Markets pare some gains on profit-booking at record high levels

Witnessing bit of profit-booking at record high levels, Indian equity markets have pared some of their gains tailing a mixed start of European counterparts. However, the sentiment remains broadly positive on optimism ahead of exit polls later in the day which is likely to show Bharatiya Janata Party (BJP) winning a majority, a party which is seen by markets as being more investor friendly. Additionally, little caution is also expected to be witnessed ahead of Consumer Price Inflation (CPI) data and Industrial Production data due later in the session, the latest one’s before the RBI’s next monetary policy on June 3. While, CPI is estimated to have quickened to 8.48 per cent in April from 8.31 per cent in March, factory output in March probably contracted for the fifth time in six months. Off days high, While Sensex was trading below the crucial 23,400 level, Nifty was trading above the crucial 6,950 level respectively, with gains of over one and half percent. Meanwhile, broader indices too participating in the rally are up with gains of over 3 /4 of a percent.

On the global front, European shares got off to a mixed start on ongoing concerns in Ukraine. Pro-Russian rebels declared victory in a referendum on self-rule for eastern Ukraine, a vote seen as illegal by the European Union, which is prepared to increase pressure on Russia on Monday by taking steps to extend sanctions to companies as well as people linked to Moscow's annexation of Ukraine's Crimea region.

Closer home, while majority of the sectoral indices on BSE have participated in the rally, stocks from Healthcare, Information Technology and Consumer Durables counters have bucked the trend. On the flip side, stocks from Realty, Capital Goods and Banking counters are the prominent gainers. Meanwhile, oil marketing companies are also hogging limelight on prospects of these companies yet again hiking diesel prices. The overall market breadth on BSE is in the favour of advances which have thumped declines in the ratio of 1328:1186; while 135 shares remained unchanged.

The BSE Sensex is currently trading at 23390.19, up by 395.96 points or 1.72% after trading in a range of 23453.29 and 23008.65. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.89%, while Small cap index was up by 0.71%.

The gaining sectoral indices on the BSE were Realty up by 2.54%, Capital Goods up by 2.38%, Bankex up by 2.37%, Oil and Gas up by 2.19% and Power up by 2.12%. While, Healthcare down by 0.79%, Information Technology down by 0.28% and Consumer Durables down by 0.03% were the losing index on BSE.   

The top gainers on the Sensex were HDFC Bank up by 4.27%, Coal India up by 3.70%, BHEL up by 3.51%, SBI up by 3.42% and Maruti Suzuki up by 3.01%. On the flip side, Sun Pharma down by 1.51%, TCS down by 1.48%, Wipro down by 1.43%, Cipla down by 1.39% and Hindalco Inds down by 0.59% were the losers on the index.

Meanwhile, In a run-up to slew of spectrum auctions later this year, Department of Telecommunications (DoT) will soon examine the sector regulator-Telecom Regulatory Authority of India (TRAI)’s proposal of using airwaves in the 800 MHz or CDMA band, as an extended GSM band and combining it along with 900 MHz. The move which will definitely be in the favour of GSM operators, if not CDMA, will be part of plans to review the National Frequency Allocation Plan (NFAP) for drawing up a roadmap for allocating airwaves as well vacating the frequencies held by existing users.

DoT, so far, has held in abeyance its decision on the TRAI’s proposal to make 800 MHz part of the international 900 MHz band, known also as  extended GSM or EGSM, used by GSM carriers worldwide on account of strong opposition from CDMA players which have argued 800 MHz band is designated worldwide for CDMA-based mobile operations.

However, GSM players are of the view that clubbing the 800 MHz frequencies with the EGSM band would not only generate additional premium bandwidth, but will also help reduce the number of cell towers required, lower network costs and keep tariffs more affordable.

The inter-ministerial panel of Telecom Commission is likely to meet on May 15, mainly to discuss spectrum trading and auction-related matters. The panel includes representatives from Finance Ministry, Planning Commission, Department of Industrial Policy and Promotion and some others besides the Department of Telecom.

 The CNX Nifty is currently trading at 6,969.85, up by 111.05 points or 1.62% after trading in a range of 6,988.25 and 6,862.90. There were 41 stocks advancing against 9 declining on the index.

The top gainers of the Nifty were HDFC Bank up by 4.39%, DLF up by 4.11%, Coal India up by 3.39%, BHEL up by 3.43% and SBI up by 3.24%. On the flip side, Sun Pharma down by 1.77%, Wipro down by 1.76%, Mcdowell-N down by 1.67%, TCS down by 1.48% and Cipla down by 1.41% were the major losers on the index.

Asian equity indices were trading in green; Hang Seng up by 2.17%, Jakarta added 0.55% and Shanghai Composite spurted 1.99%. While, Taiwan Weighted declined by 0.91%, Nikkei 225 lost 0.35% and Straits Times lost 0.76% were the losers amongst Asian pack.

European shares got off to a mixed start; with United kingdom’s FTSE 100 trading higher by 0.11%, France’s CAC 40 receding by 0.26% and Germany’s DAX sliding by 0.19%.