement down by 0.73% were the top losers.

The Asian markets were trading mostly in green; Hang Seng increased 3.94 points or 0.01% to 29,581.95, FTSE Bursa Malaysia KLCI was up by 7.71 points or 0.44% to 1,767.70, KOSPI Index added 9.33 points or 0.38% to 2,436.67, Nikkei 225 rose 18.52 points or 0.08% to 22,911.21, Jakarta Composite inched up 31.62 points or 0.51% to 6,252.63 and Taiwan Weighted increased 64.76 points or 0.62% to 10,486.67.

On the flip side, Shanghai Composite was down by 34.05 points or 1.03% to 3,272.07.