It was one of the remarkable days of trade for the
Indian equity markets which made a weak start in gloomy global
environment and after plunging to considerably lower levels bounced back
to end the session with handsome gains.Though few other Asian indices
too made recovery but what the local markets showed was strength of
broad based buying, however, the realty pack was not that lucky but
still it managed to cut its losses. The US markets remained closed on
Monday for Labor Day holiday, but the impact of last sessions plunge in
the European markets was clearly visible on the Asian stocks that
languished in red for the third day in a row and weighed heavily on the
sentiments of the Indian markets too.
Back home the start of the market was on weak note tailing the sluggishness in the peers and it seemed that the markets will witness another down day as profit booking intensified in the stocks that have surged in the recent rally, while the rate sensitives were under pressure fearing another rate hike by RBI in its upcoming mid-quarter policy review on September 16.Global brokerage CLSA in its latest report has said that the central bank may hike interest rates further by 25 basis points due to rise in inflation, however, the Finance Minister Pranab Mukherjee has hinted that RBI might not go for further rate hike as it will impact growth. This factor seemed to have worked in favour of the markets and indices started moving higher from the lows of the day in noon trade, the main support came to the markets with a positive start of the European markets which showed smart recovery in early trade after a severe pounding witnessed in last session. The other thrust to the markets came from the heavyweight Reliance Industries (RIL) which surged by over four percent after a day of break. The company has recently concluded the sale of a 30 per cent stake in 21 oil and gas blocks in the to BP Plc. Country head of BP has said that he was confident of increasing gas production from KG D6. It will set up gas JV with RIL in 2 months. JV will import and sell gas in Indian markets. On the same time ADAG companies suffered profit booking after surging in last session in a down day of trade. Reliance Capital, Rel Infra, RCom all were down by about 2 percent. Apart from the oil & gas, IT showed remarkable recovery with the positive trade in European markets and the gauge that was one of the laggards till noon, emerged as one of the top gainer for the day. Though, the consumer durables, high flier of last session witnessed profit booking and lost about half a percent. The broader markets too made a positive close however, they were outshined by their larger peers in trade today. Finally the benchmark indices closed near the highpoints of the day with gains of around a percent. The markets surged on a higher volume of around Rs 1.25 lakh crore while the turnover for NSE F&O segment too remained on higher side as compared to Friday at over 1.09 lakh crore. The market breadth remained positive as there were 1633 shares on the gaining side against 1169 shares on the losing side while 118 shares remained unchanged.
Finally, the BSE Sensex gained 149.48 points or 0.89% to settle at 16,862.81, while the S&P CNX Nifty advanced by 47.10 points or 0.94% to close at 5,064.30.
The BSE Sensex touched a high and a low of 16,894.73 and 16,488.30 respectively. The BSE Mid cap and Small cap indices were up by 0.59% and 0.71% respectively.
The top gainers on the Sensex were Reliance up 4.05%, Mahindra & Mahindra up by 3.31%, Jaiprakash Associate up by 2.79%, Jindal Steel up by 2.38% and Sterlite Industries up by 2.21%.
On the flip side, DLF down 4.43%, Sun Pharma down 2.40%, Bharti Airtel down 1.81%, Bajaj Auto down 1.49% and NTPC down 1.00% were the top losers on the index.
The top gainers on the BSE sectoral space were, Oil & Gas up 2.78%, IT up 1.16%, Capital Goods (CG) up 1.09%, Auto up 0.96% and Metal up 0.73%. While, Reality down 2.04%, Consumer Durables (CD) down 0.37%, Health Care (HC) down by 0.16%, Power down by 0.14% and FMCG down 0.11% were the top losers on the BSE sectoral space.
Meanwhile, the Draft National Land Acquisition and Rehabilitation & Resettlement Bill, 2011 proposed by the Rural Development Ministry has been approved by the Union Cabinet. The cabinet cleared the draft bill without any modifications. The draft bill is expected to be tabled in parliament on September 7, after that it may go to Standing Committee.
The draft bill is said to be giving farmers better deal, whereas it is also expected to help in increasing industrialization in Asia's third largest economy. The government and private developers have faced stiff opposition from farmers over the issue of land acquisition for industrial purpose, which is seen as one of the biggest hurdle in the country's economic expansion.
After the cabinet meeting on August 5, the Rural Development Minister Jairam Ramesh said, 'The Cabinet has approved the draft Bill'. Once the draft bill becomes an Act, the proposals made in the draft bill will be implemented with retrospective effect in case the award has not been made in Land Acquisition Act, 1894 or possession has not been taken. If the proposed bill becomes law, the government will not be able to acquire land for private companies for personal use. Last month, the draft bill was flouted in public domain for recommendation and comments.
As per the recommendations, if private firm is buying land for the public purpose, then it cannot be used for private use and if the land is not used in five years for the stated purpose, then it should be returned to the original owners. The government will also steer clear of acquiring multi-cropped irrigated land. At present, most of such lands are in northern states like Punjab, Haryana, Uttar Pradesh and Eastern States like Bihar and West Bengal.
The draft bill also has comprehensive compensation policy for land-owners and livelihood losers including landless, especially Scheduled Tribes. As per the recommendations made in draft bill, for urban areas, it proposes an amount not less than twice the market rate. In rural areas, the amount should be not less than four times the original market value.
The draft Bill also seeks to balance the need for facilitating land acquisition for various public purposes including infrastructure development, industrialization and urbanization, while at the same time meaningfully addressing the concerns of farmers and those whose livelihoods are dependent on the land being acquired, Jairam said. By adding further he said, the Bill would enjoy primacy over specialized pieces of legislation such as for highways, Special Economic Zones, defence and railways.
The S&P CNX Nifty touched high and low of 5,072.90 and 4,942.90, respectively.
The top gainers of the Nifty were Ambuja Cement up 5.20%, Reliance up 4.60%, M&M up 4.02%, SAIL up 3.58% and Kotak Bank up 3.52%.
On the flip side, DLF down 4.33%, Reliance Infra down 2.36%, RCOM down 2.27%, Sun Pharma down 2.20% and Reliance Power down 2.12% were the top losers on the index.
Back home the start of the market was on weak note tailing the sluggishness in the peers and it seemed that the markets will witness another down day as profit booking intensified in the stocks that have surged in the recent rally, while the rate sensitives were under pressure fearing another rate hike by RBI in its upcoming mid-quarter policy review on September 16.Global brokerage CLSA in its latest report has said that the central bank may hike interest rates further by 25 basis points due to rise in inflation, however, the Finance Minister Pranab Mukherjee has hinted that RBI might not go for further rate hike as it will impact growth. This factor seemed to have worked in favour of the markets and indices started moving higher from the lows of the day in noon trade, the main support came to the markets with a positive start of the European markets which showed smart recovery in early trade after a severe pounding witnessed in last session. The other thrust to the markets came from the heavyweight Reliance Industries (RIL) which surged by over four percent after a day of break. The company has recently concluded the sale of a 30 per cent stake in 21 oil and gas blocks in the to BP Plc. Country head of BP has said that he was confident of increasing gas production from KG D6. It will set up gas JV with RIL in 2 months. JV will import and sell gas in Indian markets. On the same time ADAG companies suffered profit booking after surging in last session in a down day of trade. Reliance Capital, Rel Infra, RCom all were down by about 2 percent. Apart from the oil & gas, IT showed remarkable recovery with the positive trade in European markets and the gauge that was one of the laggards till noon, emerged as one of the top gainer for the day. Though, the consumer durables, high flier of last session witnessed profit booking and lost about half a percent. The broader markets too made a positive close however, they were outshined by their larger peers in trade today. Finally the benchmark indices closed near the highpoints of the day with gains of around a percent. The markets surged on a higher volume of around Rs 1.25 lakh crore while the turnover for NSE F&O segment too remained on higher side as compared to Friday at over 1.09 lakh crore. The market breadth remained positive as there were 1633 shares on the gaining side against 1169 shares on the losing side while 118 shares remained unchanged.
Finally, the BSE Sensex gained 149.48 points or 0.89% to settle at 16,862.81, while the S&P CNX Nifty advanced by 47.10 points or 0.94% to close at 5,064.30.
The BSE Sensex touched a high and a low of 16,894.73 and 16,488.30 respectively. The BSE Mid cap and Small cap indices were up by 0.59% and 0.71% respectively.
The top gainers on the Sensex were Reliance up 4.05%, Mahindra & Mahindra up by 3.31%, Jaiprakash Associate up by 2.79%, Jindal Steel up by 2.38% and Sterlite Industries up by 2.21%.
On the flip side, DLF down 4.43%, Sun Pharma down 2.40%, Bharti Airtel down 1.81%, Bajaj Auto down 1.49% and NTPC down 1.00% were the top losers on the index.
The top gainers on the BSE sectoral space were, Oil & Gas up 2.78%, IT up 1.16%, Capital Goods (CG) up 1.09%, Auto up 0.96% and Metal up 0.73%. While, Reality down 2.04%, Consumer Durables (CD) down 0.37%, Health Care (HC) down by 0.16%, Power down by 0.14% and FMCG down 0.11% were the top losers on the BSE sectoral space.
Meanwhile, the Draft National Land Acquisition and Rehabilitation & Resettlement Bill, 2011 proposed by the Rural Development Ministry has been approved by the Union Cabinet. The cabinet cleared the draft bill without any modifications. The draft bill is expected to be tabled in parliament on September 7, after that it may go to Standing Committee.
The draft bill is said to be giving farmers better deal, whereas it is also expected to help in increasing industrialization in Asia's third largest economy. The government and private developers have faced stiff opposition from farmers over the issue of land acquisition for industrial purpose, which is seen as one of the biggest hurdle in the country's economic expansion.
After the cabinet meeting on August 5, the Rural Development Minister Jairam Ramesh said, 'The Cabinet has approved the draft Bill'. Once the draft bill becomes an Act, the proposals made in the draft bill will be implemented with retrospective effect in case the award has not been made in Land Acquisition Act, 1894 or possession has not been taken. If the proposed bill becomes law, the government will not be able to acquire land for private companies for personal use. Last month, the draft bill was flouted in public domain for recommendation and comments.
As per the recommendations, if private firm is buying land for the public purpose, then it cannot be used for private use and if the land is not used in five years for the stated purpose, then it should be returned to the original owners. The government will also steer clear of acquiring multi-cropped irrigated land. At present, most of such lands are in northern states like Punjab, Haryana, Uttar Pradesh and Eastern States like Bihar and West Bengal.
The draft bill also has comprehensive compensation policy for land-owners and livelihood losers including landless, especially Scheduled Tribes. As per the recommendations made in draft bill, for urban areas, it proposes an amount not less than twice the market rate. In rural areas, the amount should be not less than four times the original market value.
The draft Bill also seeks to balance the need for facilitating land acquisition for various public purposes including infrastructure development, industrialization and urbanization, while at the same time meaningfully addressing the concerns of farmers and those whose livelihoods are dependent on the land being acquired, Jairam said. By adding further he said, the Bill would enjoy primacy over specialized pieces of legislation such as for highways, Special Economic Zones, defence and railways.
The S&P CNX Nifty touched high and low of 5,072.90 and 4,942.90, respectively.
The top gainers of the Nifty were Ambuja Cement up 5.20%, Reliance up 4.60%, M&M up 4.02%, SAIL up 3.58% and Kotak Bank up 3.52%.
On the flip side, DLF down 4.33%, Reliance Infra down 2.36%, RCOM down 2.27%, Sun Pharma down 2.20% and Reliance Power down 2.12% were the top losers on the index.
The
European markets were trading in green. France's CAC 40 gained 0.83%,
Britain's FTSE 100 increased by 1.54% and Germany's DAX surged by 1.06%.
Most of the Asian equity indices finished their
day's trade in the negative terrain on Tuesday on fears that Europe's
sovereign debt troubles are worsening and could trigger a second,
full-blown banking crisis. European stocks tumbled 4 per cent on Monday,
with financial shares falling to their lowest in more than two years.
Moreover, Japanese Nikkei tumbled over two percent as investors remained
worried that upcoming US job measures will not be enough to boost
confidence in the slowing US economy. In Tokyo, Nomura Holdings tumbled
3.3 percent, National Australia Bank fell 1.6 percent in Sydney and HSBC
lost 2.8 percent in Hong Kong. 
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