Benchmark indices pare some gains

The benchmark equity indices pared some of the gains in the late afternoon session due to European markets and US index futures trading in red, and this blocked further gains in the local markets while most of the other Asian markets settled in green. Back home, the banking stocks continued to witness buying as the banking amendment bill which aims at amending Banking Regulation Act, 1949, the Banking Companies Act, 1970 and Banking Companies Act, 1980 was tabled in the parliament yesterday. The bill aimed at hiking voting rights to 10% a move that will make investment in state-owned banks more attractive. In the BSE sectoral space auto stocks continued to trade lower. Stocks like metals and realty rose more than 1 per cent. The broader markets continue to trade higher; the BSE Mid-cap and Small-cap indices rose 0.73% and 0.56%, respectively. The market breadth on the BSE was positive; the gainers thrashed the losers in a ratio of 1601:1193 while 123 shares remained unchanged.

In a signal of robust increase in corporate incomes, overall advance tax payments by the India Inc for the current financial year have increased by buoyant 22%. Total advance tax paid by the corporates reached Rs 1.97 lakh crore in the current fiscal compared Rs 1.60 lakh crore in the last fiscal.

Highest tax payer as per the advance tax figures was publically controlled ONGC which paid Rs 8,492 crore, an increase of 35% compared to 2009-10. Another oil sector major, Reliance Industries, saw its overall advance tax payment increase by 38% to Rs 4,244 crore in the current financial year. Insurance major LIC paid Rs 3,599 crore as advance tax, nearly 11% higher than previous year.

The BSE Sensex jumped 163.39 points or 0.91% at 18,151.69. The index touched a high and a low of 18,193.75 and 17,950.17, respectively.

The BSE Mid-cap and Small-cap indices rose 0.73% and 0.56%, respectively.

All the sectoral indices on the BSE, with an exception of Auto, which was down by 0.25% were trading in the green. Bankex up 1.49%, Healthcare (HC) up 1.21%, Realty up 0.97%, Metal up 1.18% and FMCG up 0.92% were the major gainers.

The top gainers on the Sensex were Cipla up 3.18%, ICICI Bank up 3.03%, Jaiprakash Associates up 2.30%, BHEL up 2.02% and DLF up 1.71%.

On the flip side, M&M down 1.34%, TCS down 0.61%, Bajaj Auto down 0.49%, Tata Motors down 0.13% and Jindal Steel down by 0.06% were the only losers on the index.

The government is all set to set up a Civil Aviation Authority (CAA), which will be an administratively and financially autonomous body. It will not only regulate all civil aviation safety issues in the country but will also have powers to seek audit of airlines in respect of financial norms. 

The process of setting up the new regulator is now in the final stages and a cabinet note on the same is likely to be issues soon. According to the directorate general of civil aviation, a Cabinet note could be issued as early as next week. Once the Cabinet approves the move, the government will have to bring in appropriate legislation to establish the CAA.

The need for such an authority has been felt for quite some time but with increasingly complex security atmosphere, it has new become urgent to have all key regulatory functions of civil aviation under one roof. Authorities like the CAA being planned by the government already exists in many developing and advanced countries. The key, according to experts is to ensure the independence of the body so that it could implement the norm effectively.

According to the DGCA, the CAA will be provided with a lot of financial, administrative and procedural freedom. It will be able to recruit professionals directly from the industry rather than involving any ministry into the matter. Also, the chief of the authority will be given additional autonomy through the legislation that government will bring in the Parliament to establish the CAA. 

The S&P CNX Nifty advanced 51.45 points or 0.95% at 5,465.30. The index touched high of 5477.25 and a low of 5401.95, respectively.

The top gainers on the Nifty were Sesa Goa up 3.82%, Cipla up 3.22%, ICICI Bank up 2.97%, GAIL up 2.46% and Kotak Bank up 2.40%.

On the other hand, Reliance Capital down 1.41%, M&M down 1.40%, TCS down 0.52%, Cairn down 0.40% Bajaj - Auto  down 0.37% were the major losers on the index.

Most of the Asian markets settled in the green. Shanghai Composite added 1.03%, Jakarta Composite soared 1.09%, KLSE Composite advanced 0.19%, Straits Times gained 0.65% and Taiwan Weighted advanced 0.44%; while Hang Seng dipped 0.14%, Nikkei 225 declined 1.65% and Seoul Composite dropped 0.07%.

European markets were trading in red; FTSE declined 0.28%, DAX tumbled 0.74% and CAC 40 lost 0.10%.

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