Benchmarks trade with vigor; Nifty nears the crucial 6850 level

Extending its early gains, Indian equity markets continued to trade with vigor on broad-based buying activities by market-participants combined with covering up short positions by traders ahead of F&O expiry. Gains of blue chip stocks, like BHEL, L&T, and RIL were mainly fuelling the rally at Dalal Street, nevertheless midcap and small-cap stock also were contributing to bourses’ uptrend. Scaling fresh intra-day high for session, Sensex was trading well above the crucial 22,850 level, Nifty was gyrating little short of the crucial 6850 mark.  Meanwhile, broader indices also were up with profits over half a percent.

On the global front, Asian markets were traing mostly in red after a Chinese manufacturing report signaled persisting weakness in the world’s second-largest economy. Continuing to show contraction in manufacturing activity in the Asian economic giant, HSBC said its preliminary purchasing managers index (PMI) for China came in at 48.3 in April, up from 48.0 in March. On the flip side, European shares have got off to somewhat cautious but positive start.

Closer home, amidst across the board buying activities, stocks from Capital Goods, Healthcare and  Consumer Durable counters were the top gainers, only those from defensive FMCG counter bore the brunt of profit-booking. Meanwhile, in non-sectoral gauge activity, shares of companies dependent on Railways' spending jumped in trade on Wednesday as traders bet that the sector would be revived if the Bharatiya Janata Party comes to power. Shares like Titagarh Wagons, Stone India, Kernex Microsystems and Kalindee Rail Nirman were up in the range of 2-6%. The market breadth on BSE is in the favour of advances which thumped declines in the ratio of 1434: 1076; while 139 shares remained unchanged.

The BSE Sensex is currently trading at 22885.03, up by 126.66 points or 0.56% after trading in a range of 22893.15 and 22780.13. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.55%, while Small cap index up by 0.60%.

The gaining sectoral indices on the BSE were Capital Goods up by 1.64%, Healthcare up by 1.02%, Consumer Durable up by 1.01%, Oil & Gas up by 0.88% and PSU up by 0.87%. While, FMCG down by 0.06% was the only loser on the index.

The top gainers on the Sensex were L&T up by 2.28%, Sun Pharma up by 2.24%, BHEL up by 2.01%, Axis Bank up by 1.78% and ONGC up by 1.66%. On the flip side, HDFC down 0.86%, NTPC down by 0.73%, SSLT down by 0.36%, Hindalco Industries down by 0.35% and Tata Motors down by 0.26% were the top losers on the index.

Meanwhile, the Planning Commission will hold a meeting soon to discuss a new policy framework for building new airports in the country under public-private partnerships (PPPs). The meeting is likely to be organized on April 29 and will be attended by top bureaucrats, industry experts, chairmen of leading financiers and prospective global investors. Planning Commission also urged the invitees to send their clause-wise comments for the formation of fresh policy. 

Planning Commission deputy chairman Montek Singh Ahluwalia has asseted that it is an official-level consultation and no final decisions are expected to be taken. Further, he added that the process to award the contracts will put on hold until a new government is formed after the general elections. Ahluwalia also cleared that this exercise is not about privatising existing airports but building new airports in various states and for those interested in greenfield airport priojects. The commission also highlighted that policy framework can also be applied to brownfield PPP projects where an existing airport is upgraded through PPPs with some modifications.

Planning Commission had earlier in the year 2009 published a model concession agreement for new airports via PPPs, but the aviation ministry rejected the proposal. Since then, the aviation sector has undergone a number of regulatory and policy changes.    The CNX Nifty is currently trading at 6,847.45, up by 32.10 points or 0.47% after trading in a range of 6,861.60 and 6,820.75. There were only 34 stocks advancing against 15 declining on the index, while 1 stock remained unchanged.

The top gainers of the Nifty were BHEL and L&T up by 2.28%, Bank of Baroda up by 2.23%, Sun Pharma up by 2.14% and PNB up by 2.04%. On the flip side, Asian paints down by 1.19%, DLF down by 1.18%, HDFC down by 0.91%, ACC and Ultratech Cement down by 0.86% were the major losers on the index.

Asian equity indices were trading in red; Jakarta Composite down by 0.09%, Hang Seng dropped by 0.96%, Shanghai Composite slipped 0.63%, Straits Times declined 0.75%, Taiwan Weighted inched lower by 0.20%. While, Nikkei 225 surged 1.09%.

European shares started on positive note; with CAC 40 declining by 0.24%, DAX rising by 0.195 and FTSE 100 advancing 0.07%.