Markets hold early gains; Nifty trades in narrow range

After lower opening and subsequent rebounding in positive territory, Indian equity markets holding early gains amid stock specific buying across the counters. The 50-share NSE Nifty continued to move in a tight range, while 30-share BSE Sensex rose by 34 points due to lack of global and local cues. In currency markets, rupee extended earlier session’s losses against dollar amid increased demand for the American currency from oil importers and banks. On sectoral front, realty stocks were edging higher on fairly strong buying enquiries. Power, healthcare, information technology and PSU stocks were among the other notable gainers. Select stocks from the banking space also moved up. Metal, capital goods, oil and automobile stocks were mostly subdued amid somewhat lackluster trades. Meanwhile, pharmaceutical firm Cipla retained its top position in the buying list, on strong results while top car maker Maruti Suzuki lost on media reports that its Manesar workers are planning a peaceful hunger strike to force management to take back 548 sacked employees. In global markets, Asian shares steadied on Tuesday with investors' risk appetite curbed by uncertainty over the outcome of the tight US presidential election and renewed doubts over Greece's political ability to push through severe fiscal reforms. Back home, the market breadth favoring positive trend; there were 1,342 shares on the gaining side against 1,151 shares on the losing side while 126 shares remain unchanged.

The BSE Sensex is currently trading at 18,797.06 up by 34.19 points or 0.18% after trading in a range of 18,813.03 and 18,739.82. There were 16 stocks advancing against 14 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.50% and Small cap index was up by 0.29%.

The top gaining sectoral indices on the BSE were, Realty up by 1.37%, Power up by 0.67%, HC up by 0.61%, FMCG up by 0.49% and IT up by 0.47%. While, Auto down by 0.36%, Oil and Gas down by 0.31%, Metal down 0.27% and CG down by 0.26% were few losers on the index.

The top gainers on the Sensex were Cipla up by 3.26%, Jindal Steel up by 1.73%, GAIL up by 1.23%, HDFC up by 0.94% and SBI up by 0.79%.

On the flip side, Maruti Suzuki was down by 1.54%, Hindalco was down by 1.44%, Coal India was down by 1.11%, Bajaj Auto was down by 0.82% and RIL was down by 0.76% were the top losers on the Sensex.

Meanwhile, Assocham, the Industry body, has asked for changes in the proposed land acquisition law that it should have a provision of government assistance for acquiring 100 percent of land requirement by the private sector for a project, if two-thirds of it is already acquired. The Industry body in a written communication to the Rural Development Minister Jairam Ramesh has suggested that the provision should be applicable even to the projects which are defined as other than public purpose.

Further, Assocham also said that when private companies are buying a minimum of 75 percent of land through private negotiations other than public purpose should seek intervention of the concerned government to acquire the remaining land.

 The provisions of the act apply when the government acquires land for its own use or for the use of private companies for public purpose and does not apply for the use of private companies other than public purpose. This implies that Government encourages private companies to purchase land through private negotiations with land owners wherever the land is used for other than Public purpose.

Moreover, the provisions of the act relating to rehabilitation and resettlement are applicable for such private companies who are acquiring land through private negotiations. The ASSOCHAM said it welcomes such proposal and industry shall be happy to support Government’s endeavour in this direction.

The S&P CNX Nifty is currently trading at 5,712.90, up by 8.70 points or 0.15% after trading in a range of 5,719.60 and 5,693.65. There were 32 stocks advancing against 18 declines on the index.

The top gainers of the Nifty were Cipla up by 3.29%, Power Grid up by 1.96%, Jindal Steel up by 1.87%, Ambuja Cement up by 1.45% and Asian Paint up by 1.41%.

On the flip side, IDFC down by 2.07%, Maruti down by 1.54%, Hindalco down by 1.31%, Coal India down by 1.16% and Reliance down by 0.97%, were the major losers on the index.

All the Asian equity indices were trading in the red; Kospi Composite was up by 1.05%, Taiwan Weighted up by 0.71% and  Jakarta Composite up by 0.14% while Straits Times was down by 0.24%, KLSE Composite down by 0.84%, Hang Seng was down by 0.20%, Shanghai Composite was down by 1.00% and Nikkei 225 down by 0.36%.