Markets hold gains amid choppy trade

Following a firm start, Indian equity markets erased some early gains, however held on to the positive territory as investors indulged in some brisk buying, tracking positive global cues. The Nifty breached 5500 on the upside in early trade but came off marginally and was trading up by 13.10 points, in the meanwhile Sensex was up by 71.47 points. Investors’ remained cautious, ahead of June quarter GDP data and the expiry of August derivatives contracts this week. In currency markets, rupee again turned weaker against the greenback on Monday, on dollar buying by oil companies and importers, who missed the late down move in the dollar on Friday. Meanwhile, Finance Minister P. Chidambaram has reportedly met foreign investors on Saturday in order to seek suggestions on attracting dollar inflows. On sectoral front, metal stocks were extending recent gains, on the back of some upbeat economic data out of China. Capital goods, realty power and healthcare stocks were among the other prominent gainers. Information technology stocks were edging higher, with a weak rupee aiding their cause. Select automobile and oil stocks were a bit subdued.

On the global front, Asian markets were trading higher as taper fears eased on the back of weaker-than-expected housing data from the US on Friday and no significant takeaway from the Jackson Hole meeting over the weekend. Back home, the market breadth was favoring the positive trend; there were 1100 shares on the gaining side against 724 shares on the losing side, while 132 shares remained unchanged.

The BSE Sensex is currently trading at 18,590.91 up by 71.47 points or 0.39% after trading in a range of 18,728.19 and 18,540.98. There were only 21 stocks advancing against 9 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.63%, while Small cap index also up by 0.80%.

The top gaining sectoral indices on the BSE were, IT up by 1.83%, Teck up by 1.64%, Power up by 1.35% and Healthcare up by 0.91%. While, Oil and Gas down by 1.04%, Bankex down by 0.69%, PSU down by 0.16% and Auto down by 0.04% were the top losers indices on the BSE.

The top gainers on the Sensex were, Sterlite Inds up by 3.76%, BHEL up by 3.45%, Wipro up by 2.70%, Dr Reddys Lab up by 2.66% and Hero Moto Corp up by 2.42%. On the flip side, ONGC down by 2.91%, Tata Steel down by 2.78%, ICICI Bank down by 2.77%, GAIL India down by 2.28% and Tata Motors down by 1.46% were the top losers on the Sensex.

Meanwhile, giving some respite to gas-starved power sector, the Empowered Group of Ministers (EGoM) headed by defence minister AK Antony decided that any surplus natural gas left after meeting the needs of urea plants would be supplied to fuel-starved electricity generating stations. Additional gas above 31 million standard cubic metres per day received by the fertiliser sector will be given to power projects until March 2016,

The government's move will benefit projects with a combined capacity of over 7,800 MW. The power sector would get around 12-14 mmscmd of gas in the next three years. Till now, gas-based fertiliser plants remained the government’s topmost priority in the allocation of gas, followed by LPG-extraction units, power projects, city gas, steel and refineries.

After a drop in output at Reliance Industries' KG-D6 block led to reduced domestic supplies, the power ministry had sought parity for electricity utilities with fertiliser units in the allocation of gas. Earlier, in March, electricity-generating stations stopped getting gas from KG-D6 block.

The EGoM also cleared new bidding norms for setting up ultra mega power projects (UMPPs) having capacity to produce 4,000 mw or more of electricity. As per the new norms, the ownership of UMPPs will remain with distribution companies, while qualified bidders will be contractors, and developers will be barred from importing equipment for the projects.

The CNX Nifty is currently trading at 5,484.85 up by 13.10 points or 0.24% after trading in a range of 5,528.70 and 5,469.85. There were 35 stocks advancing against 15 declines on the index.

The top gainers of the Nifty were Sesa Goa up by 9.02%, BHEL up by 3.53%, Ambuja Cement up by 3.51%, Hero Moto Corp up by 2.56% and NTPC up by 2.40%. On the flip side, IDFC down by 3.81%, ONGC down by 3.23%, Axis bank down by 3.12%, ICICI bank down by 3.00% and Tata Steel down by 2.75% were the major losers on the index.

The most of the Asian equity indices were trading mixed in green; Straits Times up by 0.28%, KLSE Composite up by 0.63%, Taiwan Weighted up by 0.28%, Seoul Composite up by 1.06% and Hang Seng up by 0.66% and Shanghai Composite up by 1.56%. While, Nikkei 225 was down by 0.14% and Jakarta Composite down by 0.03%.