Markets pare some early losses; Nifty above 5,650 level

Indian equity benchmarks erased some early losses but continued trading in negative territory amid buying in some blue chip stocks like Reliance Industries, which rebounded with 0.3 percent gains. Following weak global cues, investors remained cautious amid lack of triggers from the home front. In currency markets, Indian rupee depreciated against dollar as American currency gained against euro in the global markets. On sectoral front capital goods, metal, bank and power stocks opened lower and were still mostly trading weak. Information technology stocks were also trading weak. Automobile and oil stocks were off their early lows thanks to modest support. Realty stocks were moving up on fairly strong buying enquiries. In global markets, most of the Asian shares were trading lower. Back home, the market breadth favoring negative trend; there were 1,404 shares on the gaining side against 1,062 shares on the losing side while 120 shares remain unchanged.

The BSE Sensex is currently trading at 18,642.53 down by 51.88 points or 0.28% after trading in a range of 18,670.48 and 18589.24. There were 13 stocks advancing against 17 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.65% and Small cap index was up by 0.90%.

On the BSE sectoral space, FMCG up by 0.84%, Realty up by 0.80%, HC up by 0.72%, Oil & Gas up by 0.52% and CD up by 0.23% were top gainers. While CG down by 0.59%, TECk down by 0.54%, Metal down by 0.44%, Bankex down by 0.42% and PSU down by 0.42% were the top losers.

The top gainers on the Sensex were Cipla up by 2.07%, Gail India up by 0.95%, Hindustan Unilever up by 0.87%, Reliance up by 0.85% and ITC up by 0.63%. On the other hand, Bharti Airtel down by 3.19%, Coal India down by 1.83%, BHEL down by 1.34%, Hindalco Industries down by 1.26% and Tata Motors down by 1.21% were top losers on the Sensex.

Meanwhile, continuing UPA's reforms juggernaut, the controversial Land Acquisition, Rehabilitation and Resettlement Bill, too may see the light of the day, as EGoM meets on September 27. However, ahead of the first meeting of the Group of Ministers on the land bill, Rural Development Minister, Jairam Ramesh, casting its votes much in the favour of the proposed land bill, asserted that the bill besides balancing the needs of economic growth with concerns of the common man, would also ease the bottleneck caused by litigations to industrial and infrastructure projects.

The land bill, which comes in the wake of tough economic environment for UPA government, provide with an opportunity to showcase how it can give thrust to industrialization and economic growth while protecting the interests of landowners and those whose livelihood depends on the land.

Meanwhile, Jairam Ramesh, in a note for the meeting scheduled for Sept 27, has argued that the existing Land Acquisition Act, 1894 shows little consideration for those whose land is acquired. The current law has led to lengthy litigations resulting in unreasonable cost escalations. Further, government statistics reveal that 70 per cent of acquisitions are challenged in courts because of forced acquisition, absence of safeguards, appeals and rehabilitation and resettlement, indiscriminate invocation of the urgency clause and low rate of compensation.

Batting for the much contentious bill, Ramesh has also underscored on the thorny issue of state autonomy. As according to the bill, states will have autonomy to deal with key issues such as calculating compensation and acquiring multi-crop or irrigated land.

As per the note, although there will be no enhancement of the market value of the land acquired in urban areas , but the compensation to ameliorate hardship on account of acquisition of such lands will be raised to 100 per cent of the market value from 30 per cent earlier. But for rural land, the market value will be enhanced with a multiplier to calculate upon the compensation. The broad principle is that the multiplier will be lower for land in proximity to the urban centre.

The S&P CNX Nifty is currently trading at 5,661.10, down by 7.80 points or 0.14% after trading in a range of 5,672.80 and 5,643.75. There were 24 stocks advancing against 25 declines while 1 stock remains unchanged on the index.

The top gainers of the Nifty were ACC up by 3.40%, Cipla up by 2.11%, Ambuja Cement up by 2.10%, JP Associates up by 1.33% and Kotak Bank up by 1.22%. While, Bharti Airtel down by 3.08%, IDFC down by 2.34%, Bank of Baroda down by 2.16%, Coal India down by 1.74% and Hindalco Industries down by 1.51% were top losers on the index.

Most of the Asian indices were trading in red, Shanghai Composite was down by 0.92%, Kospi Composite Index was down by 0.49%, Taiwan Weighted was down by 0.83%, Hang Seng was down by 0.82%, Nikkei 225 was down by 2.06%, Jakarta Composite was down by 0.65% and Straits Times was down by 0.61%. On the other hand, KLSE Composite was up 0.04% was only the gainer.