Markets make gap-up opening on firm global cues

Extending its previous session’s rally, Indian equity benchmarks have made a gap-up opening and are trading jubilantly in early deals on Friday tracking firm global cues. The US markets extended their gains in last session after the European Central Bank (ECB) announced its decision to cut its benchmark interest rate by 10 basis points to 0.15 percent and also lowered its deposit rate to negative 0.1 percent. The ECB stimulus kept the major indices firmly positive throughout the day. However, Asian counters were exhibiting mixed trend at this point of time.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. Meanwhile, stocks related to sugar space remained on buyers’ radar after the government said that it was examining the possibility of giving additional interest-free loans of Rs 4,400 crore to cash-starved sugar mills to clear dues to cane farmers. The PSU oil marketing companies too edged higher, as an expert committee has recommended the reinstatement of LPG subsidy transfer scheme after streamlining some processes as it helps prevent pilferages.

On the sectoral front, realty, oil and gas and public sector undertaking witnessed the maximum gains in trade, while software and technology remained the only losers on the BSE sectoral space. The market breadth on the BSE was positive; there were 1562 shares on the gaining side against 452 shares on the losing side while 67 shares remain unchanged.

The BSE Sensex opened at 25204.95; about 185 points higher compared to its previous closing of 25019.51, and has touched a high and a low of 25248.67 and 25153.92 respectively. The index is currently trading at 25196.45, up by 176.94 points or 0.71%. There were 24 stocks advancing against 6 declines on the index.

The overall market breadth has made a strong start with 75.06% stocks advancing against 21.72% declines. However, the broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices up by 1.19% and 1.62% respectively. 

The top gaining sectoral indices on the BSE were, Realty up by 4.04%, Oil and Gas up by 3.12%, PSU up by 1.94%, Infrastructure up by 1.47% and Power up by 1.01% while IT down by 1.12% and TECk down by 0.57% were the only losers on the sectoral index.

The top gainers on the Sensex were ONGC up by 4.69%, RIL up by 2.87%, Hero MotoCorp up by 1.95%, GAIL up by 1.93% and Tata Power up by 1.73%. On the flip side, TCS was down by 1.69%, Infosys was down by 1.39%, SSLT was down by 1.37%, Hindalco was down by 0.83% and HUL was down by 0.34% were the top losers on the Sensex.

Meanwhile, in order to remove practical difficulties, ambiguities and anomalies arising out of the partial and hurried implementation of the new Companies Act of 2013, the Confederation of Indian Industry (CII) urged the new government to review the new Companies Act and the norms issued under it. CII President Ajay Shriram has said that the rush to notify the new company law has introduced disruptive features, making it harder for corporates to ensure compliance.

CII President said that many new concepts have introduced in the legislation for the first time which could be implemented over the period of time. Meanwhile, final set of company act norms, which was released in the last week of March, required implementation from April 1. By adding further, he said that India already ranks very low in terms of ease of doing business and the new company law will further add to the cost and complications of doing business. An unclear and cumbersome Companies Act would further impede business sentiment in the country, which is looking to improve its image after a series of setbacks like retrospective changes to tax laws, poor economic conditions.

Further, Ajay Shriram has asserted that owing to the absence of any unambiguous clarifications on norms from government front, companies are resorting to different interpretations of the provisions. Furthermore, there is no uniform interpretation of even items of ordinary business such as appointment of Independent Directors.

The CNX Nifty opened at 7,521.50; about 47 points higher as compared to its previous closing of 7,474.10, and has touched a high and a low of 7,535.10 and 7,506.85 respectively.

The index is currently trading at 7,515.90, up by 41.80 points or 0.56%. There were 40 stocks advancing against 10 declines on the index.

The top gainers of the Nifty were ONGC up by 3.94%, DLF up by 3.87%, BPCL up by 3.63%, RIL up by 2.56% and Hero MotoCorp up by 2.16%. On the flip side, TCS down by 1.63%, Infosys down by 1.55%, SSLT down by 1.30%, HCL Tech down by 1.03% and Hindalco down by 0.88% were the major losers on the index.

Asian equity indices were trading mixed; Shanghai Composite dropped 12.86 points or 0.63% to 2,028.02, Hang Seng declined by 60.64 points or 0.26% to 23,049.02, KLSE Composite slipped 2.58 points or 0.14% to 1,866.42, Seoul Composite contracted 13.08 points or 0.65% to 1,995.48 and Taiwan Weighted was down by 5.44 points or 0.06% to 9,135.28.

On the flip side, Jakarta Composite strengthened 22.17 points or 0.45% to 4,957.74, Nikkei 225 soared 304.03 points or 2.17% to 14,346.20 and Straits Times was up by 15.18 points or 0.46% to 3,294.82.